COMMERCIAL BANKS

CENTRAL BANKS

SPECULATORS
CORPORATIONS
PLAYERS IN A FOREIGN
EXCHANGE MARKET

SA’AD SHAIKH

INVESTMENT
MANAGEMENT FIRMS

RETAIL FOREX
BROKERS
 Institutions and Trading Agents
• The Forex market consists of a network of dealers and
traders grouped around the world. These players are
linked by a system of computers, phones, and the
internet.
• This provides a platform where pertinent information is
freely exchanged. The different players in the forex
market are as follows:
CENTRAL BANKS COMMERCIAL CORPORTATIONS
BANKS
INVESTMENT RETAIL FOREX SPECULATORS
MANAGEMENT BROKERS
FIRMS
 Central Banks
• Central banks play an important role in the forex
market and that role is controlling the supply of
different currencies. They are also responsible for
regulating inflation and interest rate.
• Central banks are also responsible for stabilizing
the forex market. They do this by balancing the
country's foreign exchange reserves.
• In addition, they also have official target rates for
the currencies that they are handling. Because of
this role, central banks are sometimes jokingly
referred to as circus performers
 Commercial Banks
• Traditionally known as a savings and
lending institution, banks are certainly one
of the major players in forex market.
• Banks are usually involved in both large
quantities of speculative trading and also
daily commercial turnover.
• The really big and well-established banks
trade in the billions of dollars in foreign
currencies everyday.
 Corporations
• Small and large companies also play an
important role in the Forex market
• These companies often use foreign exchange
to pay for goods or services.
• Compared to banks and hedge funds,
corporations trade less amounts of currency.
• They keep the market strong through
international trade and foreign currency
exchange between multinational companies.
Investment Management Firms
• Investment management firms
commonly manage huge accounts on
behalf of their clients such as
endowments and pension funds. 
• Sometimes, these investments
require the exchange of foreign
currencies so they have to facilitate
these transactions through the use of
the foreign exchange market.
 Retail Forex Brokers
• These can be individuals or groups of
individuals. They handle a fraction of the
total volume of the entire forex market
• A single retail forex broker estimates
retail volume of between 25 to 50 billion
dollars each day.
• Their volume is estimated to make up
2% of the total market volume.
 Speculators
• These are the individuals or private
investors who purchase and sell foreign
currencies and profit through
fluctuations on their price.
• Speculators are a "hardy" bunch simply
because they are more adept at
handling and maybe even sidestepping
risks that regular investors would prefer
not to be involved with.
THANK YOU