Retail FX and CFDs broker Capital.com has announced that total client trading volumes will reach more than $1.2 trillion in 2023, or just north of $100 billion per month. The company said this is a 53% increase from a year earlier and marks the first time customer transaction volumes have surpassed the $1 trillion mark annually since the company was founded in 2016.
We recently reported exclusively that Capital.com is shifting the focus of its operations from the UK following the departure of CEO Peter Hetherington, to the MENA region, the EU and other regions. Actually, Capital.com confirmed that MENA customers already represented the company’s largest geographic segment for trading volumes in 2023 (more details below).
Ariel Segev, Group Chief Financial Officer, Capital.com, said:
“It is a great honor to be recognized as the fastest growing technology company in the DME Fast 50 for the 3rd year in a row. This win demonstrates our tenacity and resilience as a high growth fintech company and we are extremely fortunate to be based in a dynamic and thriving tech hub like Cyprus. With its enabling, business-friendly ecosystem, deep talent pool and enabling legislation, Cyprus is the ideal jurisdiction for tech scale-ups like ours to supercharge their growth strategies.”
Capital.com added that in the 1st quarter of 2024, the total global trading volume on the platform reached $337 billion, or $112 billion monthly, up about 12% from last year. During the same period, the number of active traders on the platform increased by 17% compared to the previous quarter. The vast majority of trading volumes came from customers in the Middle East, followed by Germany, Italy and the Netherlands.
The top two most traded markets by volume on the platform in Q1 2024 were indices and commodities. More than 79% of total trading volume across the platform in Q1 found its way into index-related markets, namely the US Tech 100 (Nasdaq-100), US30, DE40 and US500.
Daniela Hathorn, Senior Market Analyst, Capital.com, said:
“Semiconductor hype carried over into the first quarter of 2024, which helped boost US tech stocks and Nasdaq-listed tech companies. Traders also changed mindsets in Q1 and began to welcome resilience in US economic data, moving away from the “good data is bad” rhetoric that dominated most of 2023. This allowed stocks to move to new highs even as meant the Federal Reserve was less likely to start cutting interest rates.”
During the same period, commodity market trading volumes accounted for 58% of total trading volume, making it the second most traded market by volume on the Capital.com platform. Trading volumes were heavily concentrated in gold and crude oil.
“Risk appetite was strong for most of the quarter, a key driver of the rally in stocks. That said, escalating geopolitical tensions led investors to diversify their portfolios, causing gold to appreciate more than 10% in the first three months of the year as demand for safe havens increased. Meanwhile, continued attacks on Russian refineries and fears of tight supplies stemming from the conflict in the Middle East have pushed oil prices higher,” Hathorn added.
About Capital.com
Capital.com operates several licensed online brokerage subsidiaries in the UK, Australia, Cyprus and now the UAE. The company and its sister brand Currency.com are controlled by Victor Prokopenya, a Belarusian lawyer and computer scientist living in London.