Forex (foreign exchange) trading, as the name suggests, refers to the buying and selling of currencies from around the world. It is the largest financial market in the world, with a daily trading volume of over $5 trillion. Forex trading offers high liquidity, low transaction costs, and the ability to trade 24 hours a day, five days a week. It has gained popularity over the years, and many people are trading forex at a time.
It is challenging to know the exact number of people trading forex at a time because the forex market is decentralized, meaning there is no central exchange or clearinghouse. However, we can estimate the number of forex traders based on the data available from various sources.
According to a survey conducted by the Bank for International Settlements (BIS) in 2019, the daily turnover in the forex market was $6.6 trillion. This figure represents the total value of all the currencies traded in a day. The survey also revealed that the most significant players in the forex market were banks, accounting for 44% of the total turnover. Other players included institutional investors, hedge funds, and retail traders.
Retail traders, also referred to as individual traders, are the smallest players in the forex market. They are individuals who trade forex for personal gain and are not associated with any financial institution. According to a survey conducted by Statista, there were 28.7 million forex traders worldwide in 2020. This number is expected to increase in the coming years due to the growing popularity of forex trading.
The number of forex traders varies from country to country. According to a report by Finance Magnates, the United States has the most forex traders, accounting for 19.5% of the global forex trading population. Japan comes in second, with 6.2%, followed by the United Kingdom with 5.3%. Other countries with a large forex trading population include Germany, France, Italy, and China.
The number of forex traders also varies depending on the trading platform used. There are numerous forex trading platforms available, including MetaTrader 4 (MT4), MetaTrader 5 (MT5), cTrader, and NinjaTrader. These platforms are offered by various forex brokers, and the number of traders using each platform varies. According to a report by Finance Magnates, MT4 is the most widely used forex trading platform, accounting for 41% of the market share. MT5 comes in second, with 15%, followed by cTrader with 7%.
In conclusion, it is difficult to know the exact number of people trading forex at a time due to the decentralized nature of the forex market. However, we can estimate the number of forex traders based on data available from various sources. The forex market is the largest financial market in the world, with a daily turnover of over $5 trillion. Retail traders, the smallest players in the market, are estimated to be 28.7 million worldwide. The number of forex traders varies from country to country and depends on the trading platform used. MT4 is the most widely used forex trading platform, accounting for 41% of the market share.
