Australia based financial research house Investment Trends has released its in-depth study of French CFD and FX traders’ attitudes and investing habits. In overall, the 2017 France Forex market survey shows a decline in the number of traders.
26 October, AtoZForex - A survey in France found that the number of traders is shrinking due to a ban on FX and CFD advertisement. According to Industry Trends survey, the 2017 France CFD & FX Report shows that the number of traders declined by 7 percent to 20,500 in the country. This is the fourth consecutive yearly decline after a peak of 26,000 in 2013.
However, there has been a robust growth in new traders despite the challenging marketing conditions. A total of 5,000 CFD traders placed their first trade in the past year. Which is only 10 percent down from 5,500 traders in 2016.
2017 France Forex market survey highlights
Though, the launch of advertising ban has affected the Forex market. A number of trading accounts have remained dormant. Also, the research highlights that 50 percent of traders remained active.
“While declining volatility in equities markets and restrictions on an electronic advertisement presented a challenging environment, it is high levels of client dormancy that is proving to be a major stumbling block,” said Dr. Irene Guiamatsia, Research Director at Investment Trends.
However, two brokers on the French market have been the dominant players. Every two in five clients were either with IG Group or with FXCM. On its part, the French subsidiary of Saxo Bank, Saxo Banque, has been very successful with the on-boarding of new clients during the past 12 months.
Investment Trends survey on switching activity
According to Investment Trends, traders have become less likely to switch their providers. A switching activity declined to 18 percent. The figure is down from 20 percent in 2016 and 25 percent in 2015.
“With client loyalty on the rise, new-to-market traders are now the largest segment contestable for client acquisition,” said Guiamatsia.
Aside the research on switching between brokers, the paper of Investment Trends also looked into the services that the brokers are offering to its traders.
“When asked to describe useful innovations introduced by their primary provider in the past year, clients most often mentioned either new access to a new charting package or substantial upgrades to their provider’s proprietary trading platform,” explained Guiamatsia.
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