The Foreign Exchange (FX) market is unique as it operates continuously without any breaks. Initially, institutional firms and large banks were the primary players in the forex market, acting on behalf of their clients. However, in recent years, it has also become accessible to retail traders and investors of all sizes.
Where Is It?
The foreign exchange (forex) markets operate without any physical trading venues. Instead, a network of trading terminals and computer networks connects participants from various institutions, investment banks, commercial banks, and retail investors worldwide.
Who Trades on It?
Currency trading was challenging for individual investors until it became accessible online. The majority of currency traders were large multinational corporations, hedge funds, or high-net-worth individuals due to the substantial capital required for forex trading.
Commercial and investment banks are responsible for the majority of forex trading on behalf of their clients. However, there are also opportunities for both professional and individual investors to engage in currency trading.