Institutional Trading Accelerates Amid Market Volatility in Q1 2025

Table of Contents

01

FX Market Sees Record Institutional Activity

02

Institutional Brokerage Metrics Also Surge

03

Whats Driving the Institutional Momentum?

04

Outlook

FX Market Sees Record Institutional Activity

March 2025 marked the third consecutive month of volume growth for leading institutional FX platforms. According to market data, average daily volumes (ADV) across top-tier eFX venues rose by an average of 8.7% in March, building on February's 2.4% rise and January's 16% spike.

FXSpotStream led the surge, posting a record overall ADV of $116.89 billion in March—a month-over-month increase of 11.15% and a year-on-year rise of 41.55%. The spot segment alone reached $83.07 billion, while non-spot products like swaps and NDFs hit $33.82 billion, both setting new platform records.

Other institutional platforms followed suit:

• Cboe FX reported an ADV of $52.11 billion in March, up 8.5% from February.
• EuronextFX registered $31.33 billion, a 6.4% increase month-over-month.
• 360T came in at $36.81 billion, up 8.6% from the previous month.

The strong momentum was not merely a product of seasonal trends—it reflected active institutional positioning amid currency fluctuations, macroeconomic rebalancing, and growing expectations of central bank divergence.

Institutional Brokerage Metrics Also Surge

Institutional strength was mirrored on the brokerage side. Interactive Brokers (NASDAQ: IBKR), a leading global e-broker, recorded 3.471 million daily average revenue trades (DARTs) in March 2025, up 44% from March 2024. Though slightly down from February, the March DART figure still underscores sustained high-frequency activity from professional traders.

Client account growth at the firm remained steady, reaching 3.62 million accounts—up 32% year-over-year. Client equity stood at $573.5 billion, 23% higher than a year earlier. These numbers align with a broader trend of institutional investors increasing market exposure, leveraging both trading platforms and brokerage tools in response to volatility.

Whats Driving the Institutional Momentum?

Several concurrent factors contributed to the surge:

• Policy Risk: Renewed talk of trade tariffs in the U.S. triggered hedging demand in currency markets.
• Volatility as Opportunity: Macro instability turned into trading opportunities for institutions, especially in FX and derivatives.
• Platform Efficiency: Growth in eFX platforms and improvements in execution quality have made it easier for large orders to be managed with reduced slippage.

Outlook

As Q2 begins, market participants are watching for further shifts in central bank narratives, particularly around interest rates. Meanwhile, continued geopolitical friction and inflationary data releases are likely to fuel more trading opportunities. For now, institutional players appear well-positioned—and increasingly active—in capitalizing on a complex and fast-moving global trading environment.