Foreign Exchange Services Global Market Report 2024

The foreign exchange services market size has grown strongly in recent years. It will grow from $7402.18 billion in 2023 to $7976.23 billion in 2024 at a compound annual growth rate (CAGR) of 7.8%. The expansion observed in the historical period can be attributed to economic conditions, political stability and risk, regulatory changes, interest rate differentials, and market speculation.

The foreign exchange services market size is expected to see strong growth in the next few years. It will grow to $10563.53 billion in 2028 at a compound annual growth rate (CAGR) of 7.3%. The anticipated growth in the forecast period can be attributed to the global economic outlook, changes in trade policies, regulatory developments, global events and crises, and central bank policies. Key trends expected during the forecast period encompass technological innovations, advances in technology, digital transformation, integration of cryptocurrencies, and the implementation of algorithmic trading and artificial intelligence.

The anticipated growth of the foreign exchange service market in the future is expected to be propelled by the increasing volume of international transactions. An international transaction is characterized as a settlement in a foreign currency for a cross-border trade agreement or credit operation. The execution of any international transaction necessitates the exchange of foreign currency. Consequently, a growing number of international transactions is poised to stimulate the expansion of the foreign exchange service market. For instance, in May 2022, the World Bank, an international financial institution based in the United States, reported a 7.8% increase in remittance inflows to Europe and Central Asia in 2021, reaching a record high of $74 billion. Thus, the upward trend in international transactions serves as a driving force for the foreign exchange market.

The anticipated growth of the foreign exchange service market in the future is expected to be fueled by the increasing trend in tourism. Tourism involves individuals traveling to and staying in locations beyond their usual surroundings, whether for recreational, business, or other purposes. The influx of tourists into a country typically requires the conversion of their home currency to the local currency, leading to a surge in foreign exchange transactions at various points such as airports, banks, and other currency exchange facilities. For example, in May 2023, a report from the United Nations World Tourism Organization, a specialized agency based in Spain, highlighted a rebound in international tourist arrivals in the first quarter of 2023, reaching 80% of pre-pandemic levels with approximately 235 million travelers. This marked a more than twofold increase compared to the same period in 2022. The tourism sector demonstrated remarkable resilience, as revised data for 2022 indicated that over 960 million international tourists explored foreign destinations last year, achieving a recovery of two-thirds (66%) of pre-pandemic levels. Hence, the upsurge in tourism is a driving factor for the growth of the foreign exchange service market.

The incorporation of technological advancements is a prominent trend gaining traction in the foreign exchange service market. Major companies within this market are embracing new technologies as part of their strategy to maintain a strong position in the industry. As an illustration, in July 2022, EbixCash Limited, an India-based provider of technology-enabled digital products and services, introduced the Self Booking Corporate tool for foreign exchange. This tool, designed for business and corporate travelers, as well as other corporates, offers a comprehensive range of digital foreign exchange services to enhance overall efficiency. Clients can now access foreign exchange services digitally, benefitting from a streamlined documentation process. Additionally, the tool empowers corporate clients to customize the system according to their corporate travel policies and generate personalized reports.

Major companies in the foreign exchange service market are actively developing advanced technologies, such as foreign exchange (FX) platforms, with the aim of reaching broader customer bases, boosting sales, and increasing overall revenue. A foreign exchange (FX) platform, also referred to as a forex trading platform, is an online software interface provided by financial institutions and brokers. It facilitates participants in the foreign exchange market to engage in currency trading. As an example, in October 2023, the Bank of New York Mellon Corporation (BNY Mellon), a financial services company based in the United States, introduced the Universal FX platform. This innovative foreign exchange (FX) platform is designed to address the diverse needs of clients in managing portfolio execution while offering unparalleled access to market-leading price transparency. Tailored for BNY Mellon clients across various market segments, including investment managers, corporates, hedge funds, and wealth managers, Universal FX plays a pivotal role in guiding them through the industry-wide shift to T+1 settlement. This cutting-edge platform represents an extension of BNY Mellon's OneFX suite, leveraging innovative solutions and banking capabilities to comprehensively cover FX trading, FX hedging, and cross-border payment activities. Notably, Universal FX seamlessly integrates into the entire FX spectrum, ensuring global clients can effortlessly access BNY Mellon's latest features and functionalities within the OneFX suite.

In May 2022, OFX Group Limited, an Australia-based online foreign exchange and payments company, completed the acquisition of Firma Foreign Exchange Corporation (Firma) for CAD90 million ($66.0 million). This strategic acquisition positions OFX as a prominent provider of corporate cross-border payments in Canada. Firma Foreign Exchange Corporation, based in Canada, specializes in foreign exchange services and the transmission of money.

Major companies operating in the foreign exchange services market report are JPMorgan Chase & Co., Citibank N. A, Wells Fargo Bank Ltd., HSBC Holdings PLC, BNP Paribas, American Express Company, Goldman Sachs Group Inc., UBS AG, Capital One Financial Corporation, Barclays PLC, Deutsche Bank, The Royal Bank of Scotland PLC, Standard Chartered PLC, State Street Corporation, Western Union Holdings, Inc., XTX Markets Limited, Coinbase Global, Inc., Revolut, BloomX Ltd., Wise, eToro, Gain Capital Group, LLC, Ripple, Rapyd, TransferMate, Capitolis Inc., Banxa Holdings Inc., Currensea, AZA Group, B Broker SRL, easyMarkets (CFD Trading), Ebury, EverEx, LMAX Exchange Group, Orfinex Technologies

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

The primary services within foreign exchange services include currency exchange, remittance services, foreign currency accounts, and others. Currency exchange involves the business activity where customers can exchange one currency for another in terms of physical money (coins and paper bills). This is conducted over the counter at teller stations located in various places such as airports and resorts. Various providers, including banks, money transfer operators, and others, are utilized by individuals, corporate institutes, governments, retailers, and other entities.

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

The foreign exchange services market includes revenues earned by providing professionally managed accounts service and trading programs & advisory services. 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.