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 that 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 that 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.

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Foreign Exchange Market Size 2025-2029

The foreign exchange market size is valued to increase by USD 582 billion, at a CAGR of 10.6% from 2024 to 2029. Growing urbanization and digitalization will drive the foreign exchange market.

Major Market Trends & Insights

Europe dominated the market and accounted for a 47% growth during the forecast period.
By Type - Reporting dealers segment was valued at USD 278.60 billion in 2023
By Trade Finance Instruments - Currency swaps segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 118.14 billion
Market Future Opportunities: USD 582.00 billion
CAGR from 2024 to 2029 : 10.6%

Market Summary

The market, a dynamic and intricate web of financial transactions, plays a pivotal role in facilitating global trade and economic interactions. Its primary function is to enable the conversion of one currency into another, thereby mitigating the risk of currency fluctuations for businesses and investors. Key drivers of this market include growing urbanization and digitalization, which have expanded trading opportunities to a 24x7 global economy. However, the uncertainty of future exchange rates poses a significant challenge, necessitating effective risk management strategies. The market's evolution reflects the increasing interconnectedness of the global economy. Transactions occur in a decentralized, over-the-counter system, with major trading centers in London, New York, and Tokyo.
Participants include commercial banks, investment banks, hedge funds, and individual investors, all seeking to capitalize on price differences between currencies. Trends shaping the market include the increasing use of automation and artificial intelligence to analyze market data and execute trades. Regulatory changes, such as the introduction of stricter capital requirements, also impact the market's functioning. Looking ahead, the market is expected to remain a vital component of the global financial landscape, with continued growth driven by increased trade and economic interdependence. However, challenges, such as regulatory changes and geopolitical risks, will necessitate adaptability and innovation from market participants.

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

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How is the Foreign Exchange Market 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, a dynamic and ever-evolving financial landscape, is characterized by constant activity and intricate patterns. Participants engage in various trading strategies, employing advanced tools such as stop-loss and take-profit orders on forex trading platforms. Real-time data feeds and order book dynamics facilitate trade execution speed, while market microstructure and slippage minimization techniques ensure efficient transactions. Currency correlation analysis and transaction cost analysis are integral to informed decision-making, with backtesting methodologies providing valuable insights. Currency forwards contracts, position sizing techniques, and forex derivatives pricing are essential components of risk management systems. Carry trade strategies, hedging strategies, and interest rate parity are popular tactics employed by market participants.

Algorithmic trading strategies, driven by options pricing models and trading algorithms' efficiency, significantly influence price discovery mechanisms. High-frequency trading and volatility modeling contribute to the market's liquidity risk management, while foreign exchange swaps and currency option valuation help manage risk. The market's complexities necessitate sophisticated risk management systems and intricate order routing optimization. Global payments systems facilitate the smooth transfer of funds, and liquidity risk management remains a critical concern for market participants. According to recent studies, The market is estimated to account for approximately USD6 trillion in daily trading volume, und

According to Cognitive Market Research, the global Foreign Exchange market size was 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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In 2025, 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 contract, accounted for roughly *** trillion U.S. dollars of the total average daily turnover.

The Foreign Exchange Market is Segmented by Instrument Type (Spot Forex, Forex Swaps, Outright Forwards, Currency Swaps, Forex Options, and Other OTC Derivatives), by Counterparty (Reporting Dealers, Other Financial Institutions, and Non-Financial Customers), by Channel (Online and Offline), and by Region (North America, South America, and More). The Market Forecasts are Provided in Terms of Value (USD).

Money Market: Forex: Overseas Interbank (In USD Currency): Transaction Volume Daily Average: 1 Week data was reported at 15,000.000 USD th in Oct 2025. This records an increase from the previous number of 1,404.762 USD th for Sep 2025. Money Market: Forex: Overseas Interbank (In USD Currency): Transaction Volume Daily Average: 1 Week data is updated monthly, averaging 184,125.192 USD th from Jan 2013 (Median) to Oct 2025, with 154 observations. The data reached an all-time high of 501,037.780 USD th in May 2014 and a record low of 1,404.762 USD th in Sep 2025. Money Market: Forex: Overseas Interbank (In USD Currency): Transaction Volume Daily Average: 1 Week data remains active status in CEIC and is reported by Bank Indonesia.KAI: Financial System Statistics: Money Market Sector.

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.

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

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.

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.

This graphic shows the daily trading volume of currencies on the foreign exchange market in 2010. In that year, daily trading volume of U.S. dollar on the foreign exchange market amounted to approximately **** trillion U.S. dollars.

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: Rupiah: Repo: Transaction Volume Daily Average: 1 Week data was reported at 10,359.502 IDR bn in Oct 2025. This records an increase from the previous number of 9,549.278 IDR bn for Sep 2025. Money Market: Rupiah: Repo: Transaction Volume Daily Average: 1 Week data is updated monthly, averaging 257.651 IDR bn from Jan 2014 (Median) to Oct 2025, with 141 observations. The data reached an all-time high of 10,359.502 IDR bn in Oct 2025 and a record low of 2.500 IDR bn in May 2014. Money Market: Rupiah: Repo: Transaction Volume Daily Average: 1 Week data remains active status in CEIC and is reported by Bank Indonesia.KAI: Financial System Statistics: Money Market Sector.

Money Market: Rupiah: Repo: Transaction Volume Daily Average: All Tenor data was reported at 19,492.494 IDR bn in Oct 2025. This records a decrease from the previous number of 21,095.250 IDR bn for Sep 2025. Money Market: Rupiah: Repo: Transaction Volume Daily Average: All Tenor data is updated monthly, averaging 798.429 IDR bn from Jan 2013 (Median) to Oct 2025, with 154 observations. The data reached an all-time high of 23,248.380 IDR bn in Aug 2025 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.KAI: Financial System Statistics: Money Market Sector.

The foreign exchange market is the global marketplace where currencies are traded. It is the largest and most liquid financial market in the world, with an average daily trading volume of over $6.6 trillion. The market size is expected to grow to $9.3 trillion by 2033, with a CAGR of 5.5%. The value unit is million. Key drivers of the market include the increasing global trade and investment, the growth of emerging markets, and the development of new financial technologies. Trends in the market include the rise of electronic trading, the increased use of derivatives, and the growing demand for foreign exchange hedging. Restraints on the market include the volatility of currencies, the risk of currency devaluation, and the regulatory challenges associated with cross-border transactions. The segments of the market include application (reporting dealers, other financial institutions, non-financial customers), type (currency swaps, outright forward and FX swaps, FX options), and company (JPMorgan Chase, Citibank, Deutsche Bank, Barclays, Bank of America Merrill Lynch, BNP Paribas, Goldman Sachs, HSBC, Royal Bank of Scotland, UBS). Regionally, the market is divided into North America, South America, Europe, Middle East & Africa, and Asia Pacific.

The Foreign Exchange market, commonly known as Forex, is the world's largest and most liquid financial market, where currencies are traded. With a daily trading volume exceeding $6 trillion, Forex not only facilitates international trade and investment but also serves as a vital tool for price discovery and risk man

The U.S. dollar dominated the list of the most traded currency pairs in 2025, 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 2025. 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.

This dataset has EUR/USD forex trading data from 5th May 2003 till 16th Oct 2021. For each date, the dataset has open/close/high/low values and volume values.

Source: https://forex.tradingcharts.com/chart/

FX Swaps Market Outlook

According to our latest research, the global FX Swaps market size reached USD 4.62 trillion in daily average turnover in 2024, with a projected CAGR of 6.1% from 2025 to 2033. This robust growth trajectory is expected to push the FX Swaps market to a forecasted daily turnover of USD 7.87 trillion by 2033. The expansion is primarily fueled by increasing cross-border trade, heightened volatility in currency markets, and the growing need for risk management tools among multinational corporations and financial institutions.

One of the primary growth drivers for the FX Swaps market is the surge in global trade and investment activities. As international trade continues to flourish, corporations and financial entities are increasingly exposed to foreign exchange risks. FX Swaps have become essential instruments for hedging against adverse currency movements, enabling market participants to lock in exchange rates and manage cash flows efficiently. The rise in global supply chains and the need for seamless international transactions have further amplified the demand for FX Swaps, positioning them as a cornerstone of modern treasury and risk management strategies.

Another significant factor propelling the FX Swaps market is the evolution of sophisticated trading technologies and platforms. The proliferation of electronic trading systems has revolutionized the FX market, allowing for greater transparency, speed, and efficiency in executing FX Swap transactions. Advanced analytics, algorithmic trading, and the integration of artificial intelligence have enhanced price discovery and risk assessment, attracting a broader spectrum of participants, including non-traditional players such as fintech firms and investment funds. This technological transformation has not only increased market liquidity but also reduced transaction costs, making FX Swaps more accessible and appealing to a wider audience.

Regulatory changes and the shifting landscape of monetary policies are also instrumental in shaping the growth of the FX Swaps market. Central banks and regulatory bodies across major economies have implemented measures to enhance transparency and reduce systemic risks in the derivatives market. These efforts, coupled with the ongoing liberalization of financial markets in emerging economies, have fostered a more conducive environment for FX Swap transactions. The increasing adoption of centralized clearing and reporting requirements has bolstered market confidence, encouraging greater participation from institutional investors and corporates seeking compliant and efficient hedging solutions.

From a regional perspective, Asia Pacific stands out as a pivotal growth engine for the FX Swaps market. The region's rapid economic expansion, burgeoning trade volumes, and proactive regulatory reforms have led to a significant uptick in FX Swap activities. Major financial hubs such as Hong Kong, Singapore, and Tokyo are witnessing heightened demand for both short-term and long-term FX Swaps, driven by the need to manage currency risks associated with dynamic capital flows. North America and Europe also remain prominent markets, underpinned by their mature financial infrastructures and the presence of leading global banks and investment funds. Meanwhile, Latin America and the Middle East & Africa are gradually emerging as promising markets, fueled by the globalization of trade and the increasing sophistication of local financial markets.

Basis Swaps are another critical component of the derivatives market, often used in conjunction with FX Swaps to manage interest rate and currency risks simultaneously. These instruments allow parties to exchange floating interest rate payments in one currency for floating interest rate payments in another currency, providing a mechanism to hedge against interest rate differentials across different countries. The growing complexity of global financial markets and the need for precise risk management solutions have elevated the importance of Basis Swaps. As multinational corporations and financial institutions seek to optimize their funding strategies, Basis Swaps offer a flexible tool to align interest rate exposures with their broader financial objectives, enhancing their ability to navigate volatile market conditions.

Money Market: Rupiah: Interbank: Transaction Frequency Daily Average: 1 Month data was reported at 0.609 Unit mn in Oct 2025. This records an increase from the previous number of 0.190 Unit mn for Sep 2025. Money Market: Rupiah: Interbank: Transaction Frequency Daily Average: 1 Month data is updated monthly, averaging 3.714 Unit mn from Jan 2013 (Median) to Oct 2025, with 153 observations. The data reached an all-time high of 7.000 Unit mn in Jun 2017 and a record low of 0.045 Unit mn in Sep 2021. Money Market: Rupiah: Interbank: Transaction Frequency Daily Average: 1 Month data remains active status in CEIC and is reported by Bank Indonesia.KAI: Financial System Statistics: Money Market Sector.