Investment Trends 2014 Australia Foreign Exchange Report released

From

Key findings of the Investment Trends 2014 Australia FX Report:

  • FX trader numbers slipped slightly, but volumes could rise again in 2015
  • Broker satisfaction reached a record high, but trader loyalty should not be taken for granted
  • Mobile technology is set to be the next battleground for FX providers

The Investment Trends 2014 Australia FX Report is an annual in-depth study of retail traders in Australia and their usage of foreign exchange trading (FX). The 2014 study is based on a survey of 11,879 traders and investors concluded in November 2014.

FX trader numbers slipped slightly, but volumes could rise again in 2015

In the 12 months to November 2014, 49,000 investors placed at least one FX trade through an Australian provider, down from 51,000 in 2013. This is in line with global trends, where a prolonged period of low volatility has contributed to dampen the growth of the FX markets in France, Singapore, the US and the UK.

“The spike in the VIX index seen in early October 2014 failed to spur a sufficient increase in trader numbers in Australia.”, said Irene Guiamatsia, Analyst at Investment Trends, “but this trend could reverse in 2015.”

At the time of the survey, 53% of FX traders said they would trade more often once volatility picked up, versus 17% who said they would trade less often. With the heightened levels prevailing since the beginning of the year, the market could see a return to more dynamic FX trading activity in 2015, if traders act on their intentions.

Broker satisfaction reached a record high, but trader loyalty should not be taken for granted

FX traders’ satisfaction with their main provider increased from an already high level. “FX providers have continued to drive improvements in client satisfaction through product innovation” said Guiamatsia. “Over the past year, the majority of FX traders noticed useful innovations from their main broker, with the most notable being FXCM’s new pricing structure and Axitrader’s upgrades to the Metatrader 4 platform”.

As a result, the rate of switching from one provider to another dropped from 27% in December 2013 to 19% in November 2014, the largest decline among all countries surveyed by Investment Trends. “Trader loyalty is, however, likely to have already been unsettled by the upheaval of floating the CHF/EUR pair. The picture in 2015 will depend on each provider’s readiness to adapt to the new environment”, said Guiamatsia.

Rather than competing on price alone, providers who emphasized and performed well on customer service also performed well on overall client satisfaction. OANDA, AxiTrader, FXCM, Pepperstone and IG were the top five FX providers based on their client ratings for overall satisfaction.

Mobile technology is set to be the next battleground for FX providers

Among traders at risk of switching providers, the mobile platform is increasingly important as a driver of future broker selection. In November 2014, 37% said it was a very important feature, versus only 25% in 2013.

In terms of satisfaction with the mobile app, market leader IG retained the lead, but the competition is closing in, with CMC Markets, OANDA and FXCM achieving very high satisfaction ratings for their mobile trading platforms.

One in four (27%) current traders would like further improvements to their main FX provider’s current mobile functionality; this figure is as high as 35% among those susceptible to switch.

Among countries surveyed by Investment Trends, the trend in mobile phone usage in relation to trading leveraged products is consistently on the rise, with Singapore taking the lead (88% usage among Singaporean CFD & FX traders, versus 70% among Australian FX traders).

Australia--FX-Media

About the report

This report provides a detailed analysis of the Australian FX market, examining attitudes and behaviour of current, dormant, next wave and potential traders.

Based on a survey of 11,879 traders and investors, this report is the largest and most comprehensive independent study of the online trading market in Australia.

You must be logged in to post or view comments.