Analysis: Pakistan Led the FX/CFD Activity Rank in the Summer

During the summer period, one of the retail trading account metrics experienced a dip in momentum. Two of the three main indicators remained relatively stable, with little variation observed. Notably, the first-time deposit value in August marked a significant shift, dropping below the $1,000 threshold since September 2023. Finance Magnates Intelligence takes a closer look at the August data from CPattern.

Analyzing the key indicators for July and August 2023, we observe subtle yet noteworthy shifts in the retail trading landscape. The average deposit values for both months show a gradual increase, with July recording $1,718.59 and August seeing a rise to $1,855.93. Similarly, average withdrawal figures experienced a modest uptick from $1,957.47 in July to $1,980.09 in August. The most striking shift lies in the first-time deposit values, which dropped significantly from $1,443.06 in July to $911.76 in August.

When it comes to the cumulative monthly values, deposit and withdrawal figures reveal an upward trend during this period. Average total monthly deposits increased from $10,252 in July to $12,089 in August, indicating a small increase in trader’s activity. At the same time, the total monthly withdrawal figure surged from $7,224 to $9,288, marking the highest value in withdrawals recorded in over a year.

Retail Trading Activity Up

Moving further to the trading activity, gauged by the number of transactions per account, exhibited noteworthy fluctuations between July and August 2023. In July, the highest activity per account stood at 256.63, while the lowest recorded activity was 207.88. August, on the other hand, saw a marked increase across the board, with the highest activity reaching 327.1 and the lowest at 210.6. Interestingly, the most active traders were concentrated in Pakistan during August, with an average of 327.1 transactions executed by each trader. This surge in activity signifies a burgeoning interest in the retail trading sector within the region.

Pakistan is an interesting example of a growing FX/CFD market. Southern Asia is a very interesting region. On one hand, it totally lacks regulations that would allow it to conduct brokerage business there. On the other hand, it is tempting brokers with its potential, just to name a large population. Recently, Pakistan’s Minister of State for Finance and Revenue said cryptocurrencies will “never be legalized” in the country.