This Graphic Shows Just How Strong the Japanese Forex Industry Is

Tuesday, 21/05/2013 | 09:51 GMT by Ron Finberg
  • If you need any more proof that Japan’s retail forex industry leads the entire world, check out the image below. The chart compares equity trading at the entire Tokyo Stock Exchange versus just one forex broker
This Graphic Shows Just How Strong the Japanese Forex Industry Is

If you need any more proof that Japan’s retail Forex industry Leads the entire world, check out the image below. The chart compares average daily volumes (ADV) of equity trading at the entire Tokyo Stock Exchange (TSE) versus at just one forex broker, GMO Click Securities. The data was uncovered as we were doing research for the upcoming Forex Magnates Tokyo Summit in July.

GMO Click vs TSE ADV in ¥Trillions

GMO Click vs TSE ADV in ¥Trillions

As can be seen, average daily volumes of GMO Click have been consistently above those at the TSE over the past year. For the TSE, ADV topped ¥3 trillion yen for the first time in years and was its highest figures since 2007. Both forex and equity volumes have been aided by aggressive easing monetary easing policies at the Bank of Japan. The stimulus actions have weakened the yen against the dollar by nearly 25% since November, and during the same time lifted the Nikkei 225 index over 73% higher to above 15,000 for the first time since 2007. (Incidentally, even after the Nikkei’s rally, it is still more than 50% below its all-time highs that were reached in 1990.)

When consolidating the entire retail forex market, the contrasts to the equity market become even more striking. In our Q1 Industry Report, total Japanese retail forex ADV were estimated around ¥15 trillion for the quarter; around 7X the size of the TSE’s equity market.

If you need any more proof that Japan’s retail Forex industry Leads the entire world, check out the image below. The chart compares average daily volumes (ADV) of equity trading at the entire Tokyo Stock Exchange (TSE) versus at just one forex broker, GMO Click Securities. The data was uncovered as we were doing research for the upcoming Forex Magnates Tokyo Summit in July.

GMO Click vs TSE ADV in ¥Trillions

GMO Click vs TSE ADV in ¥Trillions

As can be seen, average daily volumes of GMO Click have been consistently above those at the TSE over the past year. For the TSE, ADV topped ¥3 trillion yen for the first time in years and was its highest figures since 2007. Both forex and equity volumes have been aided by aggressive easing monetary easing policies at the Bank of Japan. The stimulus actions have weakened the yen against the dollar by nearly 25% since November, and during the same time lifted the Nikkei 225 index over 73% higher to above 15,000 for the first time since 2007. (Incidentally, even after the Nikkei’s rally, it is still more than 50% below its all-time highs that were reached in 1990.)

When consolidating the entire retail forex market, the contrasts to the equity market become even more striking. In our Q1 Industry Report, total Japanese retail forex ADV were estimated around ¥15 trillion for the quarter; around 7X the size of the TSE’s equity market.

About the Author: Ron Finberg
Ron Finberg
  • 1983 Articles
  • 8 Followers
About the Author: Ron Finberg
Ron Finberg, a specialist in regulatory issues, brings clarity and depth to finance news
  • 1983 Articles
  • 8 Followers

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