Quarter 2 2024 Report: Key Takeaways and Market Insights
The second quarter of 2024 has been a dynamic period for the forex and CFD trading industry. Our latest Quarter2 2024 Intelligence Report offers key insights into the performance of the market, regulatory shifts, and emerging trends. Here's a breakdown of the highlights:
Retail FX/CFD Market Performance
The FX/CFD industry saw a substantial boost in activity. Average monthly volumes for all brokers surged from $13.14 trillion in Quarter 1 2024 to $15.73 trillion in Quarter 2 2024. This growth was largely driven by Exness, which reported record-breaking average monthly volumes of $5.01 trillion, and IC Markets posted a notable increase in volume, rising by over 30% to $1.38 trillion.
Rise in Active Accounts
The total number of active accounts in the retail FX market reached 4.82 million in Quarter 2 2024, up from 4.59 million in the previous quarter. Exness continued to dominate, maintaining over 1.22 million active accounts. IC Markets followed closely, with 188,000 active accounts. This growth reflects increasing retail interest despite regulatory challenges.
MT4/MT5 Platforms Dominate Trading
MT4 and MT5 platforms remain integral to retail trading, accounting for over 83% of total retail FX volumes. Exness led with $5.01 trillion in monthly trading volumes exclusively through MT4/MT5 platforms, followed by IC Markets at $1.27 trillion. The rising preference for these platforms highlights their robust infrastructure and versatility in supporting retail and institutional clients.
Geopolitical and regulatory shifts
Notably, the Financial Markets Authority (FMA) in New Zealand proposed leverage restrictions of 30:1 on CFDs, aligning with similar measures in Australia. This move aims to protect retail investors from excessive risk. Meanwhile, in the UAE, retail FX and CFD trading showed resilience, driven by the crypto boom and strong social recommendations.
Industry sentiment and media coverage
The Finance Magnates Media Sentiment Index revealed a shift in focus from cryptocurrencies to commodities and forex. In Quarter 2 2024, media coverage of cryptocurrencies dropped to an all-time low of 54.5%, reflecting the fading excitement around Bitcoin. Meanwhile, coverage of commodities increased to 27.8%, with oil and gold attracting more attention.
Top brokers and market leaders
The Quarter 2 2024 report revealed the top-performing brokers in the FX/CFD space. Exness once again led the charge, dominating both volumes and active accounts. IC Markets and IG Group also posted strong results, with IG Group surpassing the $1 trillion mark in monthly volumes for the first time. Meanwhile, the Finance Magnates FX/CFD Industry Performance Index rose by 15% during the quarter, led by CMC Markets, which saw a 50% jump in its share price.
Technological Advancements in Trading
The report also highlighted the growing role of AI in enhancing trading platforms and compliance processes. For instance, the launch of FirstradeGPT, an AI-driven research tool, showcased the potential for AI to provide real-time insights and improve decision-making in retail trading.
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Want to dive deeper into these trends, uncover detailed performance metrics, and gain exclusive insights into the FX/CFD industry? Get the Finance Magnates Intelligence Report for Quarter 2 2024.
