Trade Share CFDs for your favourite companies and 50+ U.S. stocks. Click here.
Refer a friend
Image placeholder

Beginner

Venturing into Forex for the first time?
Explore the basic concepts of buying and selling.

Venturing into Forex for the first time?
Explore the basic concepts of buying and selling.

Who trades Forex?

Major players in the Forex market are financial institutions including commercial banks, central banks, money managers along with hedge funds. Many global corporations also trade in Forex to hedge currency risk. Lastly, there are also individual players in the market who trade Forex for speculative gain, however, the volume they trade is extremely low as compared to the other traders.

Major institutions, players, and traders in the Forex market include:

Banks: Commercial and Investment

Banks exchange different currencies in the interbank market, making it the most prominent platform for currency trading. A large percentage of the total currency volume trades belong to the big banks. They facilitate Forex transactions for clients, conducting speculative trades from their trading desks with a motive to gain from speculation. When banks act as dealers, banks earn profits through bid-ask spread.

Central Banks

The central banks play an integral role in exchange rate valuations through their interest rate policies, open market operations, and fixing their currency prices. The central bank can weaken or strengthen its currency by increasing and decreasing the money supply in the economy, respectively.

Investment managers

The second biggest player in the Forex market after banks are portfolio managers, pooled funds, and hedge funds. Investment managers are regular players in the Forex market, trading large amounts of currencies, including pension funds, foundations, endowments, and more.

Multinational corporations

Firms explicitly engaged in import and export, and conduct Forex transactions regularly, to buy and sell goods and services. These companies pay to the international sellers in their currency and receive foreign currency payments, involving risks associated with foreign currency translations. Thus, they trade Forex to hedge these risks, by purchasing the foreign currency in the spot market or by entering into a currency swap agreement.

Individual Investors

Lastly, retail investors also trade in the Forex market. Such investors generally trade based on inflation rates, monetary policy expectations, interest rate parity, support, resistance, technical indicators, and price patterns. They trade their own money to profit from the market, just like one does in the stock market. While individuals' trade volume is the lowest, they account for the largest number of contributors in the market, reinforcing Forex liquidity.

To trade in the Forex market, an individual is supposed to have a trading account with a broker through a Forex trading platform like Blueberry Markets.

Ready to get started with forex trading?

Blueberry Markets make Forex trading as effortless as clicking a few buttons. All you need to do is sign up, invest as little as $100, and start your Forex trading within minutes to see visible profits.

Recommended Topics

What Is Gap Trading?

Gaps in the Forex market help traders identify price movement clues, entry and exit signals, and trend reversals. In simple terms, gap trading is a disciplined approach to buy and...

Top Swing Trading Indicators

Swing trading is all about profiting from market swings. It is a popular speculative strategy where traders tend to buy and hold their assets hoping to profit from expected market movement...

What are Support and Resistance Levels

Support and resistance levels in the Forex market allow traders to understand the market direction and predict future prices to consider in making trade decisions...

MT4 vs MT5: Which is Better?

MetaTrader is one of the most popular online trading platforms used globally and its two main versions are MetaTrader 4...

Hedging in Forex: How to Hedge Currency Risk

Hedging in Forex helps limit significant losses and survive falling markets as well as major economic downturns...

What is Forex?

The Forex market offers high liquidity and margin opportunities for you to trade and potentially profit off of exchange rates of currencies...

What is Margin trading

Margin trading is one of the most common derivative strategies used in financial markets...

What is Leverage in Forex

Leverage allows traders to hold large positions in the Forex market with fewer capital. With leverage trading, traders can borrow money from a broker and hold larger positions, which in turn could magnify returns or losses.

How To Set a Stop Loss Order in Forex Trading

A stop loss order is used to prevent extensive losses, especially during severe market dip situations. By placing a stop loss order, you can automatically close your position if the market moves against you. It frees you up from monitoring your portfolio constantly. In volatile markets, uncontrollable losses that could wipe out your entire account can be prevented with the use of a stop loss order.

MetaTrader 5: The Complete Guide

MetaTrader 5, the powerful automated trading platform, offers advanced tools for successful trading analysis and trades in the financial markets...

What is MetaTrader 4: The Complete Guide to MT4

An advanced trading platform, MT4 has become a norm for seasoned Forex traders as it helps them execute their trades even when their machine is off...

What is a Spread in Forex?

A spread is a cost built into the buying and the selling price of all the currency pairs. In most cases, Forex spreads depend on your Forex broker...

What is a Currency Pair in Forex?

The foreign exchange (Forex) market is the largest financial market in the world...

How do you trade forex?

Many people want to get into Forex trading and make quick profits, but only a few...

When Can You Trade Forex?

In case you are wondering is Forex trading profitable, the short answer is yes. But ...

Why trade forex?

As the largest financial market globally, Forex trading is one of the most popular ...

Forex Margin & Leverage

Forex trading usually provides much higher leverage compared to other financial ...

Key steps to making your first trade in Forex.

Making your first trade in Forex successfully ...

How is Forex regulated?

There are several Forex brokers in the Forex market, and amidst those thousands of ...

Rollover rates

When you hold a currency spot position overnight, the interest you either earn ...

Tips for Forex trading beginners

In terms of trading volume, the Forex market is the largest financial market in the world...

Image placeholder

Intermediate

Have a basic understanding of Forex? Ready to level up? Move on to the intermediate course.

Go To Course
Illustration

Guide to Forex Trading indicators.

Enter your details to get a copy of our free eBook

Thank you, please check your inbox for your ebook

Start a risk-free demo account

Create Demo Account

More Articles

Illustration

Ready to trade at Blueberry Markets?

Your best trading experience is just a click away.