Brokers Report Dropping FX Volumes as Covid-19 Volatility Eases

The Financial Commission / Media posts / Brokers Report Dropping FX Volumes as Covid-19 Volatility Eases

According to our colleagues at Finance Magnates, several brokers, including GMO Click and Saxo Bank have reported a drop in July trading volumes following the extreme market volatility witnessed this spring following the spread of Covid-19 globally. While the FX markets can normally experience a slowdown in summer months, the drop in volumes is exacerbated by the record trading volumes achieved in March and the following months by many international online brokerages.

GMO Click, based in Japan, reported that their FX Neo platform recorded a total exchange volume of 105 trillion yen in foreign currencies, compared to 124 trillion yen in total volume in June, which is a 15.3% decline month over month. The broker indicated that they achieved a peak in volumes in March 2020 when trading activity surged across the world. The broker recorded 189 trillion yen in trading during that month. Nevertheless, when looking at 2019 data, the broker still achieved a 102% growth when comparing the same monthly data, which is certainly very positive.

European Saxo Bank experienced similar performance, with July forex trading volumes falling 14.1% to $138.6 billion, as compared to $161.4 the month before. On an annualized basis the broker failed to achieve the growth experienced by GMO Click, with 2020 July numbers being 10.5 stronger than the same period in 2019. Nonetheless, the Danish broker was able to grow commodities trading volumes by a whopping 81.3% from June to July 2020 and 18.2% on an annualized basis suggesting that traders are looking to speculate on the most dynamic markets available.

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