Due to the virus situation, many gamblers are switching to trading

A new breed of traders has entered the forex, attracted by the increased volatility caused by the virus situation. A number of demographics make up this wave, including an increase in the number of participants from the gambling industry.

The increase in the number of new traders includes new ones, dormant traders who are reconnecting with their investment portfolios, and investors who previously traded only one asset class - such as bonds - and who are branching out into different assets.

However, there is also another category of new traders - players, who could not bet on professional games, as the lock-in measures have postponed all sports events.

Gamblers shifting to trading is a logical shift

Andrew Anastasio, founder of WireWallet, explained that there are several main reasons for this trend: "It is a simple evolution to turn to trading. However, it would seem appropriate that the vast majority of Traders who have entered the industry from online casinos or sports betting should not stay long, as in general these guys are either looking for the thrill of a win or are used to placing a bet that is more calculated by chance than financial calculation."

"That's not to say that people who trade the forex aren't educated, but there's a big difference between taking a calculated risk on a forex trade, and placing a bet on a sporting event or playing in the casinos."

"Also, being locked up has created a fair amount of boredom and a change in lifestyle for most people. As a result, people are looking for new ways to spend their time and, in the absence of sporting events, they are looking for a place to spend their money and enjoy themselves".

Joe Waner, founder of BingoDaily, says it would be almost logical for gamblers to move into the trading industry.

"Since the start of the lockdown, we have seen a significant increase in user acquisitions in the bingo business. Although BingoDaily's target audience is not in the financial field, we cover the financial activities of the major UK publicly listed gambling operators, so we are seeing a clear shift in interest from what can be considered the most unlikely of gambling fields."

Will the gamblers stay in this new "forex playground"?

If this trend is favorable for the industry and the brokers operating in this space, it is likely that these new traders will stay as volatility decreases. According to Mr. Waner, it all depends on the brokers.

"Much depends on the brokers themselves. The way they retain new clients, keep them interested and engaged. What no one wants is a return to the dark days of unregulated investments/games as we have seen with binary options. Training, transparency and strict regulation - which the UKGC has worked hard to achieve - would help the trading industry retain new traders. And yes, we also hope they come back to gambling on sports events".

Anastasio, however, believes that the vast majority will return to casinos and sports betting: "I think a number of people will appreciate the calculated risk involved in forex trading. However, as I mentioned, I feel that the two industries operate in different areas in terms of the types of services they provide and the feeling they provide."

"Once we get back to normal, I believe that the vast majority of them will return to the online gambling websites and sports betting, because there is a substantial difference in the thrill of placing a bet or playing in an online casino".