FX trading volumes continue to surge in 2013, led by Japan, as a global “risk-on” trade environment continues.
LeapRate’s Retail FX Volume Index, sponsored by Leverate, moved up another 2% in February following an rise 18% in January, to $206 billion per day. February’s index figure was the highest ever, setting an all-time record.
The increase also continues a very nice start to the year following a 2012 year which many in the retail FX sector would like to forget — as more stringent regulations, combined with ultra-low volatility in the currency markets, led to a slowdown in FX trading worldwide during 2012.
LeapRate’s Retail FX Volume Index is a monthly measure of global trading activity in the retail FX sector.
Sources: LeapRate research, monthly and quarterly volume reports of various Forex ECNs and Forex brokerage firms.
Gerald Segal, LeapRate Managing Director commented, “February volume continued January’s momentum in the retail FX trading world. We continue to see a very nice comeback in FX trading out of Japan — back to being the world’s largest retail FX market, at least for now — leading the way. Globally, a general “risk-on” trade movement in the equity markets since the beginning of the year has brought more cheeriness to investors, and more action to the currency markets as well.”
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.