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TOP FOREX BROKERS REVIEW

THE INTERNET'S MOST COMPREHENSIVE LIST OF ONLINE FOREX BROKERS AND FOREX REVIEWS. 

Forex Market Structure

Unlike the stock exchange market where a single entity fixes all the transactions and trading rates, the Forex Market structure is decentralized. It means the market which trade trillions of Dollar daily, actually does not have a central marketplace. Forex trades from the multiple small currency exchange outlets which are present around the world. All trading happens on its virtual platform where anyone from giant super banks to an ordinary trader can trade.

Forex Market Structure –

Being a decentralized exchange market place, Forex does not have a fixed committee or agency to set rates; there is no fixed rate which gives the freedom to each Forex dealer to trade as per their preferred quotes. As there are many Forex traders out there, competition between them often heads to give individual traders like us a fair and good deal. FX does not have a fixed hierarchy by rule, but according to the amount traded, there is, of course, a ladder in this market. The topmost place is occupied by the interbank market which includes Super Banks, Centralized Banks, Government agencies which trade through electronic mediums preferably EBS (Electronic Brokering Service) and Reuters Dealing. This ladder then steps down through hedge funds, giant companies and continues to step down with various other private banks, medium and small-sized companies, Forex dealers and last but not the least with traders like me and you. FX market structure is developed with such expertise that everyone who trades over it gets a fair and transparent trading experience.

1 Comment

  1. Alisha Shakya on August 8, 2019 at 2:08 AM

    Forex has a hierarchy system, whereby major controlling capacity is held by super banks and moving down.

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