List Forex Trading Industry in 2021: Is It Possible to Sustain Growth?
This year continues to be an interesting one for forex traders across the globe, coronavirus pandemic, lockdowns and unprecedented volatility fueled trading activities and resulted in volumes which are huge with the record breaking fact of new traders. The retail forex niche was facing a difficult challenge before 2020 as a result of regulatory issues across the earth as companies started out reporting a dip of volumes. Several brokers shut offices in different areas of the world due to regulatory issues.
In March 2020, due to a massive outbreak of COVID-19, lockdowns restricted traveling, and people were likely to stay at home. Financial markets began responding and that resulted in several trading possibilities throughout numerous assets. Because of excessive volatility in the forex industry, existing traders started out increasing the exposure of theirs to take advantage of brand-new trading possibilities as brand new traders entered the market. To be a result, forex brokers registered new clients and record volumes. Today that 2020 is intending to end, the true issue arises, can it be easy for the retail forex trading industry to retain the considerable growth it attained during 2020? We asked industry experts 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 brokers and traders alike. The COVID 19 outbreak also has resulted in unprecedented volatility. These have been several of the drivers for the huge rise in trading volume seen since March, as traders had more time on the hands of theirs as a result of lockdowns and a reduced amount of travel in general, and were also looking for new interests to develop since they had newfound moment to dedicate. And so, not only had been present traders increasing the volumes of theirs but several firms have seen record amounts of new traders enter the industry. It was surely the case for Exness regarding both volumes and new clients,” Moyes said.
“Initially in March if the pandemic broke out worldwide, there was a significant upsurge in 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 immediately after, volume levels had steadily increased all over the year with levels far exceeding those prior to the pandemic. For a lot of firms, the increases might well be sustainable because of the amount of new clients. Additionally, circumstances around the extra time of people and working from home have changed almost no since earlier in the year, consequently, the same drivers for improved volumes continue to use. We are receiving about 80 % 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 added.