Retail Forex Trading Industry in 2021: Is It Possible to Sustain Growth?
This year has long been a fascinating one for forex traders throughout the globe, coronavirus pandemic, unprecedented volatility and lockdowns fueled trading tasks and resulted in volumes which are high with the record-breaking inclusion of new traders. The list forex sector was dealing with a difficult challenge before 2020 due to regulatory concerns across the earth as businesses began reporting a dip of volumes. Several brokers shut workplaces in various parts of the entire world due to regulatory issues.
In March 2020, due to a substantial outbreak of COVID-19, lockdowns restricted traveling, and people were bound to keep at home. Financial markets began reacting and that resulted in many trading opportunities throughout different assets. As a result of high volatility of the forex industry, existing traders started increasing their exposure to make the most of brand-new trading possibilities as new traders entered the industry. Being a result, forex brokers registered record volumes and new clients. These days that 2020 is intending to end, the actual issue arises, is it simple for the list forex trading sector to maintain the significant growth it realized during 2020? We asked industry professionals for their take on the list forex trading market in 2021.
“One key consequence of the pandemic has been the move to working from home, both for brokers and traders alike. The COVID 19 outbreak also has resulted in unprecedented volatility. These have been several of the drivers for the enormous increase in trading volume seen since March, as traders had more time on the hands of theirs due to less travel and lockdowns overall, and were additionally looking for new interests to produce since they’d newfound moment to dedicate. And so, not simply had been existing traders increasing the volumes of theirs but some firms have seen record amounts of completely new traders enter the industry. This was surely the case for Exness regarding both volumes and brand new clients,” Moyes said.
“Initially in March when the pandemic broke out worldwide, there was a significant upsurge of volatility which, together with all of the newcomers, was driving volumes to unprecedented levels. Although there was the inevitable small drop off in the months immediately after, volume levels had continuously increased across the year with levels far exceeding those before the pandemic. For a lot of firms, the increases may well be renewable due to the amount of new clients. In addition, circumstances around the spare time of individuals and working from home have changed almost no since earlier in the year, consequently, the same drivers for improved volumes continue to apply. We are receiving about 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 added.