Retail Forex Trading Industry in 2021: Is It Possible to Sustain Growth?
This particular season has long been a unique one for forex traders throughout the planet, coronavirus pandemic, unprecedented volatility and lockdowns fueled trading tasks and resulted in high volumes with the record-breaking addition of new traders. The list forex niche was dealing with a hard challenge before 2020 because of regulatory concerns across the earth as businesses began reporting a dip in volumes. Several brokers closed workplaces in different regions of the world because of regulatory problems.
In March 2020, because of a massive outbreak of COVID 19, lockdowns limited traveling, and individuals were certain to remain at home. Financial markets began responding and that resulted in many trading possibilities throughout different assets. Due to excessive volatility in the forex market, existing traders began increasing their exposure to take advantage of new trading opportunities as brand new traders entered the industry. As a result, forex brokers registered new clients and record volumes. Today that 2020 is about to end, the real question arises, can it be possible for the list forex trading industry to keep the significant growth it realized during 2020? We asked industry experts for the take of theirs on the retail forex trading industry in 2021.
“One major 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 some of the drivers for the enormous surge in trading volume seen since March, as traders had more time on the hands of theirs on account of a reduced amount of travel and lockdowns in general, and were also looking for new interests to produce since they’d newfound time to dedicate. And so, not just were existing traders increasing their volumes but some firms have seen record levels of completely new traders enter the business. It was surely the case for Exness regarding both volumes as well as new clients,” Moyes said.
“Initially in March when the pandemic broke out globally, there was a big upsurge of volatility which, along with all the newcomers, was driving volumes to unprecedented levels. Even though there was the inevitable slight drop off in the days immediately after, volume levels had steadily increased all over the year with levels far exceeding those prior to the pandemic. For most firms, the increases might well be sustainable due to the number of new clients. Furthermore, circumstances around the extra time of people and working from home have changed hardly any since earlier in the year, therefore, the same drivers for improved volumes still use. We are getting aproximatelly 80 % of the March volatility volume in Exness and now operating near to a fifty % increase from this time last year,” the Chief Commercial Officer at Exness included.