List Forex Trading Industry in 2021: Is It Possible to Sustain Growth?
This particular season continues to be a unique one for forex traders across the planet, coronavirus pandemic, unprecedented volatility and lockdowns fueled trading activities and resulted in volumes that are high with the record breaking addition of new traders. The list forex niche was facing a tough challenge before 2020 because of regulatory concerns across the entire world as businesses started out reporting a dip of volumes. Many brokers shut offices in different regions of the world because of regulatory problems.
In March 2020, due to a considerable outbreak of COVID 19, lockdowns limited travel, and individuals were bound to keep at home. Fiscal markets began reacting and that resulted in a number of trading opportunities throughout various assets. Due to high volatility of the forex industry, pre-existing traders started out increasing the exposure of theirs to make the most of different trading possibilities as brand new traders entered the industry. As a result, forex brokers registered record volumes as well as new clients. These days that 2020 is intending to end, the real question arises, do you find it simple for the retail forex trading industry to maintain the substantial growth it realized during 2020? We asked industry professionals for their take on the list forex trading industry in 2021.
“One key 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 increase in trading volume seen since March, as traders had more time on their hands as a result of lockdowns and less travel overall, and were additionally looking for new interests to develop since they had newfound time to dedicate. So, not simply had been existing traders increasing the volumes of theirs but some firms have seen record amounts of completely new traders enter the business. It was certainly the case for Exness regarding both volumes and new clients,” Moyes said.
“Initially in March if the pandemic broke out globally, there was a major upsurge in volatility which, along with all the newcomers, was driving volumes to unprecedented levels. Although there was the inevitable slight drop off in the days right after, volume levels had continuously increased throughout the year with levels far exceeding those prior to the pandemic. For most firms, the increases may well be renewable because of the number of new clients. Furthermore, circumstances around the extra time of men and women 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 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.