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Retail Forex Trading Industry in 2021: Is It Possible to Sustain Growth?

List Forex Trading Industry in 2021: Is It Possible to Sustain Growth?

This season has long been a unique one for forex traders throughout the world, coronavirus pandemic, lockdowns and unprecedented volatility fueled trading tasks and resulted in volumes that are high with the record breaking inclusion of new traders. The retail forex sector was dealing with a difficult challenge before 2020 due to regulatory concerns across the earth as companies started out reporting a dip in volumes. Many brokers shut office spaces in various parts of the entire world because of regulatory problems.

In March 2020, due to a massive outbreak of COVID-19, lockdowns limited travel, and individuals were certain to stay at home. Financial markets began responding and that resulted in several trading possibilities across numerous assets. Due to increased volatility of the forex sector, pre-existing traders started increasing their exposure to make use of different trading possibilities as brand new traders entered the market. Being a result, forex brokers registered new clients and record volumes. Now that 2020 is intending to end, the true concern arises, can it be possible for the retail forex trading market to keep the considerable growth it attained during 2020? We asked industry experts for the take of theirs on the retail forex trading industry in 2021.

“One key 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 several of the drivers for the massive increase in trading volume seen since March, as traders had far more time on their hands as a result of less travel and lockdowns in general, and were also looking for new interests to produce since they’d newfound moment to dedicate. Thus, not only had been present traders increasing the volumes of theirs but several firms have seen record amounts of completely new traders enter the industry. This was surely the case for Exness regarding both volumes and brand new clients,” Moyes said.

Sustainable Growth
“Initially in March when the pandemic broke out worldwide, there was a major upsurge of volatility which, together with all the newcomers, was driving volumes to unprecedented levels. Even though there was the inevitable slight drop off in the days right after, volume levels had steadily increased across the season with levels far exceeding those before the pandemic. For many firms, the increases may well be renewable given the number of new clients. Additionally, circumstances around the spare time of people and working from home have changed almost no since earlier in the year, therefore, the same drivers for increased volumes still apply. We are getting aproximatelly 80 % 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 included.

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