Retail Forex Trading Industry in 2021: Is It Possible to Sustain Growth?
This particular season continues to be a fascinating one for forex traders throughout the world, coronavirus pandemic, unprecedented volatility and lockdowns fueled trading activities and resulted in volumes that are huge with the record-breaking inclusion of new traders. The retail forex niche was facing a hard challenge before 2020 because of regulatory concerns across the world as companies began reporting a dip in volumes. Many brokers closed offices in different areas of the world because of regulatory problems.
In March 2020, due to a substantial outbreak of COVID 19, lockdowns limited traveling, and people were likely to keep at home. Financial markets started out responding and that resulted in a number of trading possibilities across numerous assets. Because of high volatility in the forex industry, existing traders began increasing the exposure of theirs to make use of brand-new trading possibilities as brand new traders entered the industry. Being a result, forex brokers registered record volumes and new clients. Today that 2020 is intending to end, the real question arises, can it be possible for the retail forex trading sector to maintain the significant growth it attained during 2020? We asked industry experts for their take on the retail forex trading industry 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 also resulted in unprecedented volatility. These have been some of the drivers for the huge surge in trading volume seen since March, as traders had more time on the hands of theirs as a result of lockdowns and less travel in general, and were also searching for new interests to produce since they had newfound time to dedicate. And so, not simply had been present traders increasing the volumes of theirs but some firms have seen record amounts of completely new traders enter the industry. This was definitely the case for Exness regarding both volumes and brand new clients,” Moyes believed.
“Initially in March when the pandemic broke out globally, there was a big upsurge of volatility which, together with all of the newcomers, was driving volumes to unprecedented levels. Although there was the inevitable slight drop off in the days right after, volume levels had continuously increased all over the season with levels far exceeding those before the pandemic. For most firms, the increases might well be sustainable due to the number of new clients. Additionally, circumstances around the extra time of individuals and working from home have changed hardly any since earlier in the season, consequently, the same drivers for improved volumes continue to use. We’re getting about 80 % of the March volatility volume in Exness and currently working near to a 50 % increase from this time last year,” the Chief Commercial Officer at Exness added.