Retail Forex Trading Industry in 2021: Is It Possible to Sustain Growth?
This particular year has been an intriguing one for forex traders throughout the planet, coronavirus pandemic, unprecedented volatility and lockdowns fueled trading tasks and resulted in high volumes with the record-breaking inclusion of new traders. The list forex sector was facing a difficult challenge before 2020 due to regulatory concerns across the entire world as companies started reporting a dip in volumes. Several brokers shut workplaces in various parts of the entire world due to regulatory issues.
In March 2020, because of a massive outbreak of COVID-19, lockdowns restricted traveling, and people were sure to remain at home. Fiscal markets started out reacting and that resulted in several trading opportunities across numerous assets. As a result of increased volatility of the forex sector, existing traders started increasing the exposure of theirs to take advantage of brand-new trading opportunities as brand new traders entered the industry. As a result, forex brokers registered new clients as well as record volumes. These days that 2020 is about to end, the actual issue arises, do you find it simple for the retail forex trading industry to keep the substantial growth it achieved 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 has also resulted in unprecedented volatility. These have been some of the drivers for the massive increase in trading volume seen since March, as traders had far more time on the hands of theirs on account of less travel and lockdowns overall, and were also searching for new interests to produce since they’d newfound time to dedicate. Thus, not just were existing traders increasing their volumes but several firms have seen record levels of new traders enter the business. This was definitely 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 major upsurge of 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 right after, volume levels had steadily increased all over the season with levels far exceeding those before the pandemic. For a lot of firms, the increases might well be renewable because of the amount of new clients. Additionally, circumstances around the extra time of individuals and working from home have changed almost no since earlier in the season, consequently, the same drivers for increased volumes still apply. 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.