Among the attractive features of forex trading, such as the potential for profit and the market’s accessibility via the internet, lies the reality of 24-hour market access that matches today’s non-stop economy. This flexibility means that trading is possible at almost any time of the day, aligning perfectly with the varied schedules of international traders. The Japanese Yen is the most traded currency on the Japanese forex market. The most recent data shows the global foreign exchange market is worth $2.73 quadrillion, up from $1.93 quadrillion in 2019, making it the largest financial market globally. It was found in 2022 the average daily turnover had increased by 14% from $6.6 trillion to $7.5 trillion in a three-year period.

What are spreads and pips in forex trading?

To give you a better understanding of the scope of this sector and its exponential growth, we have compiled a list of key statistics that focus on the global Forex market. The Forex market has been particularly active since the 1970s. The Forex market has been particularly active since the 1970s.

Forex Trading Participants

  • During our live test, I found that you can trade via the MT4 and MT5 mobile trading apps for Android and iOS devices.
  • To help you grasp the immense size of the global Forex trading market, we would like to start by noting that its worth in 2020 was evaluated to be $2.4 quadrillion.
  • While these are the ‘go-to’ platforms for forex traders, they do have a learning curve, so it’s well worth going through the guides.
  • Many traders use this metal as a hedging tool against inflation, currency depreciation, and economic instability.
  • But how many traders around the world are actively involved in foreign exchange trading?

Moreover, many traders engage in forex trading through online platforms and brokers, which makes it difficult to gather comprehensive data. Forex traders and investors come from a broad spectrum of backgrounds. Most of the market volume in the Forex market is generated by financial institutions such as commercial banks, central banks, hedge funds, investment managers, and multinational corporations. Retail Forex trading only accounts for a mere 5.5% of the entire Forex market globally. Although large financial institutions and banks are responsible for a substantial part of the trading volume in this market, modern technology has also made it accessible to a broader customer base. Forex brokers have developed easy-to-use online trading platforms, which have simplified the trading process, and made it available from almost anywhere in the world.

The daily turnover of EUR/GBP increased from $109 billion in 2010 to $154 billion in 2022. Despite Brexit uncertainties, this pair has seen a steady increase in volume while maintaining a stable market share of 2%. While traditional pairs like USD/EUR and USD/JPY still dominate, other currency pairs like USD/CNY are rapidly gaining ground. This offers a broader range of options for traders but also calls for more nuanced strategies. In terms of age, forex traders are perhaps younger than you’d expect – 27% of forex traders fall into the age group. The age group represents 28% of traders, while the age group accounts for 21% of traders.

Beginner traders can access a free demo trading account and a commission-free trading account to trade 80+ financial instruments. In my experience, this can lead to bigger profits, as well as bigger losses. During bull markets, the crypto trading volume rises significantly. For example, in 2021, when Bitcoin reached its all-time high, the daily trading volume in the crypto market surpassed $300 billion. In contrast, during bear markets, this volume declines significantly and can sometimes drop below $50 billion.

  • Later, Vladimir turned to longer time frames and became an independent trader and analyst managing his own portfolio.
  • As of 2021, over 80% of online brokers globally offered MT4 to customers, and the trading platform had an estimated user base of over 8 million traders.
  • Amidst this global playground, retail traders mingle with titans such as institutional banks and hedge funds, albeit contributing to a smaller slice of the turnover, a mere 5%.
  • There is a very high degree of risk involved in trading securities.
  • When comparing the data for April 2022 to numbers reported for 2019, we can see that the Forex markets saw a 14% growth compared to the $6.6 trillion daily traded volume for April 2019.

Forex Trading Statistics

This figure is good for rough estimation not for exact estimation. Bitcoin.com, “$8.8 Trillion Traded in Cryptocurrency Spot and Futures Markets in Q1”, accessed July 1, 2020. Yahoo Finance, “Top 10 Cryptocurrencies by Market Capitalisation”, accessed July 1, 2020. BOJ, 2019 Central Bank Survey of Foreign exchange and Derivatives Market Activity”, accessed July 1, 2020.

According to BIS’s 2019 triennial survey, trading in FX markets reached an incredible $6.6 trillion per day in April of 2019. Although the broader market has experienced a variety of unexpected, negative effects due to the COVID-19 pandemic, the Forex market has remained relatively unscathed – at least for now. In fact, the volume of trading has increased due to the volatility that the pandemic has brought on. ForexPropReviews.com is your trusted source for in-depth reviews, ratings, and the latest news about proprietary trading firms.

Europe and North America follow closely behind, with 31% and 29% respectively. In addition to retail traders, there are institutional forex traders who trade on behalf of financial institutions, corporations, hedge funds, and other professional entities. These traders often operate with larger capital and employ sophisticated trading strategies. Estimating the exact number of institutional forex traders is even more challenging due to the lack of comprehensive data. When comparing the data for April 2022 to numbers reported for 2019, we can see that the Forex markets saw a 14% growth compared to the $6.6 trillion daily traded volume for April 2019. Unfortunately, when comparing all triennial Surveys carried out by BIS, the Forex market expansion in 2022 was the lowest, except for two previous surveys issued since 2004.

Changes to monetary policy from the Federal Reserve and Reserve Bank of New Zealand can lead to NZD/USD volatility. In fact, there Contrary opinion are more online trader in Britain than in any other European country as the study shows. Currency pairs​​ depict the value of one currency against another. They comprise a base currency and a secondary quote currency. I have compiled an exhaustive list of exciting forex statistics that you will love to learn. With all the above types of brokers, we can still determine the total number of brokers around the world.

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This amounts to $14.174 billion.78AFXC, “Foreign Exchange Turnover Report”, accessed June 30, 2020. 42% of trades in the Australian market involve currencies other than USD, AUD, and EUR.75AFXC, “Foreign Exchange Turnover Report”, accessed June 30, 2020. The USD/JPY pair, which pits the US Dollar against the Japanese Yen, accounted for 11% of trades. This marks a noticeable decrease from 2016’s 19%.58Federal Reserve Bank of New York, “The Foreign Exchange and Interest Rate Derivatives Markets”, accessed June 30, 2020. Sales desks in five countries – the UK, the US, Hong Kong SAR, Singapore, and Japan, accounted for 79% of all forex trading.49BIS, “Triennial Central Bank Survey”, accessed June 29, 2020. Five businesses beaxy maintain a 40% share of the global Forex market, according to Euromoney magazine’s 41st annual FX survey released in 2019.7Euromoney, “Euromoney FX Survey 2019”, accessed June 28, 2020.

From a trading management perspective, this is an excellent approach for traders that tend to have active investment styles (i.e. day trading or swing trading). In Asia, we find the largest total number of traders, as 3.2 million people have experience trading in the financial markets using an online brokerage platform. The region’s collective number of internet users has risen above 1.9 billion, so it’s not much of a surprise that online trading has become very popular in the region. On a per-user basis, this means one in every 600 internet users has past experience trading online and broader trends suggest that this figure could grow significantly over the next few years. The exact number of forex traders is difficult to determine, as there is no central database or regulatory body that tracks the number of traders. However, there are several ways to estimate the number of forex traders.

Understanding Forex Trading and Its Popularity

Forex School Online, “Forex Statistics & Trader Results From Around the World”, accessed June 28, 2020. Compare Forex Brokers, “2020 Forex Statistics”, accessed June 28, 2020. AllFXBrokers, “50 Fascinating facts about Forex”, accessed June 28, 2020. BIS, “BIS Quarterly Review”, accessed June 27, 2020. BIS, “BIS Quarterly Review”, accessed June 27,2020. BIS, “BIS Quarterly Review”, accessed June 26, 2020.

Rising Digital Trading Capabilities on the Web

The analysis of the forex trading market size and participation demographics leads us to a multifaceted portrait. Market entrants vary from agile hobbyists to dedicated professionals, manifesting the inclusive nature of forex. The evolutionary strides of the market have not been hampered by the hurdles faced by individuals; rather, they have inspired a tenacious pursuit of trading acumen and financial empowerment. This is reflected by the spirited contribution from both the institutional giants and the legion of retail traders who propel the continuous dynamism found within forex market trends. The data in the table draws a contrast between the groups contributing to forex trading volumes but also highlights the challenges in mapping the exact number of forex traders. Hence, while statistical data gives us a rough sketch, the dynamic and private nature of the market complicates a comprehensive census.

This can be done by reading the broker’s terms and conditions document and confirming with customer support in writing. To save you time, we also created how to build a complete financial portfolio detailed guides on the best CySEC regulated brokers, best ASIC regulated brokers and best FCA regulated brokers. If you trade $50 million or more in notional monthly volume, you can access a 5% spread cashback rebate, which is the equivalent of $5 per million (USD) traded. This rebate can be withdrawn or used in the trading account to open new trades.