The Australian foreign exchange industry saw a record number of new traders enter the market in the 12 months to November 2016, data from Investment Trends has shown.
The research house’s 2016 Australian Foreign Exchange Report found a record 16,000 people began trading on foreign exchange markets for the first time in the 12-month period.
The influx of new traders supported the industry’s growth, with the number of Australians making foreign exchange trades up to 50,000, 4 per cent higher than in 2015, and Investment Trends said it was “welcome news for an industry that has slowly but consistently contracted in recent years”.
“The Australian foreign exchange industry has returned to growth, in a perfect illustration of volatility-at-work,” said Investment Trends research director Irene Guiamatsia.
“A third of those who started trading foreign exchange for the first time during 2016 said they saw opportunities in market movements that convinced them to take the first step.”
The research also found the number of foreign exchange providers changing service providers last year was down to 14 per cent from 21 per cent the year prior, and current switching intentions are low.
“In line with switching activity declining, overall client satisfaction has steadily risen since 2010,” the researcher said.
“Australian FX traders are now among the best serviced in the world, just behind their US and UK peers.”