List Forex Trading Industry in 2021: Is It Possible to Sustain Growth?
This season continues to be an intriguing one for forex traders throughout the planet, coronavirus pandemic, lockdowns and unprecedented volatility fueled trading activities and resulted in volumes that are high with the record-breaking inclusion of new traders. The retail forex sector was dealing with a hard challenge before 2020 due to regulatory issues across the earth as businesses started reporting a dip of volumes. Several brokers closed offices in different regions of the world because of regulatory issues.
In March 2020, due to a substantial outbreak of COVID 19, lockdowns restricted travel, and people were sure to keep at home. Financial markets began reacting and that resulted in many trading possibilities across various assets. Because of high volatility in the forex industry, pre-existing traders began increasing the exposure of theirs to make the most of different trading opportunities as new traders entered the industry. Being a result, forex brokers registered new clients as well as record volumes. Now that 2020 is intending to end, the actual question arises, do you find it simple for the list forex trading industry to retain the significant growth it achieved during 2020? We asked industry professionals for their take on the list 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 also has 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 the hands of theirs on account of lockdowns and less travel in general, and were also searching for new interests to create since they had newfound moment to dedicate. So, not only were existing traders increasing their volumes but several firms have seen record quantities of completely new traders enter the industry. This was certainly the case for Exness about both volumes and new clients,” Moyes believed.
“Initially in March when the pandemic broke out worldwide, there was an important upsurge in volatility which, along with all the newcomers, was driving volumes to unprecedented levels. Although there was the inevitable small drop off in the days right after, volume levels had continuously 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 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 season, therefore, the same drivers for increased volumes continue to use. We’re receiving 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.