Summary
Major players in the foreign exchange market are Barclays PLC., Deutsche Bank AG, HSBC Holdings PLC., JPMorgan Chase and Co., Royal Bank of Scotland PLC., Standard Chartered PLC., State Street Corporation, The Goldman Sachs Group Inc., UBS Group AG, Citibank, State Bank Of India, GAIN Capital, Scotiabank, BNP Paribas SA, Citigroup Inc. and Commonwealth Bank of Australia.
The global foreign exchange market is expected to grow from $715.09 billion in 2022 to $763.17 billion in 2023 at a compound annual growth rate (CAGR) of 6.41%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services and affecting many markets across the globe. The foreign exchange market is expected to reach $972.12 billion in 2027 at a CAGR of 6.54%.
The foreign exchange market consists of revenues earned by entities by selling foreign exchange services (e.g. trading programs & advisory service, currency exchange & remittance service and professionally managed accounts service). The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
Foreign exchange refers to the exchange of one currency for another at a predetermined rate, or foreign exchange rate.The foreign securities market, with a nominal worth of trillions of dollars, is made up primarily of foreign exchange markets.
These are used in currency pairings that are valued one against the other.
North America was the largest region in the foreign exchange market in 2022. The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The main counterparties in foreign exchange are reporting dealers, other financial institutions, and non-financial customers.Reporting dealers refers to financial institutions that are active participants in the local and international derivatives and foreign exchange markets.
There are some trade finance instruments, such as currency swaps and FX options, with some end users, including individuals, retailers, corporate institutes, and governments.
The surge in international transactions is significantly contributing to the growth of the foreign exchange market going forward.International transactions refer to transactions involving two or more related businesses in which at least one party is a non-resident.
Increased global trade and international transactions increase the size and activity of the foreign exchange market. For instance, according to a 2022 report published by the United Nations Conference on Trade and Development (UNCTAD), a Switzerland-based intergovernmental organization that promotes the interests of developing countries in world trade, the value of global trade and international transactions reached $28.5 trillion in 2021, a 25% increase from 2020. Therefore, a surge in international transactions will drive the foreign exchange market.
Product innovation is the key trend gaining popularity in the foreign exchange market.Major companies operating in the foreign exchange market are focusing on launching new innovative foreign exchange platforms.
For instance, in April 2020, Innovecture LLC, a US-based technology services and products company, launched TradeVision 2020.TradeVision 2020 is a forex trading system for retail traders.
This innovative method is made to give regular traders real-time trading indications that are secure, easy to comprehend, and will help them optimize their profits in the forex market.Traders can trade currency pairs from any location in the world by utilizing the successful and tested trading algorithms offered by the system’s numerous tools.
TradeVision 2020 offers sophisticated trading tools built on our own algorithms that are often only accessible to institutional traders.
In January 2023, Rostro Group, a US-based capital holdings company focusing on digital assets and capital markets, acquired Scope Markets Group for an undisclosed amount.This acquisition has added foreign exchange trading to Rostro’s portfolio of investments.
Scope Markets Group, a Belize-based financial trade and forex services company.
The countries covered in the foreign exchange market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK and USA.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
The foreign exchange market research report is one of a series of new reports that provides foreign exchange market statistics, including foreign exchange industry global market size, regional shares, competitors with a IoT insurance market share, detailed foreign exchange market segments, market trends and opportunities, and any further data you may need to thrive in the foreign exchange industry. This foreign exchange market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
