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

This season has long been a unique one for forex traders across the world, coronavirus pandemic, unprecedented volatility and lockdowns fueled trading tasks and resulted in volumes that are huge with the record-breaking inclusion of new traders. The list forex niche was dealing with a tough challenge before 2020 because of regulatory issues across the world as businesses began reporting a dip in volumes. Many brokers shut office spaces in various regions of the entire world due to regulatory issues.

In March 2020, due to a substantial outbreak of COVID-19, lockdowns restricted traveling, and individuals were bound to keep at home. Fiscal markets started out responding and that resulted in many trading possibilities across various assets. As a result of excessive volatility of the forex sector, existing traders started out increasing their exposure to make use of different trading opportunities as new traders entered the industry. Being a result, forex brokers registered new clients and record volumes. These days that 2020 is about to end, the actual concern arises, is it possible for the list forex trading sector to retain the significant growth it achieved during 2020? We asked industry professionals for their take on the retail forex trading industry 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 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 far more time on their hands due to a reduced amount of travel and lockdowns overall, and were also searching for new interests to create since they’d newfound time to dedicate. So, not just had been existing traders increasing the volumes of theirs but several firms have seen record quantities of new traders enter the industry. This was certainly the case for Exness regarding both volumes and new clients,” Moyes believed.

Sustainable Growth
“Initially in March when the pandemic broke out globally, there was a significant upsurge in volatility which, along with all of the newcomers, was driving volumes to unprecedented levels. Although there was the inevitable slight drop off in the days immediately after, volume levels had continuously increased throughout the season with levels far exceeding those prior to the pandemic. For many firms, the increases may well be renewable given the amount of new clients. In addition, circumstances around the spare time of people and working from home have changed very little since earlier in the year, therefore, the same drivers for increased volumes continue to apply. We are receiving about eighty % of the March volatility volume in Exness and now operating near to a fifty % increase from this time last year,” the Chief Commercial Officer at Exness included.