The Major Forex Market Players and Why They Trade Currencies - Learn to Trade Mobile Menu Learn 2 Trade
Login Free Forex Signals Join Our Telegram

The Major Forex Market Players and Why They Trade Currencies

Estimated Reading Time: 4 minutes
Article Rating:
Based on 1 vote
Login to rate this article.

Michael Fasogbon

Updated:


The currency market is the largest market across the globe. It’s a digital site whereby one currency is merely exchanged for another.

Our Forex Signals

image
image

 

Sort By

3 Providers that match your filters

Payment methods

Trading platforms

Regulated by

Support

Min.Deposit

$ 1

Leverage max

1

Currency Pairs

1+

Classification

1or more

Mobile App

1or more
Recommended

Rating

Total cost

$ 0 Commission 3.5

Mobile App
10/10

Min.Deposit

$100

Spread min.

Variables pips

Leverage max

100

Currency Pairs

40

Trading platforms

Demo
Webtrader
Mt4
MT5

Funding Methods

Bank Transfer Credit Card Giropay Neteller Paypal Sepa Transfer Skrill

Regulated by

FCA

What you can trade

Forex

Indices

Actions

Cryptocurrencies

Raw Materials

Average spread

EUR/GBP

-

EUR/USD

-

EUR/JPY

0.3

EUR/CHF

0.2

GBP/USD

0.0

GBP/JPY

0.1

GBP/CHF

0.3

USD/JPY

0.0

USD/CHF

0.2

CHF/JPY

0.3

Additional Fee

Continuous rate

Variables

Conversión

Variables pips

Regulation

Yes

FCA

No

CYSEC

No

ASIC

No

CFTC

No

NFA

No

BAFIN

No

CMA

No

SCB

No

DFSA

No

CBFSAI

No

BVIFSC

No

FSCA

No

FSA

No

FFAJ

No

ADGM

No

FRSA

71% of retail investor accounts lose money when trading CFDs with this provider.

Rating

Total cost

$ 0 Commission 0

Mobile App
10/10

Min.Deposit

$100

Spread min.

- pips

Leverage max

400

Currency Pairs

50

Trading platforms

Demo
Webtrader
Mt4
MT5
Avasocial
Ava Options

Funding Methods

Bank Transfer Credit Card Neteller Skrill

Regulated by

CYSECASICCBFSAIBVIFSCFSCAFSAFFAJADGMFRSA

What you can trade

Forex

Indices

Actions

Cryptocurrencies

Raw Materials

Etfs

Average spread

EUR/GBP

1

EUR/USD

0.9

EUR/JPY

1

EUR/CHF

1

GBP/USD

1

GBP/JPY

1

GBP/CHF

1

USD/JPY

1

USD/CHF

1

CHF/JPY

1

Additional Fee

Continuous rate

-

Conversión

- pips

Regulation

No

FCA

Yes

CYSEC

Yes

ASIC

No

CFTC

No

NFA

No

BAFIN

No

CMA

No

SCB

No

DFSA

Yes

CBFSAI

Yes

BVIFSC

Yes

FSCA

Yes

FSA

Yes

FFAJ

Yes

ADGM

Yes

FRSA

71% of retail investor accounts lose money when trading CFDs with this provider.

Rating

Total cost

$ 0 Commission 0.1

Mobile App
10/10

Min.Deposit

$50

Spread min.

- pips

Leverage max

500

Currency Pairs

40

Trading platforms

Demo
Webtrader
Mt4
STP/DMA
MT5

Funding Methods

Bank Transfer Credit Card Neteller Skrill

What you can trade

Forex

Indices

Actions

Raw Materials

Average spread

EUR/GBP

-

EUR/USD

-

EUR/JPY

-

EUR/CHF

-

GBP/USD

-

GBP/JPY

-

GBP/CHF

-

USD/JPY

-

USD/CHF

-

CHF/JPY

-

Additional Fee

Continuous rate

-

Conversión

- pips

Regulation

No

FCA

No

CYSEC

No

ASIC

No

CFTC

No

NFA

No

BAFIN

No

CMA

No

SCB

No

DFSA

No

CBFSAI

No

BVIFSC

No

FSCA

No

FSA

No

FFAJ

No

ADGM

No

FRSA

71% of retail investor accounts lose money when trading CFDs with this provider.

 

The forex market dwarfs all markets such as the bond, stocks, and commodity by a substantial margin.

Trade Currencies

The forex market is composed of several currency pairs. However, for most of the international trades, the payments are made in Euro, the US dollar, and the Japanese Yen.

Also, the British pound, Australian dollar, Canadian dollar, Swiss Franc, and the Swedish krona are used.

The forex market is open 24 hours a day for five days a week. The currency pairs are exchanged in either the spot market, forward market, the swaps market, or the options market.

Major Forex Players

The currency market does have not only several players but also several types of players. Here are some of the major types of players in currency trading:

The Banks

When it comes to the interbank market, currency trading ranks highly. The banks in the interbank market trade the currencies with each other via electronic networks.

With the banks, those deemed to be large banks usually take the larger share of the total currency traded.

Furthermore, banks facilitate currency transactions for clients. When acting as dealers, the banks make profits via the bid-ask rate or merely spread.

Corporations

Firms that engage in exporting and importing goods and services conduct forex transactions in order to pay for such transactions.

Huge companies trade currencies to hedge all the risks that are associated with forex transactions.

Basically, these types of companies aren’t in the business of forex trading, but they are typically hedging as well as managing currency risks arising due to their fundamental commercial activities.

Hedge Funds

Literally, the banks are at the top of the list as dominant players of the currency market.

Following closely are the portfolio managers, pooled funds, and hedge funds. Investment managers usually trade currencies for huge accounts like foundations, pension funds, and endowments.

The funds employ the traders who speculate in the currency market as well as act as clients of huge market makers. Some funds execute the trades automatically on an algorithmic basis.

Central Banks

Another key player in the currency market is the central banks of countries across the globe.

Their great impact is as a result of the operations in the open market as well as the interest rate decisions. Moreover, they are responsible for forex fixing (an exchange rate regime).

Trade Currencies

Any action by the central bank in the currency market is done to correctly stabilize or simply increase a nation’s economy and its competitiveness. Besides, they engage in currency interventions to make currencies depreciate or appreciate.

A central bank may be responsible for weakening its currency by merely creating additional supply at specific periods of extended deflationary trends.

Individual Investors

Unlike financial institutions or companies, the number of forex trades by retail investors is low, but the volume is increasing.

Most retail investors base their trades on both fundamental factors as well as technical factors.

 

AvaTrade - Established Broker With Commission-Free Trades

Our Rating

  • Minimum deposit of just 250 USD to get lifetime access to all the VIP channels
  • Awarded Best Global MT4 Forex Broker
  • Pay 0% on all CFD instruments
  • Thousands of CFD assets to trade
  • Leverage facilities available
  • Instantly deposit funds with a debit/credit card
71% of retail investor accounts lose money when trading CFDs with this provider.

 

The Bottom Line

The forex market is not the largest for nothing: It empowers a vast of players from the central banks to the retail investors.

Various strategies can be used in forex trading, such as carry trade, which has a significant impact on the global economy.

Therefore, as a trader, knowing all the players in the forex market will benefit your trading experience.

Share with other traders!

Learn 2 Trade

The information on the learn2.trade website and inside our Telegram group is intended for educational purposes and is not to be construed as investment advice. Trading the financial markets carries a high level of risk and may not be suitable for all investors. Before trading, you should carefully consider your investment objective, experience, and risk appetite. Only trade with money you are prepared to lose. Like any investment, there is a possibility that you could sustain losses of some or all of your investment whilst trading. You should seek independent advice before trading if you have any doubts. Past performance in the markets is not a reliable indicator of future performance.

WARNING: The content on this site should not be considered investment advice and we are not authorised to provide investment advice. Nothing on this website is an endorsement or recommendation of a particular trading strategy or investment decision.  The information on this website is general in nature so you must consider the information in light of your objectives, financial situation and needs.

Crypto promotions on this site do not comply with the UK Financial Promotions Regime and is not intended for UK consumers.

Investing is speculative. When investing your capital is at risk. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence or obtain advice where necessary. This website is free for you to use but we may receive a commission from the companies we feature on this site.

Learn2.trade takes no responsibility for loss incurred as a result of the content provided inside of our Telegram groups. By signing up as a member you acknowledge that we are not providing financial advice and that you are making the decision on the trades you place in the markets. We have no knowledge of the level of money you are.

The learn2.trade website uses cookies in order to provide you with the best experience. By visiting our website with your browser set to allow cookies, or by accepting our cookie policy notification you consent to our privacy policy, which details our cookie policy.

Learn 2 Trade Team never contact you directly and never ask for payment. We communicate with our clients via support@learn2.trade. We have only two free Telegram channels that can be found on the site. All the VIP groups are available after purchasing a subscription. If you receive any messages from anyone, please report them and do not make any payments. This is not Learn 2 Trade Team.

Copyright © 2024 learn2.trade