As first reported by Francesc and according to the latest BIS survey Forex market volume growth is unstoppable. The whole market volume was 20% higher in April 2010 than in April 2007, with average daily turnover of $4.0 trillion compared to $3.3 trillion. In April this year, 53 central banks and monetary authorities participated in the eighth Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity.
What really drove this huge growth in volume is the 50% increase in spot transactions which now represent no less than 37% of foreign exchange market turnover. Spot turnover rose to $1.5 trillion in April 2010 from $1.0 trillion in April 2007.
To us retail forex traders this doesn’t really mean much as this survey is hardly taking our market into consideration. However this does mean that the market is growing in whole, something I’m noticing in the past year or so. The market which I once assumed is pretty much mature is actually still very much growing. My own survey, despite its flaws, is one of the only retail forex market surveys and it shows that this market is also growing at double digits.
Let’s hope this growth continues, even despite the recent regulatory moves which will decrease volumes in Japan and the US.
It was inevitable, especially with huge declines in equities and real estate the general invsotr needs another lifeline.
i have worked in some of the leading brokerages in London and since the recession has peaked our new accoutns have also.
The general concensus amongst new traders is that at the end of the tunnel there is a very bright light, although the risks are high new traders think they can hit the buck.
Also traditional fund type products e.g. sicavs, oeics etc are also diversifying into derivatives like cfd’s and fx based products.