Snapshot img

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 market continues to evolve, driven by several key trends and challenges. One significant trend is the increasing use of money transfer agencies, venture capital investments, and mutual funds in foreign exchange transactions. The Internet of Things (IoT) and artificial intelligence (AI) revolutionize banking and financial services, enabling real-time personal finance software and content delivery for travelers and businesses. The uncertainty of future exchange rates fuels the demand for 24x7 trading opportunities. As urbanization progresses and digitalization becomes more prevalent, the market is expected to grow, offering numerous opportunities for businesses and investors.

What will be the Size of the Foreign Exchange Market During the Forecast Period?

Request Free Sample

The market, also known as the forex or FX market, is a decentralized global market for the trading of currencies. It facilitates the conversion of one currency into another for various reasons, including international trade, tourism, hedging, speculation, and investment. Participants in this market include financial institutions, non-financial customers, individuals, retailers, corporate institutes, and central banks. Currencies are traded 24 hours a day, five days a week, due to the presence of multiple time zones and the interbank network.
Currency swaps, interest rate differentials, monetary interventions, economic indicators, political developments, and investment flows are some of the key drivers influencing the market. International trade, balance of payments, and economic instability in various countries also significantly impact currency values. Speculation and hedging activities, particularly by corporations and financial institutions, contribute to the volatility of currency rates. The market is increasingly leveraging artificial intelligence and Internet of Things technologies to optimize trading strategies, with mutual funds utilizing these advancements to enhance portfolio performance and manage currency risk more efficiently. The forex market plays a crucial role in facilitating international business transactions and managing risks associated with currency fluctuations.

How is this Foreign Exchange Industry segmented and which is the largest segment?

The 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.TypeReporting dealersFinancial institutionsNon-financial customersTrade Finance InstrumentsCurrency swapsOutright forward and FX swapsFX optionsCounterpartyReporting DealersOther Financial InstitutionsNon-Financial CustomersGeographyNorth AmericaCanadaUSEuropeGermanyUKAPACChinaIndiaJapanSouth AmericaBrazilMiddle East and Africa

By Type Insights

The reporting dealers segment is estimated to witness significant growth during the forecast period. The market, also known as Forex or FX, is a global financial market where participants buy, sell, and exchange currencies. This market involves various market participants, including financial institutions, non-financial customers, and corporations. Currency swaps, individuals, retailers, corporates, hedge funds, wealth managers, and foreign exchange services are among the key players. The markets facilitate international trade and investment flows, with economic indicators, political developments, inflationary pressures, and interest rate differentials influencing currency values. Monetary interventions, speculation, and risk appetite are also significant factors.
Modern technology and electronic platforms have increased efficiency and accessibility, enabling 24-hour operation. Currency exchange services, monetary policies, and regulations, including those by central banks, impact the market. Economic events, financial crises, and strategic corporate activities can cause volatility. Hedging strategies, accessible platforms, and personal finance considerations are essential for individual investors, small businesses, and multinational corporations dealing with major currency pairs. Online trading platforms and trade balances are crucial for managing currency risks in an increasingly globalized business environment.

Get a glance at the market report of share of various segments Request Free Sample

The Reporting dealers segment was valued at USD 278.60 billion in 2019 and showed a gradual increase during the forecast period.

Currency pairs are the foundation of forex trading, with spot trading being one of the most common methods of buying and selling currencies. Forward contracts and swap deals offer traders the ability to lock in exchange rates for future transactions, managing ris

The DXY decreased 0.1629 or 0.16% to 104.3841 on Thursday March 27 from 104.5470 in the previous trading session. United States Dollar - values, historical data, forecasts and news - updated on March of 2025.

The size and share of the market is categorized based on Type (Dealing Desk, No Dealing Desk) and Application (International Currency Pair Trading, International Commodity Trading, Index Trading) and geographical regions (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

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.

It is forecast that the global online trading market will increase at a global compound annual growth rate of 6.4 percent per year, increasing to an estimated 13.3 billion U.S. dollars in 2026. This is from a base of around 10.21 billion U.S. dollars in 2022. Following the coronavirus pandemic beginning in 2020, online trading activity increased among millennial investors. Many online brokers, including Robinhood, experienced notable growth in the number of platform users from the second quarter of 2020 through to 2021. A low-cost business model, paired with technological integration and social media promotion were contributing factors to the popularity of online trading. What is an online trading platform?
The online trading market is typically accessed through an online market broker, providing a platform for users to track market prices and execute buy and sell orders on financial securities. The user typically holds their portfolio through an online broker. The number of monthly downloads for leading online trading apps spiked in early 2021. While this was influenced by media attention to popular news stories such as the increase in the price of GameStop shares, online trading is expected to continue as an alternative to traditional investment methods. Factors driving online trading The integration of technology has improved investing activities. From a global survey, most respondents stated technology made investing easier, cheaper, and more efficient. The use of technology allowed information such as real-time data, industry and firm reports, and trading notifications to be more accessible directly to the investor. Online platforms had experienced an increase in the number of trades placed per day, in 2019, interactive brokers had an average of 1,380 trades placed per day. This number steadily increased to 3,905 trades per day in 2021. Technological integration allowed trading via online platforms to be an alternative to traditional methods of relying on an in-person full-service broker.

The size and share of the market is categorized based on Application (Currency Exchange Platforms, Forex Trading Software, Currency Risk Management Tools, Automated Trading Systems) and Product (Financial Trading, Investment Management, Currency Hedging, International Trade) and geographical regions (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

The USDMXN increased 0.2404 or 1.20% to 20.3451 on Thursday March 27 from 20.1047 in the previous trading session. Mexican Peso - values, historical data, forecasts and news - updated on March of 2025.

Sweden NIER Forecast: Exchange Rate: US Dollar data was reported at 7.500 SEK/USD in 2028. This records a decrease from the previous number of 7.600 SEK/USD for 2027. Sweden NIER Forecast: Exchange Rate: US Dollar data is updated yearly, averaging 7.400 SEK/USD from Dec 1971 (Median) to 2028, with 58 observations. The data reached an all-time high of 10.300 SEK/USD in 2001 and a record low of 4.200 SEK/USD in 1980. Sweden NIER Forecast: Exchange Rate: US Dollar data remains active status in CEIC and is reported by National Institute of Economic Research. The data is categorized under Global Database’s Sweden – Table SE.M020: Foreign Exchange Rate: Forecast: National Institute of Economic Research.

The global foreign exchange market size was valued at USD 861 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 1,535 Billion by 2033, exhibiting a CAGR of 6.64% from 2025-2033. North America currently dominates the market, holding a significant share of 25.8% in 2024. The dominance is attributed to the rising integration of modern technology in trading platforms, the globalization of businesses resulting in the consequent need for currency exchange services, and the growing influence of various economic factors such as inflation, interest rates, and GDP growth.

IMARC Group provides an analysis of the key trends in each segment of the global foreign exchange market, along with forecast at the global, regional, and country levels from 2025-2033. The market has been categorized based on counterparty and type.

Philippines DBM Forecast: Forex: Philippine Peso to USD: Year Average: High data was reported at 55.000 PHP/USD in 2022. This stayed constant from the previous number of 55.000 PHP/USD for 2021. Philippines DBM Forecast: Forex: Philippine Peso to USD: Year Average: High data is updated yearly, averaging 49.000 PHP/USD from Dec 2003 (Median) to 2022, with 19 observations. The data reached an all-time high of 57.000 PHP/USD in 2005 and a record low of 45.000 PHP/USD in 2015. Philippines DBM Forecast: Forex: Philippine Peso to USD: Year Average: High data remains active status in CEIC and is reported by Department of Budget and Management. The data is categorized under Global Database’s Philippines – Table PH.M010: Foreign Exchange Rate: Forecast: Department of Budget and Management.

The EURUSD decreased 0.0005 or 0.04% to 1.0787 on Wednesday March 26 from 1.0791 in the previous trading session. Euro US Dollar Exchange Rate - EUR/USD - values, historical data, forecasts and news - updated on March of 2025.

A graphic that displays the dollar performance against other currencies reveals that economic developments had mixed results on currency exchanges. The third quarter of 2023 marked a period of disinflation in the euro area, while China's projected growth was projected to go up. The United States economy was said to have a relatively strong performance in Q3 2023, although growing capital market interest rate and the resumption of student loan repayments might dampen this growth at the end of 2023. A relatively weak Japanese yen Q3 2023 saw pressure from investors towards Japanese authorities on how they would respond to the situation surrounding the Japanese yen. The USD/JPY rate was close to 150, whereas analysts suspected it should be around 90 given the country's purchase power parity. The main reason for this disparity is said to be the differences in central bank interest rates between the United States, the euro area, and Japan. Any future aggressive changes from, especially the U.S. Fed might lower those differences. Financial markets responded somewhat disappoint when Japan did not announce major plans to tackle the situation. Potential rent decreases in 2024 Central bank rates peak in 2023, although it is expected that some of these will decline in early 2024. That said, analysts expect overall policies will remain restrictive. For example, the Bank of England's interest rate remained unchanged at 5.25 percent in Q3 2023. It is believed the United Kingdom's central bank will ease its interest rate in 2024 but less than either the U.S. Fed or the European Central Bank. This should be a positive development for the pound compared to either the euro or the dollar.

The euro-to-dollar exchange rate fluctuated significantly in 2022, reaching its lowest recorded value since 2008 during that time. Figures were different later in the year, however, with a rate of 1.08 USD recorded at the end of March 25, 2025. The average (standardized) measure is based on the calculation of many observations throughout the period in question. It is therefore different than an annual measure at point in time, which reflects concrete values as of end of the year. EstablishmentThe euro, which was established in 1992, introduced in non-physical form in 1999 and finally rolled out in 2002, is used by 19 of the 27 member states of the European Union. This group of 19 countries is otherwise known as the eurozone or euro area. By 2018, the total value of euro currency in circulation was almost 1.2 trillion euros, or over 3.4 thousand euros per capita.Euro to USDBetween 2001 and 2008, the average annual exchange rate of the euro to the U.S. dollar noted a steep increase. In 2008, the euro to U.S. dollar annual average exchange rate was equal to 1.47, which meant that one euro could buy 1.47 U.S. dollars. By 2019, this value had decreased overall, to a value of 1.12 which meant that one euro could buy 1.12 U.S. dollars. Similar dynamics in the euro to U.S. dollar exchange rate were also reflected in the monthly exchange rate in recent years.

Japan JP: Exchange Rate: National Currency per USD data was reported at 155.830 USD/JPY in Dec 2026. This stayed constant from the previous number of 155.830 USD/JPY for Sep 2026. Japan JP: Exchange Rate: National Currency per USD data is updated quarterly, averaging 138.131 USD/JPY from Mar 1960 (Median) to Dec 2026, with 268 observations. The data reached an all-time high of 362.802 USD/JPY in Sep 1963 and a record low of 77.324 USD/JPY in Dec 2011. Japan JP: Exchange Rate: National Currency per USD data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s Japan – Table JP.OECD.EO: Exchange Rate: Forecast: OECD Member: Quarterly. EXCHUD - Exchange rate, national currency per USD

La taille du marché du marché de la solution CRM Forex est classée sur la base des régions de type (basé sur le cloud, sur site) (grandes entreprises, PME) et géographiques (Amérique du Nord, Europe, Asie-Pacifique, Amérique du Sud et Moyen-Orient et Afrique).

Ce rapport fournit des informations sur la taille et les prévisions du marché.

Russia MED Forecast: FX Rate: Annual Average: US Dollar/EUR: Baseline Scenario data was reported at 1.106 EUR/USD in 2025. This records an increase from the previous number of 1.076 EUR/USD for 2024. Russia MED Forecast: FX Rate: Annual Average: US Dollar/EUR: Baseline Scenario data is updated yearly, averaging 1.091 EUR/USD from Dec 2020 (Median) to 2025, with 6 observations. The data reached an all-time high of 1.183 EUR/USD in 2021 and a record low of 1.046 EUR/USD in 2023. Russia MED Forecast: FX Rate: Annual Average: US Dollar/EUR: Baseline Scenario data remains active status in CEIC and is reported by Ministry of Economic Development of the Russian Federation. The data is categorized under Russia Premium Database’s Forecast – Forecast of The Social and Economic Development of The Russian Federation.

Argentina AR: Exchange Rate: National Currency per USD data was reported at 998.250 USD/ARS in 2026. This stayed constant from the previous number of 998.250 USD/ARS for 2025. Argentina AR: Exchange Rate: National Currency per USD data is updated yearly, averaging 0.999 USD/ARS from Dec 1960 (Median) to 2026, with 67 observations. The data reached an all-time high of 998.250 USD/ARS in 2026 and a record low of 0.000 USD/ARS in 1977. Argentina AR: Exchange Rate: National Currency per USD data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s Argentina – Table AR.OECD.EO: Exchange Rate: Forecast: Non OECD Member: Annual. EXCHUD - Exchange rate, national currency per USD

China Exchange Rate: USD per National Currency data was reported at 0.138 RMB/USD in 2026. This stayed constant from the previous number of 0.138 RMB/USD for 2025. China Exchange Rate: USD per National Currency data is updated yearly, averaging 0.148 RMB/USD from Dec 1982 (Median) to 2026, with 45 observations. The data reached an all-time high of 0.529 RMB/USD in 1982 and a record low of 0.116 RMB/USD in 1994. China Exchange Rate: USD per National Currency data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s China – Table CN.OECD.EO: Exchange Rate: Forecast: Non OECD Member: Annual. EXCH - Exchange rate, USD per national currency (1/EXCHUD)

The USDTWD increased 0.0290 or 0.09% to 33.0610 on Tuesday March 25 from 33.0320 in the previous trading session. Taiwanese Dollar - values, historical data, forecasts and news - updated on March of 2025.

Norway NO: Exchange Rate: National Currency per USD: Double Hit Scenario data was reported at 10.240 USD/NOK in 2021. This records an increase from the previous number of 10.054 USD/NOK for 2020. Norway NO: Exchange Rate: National Currency per USD: Double Hit Scenario data is updated yearly, averaging 7.050 USD/NOK from Dec 1960 (Median) to 2021, with 62 observations. The data reached an all-time high of 10.240 USD/NOK in 2021 and a record low of 4.937 USD/NOK in 1980. Norway NO: Exchange Rate: National Currency per USD: Double Hit Scenario data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s Norway – Table NO.OECD.EO: Exchange Rate: Forecast: OECD Member: Annual. EXCHUD - Exchange rate, national currency per USD