Retail Forex Market Volume Q4 2011 - Japan's decline puts pressure on global volumes

The last quarter of 2011 was as quiet as the second one — the most 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 during 2011 was experienced in Q1 (Japan’s Tsunami) and Q3 (Euro Zone’s instability). In Japan especially, volumes were relatively low as the Yen traded in a narrow band, becoming unattractive to day traders. FXCM further increased its position as the world’s largest 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, with its retail forex volumes reaching an average $341 billion a month.

FXCM’s institutional forex volumes kept growing at an impressive pace as well and reached an average of $118 billion a month. MF Global unfortunately was scrapped from this list due to its bankruptcy and legal proceedings. In Australia local brokers outpaced the global growth, with Pepperstone, for instance, growing substantially faster than others. For the first time, Admiral Markets, ACM Gold and eToro’s numbers are available. Due to new information that came in, GFT’s numbers were reduced. IBFX and Tradestation were merged into a single position just like City Index and FX Solutions.

Overall monthly volumes grew by a modest 4.5%, excluding Japan. Including the Japanese market, which didn’t rebound as forecasted in the previous report, volumes decreased by 1.0% to $4,777 billion a month.

The result: Retail Forex market volume is $217 billion daily and $4,777 billion monthly.

You can find the full date in the Q4 2011 Forex Magnates Quarterly Forex Industry Report.

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