Major player in the foreign exchange market

Major player in the foreign exchange market

A major player in the foreign exchange market. Who is them? The forex market is a very large market because it is not centralized, all transactions are carried out over the counter via electronic transactions.

The forex market is always needed by all countries, because they need each other when a transaction involves two countries, they will exchange currencies with other countries in buying and selling using exchange rates.

Forex market participants consist of many groups, including retail traders who seek profit from currency speculation by looking for opportunities from rising and falling prices.

The most Major player in the foreign exchange market, Government, Banks, and Financial Institutions, Multinational Companies, Speculators, Brokers, and forex traders or retail trader.

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Government as the one Major player in the foreign exchange market

The government is the most influential forex market player.

The government of a country is one of the most major players in the foreign exchange market because they have a very large expenditure. In a state budget involving billions of dollars every year. So do not be surprised if the government is one of the biggest market players.

And as we know, the budget of a country’s expenditure is very large, covering between countries and continents. So, the contribution of a state government is very influential in the forex market. Especially the government of superpowers, like the United States.

Central bank

And usually in each country has a central bank, which can be said is part of government institutions that regulate the banking and financial system.

The central bank is responsible for printing money, withdrawing money, or buying and selling supplies of foreign money.

Each central bank in each country has almost the same role, they can carry out policies to increase interest rates, or also intervene in the currency if needed.

So do not be surprised if the central bank makes new policies many investors will pay attention to how these policies affect market participants.

The most major Central Banks whose influence in the forex market is

  • The Federal Reserve (the Fed, the United States central bank),
  • Bank of England (BoE, UK central bank).
  • European Central Bank (ECB, the European Central Bank)
  • Swiss National Bank (SNB, Swiss central bank).
  • Bank of Japan (BoJ, Japan’s central bank).
  • Reserve Bank of Australia (RBA, the central bank of Australia).
  • Reserve Bank of New Zealand (RBNZ, the central bank of New Zealand).
  • People’s Bank of China (PBOC, banks central China), and the Bank of Canada (BoC, Canada’s central bank)

All central banks play a role in the forex market, but the central banks are typical because their currencies are major currencies and have large funds.

Banks and Financial Institutions

Banks and financial institutions are the most active participants in the forex market.

Inside are central banks that are representatives of the government, super large private banks, and ordinary commercial banks.

However, the most influential forex marketers are usually multinational banks.

There are major players in the forex industry including Citi, JP Morgan Chase, UBS, Deutsche Bank, Goldman Sachs, Barclays, HSBC, Morgan Stanley, and so on.

They deal with financial institutions or other banks to transact buying and selling currencies to meet their own needs and for the benefit of customers. Because of this, the exchange rate moves up and down in the forex market.

Banks are forex market players that are very dominant in currency trading, to create Interbank Market.

There, large banks transact. The price or deal that happens is what determines the exchange rate of the currency.

The end result, being as seen by traders like us in trading software. Because the forex market is not decentralized, it is only natural that one bank with another has a slight difference in exchange rates

Commercial Multinational Companies

They participate in the forex market because they need foreign currency for their trade-in in other countries.

For example, a China-based company needs to use the forex market to buy the currency they need to pay for their partner companies in another country that sell heavy equipment.

However, keep in mind that commercial companies also still need the help of banks in order to participate as forex market players.


Speculators here can mean private entities or companies engaged in the financial sector (fund development) and they usually also have unlimited financial capabilities.

So, these speculators are trying to get as much money as possible and as quickly as possible from the trade market.

One of the most famous speculators maybe George Soros.

This very well-known billionaire speculated on the decline in the British Pound that made 1.2 billion dollars less than a month!

Some critics say that people like this are responsible for the Asian financial crisis of the late 90s.


Forex brokers are parties usually in the form of companies, institutions, agents, or individuals established to bring together sellers and buyers

Forex brokers are forex market players with strategic positions because they continue and manage trading requests with small volumes (retail) to larger financial institutions.

So that later, every trader demand can be accommodated in a more massive forex market.

With a broker, traders do not need to start trading with big capital.

The capital needed to become a forex market player or trader also decreases, while the profit potential remains the same as the leverage offered by the broker.

Retail Forex Trader

Who is the retail forex trader? It could be you, your brother, your neighbor, or anyone else who doesn’t have millions of dollars in the capital but wants to get a profit in the forex market.

These retail forex traders are numerous all over the world, and all of them transact through brokers.

In connection with technological developments, forex brokers are now online and even trading platforms for smartphones have also been widely used.

Traders like us can even trade from home using a forex brokerage service, with capital as low as tens to hundreds of dollars

Final thought

Learning about the most major players in the foreign exchange market can provide an overview of the structure of the forex market and how it works.

An investor will also see the performance of the government in running the country’s economy, a clean and honest government will get sympathy from investors.

Not only the government, but retail traders should also learn the latest news about the policies of the central bank, and multinational companies, so it gets a clue on how best to act.

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