Retail Forex Trading Industry in 2021: Is It Possible to Sustain Growth?
This particular year has been an intriguing one for forex traders throughout the globe, coronavirus pandemic, unprecedented volatility and lockdowns fueled trading activities and resulted in high volumes with the record-breaking fact of new traders. The list forex niche was dealing with a hard challenge before 2020 because of regulatory issues across the entire world as companies began reporting a dip in volumes. Many brokers shut workplaces in various areas of the earth because of regulatory issues.
In March 2020, because of a considerable outbreak of COVID 19, lockdowns limited traveling, and individuals were sure to remain at home. Financial markets started reacting and that resulted in several trading opportunities across numerous assets. Due to excessive volatility of the forex market, existing traders started increasing their exposure to make the most of different trading possibilities as new traders entered the market. As a result, forex brokers registered new clients and record volumes. These days that 2020 is intending to end, the true question arises, do you find it simple for the list forex trading market to keep the substantial growth it attained during 2020? We asked industry professionals for the take of theirs on the list forex trading industry 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 also has resulted in unprecedented volatility. These have been some of the drivers for the enormous surge in trading volume seen since March, as traders had far more time on the hands of theirs due to a lesser amount of travel and lockdowns in general, and were also searching for new interests to produce since they’d newfound time to dedicate. Thus, not simply were existing traders increasing the volumes of theirs but several firms have seen record amounts of completely new traders enter the industry. This was definitely the case for Exness regarding both volumes as well as new clients,” Moyes believed.
“Initially in March if the pandemic broke out worldwide, there was an important upsurge in volatility which, along with all the newcomers, was driving volumes to unprecedented levels. Even though there was the inevitable small drop off in the months soon after, volume levels had steadily increased throughout the year with levels far exceeding those prior to the pandemic. For many firms, the increases may well be renewable due to the amount of new clients. Also, circumstances around the extra time of people and working from home have changed very little since earlier in the season, therefore, the same drivers for increased volumes still apply. We’re receiving about 80 % of the March volatility volume in Exness and now working near to a fifty % increase from this time last year,” the Chief Commercial Officer at Exness added.