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Financial derivatives trading platform Capital.com has bucked the bearish market sentiment, adding over one million new accounts in the three-month period ending June 30, it said in a press release today.
While that’s an impressive achievement for any trading platform, Capital.com said it means it was adding new users at a 20% faster rate than it did in the first three months of the year. Moreover, it did so at a time of steadily increasing negative sentiment in the markets, which normally leads to more caution from investors. To date, it now counts more than 6.4 million total users on its platform.
However, it appears that Capital.com’s users have an appetite for the current economic downturn, with a sharp uptick in indices trading towards short positions suggesting that many are looking to take advantage of the declining market. The platform also saw strong trading in the commodities sector, with growth there coming at the expense of the crypto markets.
Capital.com said the lack of enthusiasm among its users for crypto is probably directly related to the bearish sentiment in that sector, which has fallen harder and faster than other markets.
In terms of trading volume, Capital.com said activity declined slightly. Total trading volume for the second quarter hit just over $225 billion, down by three percent from the first quarter. However, Capital.com saw encouraging growth in Europe, which accounted for almost a third of all trading volume. Also, it said U.K.-based trading activity rose by 18% in the period.
Capital.com’s Group Chief Executive Peter Hetherington said the company’s focus on growth in mature, highly regulated markets such as the U.K. and western Europe was paying off. He added that one of the company’s priorities now is to provide assistance through risk management tools and educational materials to help users steer through the choppy markets.
“We will continue to prioritise best-in-class insights, information and analytics to help clients adapt and hone their trading strategies as markets turn more bearish,” Hetherington promised.
