Retail currency trading volumes soared in the third quarter as investors leveraged volatility in the market for investment returns, according to data from dbFX.com, the online foreign exchange trading platform from Deutsche Bank.

In October alone, dbFX.com trading volumes were more than 200 per cent higher than the 2008 monthly average. 

dbFX.com said the increase in volumes was largely due to the significant increase in trading of the Euro/US Dollar in the market, while trading on other currency pairs remained relatively stable.  This trend has been widely followed by retail customers.  

Deutsch Bank said that the Euro/US dollar was the most traded currency pair on the dbFX.com platform in the third quarter.  It proved particularly popular in the Middle East and North Africa where it accounted for nearly 58 per cent of all trades. 

It was also dominant in Europe, with 38 per cent of trades accounting for the currency pair.  Numbers were also high in the Americas and Asia-Pacific, with Euro/Dollar trades accounting for 29 per cent of the total in both regions.

The second most popular currency pair in Europe was the Sterling/US Dollar, which accounted for 19 per cent of all trades on the platform.  This currency pair was also the second most popular pair in Asia Pacific, again at 19 per cent.

Betsy Waters, global director of dbFX for Deutsche Bank, said: “The latest volume figures indicate that our clients are looking to foreign exchange more and more as a driver of investment returns as they take advantage of volatility and growth prospects in the equity and bond markets diminish.

“It’s also clear that clients are attracted to currencies, such as the Euro/US Dollar and Sterling/US Dollar which offer the tightest spreads.”

Launched in 2006, dbFX.com offers 34 currency pairs.  The platform is accessible in more than 70 countries around the world and is available in multiple languages.