What Are The Major Market Players in Forex Trading

Who are the major players in the Forex market? If you really want to join the financial market, you need to be able to identify your competitors aside from using a reliable trading platform like MetaTrader 4. There are a lot of market participants. Below, you will know each of these categories and how they play in the Forex market.

Investment and Commercial Banks

First on the list are the main foundation of the Forex market – the commercial and investment banks. They are considered as the foundation of the financial industry because other market players adjust to them to be able to join the trade.  They are the original initiators of foreign currency exchange which started when they added the service of depositing and taking up loans which greatly expanded the range of services that they offer.

Central Banks

Second to commercial and investment banks are central banks. They are also considered major participants but they were set apart from investment and commercial banks because they offer different goals when pertaining to exchanging foreign currencies. The main goal of central banks centers on providing the right trading conditions towards the home countries as well as controlling the money supply and its availability. When there are major activities in central banks, they also create financial imbalances which intervene in the movement in the forex market.

High Net-worth Individuals

The third group of market participants goes to high net worth individuals who tend to participate in the market through the help of commercial and investment banks. Just as its name suggests, a high net worth individual is a person trading with high net worth. This person usually owns $1 million worth of investable assets excluding his primary residence.

Hedge Funds

Another market participant is the hedge funds. They are considered as new players in the Forex market. They are composed of high net worth individuals that are working together and obtain a huge number of investments which totals to hundreds of millions.

Any Size of Business

Businesses of all sizes also have a place in the Forex market. These participants are either engaged in businesses like exporting and importing to millions-worth of enterprises. They are particularly driven by different business operations that mostly involve the payment of foreign currencies for the goods and services that they offer.


The last group on this list goes to individual market participants. These are the people who wish to exchange their home currencies for another currency. Their reason can be due to a visit to another country or buying foreign goods and services. These individuals are also categorized as private traders, better known as freelancers that use an online trading platform like MetaTrader 4. They use this platform to profit from the market and take advantage of fluctuations without using a huge amount of trading capital.

There are different trading styles used by these traders – position trading, swing trading, scalping, and day trading. Joining the Forex market is made so easy, thanks to the online trading platforms that we have nowadays. If not for them, only those corporations and high net worth individuals are capable of joining the market.

Related posts

Leave a Comment