Retail Forex Trading Industry in 2021: Is It Possible to Sustain Growth?
This year has been a unique one for forex traders throughout the globe, coronavirus pandemic, unprecedented volatility and lockdowns fueled trading tasks and resulted in volumes that are high with the record-breaking fact of new traders. The retail forex sector was dealing with a tough challenge before 2020 due to regulatory concerns across the entire world as companies started out reporting a dip in volumes. Several brokers shut offices in various parts of the entire world because of regulatory problems.
In March 2020, due to a substantial outbreak of COVID 19, lockdowns restricted traveling, and people were sure to keep at home. Financial markets started out responding and that resulted in many trading opportunities throughout different assets. As a result of excessive volatility in the forex industry, existing traders started increasing the exposure of theirs to make use of different trading opportunities as new traders entered the market. To be a result, forex brokers registered record volumes as well as new clients. Today that 2020 is intending to end, the actual concern arises, can it be possible for the retail forex trading sector to retain the considerable growth it realized during 2020? We asked industry professionals 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 traders and brokers alike. The COVID-19 outbreak has additionally resulted in unprecedented volatility. These have been several of the drivers for the huge surge in trading volume seen since March, as traders had far more time on their hands as a result of a reduced amount of travel and lockdowns in general, and were also looking for new interests to create since they had newfound moment to dedicate. Thus, not just had been existing traders increasing their volumes but some firms have seen record amounts of completely new traders enter the business. It was surely the case for Exness regarding both volumes and brand new clients,” Moyes said.
“Initially in March when the pandemic broke out globally, there was a big 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 across the year with levels far exceeding those prior to the pandemic. For most firms, the increases might well be renewable due to the number of new clients. Furthermore, circumstances around the spare time of folks and working from home have changed very little since earlier in the year, therefore, the same drivers for increased volumes still apply. We are getting about 80 % of the March volatility volume in Exness and currently running near to a 50 % increase from this time last year,” the Chief Commercial Officer at Exness included.