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November 2012 FXCM Trading Metrics

A quick look at the table above shows that November 2012 wasn’t exactly the best month for retail traders as volumes slipped by 6% from the previous month and plummeted by a whopping 11% compared to November last year.

Despite the increase in average daily trades from the previous month, the drop in November trading volume was enough to drag down average retail trading volume for the entire year. On top of that, the average number of retail trades per day was 22% lower compared to November 2011.

For institutional traders, the November trading metrics were somewhat mixed. Compared to October 2012, we can see significant improvements across all metrics such as total trading volume, average trading volume per day, and average trades per day.

However, in comparing November 2012 institutional trading metrics to that of November 2011, we can see declines across the board. Average daily trading volume ($4.1 billion in November 2012) is down by 41% from the previous year while the average number of trades (9,837 trades in November 2012) is 67% lower.

In a nutshell, there seems to be a downturn in forex trading activity, particularly in the retail sector which showed declines from the previous months and the past year. Do you think that this is just a seasonal effect brought about by the recent holidays or does it hint at weaker trading activity in 2013? Let us know by voting through the poll below!