With a last name like Ninja, I decided long ago to specialize in espionage. And with my first name being Forex, you guessed it, my other pasison was, well, anything and everything forex. Naturally, I decided to combine my two loves into one, "spying" on the forex industry (and telling you about my findings on this blog, Espipionage). This blog is dedicated to giving traders the inside scoop on developments in the forex industry, such as changing broker regulations and new forex products and companies. I also profile existing companies that are making an impact in the forex world all for your benefit. Set your night vision goggles ON. It's Spy Time!
From the table, we can clearly see that forex trading volume for both retail and institutional clients slipped in December. Compared to the November, retail trading volume declined by around 16% while institutional trading volume fell 11%. Year-on-year, retail and institutional trading volume dropped 11% and 23%, respectively.
Data on retail and institutional average trading volume per day were mixed. For retail, it decreased month-on-month but increased year-on-year. For institutional accounts, average trading volume fell both month-on-month and year-on-year.
IG Group, another major online broker, also reported a drop in trading revenue across all regions. Take a look at the table below:
Woah, that's a lot of red marks! Not a single region reported an increase in first-half revenue as global forex trading revenue slipped by 14% compared to the same period the previous year. The number of active clients also dropped, with a 29% decrease in Japan and a 14% decline in the U.K.
IG Group CEO Tim Howkins remarked that the main reasons for the decline in revenue and overall market activity were central bank intervention, economic uncertainty, and weak consumer confidence. However, he also mentioned that these market factors are only temporary as he expects higher volatility to stimulate trading volume and revenue later on.
What's next for the forex market? Is it losing its attractiveness? Let the ninja know what you think.
Related Posts:
- FXCM Trading Metrics for November 2012 00:00 19 December 2012
- FXCM June Metrics Are Out! 20:42 17 July 2012
- FXCM's Trading Volumes Are Down! Is Everything Okay? 04:26 24 October 2012
- Two Retail Forex Brokers Start 2013 With A Bang! 01:19 13 February 2013
- FXCM's Forex Trading Metrics for November 01:46 21 December 2011
