List Forex Trading Industry in 2021: Is It Possible to Sustain Growth?
This particular season has long been a unique one for forex traders across the world, 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 facing a tough challenge before 2020 because of regulatory concerns across the earth as companies started out reporting a dip in volumes. Many brokers shut offices in various parts of the world due to regulatory problems.
In March 2020, due to a massive outbreak of COVID 19, lockdowns limited traveling, and individuals were likely to keep at home. Fiscal markets started out reacting and that resulted in many trading possibilities across various assets. As a result of increased volatility of the forex market, pre-existing traders started out increasing the exposure of theirs to make the most of brand-new trading possibilities as new traders entered the industry. As a result, forex brokers registered new clients and record volumes. Today that 2020 is intending to end, the actual concern arises, can it be possible for the list forex trading market to retain the substantial growth it attained during 2020? We asked industry professionals for the take of theirs on the retail forex trading market in 2021.
“One main 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 massive surge in trading volume seen since March, as traders had more time on their hands on account of a lesser amount of travel and lockdowns overall, and were also looking for new interests to create since they had newfound time to dedicate. So, not simply were existing traders increasing the volumes of theirs but some firms have seen record levels of completely new traders enter the business. This was certainly the case for Exness about both volumes as well as new clients,” Moyes said.
“Initially in March if the pandemic broke out worldwide, there was a big upsurge of volatility which, along with all of the newcomers, was driving volumes to unprecedented levels. Although there was the inevitable minor drop off in the days right after, volume levels had continuously increased all over the year with levels far exceeding those prior to the pandemic. For most firms, the increases may well be sustainable given the amount of new clients. In addition, circumstances around the extra time of folks and working from home have changed very little since earlier in the year, consequently, the same drivers for increased volumes continue to apply. We’re getting 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 included.