Retail Forex Trading Industry in 2021: Is It Possible to Sustain Growth?
This particular season continues to be an intriguing one for forex traders across the planet, coronavirus pandemic, unprecedented volatility and lockdowns fueled trading tasks and resulted in volumes which are huge with the record-breaking fact of new traders. The retail forex sector was facing a hard challenge before 2020 because of regulatory concerns across the entire world as businesses started reporting a dip in volumes. Many brokers closed offices in different parts of the world because of regulatory issues.
In March 2020, because of a substantial outbreak of COVID-19, lockdowns restricted travel, and people were sure to remain at home. Financial markets started responding and that resulted in many trading possibilities throughout different assets. As a result of excessive volatility of the forex sector, pre-existing traders started out increasing the exposure of theirs to take advantage of brand-new trading opportunities as brand new traders entered the industry. As a result, forex brokers registered new clients and record volumes. These days that 2020 is intending to end, the actual question arises, is it simple for the retail forex trading sector to maintain the significant growth it attained during 2020? We asked industry professionals for their take on the list forex trading market in 2021.
“One key consequence of the pandemic has been the move to working from home, both for traders and brokers alike. The COVID 19 outbreak has additionally resulted in unprecedented volatility. These have been several of the drivers for the massive surge in trading volume seen since March, as traders had far more time on the hands of theirs due to lockdowns and a reduced amount of travel in general, and were also searching for new interests to create since they’d newfound moment to dedicate. Thus, not only were present traders increasing the volumes of theirs but some firms have seen record levels of completely new traders enter the industry. This was certainly the case for Exness about both volumes as well as new clients,” Moyes believed.
“Initially in March if the pandemic broke out worldwide, there was a significant upsurge in volatility which, along with all the newcomers, was driving volumes to unprecedented levels. Although there was the inevitable minor drop off in the months immediately after, volume levels had continuously increased throughout the season with levels far exceeding those prior to the pandemic. For most firms, the increases might well be renewable because of the amount of new clients. Additionally, circumstances around the extra time of individuals and working from home have changed almost no since earlier in the year, therefore, the same drivers for increased volumes continue to apply. We’re receiving aproximatelly eighty % of the March volatility volume in Exness and now running near to a 50 % increase from this time last year,” the Chief Commercial Officer at Exness included.