The forex market, also known as the foreign exchange market, is the largest and most liquid financial market in the world. It is a decentralized market, meaning that it is not located in one specific place, but rather transactions take place over the internet and through electronic communication networks. The forex market is open 24 hours a day, five days a week, and has a daily trading volume of over $5 trillion.
With the growth of the internet and technology, the forex market has become more accessible to retail traders. Retail forex trading involves individual investors trading currencies through a broker. The number of retail forex traders has been growing steadily over the years, and in 2020, it is estimated that there are around 15 million forex traders in the world.
The exact number of forex traders is difficult to determine, as there is no central database or regulatory body that tracks the number of traders. However, there are several ways to estimate the number of forex traders. One way is to look at the number of forex trading accounts opened with brokers. According to data from the National Futures Association (NFA), which regulates forex brokers in the United States, there were 77,799 active forex trading accounts in the US in 2019. This number is just a fraction of the total number of forex traders worldwide, as there are many traders in other countries who use non-US based brokers.
Another way to estimate the number of forex traders is to look at the number of forex-related searches on the internet. According to Google Trends, there has been a steady increase in searches for terms related to forex trading over the past decade. In 2020, there were an average of 550,000 monthly searches for the term “forex trading,” indicating that there is a significant interest in forex trading around the world.
The growth in the number of forex traders can be attributed to several factors. One of the main factors is the ease of access to the forex market through online brokers. Retail traders can open a forex trading account with as little as $100 and can access the market from anywhere in the world. The availability of online resources such as trading platforms, educational materials, and market analysis tools has also made it easier for traders to learn about forex trading and make informed trading decisions.
Another factor contributing to the growth in the number of forex traders is the potential for high profits. The forex market is known for its volatility, which can lead to large price movements and significant profits. However, it is important to note that forex trading also involves a high level of risk, and traders can lose money just as easily as they can make it.
In conclusion, the number of forex traders in the world is estimated to be around 15 million in 2020. This number is expected to continue to grow as the forex market becomes more accessible and technology continues to advance. While forex trading can be a lucrative opportunity, it is important for traders to have a solid understanding of the market and to manage their risk appropriately.
