These are the 10 Main Traders of the Forex Market that Have 60% of Transactions From Total
Forex Market Main Traders – There are many players in the forex market, ranging from retail traders, companies, financial institutions, and others. Of the many market participants, there is one actor who entered as a major player and was able to become a market driver in the forex industry. These market participants are large banks that have assets in the foreign exchange market in very large amounts.
According to a survey conducted by Triennial Central Bank in April 2013, the estimated total transactions carried out were around USD 5 trillion in one day.
Who are the Main Traders of the Forex Market involved in these large transactions?
Main Traders Forex Market
The first party is Citi which has a portion of transactions in the forex market around 13 percent or approximately around USD 645 billion. Citi is more than 200 years old and is still a very active financial institution for forex trading.
2. JPMorgan Chase
Furthermore, there is JPMorgan Chase which has a forex transaction portion of around 8.8 percent which is approximately USD 440 billion. JPMorgan Chase is among the top 10 banks in the world and is the largest bank in the US. This makes sense because JPMorgan Chase has undergone various merger processes. Around 1,200 institutions merged during the history of the establishment of JPMorgan Chase bank.
UBS has a portion of forex transactions that is almost the same as JPMorgan Chase which is around 8.8 percent with funds of USD 440 billion.
UBS was affected by the financial crisis in the United States in 2008 and has to bear losses of around USD 50 billion. UBS also has to pay fines due to transaction manipulation carried out by traders who work in it for USD 290 million.
Through the intervention of the Swiss government and the entry of investors began to improve the situation experienced by UBS. In 2014, the assets owned by UBS increased to USD 1.7 Trillion.
Duetsche Bank has around 7.9 percent of transactions from the total forex market transactions or around USD 395 billion.
Duetsche Bank actually controlled the forex transaction market in 2009 with around 21 percent market share. But with the increasingly competitive financial services and growing times, the forex market transactions they are doing are decreasing.
5.BofA Merrill Lynch
BofA Merill Lynch has transactions in the forex market of around USD 320 billion or around 6.4 percent of the total.
BofA Merrill Lynch was originally only named Bank of America, then in 2009 they acquired another financial institution, Merrill Lynch. At the beginning of the merger of the two institutions did not go smoothly, because at that time the company’s shares declined by 70 percent.
Barclays has a transaction portion of around 5.7 percent, which is USD 285 billion. Although included in the bank that has a high portion of foreign exchange transactions, Barclays apparently had received a fine from the financial supervisory authority of USD 635 million. The penalty they have to pay is because Barclays uses certain algorithms in a trading system that is able to hold orders from its users when the order is carried out which has the potential to harm the bank.
7. Goldman Sachs
With a portion of around 4.7 percent of the total transaction, the main forex market trader Goldman Sachs was able to play funds in the forex industry around USD 235 billion.
One of the interesting things about Goldman Sachs is that there is a lot of controversy. Since its founding in 1869, Goldman Sachs often makes actions that harm its clients. So the nickname as the most hated bank in the world has been pinned on Goldman Sachs.
Some examples of actions they did were in 1929 where Goldman Sachs created a system with a basic pyramid scheme disguised as mutual funds or mutual funds.The action they took made the clients lose around USD 300 million at the time.
Another case occurred in the 1970s, where they were involved in fraudulent financing of a bankrupt industry.
At the time of the financial crisis in 2008, Goldman Sachs inevitably had to borrow a bailout from the Fed amounting to USD 782 billion to save.
HSBC has a foreign exchange transaction value of around 4.6 percent or around USD 230 billion. HSBS was once the fourth largest bank in the world in terms of the assets they owned.
Another thing that became one of HSBC’s achievements was when the financial crisis hit the United States. HSBC is able to survive the demand from the British government to increase capital adequacy.
XTX has foreign exchange transactions of around 3.9 percent or around USD 195 billion. XTX is a phenomenal non-banking institution in the forex transaction market.
XTX is a startup that has a position as a market maker in the forex industry. XTX is able to shift the bank at Duetsche Bank level to issues related to the spot market, where XTX is able to become the fourth largest in the world with a portion of around 7.6 percent.
Although XTX belongs to a new company, they are able to attract officials from many financial institutions to join it.
Morgan Stanley has a total transaction in the forex market of around 3.2 percent or around USD 160 billion. The interesting thing from Morgan Stanley was when the initial public offering made by Google in 2004. Morgan Stanley is a financial institution that launched the process.
Even so, Morgan Stanley has also been involved in a scandal. Just like other banks in the United States, Morgan Stanley must accept offers from the government to avoid bankruptcy due to the crisis in 2008. Morgan Stanley received funds of around 107.3 billion USD and became one of the biggest debtors among other banks to maintain business continuity which is conducted.
That is the top 10 financial institutions that are currently the main market players in the foreign exchange market. Every step they take is in the spotlight, ranging from scandals due to the financial crisis and others, because it can have a systemic impact. This is also what underlies every bank analysis above often quoted in forex news and much is heard by market participants.
Hopefully what we have said above can be useful for you all. If you still have questions related to the discussion of the Forex Market Main Traders. Don’t hesitate to ask us through the comments column below. We will be happy to answer every question that comes in.