Retail Forex Trading Industry in 2021: Is It Possible to Sustain Growth?
This particular year has been a fascinating one for forex traders around the world, coronavirus pandemic, unprecedented volatility and lockdowns fueled trading tasks and resulted in volumes that are huge with the record-breaking addition of new traders. The retail forex industry was dealing with a difficult challenge before 2020 due to regulatory concerns across the entire world as businesses started reporting a dip of volumes. Several brokers shut office spaces in various regions of the earth due to regulatory problems.
In March 2020, due to a massive outbreak of COVID 19, lockdowns restricted travel, and people were sure to keep at home. Fiscal markets began responding and that resulted in several trading opportunities throughout various assets. Because of increased volatility of the forex market, pre-existing traders started out increasing their exposure to make use of new trading possibilities as brand new traders entered the market. Being a result, forex brokers registered record volumes and new clients. Today that 2020 is intending to end, the real concern arises, do you find it easy for the list forex trading sector to retain the considerable growth it attained during 2020? We asked industry experts for their take on the retail forex trading market in 2021.
“One key 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 enormous rise in trading volume seen since March, as traders had more time on their hands due to lockdowns and a lesser amount of travel overall, and were additionally searching for new interests to produce since they’d newfound moment to dedicate. And so, not simply were existing traders increasing their volumes but some firms have seen record amounts of completely new traders enter the industry. It was definitely the case for Exness about both volumes and brand new clients,” Moyes believed.
“Initially in March when the pandemic broke out worldwide, there was an important upsurge in volatility which, together with all of the newcomers, was driving volumes to unprecedented levels. Even though there was the inevitable slight drop off in the months right after, volume levels had steadily increased across the year with levels far exceeding those prior to the pandemic. For most firms, the increases may well be sustainable given the number of new clients. Additionally, circumstances around the spare time of people and working from home have changed hardly any since earlier in the year, therefore, the same drivers for increased volumes still use. We are receiving about 80 % of the March volatility volume in Exness and currently operating near to a 50 % increase from this time last year,” the Chief Commercial Officer at Exness included.