Kabu’s trading volumes for April came in at ¥46 trillion. This represents a YoY gain from what was reported in the same period last year.
Kabu is an online broker based in Japan. The company released its trading financials for April, showing a healthy increase in trading volumes compared to 2021. While the YoY financials were good, the MoM recorded a decline. However, this has been the same trend across the industry.
The financials show that the monthly trading volumes for April were at ¥46 trillion. This is a 19% decline from March’s volumes. However, the April numbers were over two times higher than what was reported in April 2021. There was a 104% increase in April 2021’s forex volumes compared to April 2021.
Strong Q1 Results
Kabu’s first quarterly results were very impressive and more so the results reported in March. It follows a season of increased trading activities attributed to investor interest in diversifying their portfolio in other investment vehicles.
While March 2021 FX trading volumes were the highest for the company, the trend did not progress to April. The FX trading volumes for March 2021 were at an impressive ¥55 trillion. This figure is even higher than what was reported in March 2021 during a peak in market volatility.
Following an industry trend
Most FX firms that have reported their financials for April 2021 have reported a decline in trading volumes. Hence, Kabu’s financials for last month have been similar to the decline reported across the industry.
The first three months have been the best for FX firms after a boom in FX products and other asset products. Even though April had 21 trading days, which is lower than March’s 23 trading days, this cannot be attributed to the decline. February also had fewer trading days, but the month’s trading volumes were conspicuously higher.
The forex market has not been the only one affected by the dip in demand. The securities division was also affected. Kabu’s securities trading volume in April declined by around 30% to reach ¥24 trillion. The YoY demand for securities declined because 2021’s market volatility was at an all-time high, increasing demand for securities.
April financials also show that Kabu’s total assets under custody reached ¥25.9 trillion. This was also an MoM decline. New accounts in April were also low at 10,834 compared to 16,713 new accounts opened in April. The total securities accounts held by Kabu now stand at 1,282,125.
