List Forex Trading Industry in 2021: Is It Possible to Sustain Growth?
This year has 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 addition of new traders. The list forex niche was facing a hard challenge before 2020 as a result of regulatory concerns across the earth as companies started reporting a dip of volumes. Several brokers shut workplaces in different parts of the entire world due to regulatory problems.
In March 2020, because of a massive outbreak of COVID 19, lockdowns restricted traveling, and people were likely to remain at home. Fiscal markets started reacting and that resulted in a number of trading possibilities throughout numerous assets. Because of excessive volatility in the forex sector, pre-existing traders started out increasing their exposure to make use of new trading possibilities as new traders entered the market. Being a result, forex brokers registered record volumes as well as new clients. These days that 2020 is intending to end, the actual issue arises, is it possible for the retail forex trading industry to maintain the significant growth it realized during 2020? We asked industry experts for their take on the retail forex trading industry 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 has additionally resulted in unprecedented volatility. These have been some of the drivers for the huge surge in trading volume seen since March, as traders had far more time on their hands on account of lockdowns and a reduced amount of travel overall, and were additionally searching for new interests to develop since they’d newfound time to dedicate. Thus, not simply had been existing traders increasing their volumes but several firms have seen record quantities of new traders enter the business. This was definitely the case for Exness regarding both volumes and new clients,” Moyes believed.
“Initially in March if the pandemic broke out worldwide, there was a major upsurge of volatility which, together with all of the newcomers, was driving volumes to unprecedented levels. Even though there was the inevitable small drop off in the months immediately after, volume levels had continuously increased all over the season with levels far exceeding those prior to the pandemic. For most firms, the increases might well be sustainable due to the amount of new clients. Also, circumstances around the spare time of individuals and working from home have changed hardly any since earlier in the year, therefore, the same drivers for improved volumes continue to apply. We are 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 added.