The FX trading have seen an increase by approximately 300% during the COVID-19 pandemic.
The growth rates were more pronounced in developing countries, with traders’ accounts from Africa, Eastern Europe, and Southeast Asia making up 60% of the new accounts. The steep increases in trading activity and account numbers placed pressure on forex brokers. Employees working remotely and liquidity demands mean that smaller forex brokers may not be a safe choice for traders.
Extensive growth such as this is rare for the forex industry, as related in the official press release. Over the past decade, average daily forex trading volume increased by no more than 40%. The circumstances leading up to this rise have been unprecedented.