Global Retail FX Volume Peaks; Asian Traders Busiest of All

Previously, WikiFX reported that several forex brokers have experienced a gradual decline of trade volume in May. Recently, trading consulting and research company CPattern released a detailed market report. Report shows that global retail forex transactions in March and April 2020 reached record highs. As the market trend stabilized, investors began to withdraw funds.

In the past March and April, the spread of coronavirus across the globe and the relaxation of major central banks' monetary policies have caused violent fluctuation of the financial market. Commodities such as gold and crude oil were affected by the plunge in demand, and prices also fluctuated significantly, crude oil prices even dropped to negative range. The series of unstable factors brought more severe market panic, while boosting trading volume and activities of derivatives such as forex.

The data released in the report shows that this March, the average deposit of retail forex account increased from US$2,315 in February to US$2,502. However, this data fell directly to US$2,307 in April. In terms of withdrawals, the average withdrawal amount of retail forex traders in April increased from US$2,524 to US$2,795.

It can be seen that traders withdraw mainly to close positions and pocket gains from market volatility in the past few months. In addition, the average first-time deposit (FTD) of new customers also increased in April, with the average first-time deposit rising from US$1,307 in March to US$1,732.

According to the data, retail trading activities has been particularly active in the past two months, with the average number of transactions per trader reaching as high as 275.5 in March. In April, this data dropped to 229.8.

From a regional perspective, traders in the Asian market have been the most active during March and April. Retail forex traders from Thailand performed an average of 252.3 transactions in March, while Chinese traders performed an average of 267.1 transactions in April.