- commercial and investment banks
- central banks
- hedge funds
- corporations
- high net-worth individuals
- simple individuals
1.Commercial and investment banks are the natural players in foreign exchange for all other foreign exchange trading participants must deal with them. Foreign exchange currency trading began as an added service to deposits and loans offered by commercial banks. The profitability of foreign exchange trading is a perfect characteristic for banks to be involved.
2.Another player, the central bank is separated from commercial and investment banks because it is not after the profitability of foreign exchange currency trading. The main purpose of central banks is to provide adequate trading conditions. Central banks intervene in economic or financial imbalance in the foreign exchange market.
3.For corporations, another player in foreign exchange market, they were not interested in foreign exchange trading but the trend of companies going international and the tight competition among other companies made them think twice about not going into foreign exchange trading.
High net-worth individuals engage in foreign exchange through accessing commercial and investment banks. Individual players in foreign exchange are mostly tourists using their local currency to purchase foreign-made products and services (such hotel accommodation).
4.A relative new player in foreign exchange currency market is the hedge fund. Hedge fund is a partnership of high net-worth individuals that invest at least a million in foreign exchange trading.
5.Even with six major players, the potential of foreign exchange has not yet been consumed entirely. And so investment and commercial banks together with some trading companies have paved a way for individual investors to participate in foreign exchange currency trading. Also foreign exchange information is made available to most individuals through personal computers and Internet so as to attract more individual investors into foreign exchange.
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