Retail Forex Trading Industry in 2021: Is It Possible to Sustain Growth?
This year has been a fascinating one for forex traders across the planet, coronavirus pandemic, lockdowns and unprecedented volatility fueled trading activities and resulted in volumes that are huge with the record breaking addition of new traders. The list forex sector was facing a tough challenge before 2020 due to regulatory concerns across the earth as businesses started reporting a dip in volumes. Many brokers shut workplaces in various parts of the entire world because of regulatory problems.
In March 2020, because of a massive outbreak of COVID 19, lockdowns restricted travel, and individuals were certain to remain at home. Fiscal markets began responding and that resulted in many trading opportunities throughout numerous assets. Because of high volatility of the forex sector, pre-existing traders began increasing their exposure to make use of new trading opportunities as new traders entered the market. Being a result, forex brokers registered new clients and record volumes. These days that 2020 is about to end, the actual issue arises, is it possible for the list forex trading sector to keep the substantial growth it realized during 2020? We asked industry experts for their take on the list forex trading market in 2021.
“One major consequence of the pandemic has been the move to working from home, both for brokers and traders alike. The COVID 19 outbreak has also resulted in unprecedented volatility. These have been some of the drivers for the huge surge in trading volume seen since March, as traders had far more time on the hands of theirs as a result of lockdowns and a lesser amount of travel in general, and were additionally looking for new interests to produce since they’d newfound time to dedicate. So, not only had been existing traders increasing their volumes but several firms have seen record quantities of completely new traders enter the business. This was definitely the case for Exness about both volumes as well as brand new clients,” Moyes said.
“Initially in March if the pandemic broke out worldwide, there was a major upsurge in volatility which, together with all of the newcomers, was driving volumes to unprecedented levels. Although there was the inevitable slight drop off in the days soon after, volume levels had continuously increased all over the year with levels far exceeding those prior to the pandemic. For most firms, the increases might well be renewable due to the amount of new clients. Furthermore, circumstances around the spare time of folks and working from home have changed very little since earlier in the year, therefore, the same drivers for improved volumes continue to apply. We are getting aproximatelly 80 % of the March volatility volume in Exness and currently operating near to a fifty % increase from this time last year,” the Chief Commercial Officer at Exness added.