Exness volumes shrink +20% in April
The foreign exchange market experienced lower than usual trading volumes in April, indicating a shift in market sentiment as global economic conditions continue to be impacted by conflicting factors.
According to data from Exness, the monthly turnover was $3 trillion in April 2023, down from a record of $3.88 trillion in March. This represents a 22% decrease in trading volumes, marking the first decline in activity since November 2022.
On a yearly basis, the multi-regulated FX broker’s turnover had shot higher by 42 percent when compared with $2.1 trillion reported back in April 2022.
The company also said its active client base took a step back off record levels it his in April, but it remains materially higher than it was in 2022, with levels of retention comparable to historical averages. Exness reported the number of active clients at nearly 476,172, up 69 percent from 281,279 in the same month a year earlier. On a month-over-month basis, the number of active clients was down by 3 percent from 491,064 in March.
The FX market, like other financial markets, is undergoing a digital transformation. This includes the use of algorithmic trading, high-frequency trading, and other technology-driven strategies that increased trading volumes.
Exness has a diverse client base, including retail traders, institutional investors, and high-net-worth individuals. The broker’s average trading volume in 2023 was above the $3 trillion mark so far due to frenzied buying and selling activities. The uptick in volumes also comes as Exness, which is authorised by the FCA as an IFPRU €730K firm, continues to restructure its business.
Exness acquired its regulated UK license, an IFPRU €730K firm, back in 2016 to operate a CFDs brokerage business. The broker launched a mainly retail offering, which focused on CFDs in Forex and commodities. In light of an internal business decision to restructure its business and focus on other markets to grow their B2B operations, Exness decided in 2019 to close the retail business in the EU/EEA region, including in the UK.