The global foreign exchange market is currently experiencing a healthy growth. Foreign exchange (FX), or forex, refers to a system that facilitates the transaction of currencies from different countries. It is performed through credit instruments, such as bills of foreign currency, bank drafts and telephonic transfers. The fund transfer functions through an electronic network of banks, financial institutions, brokers and individual traders. Forex also finds extensive applications for transferring funds to support the exchange of various goods and services between nations.
Growing urbanization and digitalization in both the emerging and developed economies are among the key factors driving the growth of the market. The key features of FX, such as minimal trading costs, 24x7 trading opportunities, high transactional transparency and liquidity, have favored its widespread acceptance across the globe. Furthermore, the availability of electronic platforms and the provision of improved security mechanisms for trading are also providing a boost to the market growth. Various internet-based platforms are available to the users for conveniently exchanging currencies between countries while ensuring the delivery of goods and services in a secure and centralized setting. Additionally, various technological advancements, such as the availability of outright forward and currency option, are creating a positive outlook for the market growth. Outright forward enables the trader to lock the current exchange rate, which further protects the investor, exporter or importer from future rate fluctuations. On the other hand, the currency option refers to a contractual document that establishes an obligation to purchase or trade currency at a specific rate. Looking forward, IMARC Group expects the global foreign exchange market to register moderate growth during 2020-2025.
Key Market Segmentation:
IMARC Group provides an analysis of the key trends in each sub-segment of the global foreign exchange market report, along with forecasts for growth at the global, regional and country level from 2020-2025. Our report has categorized the market based on region, counterparty and instruments
Breakup by Counterparty:
- Reporting Dealers
- Other Financial Institutions
- Non-financial Customers
Breakup by Instruments:
- Currency Swap
- Outright Forward and FX Swaps
- FX Options
Breakup by Region:
- North America
- Asia Pacific
- China
- Japan
- India
- South Korea
- Australia
- Indonesia
- Others
- Europe
- Germany
- France
- United Kingdom
- Italy
- Spain
- Russia
- Others
- Latin America
- Middle East and Africa
Competitive Landscape:
The report has also analysed the competitive landscape of the market with some of the key players being Barclays, BNP Paribas, Citibank, Deutsche Bank, Goldman Sachs, HSBC Holdings plc, JPMorgan Chase & Co., The Royal Bank of Scotland, UBS AG, Standard Chartered PLC, State Street Corporation, XTX Markets Limited, etc.
Key Questions Answered in This Report
The global foreign exchange market was worth around US$ 3.5 Trillion in 2019.
According to the estimates by IMARC Group, the global foreign exchange market will exhibit moderate growth during the next five years.
The foreign exchange market provides 24x7 trading opportunities, enormous trading volume, and high transactional transparency, that are currently driving the global foreign exchange market.
Numerous technological advancements have led to the wide availability of outright forward and currency options, thereby representing one of the key trends in the global foreign exchange market.
Sudden outbreak of the COVID-19 pandemic had led to the implementation of stringent lockdown regulations across several nations. This has negatively impacted the foreign exchange market due to the declining performance of the registered industries and restricted amount invested in the exchange.
On the basis of the counterparty, the market has been classified into reporting dealers, other financial institutions, and non-financial customers. Amongst these, reporting dealers hold the largest market share.
On the basis of the instrument, the market has been categorized into currency swap, outright forward and FX swaps, and FX options. At present, currency swaps exhibit a clear dominance in the market.
Region-wise, the market has been classified into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America, where North America dominates the global market.
1 Preface
2 Scope and Methodology
2.1 Objectives of the Study
2.2 Stakeholders
2.3 Data Sources
2.3.1 Primary Sources
2.3.2 Secondary Sources
2.4 Market Estimation
2.4.1 Bottom-Up Approach
2.4.2 Top-Down Approach
2.5 Forecasting Methodology
3 Executive Summary
4 Introduction
4.1 Overview
4.2 Key Industry Trends
5 Global Foreign Exchange Market
5.1 Market Overview
5.2 Market Performance
5.3 Impact of COVID-19
5.4 Market Forecast
6 Market Breakup by Counterparty
6.1 Reporting Dealers
6.1.1 Market Trends
6.1.2 Market Forecast
6.2 Other Financial Institutions
6.2.1 Market Trends
6.2.2 Market Forecast
6.3 Non-financial Customers
6.3.1 Market Trends
6.3.2 Market Forecast
7 Market Breakup by Instruments
7.1 Currency Swap
7.1.1 Market Trends
7.1.2 Market Forecast
7.2 Outright Forward and FX Swaps
7.2.1 Market Trends
7.2.2 Market Forecast
7.3 FX Options
7.3.1 Market Trends
7.3.2 Market Forecast
8 Market Breakup by Region
8.1 North America
8.1.1 United States
8.1.1.1 Market Trends
8.1.1.2 Market Forecast
8.1.2 Canada
8.1.2.1 Market Trends
8.1.2.2 Market Forecast
8.2 Asia Pacific
8.2.1 China
8.2.1.1 Market Trends
8.2.1.2 Market Forecast
8.2.2 Japan
8.2.2.1 Market Trends
8.2.2.2 Market Forecast
8.2.3 India
8.2.3.1 Market Trends
8.2.3.2 Market Forecast
8.2.4 South Korea
8.2.4.1 Market Trends
8.2.4.2 Market Forecast
8.2.5 Australia
8.2.5.1 Market Trends
8.2.5.2 Market Forecast
8.2.6 Indonesia
8.2.6.1 Market Trends
8.2.6.2 Market Forecast
8.2.7 Others
8.2.7.1 Market Trends
8.2.7.2 Market Forecast
8.3 Europe
8.3.1 Germany
8.3.1.1 Market Trends
8.3.1.2 Market Forecast
8.3.2 France
8.3.2.1 Market Trends
8.3.2.2 Market Forecast
8.3.3 United Kingdom
8.3.3.1 Market Trends
8.3.3.2 Market Forecast
8.3.4 Italy
8.3.4.1 Market Trends
8.3.4.2 Market Forecast
8.3.5 Spain
8.3.5.1 Market Trends
8.3.5.2 Market Forecast
8.3.6 Russia
8.3.6.1 Market Trends
8.3.6.2 Market Forecast
8.3.7 Others
8.3.7.1 Market Trends
8.3.7.2 Market Forecast
8.4 Latin America
8.4.1 Brazil
8.4.1.1 Market Trends
8.4.1.2 Market Forecast
8.4.2 Mexico
8.4.2.1 Market Trends
8.4.2.2 Market Forecast
8.4.3 Others
8.4.3.1 Market Trends
8.4.3.2 Market Forecast
8.5 Middle East and Africa
8.5.1 Market Trends
8.5.2 Market Breakup by Country
8.5.3 Market Forecast
9 SWOT Analysis
9.1 Overview
9.2 Strengths
9.3 Weaknesses
9.4 Opportunities
9.5 Threats
10 Value Chain Analysis
11 Porters Five Forces Analysis
11.1 Overview
11.2 Bargaining Power of Buyers
11.3 Bargaining Power of Suppliers
11.4 Degree of Competition
11.5 Threat of New Entrants
11.6 Threat of Substitutes
12 Competitive Landscape
12.1 Market Structure
12.2 Key Players
12.3 Profiles of Key Players
12.3.1 Barclays
12.3.1.1 Company Overview
12.3.1.2 Product Portfolio
12.3.2 BNP Paribas
12.3.2.1 Company Overview
12.3.2.2 Product Portfolio
12.3.2.3 Financials
12.3.2.4 SWOT Analysis
12.3.3 Citibank
12.3.3.1 Company Overview
12.3.3.2 Product Portfolio
12.3.3.3 SWOT Analysis
12.3.4 Deutsche Bank
12.3.4.1 Company Overview
12.3.4.2 Product Portfolio
12.3.4.3 Financials
12.3.4.4 SWOT Analysis
12.3.5 Goldman Sachs
12.3.5.1 Company Overview
12.3.5.2 Product Portfolio
12.3.5.3 Financials
12.3.5.4 SWOT Analysis
12.3.6 HSBC Holdings plc
12.3.6.1 Company Overview
12.3.6.2 Product Portfolio
12.3.7 JPMorgan Chase & Co.
12.3.7.1 Company Overview
12.3.7.2 Product Portfolio
12.3.7.3 Financials
12.3.7.4 SWOT Analysis
12.3.8 The Royal Bank of Scotland
12.3.8.1 Company Overview
12.3.8.2 Product Portfolio
12.3.8.3 Financials
12.3.9 UBS AG
12.3.9.1 Company Overview
12.3.9.2 Product Portfolio
12.3.10 Standard Chartered PLC
12.3.10.1 Company Overview
12.3.10.2 Product Portfolio
12.3.10.3 Financials
12.3.10.4 SWOT Analysis
12.3.11 State Street Corporation
12.3.11.1 Company Overview
12.3.11.2 Product Portfolio
12.3.11.3 Financials
12.3.11.4 SWOT Analysis
12.3.12 XTX Markets Limited
12.3.12.1 Company Overview
12.3.12.2 Product Portfolio
12.3.12.3 Financials
List of Figures
Figure 1: Global: Foreign Exchange Market: Major Drivers and Challenges
Figure 2: Global: Foreign Exchange Market: Sales Value (in Billion US$), 2014-2019
Figure 3: Global: Foreign Exchange Market: Breakup by Counterparty (in %), 2019
Figure 4: Global: Foreign Exchange Market: Breakup by Instruments (in %), 2019
Figure 6: Global: Foreign Exchange Market: Breakup by Region (in %), 2019
Figure 7: Global: Foreign Exchange Market Forecast: Sales Value (in Billion US$), 2020-2025
Figure 8: Global: Foreign Exchange (Reporting Dealers) Market: Sales Value (in Million US$), 2014 & 2019
Figure 9: Global: Foreign Exchange (Reporting Dealers) Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 10: Global: Foreign Exchange (Other Financial Institutions) Market: Sales Value (in Million US$), 2014 & 2019
Figure 11: Global: Foreign Exchange (Other Financial Institutions) Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 12: Global: Foreign Exchange (Non-financial Customers) Market: Sales Value (in Million US$), 2014 & 2019
Figure 13: Global: Foreign Exchange (Non-financial Customers) Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 14: Global: Foreign Exchange (Currency Swaps) Market: Sales Value (in Million US$), 2014 & 2019
Figure 15: Global: Foreign Exchange (Currency Swaps) Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 16: Global: Foreign Exchange (Outright Forward and FX swaps) Market: Sales Value (in Million US$), 2014 & 2019
Figure 17: Global: Foreign Exchange (Outright Forward and FX swaps) Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 18: Global: Foreign Exchange (FX options) Market: Sales Value (in Million US$), 2014 & 2019
Figure 19: Global: Foreign Exchange (FX options) Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 20: North America: Foreign Exchange Market: Sales Value (in Million US$), 2014 & 2019
Figure 21: North America: Foreign Exchange Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 22: United States: Foreign Exchange Market: Sales Value (in Million US$), 2014 & 2019
Figure 23: United States: Foreign Exchange Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 24: Canada: Foreign Exchange Market: Sales Value (in Million US$), 2014 & 2019
Figure 25: Canada: Foreign Exchange Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 26: Asia Pacific: Foreign Exchange Market: Sales Value (in Million US$), 2014 & 2019
Figure 27: Asia Pacific: Foreign Exchange Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 28: China: Foreign Exchange Market: Sales Value (in Million US$), 2014 & 2019
Figure 29: China: Foreign Exchange Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 30: Japan: Foreign Exchange Market: Sales Value (in Million US$), 2014 & 2019
Figure 31: Japan: Foreign Exchange Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 32: India: Foreign Exchange Market: Sales Value (in Million US$), 2014 & 2019
Figure 33: India: Foreign Exchange Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 34: South Korea: Foreign Exchange Market: Sales Value (in Million US$), 2014 & 2019
Figure 35: South Korea: Foreign Exchange Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 36: Australia: Foreign Exchange Market: Sales Value (in Million US$), 2014 & 2019
Figure 37: Australia: Foreign Exchange Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 38: Indonesia: Foreign Exchange Market: Sales Value (in Million US$), 2014 & 2019
Figure 39: Indonesia: Foreign Exchange Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 40: Others: Foreign Exchange Market: Sales Value (in Million US$), 2014 & 2019
Figure 41: Others: Foreign Exchange Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 42: Europe: Foreign Exchange Market: Sales Value (in Million US$), 2014 & 2019
Figure 43: Europe: Foreign Exchange Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 44: Germany: Foreign Exchange Market: Sales Value (in Million US$), 2014 & 2019
Figure 45: Germany: Foreign Exchange Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 46: France: Foreign Exchange Market: Sales Value (in Million US$), 2014 & 2019
Figure 47: France: Foreign Exchange Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 48: United Kingdom: Foreign Exchange Market: Sales Value (in Million US$), 2014 & 2019
Figure 49: United Kingdom: Foreign Exchange Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 50: Italy: Foreign Exchange Market: Sales Value (in Million US$), 2014 & 2019
Figure 51: Italy: Foreign Exchange Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 52: Spain: Foreign Exchange Market: Sales Value (in Million US$), 2014 & 2019
Figure 53: Spain: Foreign Exchange Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 54: Russia: Foreign Exchange Market: Sales Value (in Million US$), 2014 & 2019
Figure 55: Russia: Foreign Exchange Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 56: Others: Foreign Exchange Market: Sales Value (in Million US$), 2014 & 2019
Figure 57: Others: Foreign Exchange Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 58: Latin America: Foreign Exchange Market: Sales Value (in Million US$), 2014 & 2019
Figure 59: Latin America: Foreign Exchange Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 60: Brazil: Foreign Exchange Market: Sales Value (in Million US$), 2014 & 2019
Figure 61: Brazil: Foreign Exchange Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 62: Mexico: Foreign Exchange Market: Sales Value (in Million US$), 2014 & 2019
Figure 63: Mexico: Foreign Exchange Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 64: Others: Foreign Exchange Market: Sales Value (in Million US$), 2014 & 2019
Figure 65: Others: Foreign Exchange Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 66: Middle East and Africa: Foreign Exchange Market: Sales Value (in Million US$), 2014 & 2019
Figure 67: Middle East and Africa: Foreign Exchange Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 68: Global: Foreign Exchange Industry: SWOT Analysis
Figure 69: Global: Foreign Exchange Industry: Value Chain Analysis
Figure 70: Global: Foreign Exchange Industry: Porter’s Five Forces Analysis
List of Tables
Table 1: Global: Foreign Exchange Market: Key Industry Highlights, 2019 and 2025
Table 2: Global: Foreign Exchange Market Forecast: Breakup by Counterparty (in Million US$), 2020-2025
Table 3: Global: Foreign Exchange Market Forecast: Breakup by Instruments (in Million US$), 2020-2025
Table 4: Global: Foreign Exchange Market Forecast: Breakup by Region (in Million US$), 2020-2025
Table 5: Global: Foreign Exchange Market: Competitive Structure
Table 6: Global: Foreign Exchange Market: Key Players