Retail Forex Trading Industry in 2021: Is It Possible to Sustain Growth?
This year has long been an interesting one for forex traders across the world, coronavirus pandemic, lockdowns and unprecedented volatility fueled trading tasks and resulted in volumes which are high with the record-breaking fact of new traders. The list forex niche was facing a difficult challenge before 2020 as a result of regulatory issues across the entire world as businesses began reporting a dip of volumes. Several brokers shut offices in various areas of the world because of regulatory issues.
In March 2020, due to a massive outbreak of COVID 19, lockdowns restricted traveling, and individuals were sure to remain at home. Fiscal markets began reacting and that resulted in a number of trading opportunities across various assets. As a result of high volatility of the forex market, pre-existing traders started increasing their exposure to make use of different trading possibilities as brand new traders entered the industry. As a result, forex brokers registered new clients as well as record volumes. These days that 2020 is intending to end, the real issue arises, can it be possible for the list forex trading sector to keep the considerable growth it achieved during 2020? We asked industry professionals for the take of theirs on the retail forex trading market in 2021.
“One major consequence of the pandemic has been the move to working from home, both for brokers and traders alike. The COVID-19 outbreak has additionally resulted in unprecedented volatility. These have been some of the drivers for the huge increase in trading volume seen since March, as traders had more time on the hands of theirs as a result of less travel and lockdowns overall, and were also searching for new interests to produce since they had newfound time to dedicate. And so, not only had been present traders increasing the volumes of theirs but some firms have seen record amounts of new traders enter the industry. This was definitely the case for Exness about both volumes as well as brand new clients,” Moyes believed.
“Initially in March when the pandemic broke out worldwide, there was a big upsurge of volatility which, together with all of 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 continuously increased throughout the season with levels far exceeding those prior to the pandemic. For many firms, the increases may well be sustainable due to the number of new clients. Furthermore, circumstances around the extra time of folks and working from home have changed hardly any since earlier in the year, therefore, the same drivers for increased volumes still apply. We are getting aproximatelly eighty % of the March volatility volume in Exness and currently operating near to a fifty % increase from this time last year,” the Chief Commercial Officer at Exness added.