Overall FX turnover in the UK
A survey has been conducted to calculate the overall turnover from the FX industry in the UK. It is easy to say that the volume is down, however, the Island nation still holds the #1 spot in terms of the currency market. The turnover averaged around $2,6 billion as of October 2018, which is a tad smaller than the $2,7 billion in April 2018.
There are no clear indications as to why this may have happened, but the speculations have already begun. Judging the fact that these couple of months, the UK has been nothing but political turmoil regarding the whole Brexit ordeal. Customers have been overly cautious. Limiting their investments or abandoning the UK brokers completely.
What’s the issue?
The survey showed that even the most liquid currency pair on the market, the EUR/USD, has dropped more than 6 percent during the reported period. The indicators are very alarming indeed, as the UK keeps falling into chaos after the Brexit deal denial from parliament.
All the customers have left to do is to see what happens with their brokers as numbers keep decreasing and the government becomes more desperate. Recommendations have already come out for the traders to start transferring their funds to EU based brokerages if they, of course, want to remain within the sphere. For example, KontoFX has the know-how to provide traders top trading conditions and is ready to start accepting “FX trader migrants” from the UK on their platform. This is not the only case, however, as most of the brokers all over Europe have started procedures to prepare for the influx of UK-based customers.
What’s happening globally?
Despite this small meltdown in volumes, London is still able to retain their position as the number 1 trading hub. However, New York has been catching up fast over the years. Actually, New York saw its own survey done in October 2018, but it had several errors. They are being corrected as we speak and should be out in a couple of weeks if not days. Therefore we can even see a new number 1 hub for the Forex market.
But that is rather doubtful, as almost all around the world, every Forex market has been decreasing. Starting from Canada and ending with Australia, the volumes have been showing a decrease after decrease. All of this can be accounted to the holidays when people were less inclined to risk their funds on the market. That could indeed be the case for the rest of the world. But Brexit is still a huge factor for the UK