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#1 31-03-2020 18:22:22

johnedward
Admin & Trader
From: Paris - France
Registered: 21-12-2009
Posts: 3050
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How the Corona virus will change online financial services

How the Corona virus will change online financial services


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The new Corona virus is turning the world's financial system upside down.

As many nations have imposed mandatory quarantines, online shopping businesses have seen sales skyrocketing. And in terms of trading, this industry is no exception. Volumes in virtually all asset classes rose sharply in the first quarter this year.

Markets have already been evolving

A key factor that has contributed to the proliferation of online trading is the sudden surge in volatility.

Periods of uncertainty and volatility have always attracted traders. The corona situation has been exactly that catalyst, helping to shake up the forex and stock markets.

Consequently, market spillovers have attracted all types of traders, whether rookies or veterans.

Since last month, we have been witnessing the collapse of several markets.

In particular, flagship indices such as the S&P 500 plunged by over 30% in just 4 weeks.

Conversely, gold soared during this same period, which seems to have broken the market, investors jostling to get their hands on some, not to mention the opportunities also offered to cryptocurrency buyers, the decline of the Bitcoin providing a long-awaited occasion to buy.

Traders looking to profit from daily transactions and market fluctuations are already identifying new opportunities for lucrative transactions.

Many potential investors noticed that the markets were getting out of control and acted on this.

Why the forex industry will flourish

In light of this huge shift, the online forex space has become well positioned to respond to this surge in demand for financial assets.

The trading of all asset classes have already recorded considerable growth in terms of volumes.

This includes opportunities for institutional investors to start a brokerage or a trading brand. As a matter of fact, many call centers are now focusing on expanding their operations and staff to meet the growing demand for online support.

Indeed, with such a large part of the population quarantined for the next few weeks, the demand for trading platforms and the interest of new traders for online trading have surged.

The daily news has expressed much interest in the financial markets, helping to permeate the public in a way that marketing teams could never have done before.

This has fueled the demand for brokerage and related services.

Industry-wide, several large brokers have already experienced strong growth, both in terms of new clients and volumes.

Brokerage firms have also enjoyed strategic advantages over banks in this regard, given the prevalence of higher fees and long delays in processing accounts.

The positive point of the corona epidemic is the discovery of a previously illusory market segment. Many of these people are looking to take their first trading steps.

Conditions for new traders were already favorable before the virus appeared. For example, recent ESMA regulations, which have resulted in lower volumes, have made trading more user-friendly and less risky for less experienced traders.

And conditions for this sort of growth are not expected to ease anytime soon!

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