Retail Forex Trading Industry in 2021: Is It Possible to Sustain Growth?
This particular year has been a fascinating one for forex traders across the globe, coronavirus pandemic, unprecedented volatility and lockdowns fueled trading activities and resulted in high volumes with the record breaking addition of new traders. The retail forex niche was dealing with a tough challenge before 2020 because of regulatory concerns across the world as companies started reporting a dip in volumes. Many brokers shut offices in various areas of the earth because of regulatory problems.
In March 2020, because of a considerable outbreak of COVID 19, lockdowns restricted traveling, and people were likely to stay at home. Financial markets started out reacting and that resulted in a number of trading possibilities across various assets. Because of increased volatility of the forex sector, existing traders began increasing the exposure of theirs to take advantage of new trading possibilities as new traders entered the market. Being a result, forex brokers registered record volumes and new clients. Today that 2020 is intending to end, the true question arises, is it possible for the retail forex trading market to maintain the substantial growth it achieved during 2020? We asked industry experts for the take of theirs on the list 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 also resulted in unprecedented volatility. These have been some of the drivers for the enormous increase in trading volume seen since March, as traders had more time on the hands of theirs on account of lockdowns and a lesser amount of travel in general, and were also looking for new interests to develop since they’d newfound moment to dedicate. Thus, not only were existing traders increasing their volumes but several firms have seen record levels of completely new traders enter the business. It was surely the case for Exness about both volumes and brand new clients,” Moyes believed.
“Initially in March if the pandemic broke out worldwide, there was a significant upsurge in volatility which, along with all 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 all over the year with levels far exceeding those before the pandemic. For a lot of firms, the increases may well be renewable given the amount of new clients. Also, circumstances around the spare time of folks and working from home have changed hardly any since earlier in the year, consequently, the same drivers for increased volumes still use. We’re getting aproximatelly eighty % 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.