Financial Reports from Brokers Suggest Growing Trade Volume

The first quarter of 2020 will definitely leave its mark in history: the unprecedented “black swan” of coronavirus pandemic led to US stock market crash that triggered trading curb within just a few weeks, and global economy sink into a recession with unprecedented speed.

During times of extreme volatility, investors frequently get in and out of the market, driving forex market trading volume to several months high in the first quarter of 2020, particularly in March. According to the quarterly or monthly financial report released by several forex brokers, trading volume has soared lately.

As of March 31st, 2020, Plus500s revenue in the past 3 months totaled US$316.6 million, up 487% year on year. Meanwhile, the number of active clients rose to 194,024, a 98% growth compared with Q1, 2019, and new client acquisition was up 289% year on year.

Saxo Group recorded a total US$496.8 billion trade volume in March with a daily average trading of 22.6 billion, up by 57.9% compared with last month and a 97.2% growth year on year.

FOREX.coms retail forex trading soared in March, with a total trading volume of US$388.6 billion that increased 95% from the 199 billion in February, 2020 and a 130% growth from the US$169 billion trade volume in March last year.

The Japanese retail forex broker Gaitames March trading volume more than tripled compared with in February, up by 149.4% to reach ¥553.4 billion (US$5.1). This has also been a significant year on year growth of 223.6% compared with the recorded trade volume of ¥171 billion last March.

In their financial reports, nearly all brokers mentioned the influence of current market climate on trading volume. Plus500 attributed the surging revenue to volatility of global financial market which in turn brought higher level of trading activities and new client acquisition. Saxo Group also noted that the trading volume boom has resulted from fluctuating market during the coronavirus pandemic.

Though the pandemic has been alleviating in many countries, the global economic outlook is still uncertain and market volatility remains. Stay tuned to WikiFX to get forex market updates and analysis.