Foreign Exchange Market Report 2026

The foreign exchange market size has grown strongly in recent years. It will grow from $838.11 billion in 2025 to $893.23 billion in 2026 at a compound annual growth rate (CAGR) of 6.6%. The growth in the historic period can be attributed to growth of global trade and capital flows, liberalization of currency markets, expansion of institutional forex participation, development of interbank trading networks, rising demand for cross-border transactions.

The foreign exchange market size is expected to see strong growth in the next few years. It will grow to $1.16 trillion in 2030 at a compound annual growth rate (CAGR) of 6.9%. The growth in the forecast period can be attributed to increasing volatility in currency markets, rising adoption of AI-based trading strategies, expansion of emerging market currencies, growing regulatory oversight of forex trading, increasing integration of fx markets with digital finance ecosystems. Major trends in the forecast period include increasing use of algorithmic trading in fx markets, rising adoption of electronic trading platforms, growing demand for real-time currency risk hedging, expansion of high-frequency trading strategies, enhanced focus on liquidity management.

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.

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 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 2025. The regions covered in the foreign exchange market report are Asia-Pacific, South East Asia, 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, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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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