List Forex Trading Industry in 2021: Is It Possible to Sustain Growth?
This year has long been an interesting one for forex traders around the planet, coronavirus pandemic, unprecedented volatility and lockdowns fueled trading tasks and resulted in volumes that are high with the record-breaking fact of new traders. The retail forex niche was dealing with a hard challenge before 2020 as a result of regulatory issues across the earth as companies started reporting a dip in volumes. Many brokers shut office spaces in various areas of the world due to regulatory problems.
In March 2020, due to a substantial outbreak of COVID 19, lockdowns restricted travel, and individuals were sure to keep at home. Fiscal markets began reacting and that resulted in a number of trading possibilities throughout numerous assets. Because of excessive volatility of the forex sector, existing traders started increasing their exposure to make the most of brand-new trading possibilities as brand new traders entered the market. As a result, forex brokers registered new clients and record volumes. Today that 2020 is about to end, the real concern arises, is it easy for the retail forex trading sector to retain the substantial growth it realized during 2020? We asked industry experts for the take of theirs on the retail 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 enormous rise in trading volume seen since March, as traders had far more time on the hands of theirs on account of a lesser amount of travel and lockdowns in general, and were additionally looking for new interests to develop since they’d newfound time to dedicate. Thus, not just were present traders increasing their volumes but some firms have seen record levels of new traders enter the industry. It was definitely the case for Exness about both volumes and brand new clients,” Moyes said.
“Initially in March if the pandemic broke out worldwide, there was an important upsurge of volatility which, together with all the newcomers, was driving volumes to unprecedented levels. Although there was the inevitable slight drop off in the days immediately after, volume levels had continuously increased across the year 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. Also, circumstances around the spare time of people and working from home have changed very little since earlier in the season, therefore, the same drivers for improved volumes continue to use. We are receiving about eighty % 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.