Participants in the Forex currency market are divided into two groups based on their activities and influence on currency values: market makers and market users.
Market makers are banks of large banks and financial organizations that determine the latest level of currency values that generate a significant share of their transactions in the total volume of the world market. Market makers are responsible for a variety of trading instruments, because they are the ones who carry out transactions. Market makers are members of the market who perform certain instrument liquidity, who make “buy” or “sell” requests.
Market makers are international bank banks and financial institutions on a large scale that conduct currency transactions every day by buying or selling trading instruments for billions of US dollars. Every market has its own market maker. Just as every Forex broker has its own market maker, the quoted value is utilized by the broker and then offered to his clients. the biggest market makers include Deutsche Bank, Mizuho Bank, Barclays Bank, PBS, Citi Bank, Chase Manhattan Bank, Union Bank of Switzerland.
To find out whether an organization is a market maker, it is important to see not only the size of the bank but also its shares in transactions in the market and its ability to influence the market by setting prices. As explained earlier, for certain markets there may be personal market makers, we can specify that for the USD / CHF trading instrument market, major market makers are Credit Suisse Bank and Union Bank of Switzerland. For trading instruments related to Asian currencies, the biggest market maker is Standard Chartered Bank. For Ruble instruments, the main market makers are International Moscow Bank and Onexim Bank.
The Central Bank of Russian Federation can also play a role, which is one of the most active participants in determining the value of quotations of these currencies compared to market makers of Rubles who make currency interventions in different respects, namely if the Ruble value exceeds the set value of the currency. Market makers determine the latest currency exchange rates by carrying out transactions with each other and with smaller bank banks who are also market participants. It is market makers who introduce quotation values to bank banks and smaller organizations and individuals.
Therefore, another definition appears that characterizes these participants – market users. Market users are financial organizations, brokerage firms, small bank banks and individuals who use quotation values regulated by market makers in their transactions. Market users are not as aggressive as market players even though the total volume of their transactions on the market can be significant, but each share is minor. The role of a small market user is to accept currency values determined by market makers. In other words, market makers make prices and market users receive it.