Digital markets are accessed by millions of individuals across the world and we have the latest facts and figures related to growth.
Digital markets are accessed by millions of individuals across the world and we have the latest facts and figures related to growth. Pic: NULL

The latest statistics on volume and growth of online trading

By Partnered content Time of article published Apr 2, 2020

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The modern Homo sapiens has grown accustomed to pervasive technology. Today, almost every aspect of reality has been digitized. From the moment we wake up to the moment we fall asleep, and even throughout the night, our lives are saturated with tech. Money flows and earnings are no exception. This is why the rapid growth of online activity through the  ForexTime  trading platform and other tools is only natural. 

The upward trend is salient, and it is observed across the world. From London to Nigeria, finance-savvy individuals engage in trading of currencies, stocks, and commodities through Internet-connected tools. By the end of 2019, their number is estimated to have exceeded 15 million. Online trading now constitutes a large segment of the digital economy. 

Recent Trading Stats 

According to Bloomberg, daily volumes on foreign exchange have exceeded $6.6 trillion. This is a rise of 29% from $5.1 trillion in 2016. The Modern Trader reports that the number of online traders stood at approximately 9.5 million in 2017. By the end of 2018, it had grown to almost 14 million. Today, the number is over 15 million, including the South Africa sub region.  

What demographic do these people belong to? The majority (almost 60%) are millennials or representatives of Generation Y. These are individuals most used to digital technology, as it has been a fixture of reality all their lives. 

This was first pointed out in 2018 by American media sources, such as the platform. The American youth have definitely embraced digital earning tools, and the tendency is persistent. However, similar trends have been noticed in Asia. 

According to CNBC, the Tiger Brokers app in China has received a powerful boost from residents under the age of 35. This group constitutes at least two-thirds of all individual brokers. In 2019, a vast majority of these users (over 85%) raked in annual profits that went beyond $40,000.

  • It is a misconception to assume that most of these people reside in large metropolitan cities. According to the report, 95% or retails traders live outside big financial cities. 
  • Most online traders in the world come from the United Kingdom. It is estimated that one in 100 Brits has traded online. Their average annual earnings stand at roughly £36,000.
  • In terms of gender, most are male, with just a fraction (1 in 7 people) of female traders. Females are also more risk-averse. On average, they tend to deposit around $400 less than males.
Reasons Behind the Rise:

So, why is all of this happening? Expert analysis links the growth in online trading volume with specifics of modern psychology. Digital tools offer increased convenience and speed – something physical exchange could not provide. At least, this is what the Western media includes in the number of key causes.

1. Computerized Nature of Trading

Gone are the days when clients had to visit a physical exchange and call up their broker to open positions. Today, all financial flows and trading tools are digitized. A single piece of software (e.g., MetaTrader 4) allows you to enter the global market and implement your strategy. All deposits and withdrawals are conducted through the Internet. 
This has also transfigured the role of brokerage services. While companies still act as necessary intermediaries, their interests are often independent of their clients’ performance. An ECN system in Forex trading receives commission regardless of the result of your trades. This ensures higher transparency or terms and pricing.  

2. Simplified Entry Requirements

In the past, trading on the global exchange required sizable initial investment. Now, thanks to brokers like ForexTime, clients trade with more than they deposit. The leverage ratio of 1:100 means that by depositing $100 (initial margin), you may open positions for as much as $10,000. 

In addition, there is a range of account options with minimal margin requirements. For example, cent accounts may be opened with as little as $10. The lower the cost of entry is – the more people can afford to become traders. 

The spread shows no signs of slowing down. In the future, Internet-assisted trading is predicted to expand further. Effective finance tools make trading appealing to millions.  

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