List Forex Trading Industry in 2021: Is It Possible to Sustain Growth?
This year has long been an intriguing one for forex traders throughout the world, coronavirus pandemic, lockdowns and unprecedented volatility fueled trading activities and resulted in volumes that are huge with the record-breaking inclusion of new traders. The retail forex sector was facing a difficult challenge before 2020 because of regulatory concerns across the world as businesses started reporting a dip of volumes. Many brokers shut workplaces in different regions of the world because of regulatory problems.
In March 2020, because of a substantial outbreak of COVID-19, lockdowns restricted travel, and individuals were certain to keep at home. Financial markets started out reacting and that resulted in several trading opportunities across numerous assets. Due to increased volatility in the forex market, pre-existing traders started increasing the exposure of theirs to make the most of different trading opportunities as brand new traders entered the market. Being a result, forex brokers registered record volumes as well as new clients. Today that 2020 is intending to end, the real issue arises, can it be easy for the retail forex trading sector to retain 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 traders and brokers alike. The COVID 19 outbreak also has resulted in unprecedented volatility. These have been some of the drivers for the enormous rise in trading volume seen since March, as traders had far more time on their hands on account of less travel and lockdowns overall, and were additionally looking for new interests to create since they’d newfound time to dedicate. So, not only were existing traders increasing their volumes but several firms have seen record amounts of new traders enter the industry. It was definitely the case for Exness regarding both volumes as well as brand new clients,” Moyes believed.
“Initially in March when the pandemic broke out globally, there was a significant upsurge of volatility which, along with all the newcomers, was driving volumes to unprecedented levels. Even though there was the inevitable small drop off in the days right after, volume levels had steadily increased across the year with levels far exceeding those before the pandemic. For many firms, the increases may well be sustainable given the amount of new clients. Additionally, circumstances around the spare time of men and women and working from home have changed hardly any since earlier in the year, therefore, the same drivers for improved volumes continue to apply. We’re getting aproximatelly 80 % of the March volatility volume in Exness and now running near to a 50 % increase from this time last year,” the Chief Commercial Officer at Exness added.