GMO Click Trading Volumes Drop to Multi-Year Lows

GMO Click has reported its latest monthly trading volumes figures. During the month of July, the company posted a decline in activity on the company’s 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 trading FXNeo platform. The number marked a multi-year low of ¥66.2 trillion ($600 billion).

[gptAdvertisement]

Despite the relatively high nominal figure when compared to the rest of the industry, the Japanese brokerage actually marked its slowest month since August 2014. While FX volatility picked up in July somewhat, it didn't materially affect trading volumes in Japan. Several brokerages already reported their trading volumes for the month with Monex and Kabu both posting declines.

July’s trading volumes on GMO Click’s FXNeo platform were lower by 12.5 percent month-on-month. Seasonal factors during the month of July have been in play across the industry since the beginning of June. Typically slow summer months have been particularly slow in Japan in 2017.

GMO Click’s retail trading volumes also declined 43 percent when compared to the same month last year. The decline can be largely attributed to special factors, most notably the aftermath of the Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term vote in the UK in June 2016. Traders have been enjoying much higher volatility last year with the British pound pairs driving higher trading volumes.

GMO Click’s Click 365 exchange traded product registered a monthly increase in the total volume of contracts traded. The figure stood at 430,726 contracts, which is higher by almost 4 percent month-on-month but lower by 24 percent year-on-year.

The biggest retail FX brokerage by trading volume in the world has been registering a decline in trading volumes for most of the year. After peaking out at over $1.2 trillion in January, trading volumes have halved in US dollar terms and declined even sharper when calculated in Japanese yen.