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 3.8 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 one trillion U.S. dollars of the total average daily turnover.

Forex daily volume was nearly six billion U.S. dollars for the USD currency, an amount three 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 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 often 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 in order 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.

The dataset contains All India Daily Forex Market Turnover in Financial Market.

By April 2022, average daily trades on the U.S. forex market had grown by over 540 billion U.S. dollars compared to three years before. However, the forex market in the UK was larger, with an average daily turnover of 3.58 trillion U.S. dollars in April 2019. These values relate to the total foreign exchange market, covering both spot transactions and forex derivatives like swaps forwards and options 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 five 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 April 2022 amounted to 6.6 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.

Singapore Foreign Exchange Market: Turnover: in USD: Daily Average data was reported at 455.553 USD bn in Sep 2018. This records a decrease from the previous number of 474.088 USD bn for Aug 2018. Singapore Foreign Exchange Market: Turnover: in USD: Daily Average data is updated monthly, averaging 168.214 USD bn from Jan 1991 (Median) to Sep 2018, with 333 observations. The data reached an all-time high of 541.518 USD bn in Feb 2018 and a record low of 49.217 USD bn in Dec 1992. Singapore Foreign Exchange Market: Turnover: in USD: Daily Average data remains active status in CEIC and is reported by Monetary Authority of Singapore. The data is categorized under Global Database’s Singapore – Table SG.Z009: Foreign Exchange Market: Turnover.

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 2.29 trillion U.S. dollars on average on a single day, a significant increase on the turnover of 470 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.

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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 market is experiencing significant growth, driven by the global trend of increasing urbanization and the 24x7 trading opportunities it affords. The digitalization of financial services has enabled seamless transactions across borders, making foreign exchange more accessible than ever before. One significant trend is the increasing use of money transfer agencies, venture capital investments, and mutual funds in foreign exchange transactions. However, this market is not without challenges. Regulatory hurdles impact adoption in some regions, with stringent regulations and compliance requirements adding complexity to market entry. Furthermore, the uncertainty of future exchange rates poses a significant risk for businesses engaging in foreign exchange transactions.
Navigating these challenges requires a deep understanding of market dynamics and a strategic approach to risk management. Companies seeking to capitalize on the opportunities in the market must stay informed of regulatory changes and adopt advanced risk management techniques to mitigate the impact of exchange rate volatility. By doing so, they can effectively capitalize on the growth potential of this dynamic market.

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

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The market, also known as FX, plays a crucial role in global business operations and finance. FX market liquidity is essential for effective portfolio management, mitigating interest rate risk, and facilitating cross-border transactions. FX analysis involves various tools and techniques, including technical analysis using moving averages, chart patterns, and stochastic oscillators, as well as fundamental analysis focusing on economic indicators and sentiment. Interest rate differentials drive currency appreciation and influence FX trading, with foreign exchange swaps enabling the exchange of principal and interest between two different currencies. Market orders facilitate instant execution, while trading platforms offer advanced features such as automated trading robots and AI-driven systems.
FX market impact is a critical consideration, with operational risk and compliance essential in managing currency exposure and hedging strategies. Currency risk and FX forward rates are vital components of FX risk management, while FX trading apps and discipline help maximize profit and minimize psychological biases. FX trading systems employ various tools like FX charts, indicators, and exchange-traded derivatives to analyze trends and forecast future movements. Cryptocurrency trading has also emerged as a significant component of FX markets, adding complexity and volatility to the market structure. FX trading Blockchain Technology offers potential benefits, such as increased transparency and reduced counterparty risk.

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.

In het market, dealers manage risky inventory positions during the maturity period, earning returns through liquidity provision. These returns reflect the risk premium associated with non-diversifiable risks. Dealers employ trading strategies using customer trade information to generate higher-than-expected returns. Competition among liquidity providers is expected to maintain stable pricing during the forecast period. Reporting dealers offer inter-day liquidity, buying and selling foreign exchange at posted bids while providing quotes throughout the trading day. Trading in the market involves various financial instruments and tools. Market orders are executed at the prevailing market price, while limit orders are executed at a specified price.

Forex brokers facilitate transactions between buyers and sellers, providing access to various trading tools such as currency baskets and exchange-traded derivatives. Cross-currency pairs are used for hedging and speculation, with the value of one curre

South Africa Trade Turnover: Daily Avg: Rand: Residents data was reported at 2,260,000,000.000 USD in Jul 2018. This records a decrease from the previous number of 2,702,000,000.000 USD for Jun 2018. South Africa Trade Turnover: Daily Avg: Rand: Residents data is updated monthly, averaging 992,000,000.000 USD from Jan 1987 (Median) to Jul 2018, with 379 observations. The data reached an all-time high of 5,553,000,000.000 USD in Jun 2015 and a record low of 353,000,000.000 USD in Aug 1987. South Africa Trade Turnover: Daily Avg: Rand: Residents data remains active status in CEIC and is reported by South African Reserve Bank. The data is categorized under Global Database’s South Africa – Table ZA.M014: Daily Trade Turnover: Foreign Exchange Market.

Forex trades involving the euro in Italy began to decline in 2013 after reaching a peak of 29 billion U.S. dollars in 2010. The number of trades has begun to experience a slight increase as trades now stand at 19 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. No figures are available for 2020, for instance.

Trade Turnover: Daily Avg: Rand: Monetary Sector data was reported at 1,155,000,000.000 USD in Jul 2018. This records a decrease from the previous number of 1,453,000,000.000 USD for Jun 2018. Trade Turnover: Daily Avg: Rand: Monetary Sector data is updated monthly, averaging 2,113,000,000.000 USD from Jan 1987 (Median) to Jul 2018, with 379 observations. The data reached an all-time high of 4,648,000,000.000 USD in Jun 1998 and a record low of 436,000,000.000 USD in May 1987. Trade Turnover: Daily Avg: Rand: Monetary Sector data remains active status in CEIC and is reported by South African Reserve Bank. The data is categorized under Global Database’s South Africa – Table ZA.M014: Daily Trade Turnover: Foreign Exchange Market.

FX Rate: RBI: Turnover: Merchant: Sale: FCY/INR: Spot data was reported at 3.361 USD bn in 24 Aug 2018. This records a decrease from the previous number of 4.001 USD bn for 23 Aug 2018. FX Rate: RBI: Turnover: Merchant: Sale: FCY/INR: Spot data is updated daily, averaging 1.669 USD bn from Dec 1998 (Median) to 24 Aug 2018, with 4873 observations. The data reached an all-time high of 15.406 USD bn in 01 Nov 2010 and a record low of 0.000 USD mn in 30 Jan 2007. FX Rate: RBI: Turnover: Merchant: Sale: FCY/INR: Spot data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under Daily Database’s Foreign Exchange Rates – Table IN.MC007: Foreign Exchange Turnover: Reserve Bank of India. The figures are generally low on the 1 April of every year due to the Annual Financial Closing of Accounts of Commercial and Co-operative Banks

By the end of 2019, forex trades involving the British pound in the United Kingdom had grown by nearly 50 percent compared to the turnover in 2016. The daily volume of the British pound on UK foreign exchange markets now amounted to around 3.6 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.

FX Rate: RBI: Turnover: Merchant: Purchase: FCY/FCY: Forward data was reported at 130.000 USD mn in 24 Aug 2018. This records a decrease from the previous number of 279.000 USD mn for 23 Aug 2018. FX Rate: RBI: Turnover: Merchant: Purchase: FCY/FCY: Forward data is updated daily, averaging 216.000 USD mn from Dec 1998 (Median) to 24 Aug 2018, with 4863 observations. The data reached an all-time high of 7.125 USD bn in 07 Feb 2008 and a record low of 0.000 USD mn in 31 Oct 2016. FX Rate: RBI: Turnover: Merchant: Purchase: FCY/FCY: Forward data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under Daily Database’s Foreign Exchange Rates – Table IN.MC007: Foreign Exchange Turnover: Reserve Bank of India. The figures are generally low on the 1 April of every year due to the Annual Financial Closing of Accounts of Commercial and Co-operative Banks

FX Rate: RBI: Turnover: Merchant: Sale: FCY/INR: Forward: Cancellati data was reported at 348.000 USD mn in 24 Aug 2018. This records a decrease from the previous number of 642.000 USD mn for 23 Aug 2018. FX Rate: RBI: Turnover: Merchant: Sale: FCY/INR: Forward: Cancellati data is updated daily, averaging 383.000 USD mn from Dec 1998 (Median) to 24 Aug 2018, with 4859 observations. The data reached an all-time high of 5.377 USD bn in 30 Jun 2016 and a record low of 0.000 USD mn in 01 Apr 2013. FX Rate: RBI: Turnover: Merchant: Sale: FCY/INR: Forward: Cancellati data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under Daily Database’s Foreign Exchange Rates – Table IN.MC007: Foreign Exchange Turnover: Reserve Bank of India. The figures are generally low on the 1 April of every year due to the Annual Financial Closing of Accounts of Commercial and Co-operative Banks

South Africa Trade Turnover: Daily Avg data was reported at 13,174,000,000.000 USD in Jul 2018. This records a decrease from the previous number of 15,750,000,000.000 USD for Jun 2018. South Africa Trade Turnover: Daily Avg data is updated monthly, averaging 10,158,000,000.000 USD from Jan 1987 (Median) to Jul 2018, with 379 observations. The data reached an all-time high of 27,640,000,000.000 USD in Mar 2014 and a record low of 918,000,000.000 USD in Aug 1987. South Africa Trade Turnover: Daily Avg data remains active status in CEIC and is reported by South African Reserve Bank. The data is categorized under Global Database’s South Africa – Table ZA.M014: Daily Trade Turnover: Foreign Exchange Market.

China Foreign Exchange Turnover: RMB/FX Forward: 1 Day data was reported at 24,197.970 RMB mn in Apr 2025. This records a decrease from the previous number of 28,435.860 RMB mn for Mar 2025. China Foreign Exchange Turnover: RMB/FX Forward: 1 Day data is updated monthly, averaging 7,201.835 RMB mn from Jan 2017 (Median) to Apr 2025, with 100 observations. The data reached an all-time high of 57,526.700 RMB mn in Dec 2017 and a record low of 962.990 RMB mn in Dec 2018. China Foreign Exchange Turnover: RMB/FX Forward: 1 Day data remains active status in CEIC and is reported by China Foreign Exchange Trading Center. The data is categorized under China Premium Database’s Money Market, Interest Rate, Yield and Exchange Rate – Table CN.MD: China Foreign Exchange Trading Center (CFETC): Foreign Exchange Trading.

By the end of 2019, forex trades involving the euro in Spain had grown eight billion USD dollars compared to the turnover in 2016. The daily volume of the euro on Spanish foreign exchange markets amounted to around 39 billion U.S. dollars in 2022, a similar level to the 43 billion U.S. dollars recorded in 2013. The forex - or foreign exchange market - turnover per day is a figure that is not often measured, only once every three years.

South Africa Trade Turnover: Daily Avg: Rand data was reported at 8,110,000,000.000 USD in Jul 2018. This records a decrease from the previous number of 9,546,000,000.000 USD for Jun 2018. South Africa Trade Turnover: Daily Avg: Rand data is updated monthly, averaging 7,817,000,000.000 USD from Jan 1987 (Median) to Jul 2018, with 379 observations. The data reached an all-time high of 23,114,000,000.000 USD in Sep 2014 and a record low of 918,000,000.000 USD in Aug 1987. South Africa Trade Turnover: Daily Avg: Rand data remains active status in CEIC and is reported by South African Reserve Bank. The data is categorized under Global Database’s South Africa – Table ZA.M014: Daily Trade Turnover: Foreign Exchange Market.

By the end of 2019, forex trades involving the euro in France had declined to 167 - around 12 percent lower than the average turnover recorded in 2013. This figure is still above the value of 152 billion U.S. dollars recorded in 2010, and over three times higher than the average daily turnover recorded in 2000. 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.