Kabu Posts Strong November Demand, FX Volume Skyrockets

Japanese online securities brokerage, Kabu has released its volumetric metrics for all the listed instruments for the month of November, showing a strong uptick across the board, including foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (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).

Last month’s forex trading volume on Kabu’s over-the-counter (OTC) forex desks came in at ¥3.71 trillion. In the previous month, the brokerage reported an FX volume of ¥2.75 trillion, meaning there was a month-on-month jump of more than 35 percent in November.

This latest reported figure is only behind the windfall gain the Japanese platform witnessed in March that broke past the ¥5 trillion mark.

Activity on Kabu skyrocketed this year as, in November last year, the brokerage reported a total OTC forex volume of ¥1.42 trillion.

Demand Increased across the Markets

Apart from forex, the demand for other instruments also saw a significant spike in demand. The platform reported a total stocks trading volume of ¥2.78 trillion, a month-on-month rise of 14 percent.

The demand for stocks on the Japanese platform jumped significantly in 2020, but the volume dropped significantly compared to most of the months in the first half of this year.

Despite the growth in demand, Kabu saw a slowdown in the influx of new traders. Only 9,411 new accounts were opened with the brokerage last month, taking the total number of accounts to 1,211,890.

Assets under the custody of the brokerage increased to ¥2.42 trillion in November. In the previous month, the platform reported this figure at ¥2.28 trillion. Additionally, it closed last month with a credit balance of ¥220 billion.

Similar to Kabu, FX volumes around the globe increased last month. Cboe, FXSpotStream, and Euronext all reported a significant rise in November’s forex volumes.