Key players in forex market
The players of Forex industry had a long history. Though today, anyone can enter the forex market with his internet connection from home, like you in the US, buying a trade of Japan from your home, but it was not smooth like this in the past. In this article, we are going to take you on a never-ending journey which started in the 1990s and is still continuing with great triumph.
The Journey of Forex History: Initial Players
It would be very interesting for you to know that forex was not opened for all in the 1990s. It was the beginning time of the Forex. Only super players could enter into the forex market with a great amount of cash, even at this time, like 50 Million Dollars! You could now understand that the beginning of forex was not for retail traders like us or for small banks. It was only for the largest players in the world. But with the increasing use of the internet, Forex took the help of it to grow into a trillion dollars’ industry today. Thanks to the internet, that you can read the article about forex and begin your first step into forex trading.
The major players of Forex are shown in this chart below. You are going to blessed with a short history of the major players, as the ultimate goal of forex is not to understand its past, but to understand how the market works and you could make money from your forex trade. This will only give you a short understanding of how the Forex turned into an industry today, that you are seeing it today.
Figure: major players in the Forex Market
Major Players in the Forex
The Government and the Central banks
At the beginning of forex, the governments and central banks had a significant influence on the trading process. It required a lot amount of money and the government could afford it and the central banks, so they were on the market. They also had the influence to control inflation of money by changing the interest rate.
The Super Banks
The super banks are also known as interbank. As we have said, they were the players initially at the forex market. They would also control the exchange rate of their currencies. Some of the super banks are Citigroup, USB.
These speculators include you and me, and all the retail traders. They have come into the FX market with a simple goal in mind, that is to make money.
Large Business Enterprise
This is very important to understand the Forex. As you have seen it, in Forex, many countries’ currencies are being traded by buyers and sellers from around the globe, it is important for large business groups to exchange their currency to the foreign currency.
This of an example of Mercedes-Benz, who made their cars in different countries, the approximate number is more than 20 countries! In order to buy an engine from the different country, they have to exchange their currency to that currency, from German currency Mark to US currency Dollar. That is why Forex is important for large business enterprises to keep their business going.
This is only a short history of the major players of the forex. At the beginning, these major players had control over the FX market, they have an equal share like any others in the FX, as it has become very large and widespread around the globe.