Kabu’s FX Volume for April Doubled YoY

Kabu, which operates a Japanese online brokerage, published its trading metrics for April, reporting an excellent jump in over-the-counter (OTC) Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term trading demand from last year. However, there was a significant drop when compared to the previous month’s numbers.

According to the broker, monthly trading volume OTC forex instruments for last month came in at ¥46 trillion, a month-over-month decline of almost 19 percent. But, when compared year-over-year, April’s forex more than doubled, gaining 104 percent.

Following the trend in the trading industry, Kabu’s forex demand last March soared only to drop in the consecutive month. The platform’s FX volume peaked that month with almost ¥55 trillion, which is even higher than the numbers achieved in March 2020 when the markets were experiencing heavy volatility.

Industry Trend

Kabu’s latest numbers came in line with the industry trend as Finance Magnates reported a similar trading dip in April across several other global platforms.

April had 21 trading days, compared to March with 23 trading days.

Apart from the forex market, the demand in the securities market witnessed a drop in April. Compared to March, securities trading volume in the month came down by more than 30 percent to ¥24 trillion. Unlike forex, securities demand plummeted on a yearly chart as well.

Additionally, the number of newly opened accounts dropped. Last month, Japanese brokerage opened 10,834 accounts, compared to 16,713 accounts opened in the previous month. Kabu ended the month with a total of 1,282,125 securities accounts.

Furthermore, the monthly disclosure by the broker revealed that the asset under custody with it was ¥25.9 trillion by the end of April, which is a marginal drop month-over-month. The credit balance remained at ¥2.4 trillion.