Forex Market Players.
Generally forex market players come from various groups, namely:
1. Banks and financial institutions.
Financial institutions and banks are the most active participants in the forex market. Inside are private / large banks. And they deal with financial institutions or other banks to request foreign exchange rates. They can also buy the currency they need in the forex market.
So this bank is very dominant in currency trading, so some call it the Interbank market (interbank market). The Interbank market is the big banks that transact in it. The price or deal there also decides the price of the currency. So it becomes as seen by individual traders like us, on a computer screen. The forex market is actually not centralized, it may be normal if we find one bank with another bank has a slight difference in exchange rates.
The government is the most influential forex player. In many countries, this government representative can be seen at the central bank. Where the central bank is an extension of the government in carrying out its policies. So it is normal for them to have a package in terms of monetary policy. And as we know, a country’s budget for spending is huge and covers between countries and continents. So the contribution of a state government greatly impacts the forex market. Especially by governments with influential economies.
Forex brokers are parties that can be companies, institutions, agents, or individuals who bring together sellers and buyers. Judging from its function, forex brokers have existed since time immemorial. And now seeing inter-economic growth between countries, communication technology, forex brokers are increasing in this world.
The development of the available retail forex brokers, they will continue and manage from individual trading requests to larger brokers. So that later every trader request can be accommodated in the large and massive forex market. So we have to go through a broker if we want to do forex trading online.
4. Multinational companies, business, etc.
They participate in the forex market because they need foreign currency for their trade in other countries. For example, a company based in the UK needs to use the foreign exchange market to buy the currency they need. Of course this is done to pay for their partner companies in other countries that sell heavy equipment.
Speculators are entities or private companies engaged in the financial sector. They usually also have unlimited financial abilities. So, these speculators try to get as much money as possible and as quickly as possible from the trading market. One of the most famous speculators is probably George Soros. A well-known billionaire speculates on the decline of the British Pound that made 1.2 billion dollars less than a month !. Some observers say that people like this are responsible for the Asian financial crisis of the late 90s.