Analysis: March Brought Higher Deposits and More FX Transactions

While the first quarter of 2023 is now in the past, it is crucial for us to examine it before proceeding with our periodic analysis of the most recent months. According to the CPattern data for February and March, Finance Magnates Intelligence has identified initial signs of improvement in key forex metrics.

To begin with, we observed that the average level of traders' activity, as measured by the number of transactions, continued to grow during the first quarter. In February, retail traders conducted an average of 275 transactions, which was 12 more than in January. In March, this growth continued with a single retail trader reaching a level of 290 transactions.

Clearly, the overall activity of traders displayed a consistent increase throughout the first three months. The highest number of transactions made by an individual trader in the past 12 months was recorded in October, with a total of 300 transactions.

In March, the Philippines saw the highest level of trading activity, while in February, it was Austria that took the lead with an average of 292 transactions per trader. Historically, our rankings have shown that the most active traders predominantly hail from Asia, particularly from China. However, do these recent results challenge this trend and indicate a shift in favor of other markets?

FX Traders Depositing More Capital to Accounts

Additionally, there was a notable recovery in the value of total monthly deposits and withdrawals. In March, the monthly deposit value surpassed the "$10,000 mark" for the first time this year, reaching $10,557. Furthermore, monthly withdrawals experienced even more substantial growth, increasing from a level of $4,061 to $7,255. However, it is important to note that we are still far from reaching the peak levels attained last year, which were over $14,000 for deposits and $9,812 for withdrawals.

Regarding the highest monthly deposits in March, retail traders from Hong Kong claimed the apex position. On average, they deposited $14,833 that month, which was closely followed by traders from Turkey who deposited a total of $14,183.

Interestingly, in February, Hong Kong witnessed the highest monthly deposits on record. Retail FX traders from Hong Kong deposited $13,796, followed by Canadian traders with a total of $9,894. Turkey secured the 5th position with an average monthly deposit value of $8,601.

Speaking about Hong Kong, a new crypto regime was recently implemented. Crypto exchanges operating within the jurisdiction are now obligated to obtain a license in order to provide their services to retail traders. The regulations exclude stablecoins and crypto derivatives, including CFD-based crypto instruments.