Major banks are also collectively referred to as the Interbank Market and include UBS, Deutsche Bank, JPMorgan Chase, Citibank and Goldman Sachs, among other global financial firms. These banks daily take on an enormous amount of forex transactions both for themselves and for their customers, which include major corporations and government agencies, hedge funds and wealthy individuals.
Governments and Central Banks
These include the European Central Bank, the Federal Reserve and the Bank of England, among others. They are responsible for managing money supply and interest rates, and supervise their respective commercial banking systems.
Smaller Banks, Large Commercial Companies, Hedge Funds
Smaller banks, large commercial companies and hedge funds often participate in the FX market with the purpose of managing their operations, since foreign exchange is essential to international commerce.
Forex Brokers and Retail ECNs
FX brokers and retail ECNs act as the intermediary party between buyers and sellers, enabling retail traders to gain access to the liquidity providers.