The Binary Options Decline and FX Recovery: the New Intelligence Report is Here
- The Q2 2017 report examines all the hot industry topics and reveals dramatic shifts in trading volumes.
With more than half of 2017 behind us, we can already note that this year has been even less stable and more challenging for the trading industry than 2016 was. Political dramas in Europe have continued to influence currency volatility and the 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 industry. France’s somewhat surprising election of Macron and Theresa May’s Pyrrhic victory in the UK, along with Germany’s upcoming elections, have shaken the foundations of the European status quo.
We can add to that the constant turmoil in Washington D.C. Will President Trump’s failure to pass his skinny replacement of Obamacare in July result in a full-blown tax reform that will dramatically influence the global corporate map? Only time will tell.
This increased volatility may explain the slight recovery and even growth of the industry. Despite a slow start with a very weak April (-10% MoM), the second quarter of 2017 brought about a rebound in non-Japanese retail volumes. This trend can also be attributed to the shift of traders from the declining binary options industry to the forex industry.
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IG Group remains the biggest non-Japanese player in the retail industry, followed by Saxo Bank. FXCM kept its 5th spot but showed the steepest decline (-18% QoQ), while IC Markets climbed up the ladder, growing by 27% QoQ. On the other hand, the Japanese industry has slipped by 10% QoQ.
The number of active accounts grew for most industry participants and especially in the case of medium sized brokers. However, Q2 was especially negative for FXCM, as it registered a decrease of 3,000 registered active accounts QoQ.
The Life and Death of a Brokerage
The lead article in the magazine section looks into one of the most basic and primal issues that one faces in this industry – the lifecycle of a forex/binary brokerage. We examined some of the better known examples of brokerage demise, and identified some patterns and rules of thumb regarding what can go wrong.
Another article covered a major trend of the last two years or so – the Southeast Asian hype. A growing number of Western brokers are entering Malaysia, Indonesia, Vietnam and other markets in the East Indies, as local players are growing strong and becoming more dominant in the global forex scene.
In our country review, we focused on Turkey, with a special analysis of the changes in the country's regulatory framework and the ramifications for the local forex industry.
IG Group's exposure to the binary options industry was also under the lens.
New Exclusive Benchmarks
Crypto-mania continues to rock the financial industry. We have analyzed the top currencies in the game and tried to predict which will prevail in the race for investors' hearts. Beyond that, we looked into the major ICOs of this quarter and examined the implementation of Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term as proposed assets for retail forex companies.
Beyond that, this issue features several new cross-industry benchmarks. We have gathered revenue data from leading forex firms and created a new industry benchmark that gives us an idea of industry trends. Another benchmark features the social network presence of selected brokers, to see who controls this strong marketing channel.
We also teamed up with the Financial Commission, that shared its dispute resolution statistics regarding complaints received from traders around the world.
All that and more in the brand new Quarterly Intelligence Report!
With more than half of 2017 behind us, we can already note that this year has been even less stable and more challenging for the trading industry than 2016 was. Political dramas in Europe have continued to influence currency volatility and the 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 industry. France’s somewhat surprising election of Macron and Theresa May’s Pyrrhic victory in the UK, along with Germany’s upcoming elections, have shaken the foundations of the European status quo.
We can add to that the constant turmoil in Washington D.C. Will President Trump’s failure to pass his skinny replacement of Obamacare in July result in a full-blown tax reform that will dramatically influence the global corporate map? Only time will tell.
This increased volatility may explain the slight recovery and even growth of the industry. Despite a slow start with a very weak April (-10% MoM), the second quarter of 2017 brought about a rebound in non-Japanese retail volumes. This trend can also be attributed to the shift of traders from the declining binary options industry to the forex industry.
[gptAdvertisement]
Get the brand new Quarterly Intelligence Report now!
Intelligence Products | Finance Magnates
IG Group remains the biggest non-Japanese player in the retail industry, followed by Saxo Bank. FXCM kept its 5th spot but showed the steepest decline (-18% QoQ), while IC Markets climbed up the ladder, growing by 27% QoQ. On the other hand, the Japanese industry has slipped by 10% QoQ.
The number of active accounts grew for most industry participants and especially in the case of medium sized brokers. However, Q2 was especially negative for FXCM, as it registered a decrease of 3,000 registered active accounts QoQ.
The Life and Death of a Brokerage
The lead article in the magazine section looks into one of the most basic and primal issues that one faces in this industry – the lifecycle of a forex/binary brokerage. We examined some of the better known examples of brokerage demise, and identified some patterns and rules of thumb regarding what can go wrong.
Another article covered a major trend of the last two years or so – the Southeast Asian hype. A growing number of Western brokers are entering Malaysia, Indonesia, Vietnam and other markets in the East Indies, as local players are growing strong and becoming more dominant in the global forex scene.
In our country review, we focused on Turkey, with a special analysis of the changes in the country's regulatory framework and the ramifications for the local forex industry.
IG Group's exposure to the binary options industry was also under the lens.
New Exclusive Benchmarks
Crypto-mania continues to rock the financial industry. We have analyzed the top currencies in the game and tried to predict which will prevail in the race for investors' hearts. Beyond that, we looked into the major ICOs of this quarter and examined the implementation of Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term as proposed assets for retail forex companies.
Beyond that, this issue features several new cross-industry benchmarks. We have gathered revenue data from leading forex firms and created a new industry benchmark that gives us an idea of industry trends. Another benchmark features the social network presence of selected brokers, to see who controls this strong marketing channel.
We also teamed up with the Financial Commission, that shared its dispute resolution statistics regarding complaints received from traders around the world.
All that and more in the brand new Quarterly Intelligence Report!