Market Participants

In the stock market, investors are usually trading with institutional investors like mutual funds or other individual investors. Moreover, the forex market is more appreciated by tons of parties for different reasons compared to those enjoying into the stock market. Thus, the main players in the forex market are essential to identify and understand further.   

Governments and Central Banks

Central banks and federal governments are considered as the most influential participants in the forex market. The central bank serves as an extension of the governments in many countries, and policy is conducted in unison along with the government.

Banks and Other Financial Institutions 

Banks are regarded as some of the largest participants involved with forex transactions. For some people, they are dealing with the neighborhood banks as foreign currency for small-scale transactions are needed such as money used for travelling. On the other hand, the interbank market engages in individual transactions pale that is compared to the dollars that are traded through banks.


Hedgers biggest clients are those international businesses. Whether a business sell to an international client or either buy from an international supplier, it is necessary to deal with the instability of currencies that are fluctuating.


Speculators are one of the forex market participants. Rather engage in hedging against adjustments in exchange rates or exchanging currency into a fund international transactions, speculators on the other hand take advantage to generate money by means of fluctuating exchange-rate levels.

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