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Researching the Foreign Exchange Market based on facts, historical data, and the cyclical patterns of the past.

Forex Market Statistics

With a daily turnover of $7.5 trillion per day, the Foreign Exchange Market is the largest and most liquid financial market in the world.

Highlights

• The size of the entire Foreign Exchange market is estimated more than 2.4 quadrillion USD
• More than 170 currencies are traded on the global Foreign Exchange market
• USD is a component of 88.5% of the overall FX trading turnover, while EUR/USD remains the largest currency pair (22.7%)
• London remains the most important Forex center in the world, followed by New York
• Five organizations hold a 44% share of the entire global Forex market
• There are over 14 million active Forex traders worldwide, most of them are located in Asia, and the great majority of them are men (89%)
  Read more: Getting Started with Trading Research

With a daily turnover of $7.5 trillion per day, the Foreign Exchange Market is the largest and most liquid financial market in the world.

Highlights

• The size of the entire Foreign Exchange market is estimated more than 2.4 quadrillion USD
• More than 170 currencies are traded on the global Foreign Exchange market
• USD is a component of 88.5% of the overall FX trading turnover, while EUR/USD remains the largest currency pair (22.7%)
• London remains the most important Forex center in the world, followed by New York
• Five organizations hold a 44% share of the entire global Forex market
• There are over 14 million active Forex traders worldwide, most of them are located in Asia, and the great majority of them are men (89%)
• Retail trading accounts account only for 5.5% of the entire market’s turnover
• The MetaTrader platforms dominate the online Foreign Exchange market (91%)

The Foreign Exchange market is a global decentralized (OTC) market for the trading of the world's currencies. Currency is a medium of exchange issued by a government body and is used as a method of payment.

Starting a Currency Trading Account (FAQ)

To trade the Forex market you need a trading account. There are several different types of accounts, however, it is highly recommended to start by opening a free demo account. A demo account can help you gain experience without any risk of losing your funds. Every respectful Forex broker will provide you with a free demo account. After gaining some experience, you can trade for real money. When starting to trade for real money note that a micro-lot account is more suitable for beginners.

• Demo/Practice accounts offer an excellent chance to gain experience and evaluate the conditions of every Forex Broker without any cost
• A micro-lot account is the best option for beginners and semi-advanced Forex Traders as it allows trading in smaller order sizes

» Opening a Forex Trading Account (FAQ)

Macroeconomics is a branch of economics that studies general economic factors and large-scale events to predict economic behavior and decision-making of the economy as a whole. The three major concerns of Macroeconomics are employment, inflation, and National output.

General Factors Affecting Exchange Rates

Similar to any other financial price, the price of an exchange rate is determined by the forces of demand and supply. The price of an exchange rate reflects many economic and non-economic factors. The most important factors are interest rates, inflation, growth, employment, and political risk.

» More on Forex Economics

Five (5) Traditional Exchange Rate Theories

The traditional exchange rate models seek the identification of an equilibrium between two economies to calculate the fair value of the exchange rate. Equilibrium is based on the relative valuation of an identical commodity, relative inflation, the relative level of real interest rates, etc.