Who are the main participants in the foreign exchange market?

Generally speaking, anyone engaged in trading activities in the foreign exchange market can be defined as a participant.

However, the main participants in the foreign exchange market can be broadly categorized into the following groups: foreign exchange banks, governments or central banks, foreign exchange brokers, and customers.

Foreign exchange banks: Foreign exchange banks are the primary participants in the market, including specialized foreign exchange banks and large commercial banks designated by central banks that do not have a foreign exchange trading department.

Central banks: Central banks are the rulers or regulators of the foreign exchange market.
Foreign exchange brokers: Brokers act as intermediaries between central banks, foreign exchange banks, and customers, maintaining close relationships with both banks and clients.

Customers: In the foreign exchange market, any company or individual conducting foreign exchange transactions with a foreign exchange bank is considered a customer of that bank.