The global financial system has been in total turmoil with the continued outbreak of the Covid-19 or Coronavirus.
This in turn has had a significant impact on the Financial Services industry and especially the online trading industry, an impact that is likely to last for years to come.
With countries forcing mandatory quarantines globally, online activities have skyrocketed.
For its part, the commercial industry has not been the exception. Volumes in virtually all asset classes have seen a big boost in the first quarter of 2020.
Markets are undergoing changes not seen in a decade
A key factor that has contributed to the proliferation of online trading recently is the sudden increase in volatility.
Currency, commodity, cryptocurrency and equity markets have experienced volumes and swings not seen since the Great Recession, creating a highly dynamic trading environment.
Times of uncertainty and volatility never fail to attract investors. The coronavirus outbreak has been exactly that catalyst, helping to shake the currency and stock markets into action.
Consequently, the aftermath of the markets has attracted all kinds of investors, first-time traders and veterans, novice investors and whales.
Starting in February 2020 and continuing into March, we have seen the collapse of markets, including several major ones, such as oil and the US stock market.
In particular, benchmark indices like the S & P500 in the United States had suffered a decrease of almost 35 percent in a one-month period.
By contrast, gold has skyrocketed during this same period, seemingly breaking the market with investors struggling to get hold of the yellow metal, not to mention the opportunities that are also available to cryptocurrency buyers, with Bitcoin's decline providing a highly anticipated entry price.
People looking to capitalize on daily operations and market swings are already identifying emerging lucrative business opportunities.
Many potential traders with an instinct realized that the markets were out of control and acted on their commercial analysis of the situation.
Why will the online commerce industry be king beyond 2020?
In light of this seismic shift, the online trading industry has uniquely positioned itself to meet this surge in demand for financial instruments.
Global exchanges across all asset classes have already reported considerable volume growth. In the retail sector, the time has never been better to enter the commercial space in the online market.
This includes opportunities for ordinary investors and companies looking to launch a brokerage or a new brand independent of their existing trading platform.
“We are seeing an unparalleled level of interest in the retail space during the first quarter with the investor group practically exploding overnight. The premium for this type of service has not been that high in years. ”
Additionally, there are many call centers that are now shifting their focus to expanding their activities and workforce to utilize the growing demand for online financial support.
In fact, with such a large swath of the population trapped in quarantine for the foreseeable future on every continent, the demand for trading platforms and recently discovered interest by first-time investors in online trading has increased.
The daily news cycle has placed extraordinary emphasis on financial markets, helping to permeate the public in ways that marketing teams never could.
This has fueled the demand for brokerage and related services operating within the Fintech sphere.
Industry-wide, several prominent brokerage firms have already experienced sudden increases in this growth, both in terms of clients and volumes.
Brokers have also had strategic advantages over banks in this regard, given the prevalence of higher fees and long delays in account processing.
Other industry-leading service providers, such as Smartologic Technologies, have also been booming with activity as part of their solutions offered for Fintech-related call centers.
“If you are not in the online commerce industry, then you are looking to enter. All-in-one CRMs or white labels are the name of the game with places looking to capitalize on this demand, ”added Dror Lupu, CEO of Smartologic Technologies.
The positive side of the Coronavirus outbreak has been the discovery of a previously illusory market segment. In fact, many of these people are looking to make an initial foray into the trade and take their first steps.
Conditions for emerging merchants were favorable even before the virus outbreak. For example, recent ESMA regulations with decreases in volumes have made trading more friendly for less experienced investors.
Nor are trends for this growth likely to slow soon. Additionally, brokers are better prepared now than ever against a host of cyber threats. The emphasis on cybersecurity is also an attraction for investors in what has become an increasingly insecure world.
The demographic group of potential operators is now the largest there has ever been, with millions of quarantined employees now facing longer and greater reliance on financial markets.
Ultimately, this could become a 1 in 20 year opportunity with brands, brokers, and call centers that don't waste time making the leap and entering the market. No one wants to be left behind at a time like this.