DMM’s FX Volume Collapse Finally Halted, up 6% in August after Six Months of Declines

Japan’s second largest retail Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term broker by volume, DMM Securities, has just released its August 2014 volumes showing a first positive sign for month-on-month figures after a sixth months straight decline for the broker.

The total client FX trading volume in August 2014 for DMM was just $329.8 Billion (34,309 Billion yen), up by about 5.9% from $311.4 the previous month.

After a major surge in volumes at the beginning of the year (up 55% in January), the trading volumes for DMM have continued to fall month-after-month until now, hurt by the low Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term in the popular YEN/USD currency pair.

DMM investors should not be satisfied with this rebound, despite the good news after such a long period. All Japanese brokers have been suffering similar declines in volumes this year, but earlier this month, the Tokyo Financial Exchange (TFX) posted a 15.1% uptick in volume MoM and just today GMO Click reported an impressive 25% jump in volume. This could mean that the growth of GMO's volume might have come at the expense of DMM. It should be interesting to see if the rest of the Japanese brokers follow GMO or DMM in their August figures.