Forex daily volume was nearly *** billion U.S. dollars for the USD currency, an amount ***** times higher than for the euro (EUR). The forex - or foreign exchange market - turnover per day is a figure that is not often measured, only once every three years. No figures are available for 2020, for instance. What figures are available, however, indicate that the USD currency far outweighs that of many other currencies all over the world. What is the forex market? The forex market is based on the fluctuations in the value of currency interest rates. For example, the U.S. dollar performs differently against other major currencies. If one can properly predict these fluctuations, they can buy a weaker currency with a stronger one. After the currencies rebalance, the original currency will be worth more in terms of the exchange rate, giving the investor a profit. There are many foreign exchange trading services, including many multinational banks which already work in multiple currencies. Other currency trading functions Countries and central banks typically hold foreign currencies. These international reserves help facilitate the transactions in international trade, which is one reason China’s foreign reserves are so high. Countries can buy and sell foreign currencies to maintain a particular exchange rate. This is necessary for currencies which are pegged to another currency, such as the U.S. dollar. However, some countries are accused of exchange rate manipulation to make their exports seem more attractive. Finally, certain currencies are considered safer. Citizens and firms in a country with an unstable currency will buy these currencies to avoid volatility, or even hyperinflation, in their home currency.

Average daily forex trading volume and forex net position...

The U.S. dollar dominated the list of the most traded currency pairs in 2022, being involved in all the top nine currency pairs. The most common forex transaction in that year was the euro and the U.S. dollar, which accounted for almost ** percent of the average daily turnover of all currency exchanges in April 2022. This was followed by the U.S. dollar and the Japanese yen, then the U.S. dollar and the British pound. The most common pair excluding the U.S. dollar was the euro and the British pound, which accounted for *** percent.

In 2022, the United Kingdom had by far the largest OTC (over the counter) foreign exchange (forex) market, with an average daily turnover of around *** trillion U.S. dollars. Of this, the vast majority was due to various kinds of forex derivatives, with swaps being the most common forex instrument traded. Standard spot transactions, where two currencies are exchanged at an agreed price within two days and without a contact, only accounted for roughly *** trillion U.S. dollars of the total average daily turnover.

The dataset contains All India Daily Foreign Exchange Market Turnover in Financial Market.

Note: 1. Data relate to purchases and sales of foreign exchange on account of merchant and inter-bank transactions.

Turnover in the euro increased between 2019 and 2022, reflecting a growing share in global trading on foreign exchange markets. By 2022, trades of the euro currency on forex was over **** trillion U.S. dollars on average on a single day, a significant increase on the turnover of *** billion U.S. dollars recorded in 2001. The forex - or foreign exchange market - turnover per day is a figure that is not often measured, only once every three years.

Money Market: Forex: Overseas Interbank (In USD Currency): Transaction Volume Daily Average: 1 Month data was reported at 340,350.000 USD th in Feb 2025. This records an increase from the previous number of 67,105.263 USD th for Jan 2025. Money Market: Forex: Overseas Interbank (In USD Currency): Transaction Volume Daily Average: 1 Month data is updated monthly, averaging 61,009.500 USD th from Jan 2013 (Median) to Feb 2025, with 146 observations. The data reached an all-time high of 405,833.333 USD th in Feb 2024 and a record low of 14,262.625 USD th in Jun 2017. Money Market: Forex: Overseas Interbank (In USD Currency): Transaction Volume Daily Average: 1 Month data remains active status in CEIC and is reported by Bank Indonesia. The data is categorized under Indonesia Premium Database’s Monetary – Table ID.KAI019: Financial System Statistics: Money Market Sector.

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Foreign Exchange Market Size 2025-2029

The foreign exchange market size is forecast to increase by USD 582 billion, at a CAGR of 10.6% between 2024 and 2029.

The Foreign Exchange Market is segmented by type (reporting dealers, financial institutions, non-financial customers), trade finance instruments (currency swaps, outright forward and FX swaps, FX options), trading platforms (electronic trading, over-the-counter (OTC), mobile trading), and geography (North America: US, Canada; Europe: Germany, Switzerland, UK; Middle East and Africa: UAE; APAC: China, India, Japan; South America: Brazil; Rest of World). This segmentation reflects the market's global dynamics, driven by institutional trading, increasing digital adoption through electronic trading and mobile trading, and regional economic activities, with APAC markets like India and China showing significant growth alongside traditional hubs like the US and UK.
The market is experiencing significant shifts driven by the escalating trends of urbanization and digitalization. These forces are creating 24x7 trading opportunities, enabling greater accessibility and convenience for market participants. However, the market's dynamics are not without challenges. The uncertainty of future exchange rates poses a formidable obstacle for businesses and investors alike, necessitating robust risk management strategies. As urbanization continues to expand and digital technologies reshape the trading landscape, market players must adapt to remain competitive. One significant trend is the increasing use of money transfer agencies, venture capital investments, and mutual funds in foreign exchange transactions. Companies seeking to capitalize on these opportunities must navigate the challenges effectively, ensuring they stay abreast of exchange rate fluctuations and implement agile strategies to mitigate risk.
The ability to adapt and respond to these market shifts will be crucial for success in the evolving market.

What will be the Size of the Foreign Exchange Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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In the dynamic and intricate realm of the market, entities such as algorithmic trading, order book, order management systems, and liquidity risk intertwine, shaping the ever-evolving market landscape. The market's continuous unfolding is characterized by the integration of various components, including sentiment analysis, Fibonacci retracement, mobile trading, and good-for-the-day orders. Market activities are influenced by factors like political stability, monetary policy, and market liquidity, which in turn impact economic growth and trade settlement. Technical analysis, with its focus on chart patterns and moving averages, plays a crucial role in informing trading decisions. The market's complexity is further amplified by the presence of entities like credit risk, counterparty risk, and operational risk.

Central bank intervention, order execution, clearing and settlement, and trade confirmation are essential components of the market's infrastructure, ensuring a seamless exchange of currencies. Geopolitical risk, currency correlation, and inflation rates contribute to currency volatility, necessitating hedging strategies and risk management. Market risk, interest rate differentials, and commodity currencies influence trading strategies, while cross-border payments and brokerage services facilitate international trade. The ongoing evolution of the market is marked by the emergence of advanced trading platforms, automated trading, and real-time data feeds, enabling traders to make informed decisions in an increasingly interconnected and complex global economy.

How is this Foreign Exchange Industry segmented?

The foreign exchange industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Reporting dealers
  Financial institutions
  Non-financial customers


Trade Finance Instruments

  Currency swaps
  Outright forward and FX swaps
  FX options


Trading Platforms

  Electronic Trading
  Over-the-Counter (OTC)
  Mobile Trading


Geography

  North America

    US
    Canada


  Europe

    Germany
    Switzerland
    UK


  Middle East and Africa

    UAE


  APAC

    China
    India
    Japan


  South America

    Brazil


  Rest of World (ROW)

By Type Insights

The reporting dealers segment is estimated to witness significant growth during the forecast period.

The market is a dynamic and complex ecosystem where various entities interplay to manage currency risks and facilitate international trade. Reporting dealers, as key participants,

By the end of 2019, forex trades involving the British pound in the United Kingdom had grown by nearly ** percent compared to the turnover in 2016. The daily volume of the British pound on UK foreign exchange markets now amounted to around *** trillion U.S. dollars in 2019, by far the highest value over the period surveyed. The forex - or foreign exchange market - turnover per day is a figure that is not often measured, only once every three years. No figures are available for 2020, for instance.

The foreign exchange (Forex) market is a global decentralized market for the trading of currencies. It is the largest financial market in the world, with an average daily trading volume of over $5 trillion. The market size is expected to reach $84 million by 2033, growing at a CAGR of 5.83% during the forecast period 2025-2033. Key drivers of the Forex market growth include increasing international trade, rising foreign direct investment, and growing demand for hedging and speculation. The market is also being driven by the increasing use of online trading platforms and the growing popularity of cryptocurrencies. The major players in the Forex market include Deutsche Bank, UBS, JP Morgan, State Street, XTX Markets, Jump Trading, Citi, Bank of New York Mellon, Bank America, and Goldman Sachs. The market is segmented by type (spot Forex, currency swap, outright forward, Forex swaps, Forex options, other types), counterparty (reporting dealers, other financial institutions, non-financial customers), and region (North America, South America, Europe, Middle East & Africa, Asia Pacific). Recent developments include: In November 2023, JP Morgan revealed the introduction of novel FX Warrants denominated in Hong Kong dollars in the Hong Kong market, marking its status as the inaugural issuer in Asia to present FX Warrants featuring CNH/HKD (Chinese Renminbi traded outside Mainland China/Hong Kong dollar) and JPY/HKD (Japanese Yen/Hong Kong dollar) as underlying currency pairs. These fresh FX Warrants are set to commence trading on the Hong Kong Stock Exchange., In October 2023, Deutsche Bank AG finalized its purchase of Numis Corporation Plc. The integration of both brands under the name 'Deutsche Numis' underscores their collective influence and standing in the UK and global markets. 'Deutsche Numis' emerges as a prominent entity in UK investment banking and the preferred advisor for UK-listed companies. This acquisition aligns with Deutsche Bank's Global Hausbank strategy, aiming to become the primary partner for clients in financial services and fostering stronger relationships with corporations throughout the United Kingdom., In June 2023, UBS successfully finalized the acquisition of Credit Suisse, marking a significant achievement. Credit Suisse Group AG has merged into UBS Group AG, forming a unified banking entity.. Key drivers for this market are: International Transactions Driven by Growing Tourism Driving Market Demand, Market Liquidity Impacting the Foreign Exchange Market. Potential restraints include: International Transactions Driven by Growing Tourism Driving Market Demand, Market Liquidity Impacting the Foreign Exchange Market. Notable trends are: FX Swaps is leading the market.

This analysis presents a rigorous exploration of financial data, incorporating a diverse range of statistical features. By providing a robust foundation, it facilitates advanced research and innovative modeling techniques within the field of finance.

What is forex trading?

Financial data:

• Historical daily stock prices (open, high, low, close, volume)

• Fundamental data (e.g., market capitalization, price to earnings P/E ratio, dividend yield, earnings per share EPS, price to earnings growth, debt-to-equity ratio, price-to-book ratio, current ratio, free cash flow, projected earnings growth, return on equity, dividend payout ratio, price to sales ratio, credit rating)

• Technical indicators (e.g., moving averages, RSI, MACD, average directional index, aroon oscillator, stochastic oscillator, on-balance volume, accumulation/distribution A/D line, parabolic SAR indicator, bollinger bands indicators, fibonacci, williams percent range, commodity channel index)

Machine learning features:

• Feature engineering based on financial data and technical indicators

• Sentiment analysis data from social media and news articles

• Macroeconomic data (e.g., GDP, unemployment rate, interest rates, consumer spending, building permits, consumer confidence, inflation, producer price index, money supply, home sales, retail sales, bond yields)

Potential Applications:

• Stock price prediction

• Portfolio optimization

• Algorithmic trading

• Market sentiment analysis

• Risk management

Use Cases:

• Researchers investigating the effectiveness of machine learning in stock market prediction

• Analysts developing quantitative trading Buy/Sell strategies

• Individuals interested in building their own stock market prediction models

• Students learning about machine learning and financial applications

Additional Notes:

• The dataset may include different levels of granularity (e.g., daily, hourly)

• Data cleaning and preprocessing are essential before model training

• Regular updates are recommended to maintain the accuracy and relevance of the data

According to Cognitive Market Research, the global Foreign Exchange market size will be USD 807548.5 million in 2024. It will expand at a compound annual growth rate (CAGR) of 7.00% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 323019.40 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.2% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 242264.55 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 185736.16 million in 2024 and will grow at a compound annual growth rate (CAGR) of 9.0% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 40377.43 million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.4% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 16150.97 million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.7% from 2024 to 2031.
Forex Options are the fastest-growing segment in the Foreign Exchange market by type, driven by their flexibility for hedging and speculative trading

Market Dynamics

Key Drivers

The interplay of currency supply and demand dictates forex market movements.

The interplay of currency supply and demand fundamentally dictates movements in the foreign exchange market, a colossal marketplace with an average daily trading volume of approximately $2.44 trillion as of January 2025. This dynamic is powerfully influenced by central bank monetary policy, as demonstrated by the direct impact of interest rate changes. When a central bank raises interest rates, it increases the demand for its currency from foreign investors seeking higher returns on their assets. A mere 25 basis point increase in interest rates can trigger capital inflows sufficient to appreciate a currency by 1-2% against other currencies. This demand is further influenced by a country's economic health, as a strong economy, like the U.S.'s projected 1.4% GDP growth in 2025, attracts significant foreign investment, thereby increasing the demand for its currency. The balance of a country's trade also directly impacts currency flows; a nation with a trade surplus sees a continuous demand for its currency as foreigners buy its exports, while a trade deficit increases supply as local buyers sell their currency for imports. Ultimately, every economic data point and policy decision contribute to the daily flux of supply and demand, creating the volatile and dynamic market movements that drive trillions of dollars in trading volume across the globe.

Source -

https://www.tradeweb.com/newsroom/media-center/news-releases/tradeweb-reports-january-2025-total-trading-volume-of-$54.6-trillion-and-average-daily-volume-of-$2.44-trillion

https://www.bea.gov/news/2025/gross-domestic-product-1st-quarter-2025-advance-estimate

Key Restraints

The foreign exchange market's expansion is limited by its transparency and counterparty risk challenges.

The foreign exchange market's expansion is significantly limited by a lack of transparency and pervasive counterparty risk, both of which are direct consequences of its decentralized, Over-the-Counter (OTC) structure. According to the Bank for International Settlements (BIS) Triennial Survey, a staggering 80% of all forex turnover happens in this OTC environment, including 28% of spot trades and 51% of swaps. This structural opaqueness leads to fragmented pricing and makes it difficult for participants to assess true market depth, thereby eroding confidence. This setup also exposes participants to significant counterparty risk, as there is no central clearinghouse to guarantee trades. This risk is underscored by recent regulatory actions, with French authorities adding 50 new websites to their blacklist of unauthorized platforms in the first half of 2024, and the Reserve Bank of India (RBI) maintaining its own alert list against unregulated brokers. Ultimately, these quantifiable risks pose a fundamental restraint on market expansion by increasing trading costs, undermining trust, and deterring both institutional and retail participants.

Source –

https://www.bis.org/statistics/rpfx22_fx.html

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By the end of 2022, average forex trades involving the euro in Germany had grown by nearly 50 percent compared to the turnover in 2019. The daily volume of the euro on German foreign exchange markets now amounted to around 184 billion U.S. dollars in 2022. The forex - or foreign exchange market - turnover per day is a figure that is not often measured, only once every three years.

Money Market: Rupiah: Repo: Transaction Volume Daily Average: All Tenor data was reported at 16,489.000 IDR bn in Feb 2025. This records an increase from the previous number of 16,310.912 IDR bn for Jan 2025. Money Market: Rupiah: Repo: Transaction Volume Daily Average: All Tenor data is updated monthly, averaging 786.000 IDR bn from Jan 2013 (Median) to Feb 2025, with 146 observations. The data reached an all-time high of 18,597.878 IDR bn in Feb 2024 and a record low of 103.450 IDR bn in Jan 2016. Money Market: Rupiah: Repo: Transaction Volume Daily Average: All Tenor data remains active status in CEIC and is reported by Bank Indonesia. The data is categorized under Indonesia Premium Database’s Monetary – Table ID.KAI019: Financial System Statistics: Money Market Sector.

Russia ForEx Swap: Transactions Volume data was reported at 24,113.500 RUB mn in 24 Feb 2022. This records a decrease from the previous number of 41,208.100 RUB mn for 11 Feb 2022. Russia ForEx Swap: Transactions Volume data is updated daily, averaging 42,074.600 RUB mn from Aug 2007 (Median) to 24 Feb 2022, with 676 observations. The data reached an all-time high of 549,736.900 RUB mn in 20 Jan 2009 and a record low of 6.100 RUB mn in 23 Dec 2016. Russia ForEx Swap: Transactions Volume data remains active status in CEIC and is reported by Bank of Russia. The data is categorized under High Frequency Database’s Swap Rates – Table RU.ME003: ForEx Swap Transactions: Bank of Russia: Volume.

Indonesia Money Market: Forex: Sharia Interbank (In USD Currency): Transaction Volume Daily Average: Overnight data was reported at 562.500 USD th in Apr 2024. This records an increase from the previous number of 289.474 USD th for Dec 2023. Indonesia Money Market: Forex: Sharia Interbank (In USD Currency): Transaction Volume Daily Average: Overnight data is updated monthly, averaging 607.337 USD th from May 2013 (Median) to Apr 2024, with 20 observations. The data reached an all-time high of 15,000.000 USD th in Sep 2013 and a record low of 45.455 USD th in Oct 2023. Indonesia Money Market: Forex: Sharia Interbank (In USD Currency): Transaction Volume Daily Average: Overnight data remains active status in CEIC and is reported by Bank Indonesia. The data is categorized under Indonesia Premium Database’s Monetary – Table ID.KAI019: Financial System Statistics: Money Market Sector.

Average daily turnover of the U.S. dollar on global foreign exchange (forex) markets increased more than **** fold from 2001 to 2022. In total - covering both spot transactions and forex derivatives like swaps, forwards and options - the average daily turnover of the U.S. dollar as of ********** amounted to *** trillion U.S. dollars. The forex - or foreign exchange market - turnover per day is a figure that is not often measured, only once every three years. No figures are available for 2020, for instance.

The global foreign exchange services market is projected to reach a value of USD XX million by 2033, exhibiting a CAGR of XX% during the forecast period (2025-2033). This growth is primarily driven by the increasing volume of international trade and investment, as well as the growing demand for currency exchange and remittance services. The rising adoption of digital technologies is further fueling market expansion, enabling seamless cross-border transactions and real-time currency conversion. The market is segmented into various categories based on application and type. Individuals, retailers, corporate institutes, and government agencies are the primary users of foreign exchange services. In terms of type, professionally managed accounts service, currency exchange and remittance service, trading programs and advisory service, and others are the major segments. Geographically, North America, South America, Europe, Middle East & Africa, and Asia Pacific are the key regions analyzed in the report. The study provides insights into the competitive landscape, market drivers and trends, restraints, and regional dynamics. Key players covered include American Express Company, Western Union Holdings, Inc., Capital One Financial Corporation, Bank of America Corporation, Citibank, Wells Fargo, JPMorgan Chase & Co., State Bank of India, Scotiabank, and GAIN Capital. Foreign exchange (forex) services are financial services that enable individuals and businesses to exchange one currency for another. The forex market is the largest financial market in the world, with a daily trading volume of over $5 trillion.

The global foreign exchange (forex) services market is a dynamic and substantial sector, experiencing robust growth fueled by increasing international trade, cross-border investments, and the expansion of e-commerce. While precise market size figures for 2025 are unavailable, analysts estimate a market valuation in the hundreds of billions of dollars, reflecting the vast volume of currency transactions facilitated daily. A Compound Annual Growth Rate (CAGR) of, let's assume, 7% (a reasonable estimate given general market trends) between 2025 and 2033 indicates a significant upward trajectory. Key drivers include the growth of multinational corporations needing efficient currency exchange solutions, the increasing adoption of fintech solutions offering faster and more transparent transactions, and the ever-growing tourism sector. Emerging market growth, particularly in Asia-Pacific and Latin America, contributes significantly to the overall expansion. However, the market is not without its challenges. Regulatory scrutiny of forex transactions to combat money laundering and other financial crimes presents a persistent restraint. Fluctuations in exchange rates introduce inherent risk and volatility for businesses and individuals alike. Furthermore, intense competition amongst established financial institutions and newer fintech companies forces continuous innovation and adaptation. Segmentation within the market includes retail forex trading for individuals, wholesale forex trading for large institutions, and specialized services for corporations. Major players like American Express, Western Union, and leading banks are prominent in this competitive landscape, constantly seeking to improve technology, security, and client service to maintain their market share. The forecast period of 2025-2033 anticipates continued growth, driven by technology advancement and the globalizing economy, though careful risk management and regulatory compliance will remain crucial for success in this sector.

Indonesia Money Market: Forex: Sharia Interbank (In USD Currency): Transaction Volume Daily Average: All Tenor data was reported at 2,550.000 USD th in Feb 2025. This records a decrease from the previous number of 4,631.579 USD th for Jan 2025. Indonesia Money Market: Forex: Sharia Interbank (In USD Currency): Transaction Volume Daily Average: All Tenor data is updated monthly, averaging 1,800.000 USD th from Jan 2013 (Median) to Feb 2025, with 93 observations. The data reached an all-time high of 24,000.000 USD th in Mar 2015 and a record low of 23.810 USD th in Mar 2018. Indonesia Money Market: Forex: Sharia Interbank (In USD Currency): Transaction Volume Daily Average: All Tenor data remains active status in CEIC and is reported by Bank Indonesia. The data is categorized under Indonesia Premium Database’s Monetary – Table ID.KAI019: Financial System Statistics: Money Market Sector.