Despite regulatory concerns, prop trading growth is a highlight in the struggling FX market.
The panel "Trading Behaviour Shifts, Risks, and Outlooks" addressed key shifts in trading practices over the past year.
In 2023,
the forex (FX) industry faced challenges and declining trade volumes, which
shrunk by an average of 4%. Its future and what 2024 will bring were discussed
during the Finance Magnates London Summit 2023 (FMLS:23) in a panel featuring
Naomi Ewart-Simcock, the Senior Account Manager at ActivTrades UK, and Opal
Yang, the Forex Regulation Consultant at New Direction Business Consultant.
"Spot transactions were down by 3.3%, forwards decreased by 7.10%, and so forth. Overall, we see a decline of approximately 4%," ActivTrades UK's representative commented.
Forex Industry Faces
Challenges amid Market Volatility
Ewart-Simcock
opened the discussion during the panel titled "Trading Summary 2023:
Trading Behaviour Shifts, Risks, and Outlooks" by highlighting the
challenges faced by the FX industry in 2023, noting significant workforce
reductions among leading brokers. She stressed the need to understand this
downturn's underlying causes and explore potential recovery strategies.
"2023
wasn't a good year for the FX industry in general. We saw the leading brokers
has lost up to something like 10% of the workforce," said Ewart-Simcock.
She attributed the decline to high inflation and interest rates. However, over
50% of market analysts predict interest rates will fall next year. "Once
it's reached the bottom, the only way is going up," she added.
Yang
questioned the impact of these economic factors on trading companies, leading
to a discussion about the need for brokers to diversify their offerings.
Ewart-Simcock suggested that promoting non-FX CFDs, like futures, metals,
commodities, and indices, could be a viable strategy.
Amidst
these challenges, the panelists highlighted the explosive growth of funded
trading through "prop firms" as a bright spot.
Prop Trading Offers
Opportunities
shared
insights from her research, noting the rapid growth of proprietary trading and
its appeal to traders. She highlighted the significant number of new accounts
and profits generated by leading prop trading platforms, comparing them to
traditional Forex retail brokers like IG.
"I
wouldn't say I'm an expert in it, but we do see the increased numbers,"
said Yang. She cited statistics showing funded trading platform FTMO gained
960,000 new accounts and over $100 million in profit in 2022. Representatives
from FTMO addressed the potential of the prop trading industry in a separate
panel during FMLS:23. They suggested that it will continue to develop, but it
may face significant consolidation.
"You
can trade without having your own funds. Quite attractive for the
traders," explained Yang. She attributed the model's popularity surge to
social media and psychology.
However,
recent regulatory scrutiny of top firms like MyForexFunds raises questions. The
lawsuit against a popular company revealed that the industry is amassing a lot
of money, is under-regulated, and is increasingly full of fraudsters and
dishonest actors.
While
regulations may limit payouts from the current high rates, Yang believes funded
trading has a few years of strong growth ahead. As an introducing broker, she
advised: "We should definitely think about how we can also make profits
from this phenomenon."
In 2023,
the forex (FX) industry faced challenges and declining trade volumes, which
shrunk by an average of 4%. Its future and what 2024 will bring were discussed
during the Finance Magnates London Summit 2023 (FMLS:23) in a panel featuring
Naomi Ewart-Simcock, the Senior Account Manager at ActivTrades UK, and Opal
Yang, the Forex Regulation Consultant at New Direction Business Consultant.
"Spot transactions were down by 3.3%, forwards decreased by 7.10%, and so forth. Overall, we see a decline of approximately 4%," ActivTrades UK's representative commented.
Forex Industry Faces
Challenges amid Market Volatility
Ewart-Simcock
opened the discussion during the panel titled "Trading Summary 2023:
Trading Behaviour Shifts, Risks, and Outlooks" by highlighting the
challenges faced by the FX industry in 2023, noting significant workforce
reductions among leading brokers. She stressed the need to understand this
downturn's underlying causes and explore potential recovery strategies.
"2023
wasn't a good year for the FX industry in general. We saw the leading brokers
has lost up to something like 10% of the workforce," said Ewart-Simcock.
She attributed the decline to high inflation and interest rates. However, over
50% of market analysts predict interest rates will fall next year. "Once
it's reached the bottom, the only way is going up," she added.
Yang
questioned the impact of these economic factors on trading companies, leading
to a discussion about the need for brokers to diversify their offerings.
Ewart-Simcock suggested that promoting non-FX CFDs, like futures, metals,
commodities, and indices, could be a viable strategy.
Amidst
these challenges, the panelists highlighted the explosive growth of funded
trading through "prop firms" as a bright spot.
Prop Trading Offers
Opportunities
shared
insights from her research, noting the rapid growth of proprietary trading and
its appeal to traders. She highlighted the significant number of new accounts
and profits generated by leading prop trading platforms, comparing them to
traditional Forex retail brokers like IG.
"I
wouldn't say I'm an expert in it, but we do see the increased numbers,"
said Yang. She cited statistics showing funded trading platform FTMO gained
960,000 new accounts and over $100 million in profit in 2022. Representatives
from FTMO addressed the potential of the prop trading industry in a separate
panel during FMLS:23. They suggested that it will continue to develop, but it
may face significant consolidation.
"You
can trade without having your own funds. Quite attractive for the
traders," explained Yang. She attributed the model's popularity surge to
social media and psychology.
However,
recent regulatory scrutiny of top firms like MyForexFunds raises questions. The
lawsuit against a popular company revealed that the industry is amassing a lot
of money, is under-regulated, and is increasingly full of fraudsters and
dishonest actors.
While
regulations may limit payouts from the current high rates, Yang believes funded
trading has a few years of strong growth ahead. As an introducing broker, she
advised: "We should definitely think about how we can also make profits
from this phenomenon."
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
FX Deposits in the US Grow for the 4th Month to $549 Million
Hannelรฉ De Necker, CEO, IFX Brokers | FMAS:24
Hannelรฉ De Necker, CEO, IFX Brokers | FMAS:24
1 week to go until FMAS:24 kicks off and we couldn't skip our interviews with some of this year's sponsors ๐คฉ Starting off strong with Hannelรฉ De Necker, CEO OF IFX Brokers.
See you there!
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
๐ฃ Stay updated with the latest in finance and trading!
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1 week to go until FMAS:24 kicks off and we couldn't skip our interviews with some of this year's sponsors ๐คฉ Starting off strong with Hannelรฉ De Necker, CEO OF IFX Brokers.
See you there!
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
๐ฃ Stay updated with the latest in finance and trading!
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now ๐ https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
๐ฃ Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now ๐ https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
๐ฃ Stay updated with the latest in finance and trading!
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FMAS:24 | Sneak Peak
FMAS:24 | Sneak Peak
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africaโs premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now ๐ https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
๐ฃ Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
๐ LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africaโs premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now ๐ https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
๐ฃ Stay updated with the latest in finance and trading!
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa