Who Can Trade Forex?

<p id="isPasted">The forex market not only has many players but many types of players as well.</p><p id="isPasted"><strong>Commercial and Investment Banks</strong></p><p>The greatest volume of currency is traded in the interbank market where banks of all sizes trade currency with each other and through electronic networks. Big banks account for a large percentage of total currency volume trades.</p><p id="isPasted"><strong>Central Banks</strong></p><p>Central banks represent their nations' governments. They're extremely important players in the forex market. Open market operations and interest rate policies of central banks influence currency rates to a very large extent.</p><p id="isPasted"><strong>Investment Managers and Hedge Funds</strong></p><p>Portfolio managers, pooled funds, and hedge funds make up the second-largest collection of players in the forex market.&nbsp;</p><p id="isPasted"><strong>Multinational Corporations</strong></p><p>Firms engaged in importing and exporting use forex transactions to pay for goods and services.</p><p id="isPasted"><strong>Individual Investors</strong></p><p>The volume of forex trades made by retail investors is extremely low compared to financial institutions and companies but it's growing rapidly in popularity.</p>