Retail forex trading volumes globally drop to $285 billion daily, in typical August fashion.
Nothing to worry about in the retail forex industry, it was just summer….. LeapRate’s Retail FX Volume Index, sponsored by Leverate, decreased by 6% in July to average $285 billion daily, down from $305 billion in July and off 13% from an all time high of $329 billion per day in June.
The drop was not unexpected, as forex (as well as equity and fixed-income) trading volume metrics typically fall off during the northern hemisphere summer vacation months of July and August.
The July-August combined drop of 13% in global forex volumes was fairly mild, given the rapid runup of retail forex volumes in the first half of 2013, culminating with the aforementioned retail forex trading record of $329 billion per day set in June.
Gerald Segal, LeapRate Managing Director, commented, “The August slowdown was clearly across the board — in the US, Japan, Europe, the Middle East, and elsewhere — as muted volatility combined with traders’ summer vacations. The only forex broker on our radar screen which actually did more volume in August was Alpari, having its best ever month. But otherwise it was summer business as usual.”
LeapRate’s Retail FX Volume Index is a monthly measure of global trading activity in the retail forex industry.
Sources: LeapRate research, monthly and quarterly volume reports of various Forex ECNs and Forex brokerage firms.
The LeapRate Retail FX Volume Index, sponsored by Leverate, is a monthly measure of activity, stated in billions of dollars per day. It is calculated using proprietary formulas developed by LeapRate. The data input into the model are based on examining monthly and/or quarterly activity levels put out by various retail FX brokerage firms; similar activity levels announced by other FX aggregators such as Forex ECNs (e.g. Thomson Reuters, FXall, ICAP-EBS, Hotspot FX) and FX settlement firms (e.g. CLS Group); as well as anecdotal evidence we encounter as part of our general research activities in the Forex sector.
LeapRate is a leading research and information firm serving the global FX industry. Through its partnership with Dow Jones, LeapRate publishes the LeapRate-Dow Jones Forex Industry Report, a comprehensive review of the retail FX industry. Other LeapRate services include Best-of-the-Web FX Research and our daily FX Research email for traders, the Forex Yellow Pages, Forex Exec Search job listings, and our Approved List of regulated FX brokerage firms worldwide. For more information please see our website at www.leaprate.com.
For more on the global Forex industry see the LeapRate-Dow Jones Forex Industry Report.