FX trading volumes are climbing again as economic uncertainty spurred by recent developments over central banks’ policies encouraged speculators to pile back into the market.
The latest group of retail FX platforms to report their monthly volumes indicate that January was a busier month all round, with Exness setting its highest monthly volumes on record.
Total trading volumes on the Exness’ platform ticked higher last month, helped by a rise in volatility driven by central banks’ policy announcements. Specifically, January’s figure came in at $2.82 trillion, up 12 percent from $2.52 trillion in December.
Over a yearly basis, the multi-regulated FX broker’s turnover had shot higher by 87 percent when compared with $1.51 trillion reported back in January 2022.
Activity on Exness’ trading platform has been consolidating as the bull run in the fourth quarter created a profitable opportunity for industry players, from major venues to an array of retail-focused FX brokerages.
The company also said its active client base is now at record levels and is materially higher than it was in 2022, with levels of retention comparable to historical averages. Exness reported the number of active clients at nearly 414,502, up 61 percent from 257,135 in the same month a year earlier. On a month-over-month basis, the number of active clients was also up by 10 percent from 374,978 in December.
The average trading volume in 2021 was $820 billion, but the metric has jumped to record levels above the $2.3 billion mark over the last year due to frenzied buying and selling activities. The uptick in volumes also comes as Exness, which is authorised by the FCA as an IFPRU €730K firm, continues to restructure its business.
Exness acquired its regulated UK license, an IFPRU €730K firm, back in 2016 to operate a CFDs brokerage business. The broker launched a mainly retail offering, which focused on CFDs in Forex and commodities. In light of an internal business decision to restructure its business and focus on other markets to grow their B2B operations, Exness decided in 2019 to close the retail business in the EU/EEA region, including in the UK.