Foreign Exchange Market Report 2025

The foreign exchange market size has grown strongly in recent years. It will grow from $792.43 billion in 2024 to $838.54 billion in 2025 at a compound annual growth rate (CAGR) of 5.8%. The growth in the historic period can be attributed to globalization and international trade, interest rate differentials, government policies and monetary interventions, speculation and investment flows, 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 $1.1 trillion in 2029 at a compound annual growth rate (CAGR) of 7.2%. The growth in the forecast period can be attributed to political and geopolitical developments, commodity prices and resource exports, pandemic recovery and risk appetite, inflationary pressures, emerging market dynamics. Major trends in the forecast period include rise of retail forex trading, enhanced risk management strategies, global economic recovery impact, focus on ESG (environmental, social, governance), technological infrastructure investments.

The increase in international transactions is playing a significant role in driving the growth of the foreign exchange market in the future. International transactions involve exchanges between two or more related businesses, where at least one party is a non-resident. The rise in global trade and international transactions enhances the size and activity of the foreign exchange market. For example, in August 2024, Convera Corporation, a US-based web services firm, projected that the wholesale cross-border payments market will grow by 54%, increasing from $146 trillion in 2023 to $225 trillion by 2030. In comparison, non-wholesale (retail) payment flows are expected to rise by 45%, reaching $65 trillion. Thus, the surge in international transactions is set to drive the growth of the foreign exchange market.

The rising threat of terrorism is anticipated to further propel the growth of the foreign exchange market in the future. Terrorism threats encompass the potential risks and dangers posed by individuals, groups, or organizations engaged in terrorist activities. Such events can lead to heightened demand for safe-haven currencies, increased geopolitical and economic risks, responses in monetary policy, international cooperation and information sharing, initiatives to combat terrorism financing, and a flight to safety. For instance, in February 2024, the Institute for Economics and Peace, an Australia-based non-profit think tank, reported that in 2023, terrorism in Israel resulted in a record high of 1,210 deaths and 4,537 injuries due to 20 terrorist attacks. Therefore, the growing threats of terrorism are driving the expansion 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 include 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 2024. 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.

Foreign exchange is the process of exchanging one currency for another at a predetermined rate, known as the foreign exchange rate. The foreign securities market, valued in trillions of dollars, is predominantly comprised of foreign exchange markets that are utilized for currency pairings, valuing one currency against another.

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.

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