Participants In forex Market

Though anyone can operate Forex only by a single PC but the total process involve several participants. Transactions in the Forex market are conducted through a system of institutions such as commercial, investment and central banks, insurance and other companies, as well as through brokers and dealers. 

Each member has  its own trading volume on the foreign exchange market. For example, the highest turnover  is carried out by central banks; trading volume exceeds hundreds of millions of dollars a day. Less turnover comes from commercial banks and dealers. Daily turnover of brokers estimated 25-50 million U.S. dollars, representing only 2% of the total trading Forex. Now let’s discuss them separately.

 Central Banks

Central banks are responsible for currency exchange regulations on the international market. They control and prevent abrupt changes of the national currencies in the Forex international market, thus protecting the country from economic crises and supporting a balance of imports and exports. Central banks can have a direct and indirect impact on the market.

Commercial banks

Other participants of the Forex market open accounts in commercial banks and  with these accounts they carry out deposits, credit and foreign exchange operations. Operations with clients allows commercial banks to identify and accumulate the needs of the foreign exchange market in foreign exchange transactions.

Brokers

Individuals who are mediators that facilitate the conclusion of currency transactions, linking the seller with the buyer. The broker receives a commission for customer orders.

Dealers

Companies or individuals that operate in the financial market at their own expense and on their behalf, that mean they engage in currency buying and selling and other operations on their own money.