Foreign Exchange Global Market Report 2024

The foreign exchange market size has grown strongly in recent years. It will grow from $752.66 billion in 2023 to $795.91 billion in 2024 at a compound annual growth rate (CAGR) of 5.7%. The expansion observed in the historical period can be ascribed to factors such as globalization and international trade, variations in interest rates, government policies and monetary interventions, speculation, and investment flows, as well as the balance of payments and economic indicators.

The foreign exchange market size is expected to see strong growth in the next few years. It will grow to $1023.91 billion in 2028 at a compound annual growth rate (CAGR) of 6.5%. The anticipated growth in the forecast period can be linked to political and geopolitical developments, fluctuations in commodity prices and resource exports, recovery from the pandemic and changes in risk appetite, inflationary pressures, and dynamics in emerging markets. Notable trends expected during the forecast period encompass the increase in retail forex trading, the implementation of advanced risk management strategies, the impact of global economic recovery, a heightened focus on ESG (environmental, social, governance), and increased investments in technological infrastructure.

The growth of the foreign exchange market in the future is significantly influenced by the upsurge in international transactions. International transactions, characterized by dealings involving two or more related businesses with at least one non-resident party, contribute to the expansion of the foreign exchange market as global trade and international transactions increase in scale and activity. As highlighted in a 2022 report from the United Nations Conference on Trade and Development (UNCTAD), a Switzerland-based intergovernmental organization advocating for the interests of developing countries in world trade, the value of global trade and international transactions reached $28.5 trillion in 2021. Consequently, the anticipated increase in international transactions is poised to propel the growth of the foreign exchange market.

The anticipated growth of the foreign exchange market in the future is closely linked to the rising threats of terrorism. Terrorism threats encompass the potential risks and hazards posed by individuals, groups, or organizations engaged in acts of terrorism. Such events can result in an increased demand for safe-haven currencies, heightened geopolitical and economic risks, responses in monetary policy, international collaboration and information sharing, initiatives in counter-terrorism financing, and a general shift towards safe havens. Notably, in March 2023, ReliefWeb, a specialized digital service of the UN Office for the Coordination of Humanitarian Affairs (OCHA), reported an increase in average fatalities per terrorist attack from 1.3 in 2021 to 1.7 in 2022. Consequently, the escalating terrorism threats are a driving force behind the growth of the foreign exchange market.

The prevailing trend in the foreign exchange market is the increasing popularity of product innovation. Major companies engaged in the foreign exchange market are placing emphasis on introducing novel foreign exchange platforms. A notable example occurred in July 2022 when EbixCash Limited, a financial and insurance technology company based in India, unveiled a self-booking corporate tool. This tool is designed to assist business clients in generating personalized notifications and Management Information Systems (MIS) for all relevant activities. Its purpose is to provide a seamless and convenient experience for foreign exchange services. To enhance efficiency in booking and maintaining foreign exchange services, the Self-Booking Tool (SBT) incorporates features such as online invoice management, real-time order updates, and an approval matrix setup tailored for corporate clients.

Major companies in the foreign exchange market are introducing new products, such as next-generation foreign exchange platforms, as a strategic move to enhance their competitive advantage. A foreign exchange platform is a digital software application or online system designed to facilitate currency trading in the foreign exchange market. Illustratively, in October 2023, The BNY Mellon Corporation, a financial services company based in the United States, launched Universal FX. This platform significantly improves the foreign exchange experience for clients worldwide by providing access to both developed and emerging market currency execution. Universal FX enables customers to manage their entire portfolio, whether involving transaction settlements, custody, or prime brokerage. Serving a diverse range of businesses, including investment managers, corporates, hedge funds, and wealth managers, the platform builds upon the OneFX suite of products and banking capabilities, catering to all FX trading, hedging, and cross-border payment activities.

In January 2023, Rostro Group, a capital holdings company based in the United States with a focus on digital assets and capital markets, successfully acquired Scope Markets Group for an undisclosed sum. This strategic acquisition has expanded Rostro's portfolio of investments to include foreign exchange trading. Scope Markets Group, the acquired entity, is a financial trade and forex services company based in Belize.

Major companies operating in the foreign exchange market report are JPMorgan Chase and Co., Citibank N. A., HSBC Holdings PLC, BNP Paribas Société Anonyme, The Goldman Sachs Group Inc., UBS Group AG, Deutsche Bank AG, The Bank of Nova Scotia, Barclays PLC, State Bank Of India, Standard Chartered PLC, State Street Corporation, Royal Bank of Scotland PLC, Commonwealth Bank of Australia, Interactive Brokers Group LLC, eToro Group Limited, Saxo Bank A/S, Swissquote Group Holding SA, CMC Markets PLC, GAIN Capital Holdings Inc., IG Group Holdings PLC, AvaTrade Ltd., City Index Limited, OANDA Corporation, Alpari UK Limited, Admiral Markets Ltd., Pepperstone Group Limited, Dukascopy Bank SA, Octa Markets Incorporated, FxPro UK Limited.

North America was the largest region in the foreign exchange market in 2023. The regions covered in the foreign exchange market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the foreign exchange market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary participants in foreign exchange include reporting dealers, other financial institutions, and non-financial customers. Reporting dealers are financial institutions actively involved in local and international derivatives and foreign exchange markets. Various trade finance instruments, such as currency swaps and FX options, involve end users such as individuals, retailers, corporate institutes, and governments.

The foreign exchange market research report is one of a series of new reports that provides foreign exchange market statistics, including foreign exchange industry global market size, regional shares, competitors with a IoT insurance market share, detailed foreign exchange market segments, market trends and opportunities, and any further data you may need to thrive in the foreign exchange industry. This foreign exchange market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The foreign exchange market consists of revenues earned by entities by selling foreign exchange services (e.g. trading programs & advisory service, currency exchange & remittance service and professionally managed accounts service). The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.