Although MetaQuotes released MetaTrader 5 in 2010, MT4 still remains the most popular retail platform in the world. The average median for the same period was $7,000 while the average single deposit was $1,220. This deposit is similar to the average first deposit of $1,014 ($642 median), according to cPattern data. In 2017, 61,00 Australians had an FX account that was active, in 2018 and 2019 this grew to between 75,000 and 79,000, respectively.
Daily Trading Volume of the 10 Most Traded Currency Pairs (in bn USD)
With online brokers being a major contributor to the growth of the global Forex sector, we will take a look at leading trading companies that are currently dominating the Forex industry. To give you a better understanding of the scope of this sector and its exponential growth, we have compiled a list of key statistics that focus on the global Forex market. Forex data typically offers global coverage, with some datasets including over 240 countries. Coverage often includes major and minor currency pairs as well as regional currencies, ensuring relevance to diverse trading needs. Another use case for forex data is for general reporting on the foreign exchange by news outlets and financial journalists.
Exchange Data International
Since the establishment of the Forex market, males have been the dominating gender participating in currency pair trading. While the numbers can differ depending on the region, we have data from a few major Forex brokers to support the statement that males are still the bigger group of active Forex traders. Forex datasets serve a variety of use cases, making them indispensable tools for traders, analysts, and financial institutions. One of the primary use cases is algorithmic trading, where real-time and historical data are used to build and refine automated trading strategies. They can avoid unwise decisions made in forex trades historically, which is recorded in forex databases. Instead, the data can increase the likelihood that they invest their money in assets that are more likely to be successful.
If the price is moving up, and the volume is decreasing, it indicates that the trend is weak and may reverse soon. Similarly, if the price is moving down, and the volume is increasing, it indicates that the trend is strong and likely to continue. If the price is moving up, and the volume is increasing, it indicates that the trend is strong and likely to continue. On the other hand, if the volume is decreasing while the price is moving up, it indicates that the trend is weak and may reverse soon. Examples of forex volume indicators include On-Balance Volume (OBV), Volume Weighted Average Price (VWAP), and Chaikin Money Flow (CMF). These indicators can be added to trading platforms, such as MT4 and MT5, or used in standalone charting software.
For a better understanding of how the forex market is structured, read our lesson, “Where Are Retail Forex Traders Actually Trading? Forex data is available in formats like CSV, TXT, and JSON for seamless integration into analytical tools and trading platforms. Delivery methods include APIs, SFTP, and streaming services, ensuring flexibility for various technical requirements. Improve operational efficiency and onboard and retain clients using diverse platforms with industry’s leading symbology service. Uncover and compare daily activity and liquidity across individual products to inform trading decisions.
- Eight of these leading pairs involve the US dollar traded against other major currencies like the euro, the sterling, and the yen.
- This marked a 346% growth compared to the 415,000 active monthly traders recorded four years before that.
- According to data published by VT Markets, a global multi-asset CFD broker, Asia is the region with the highest number of online Forex traders, with 3.2 million Asian investors trading currency pairs.
Daily Trading Volume of Japan Forex Market
Most forex brokers offer MetaTrader 4 (MT4) or MetaTrader 5 (MT5) platforms, which have built-in volume indicators. These indicators show the number of lots traded within a specific period, such as one minute, five minutes, or one hour. The USD/RMB outperformed all currency pairs in terms of daily averages, followed by the USD/HKD and USD/JPY.
Using AI and Trading Tools for Forex Trades
Profitable traders have been reported to be more experienced (5.4 years) than unprofitable traders (2.5 years). Another discrepancy fp markets review between the two groups was noticed in the average number of trading strategies that have been tested. While those who have gained profits have tried out about three trading strategies, those who have not been successful have tested four trading strategies on average. When it comes to age, the majority of Forex traders are in the age group between 25 and 34.
Forex swaps were the most popular instrument among USD/RMB traders in Singapore and generated $1.26 trillion during said month. The EUR/USD, GBP/USD, and USD/JPY retain their dominant position as the three most traded forex pairs in the country. The euro against the dollar landed on the first spot with $738 billion in turnover, representing 25% of the total daily averages for October 2023.
- On the other hand, the EUR has experienced a decline, albeit still holding a significant share.
- If we compare profitable and unprofitable traders, we can see that 72% of those who earn profit from Forex trading use daily charts.
- US-based Forex.com gained popularity and is now the second largest broker, with XM in third.
- Currency swaps accounted for 2% of the global forex market growth in 2022, which was the instrument’s share in 2019, as well.
However, beyond the retail trader, the Forex sector also has other major participants like the major commercial banks J.P. Forex data analysis entails evaluating which currency over a given period of time is likely to be stronger within a currency pair. This information can then be used by forex traders to buy the currency they expect canadian forex brokers to increase in value or to sell the currency they believe will decrease in value. The history of forex trading software dates back to 1996 when the first trading platforms were introduced to retail investors, allowing them to participate in fx markets for the first time.
These fluctuations not only highlight the pandemic’s role in driving trading activity but also pose questions about market dynamics in a post-pandemic world. After the collapse of the Bretton Woods system in 1973, floating exchange rates opened the door for modern-day forex trading. The Gold Standard and the Bretton Woods system worked to control global monetary policy and currency valuation. As Central Banks tightly regulated exchange rates, traders could not speculate on foreign currency movements. The Asian session is more suitable for flat strategies, while quieter periods during the New York and London sessions are suitable for trading strategies that require stable price movement.
This pair saw a significant jump from 2010 to 2013 but has since settled to a stable share of around 13.5% in 2022. Known as the “majors” because they involve the currencies of the world’s largest and most influential economies, these currencies are typically characterised by high liquidity and low spreads. Provide your customers with local pricing of your products and services by offering real-time currency conversion on your website or shopping cart. For example, during an upside breakout in an Ascending Triangle, it should be confirmed with an increased amount of volume. If the previous relationship between volume and price movements starts to deteriorate, it is usually a sign of weakness in the trend.
Turning our gaze to concrete numbers, we see the euro traded against the US dollar generates the highest turnover of $1.71 trillion per day. Daily averages for the most traded currency pair rose by approximately 8% from three years earlier when the trading volume for the EUR/USD stood at $1.58 trillion per day. This only makes sense considering the pair represents the two biggest economies on a global scale, the European Union and the United States. Changes in global monetary policy, coupled with inflation, are likely driving forex traders to more reliable fx pairs. Outside of the main currencies, the average daily turnover for emerging market currencies decreased slightly from 19% to 18%. Significant changes have occurred in the trading volumes and market shares of various minor and exotic fx pairs between 2010 and 2022.
Facebook is the second-most preferred social media outlet that traders use to get updated on the latest Forex trends. Other major participants in the Forex sector include central banks like the Federal Reserve, European Central Bank, Bank of Japan, etc. The role of these institutions is to intervene in the Forex market, ensuring the stabilization or increase of the value of their national currencies. Hedge funds, mutual funds, insurance companies, pension funds, and big multinational corporations can also be categorized as key participants in the global Forex market. 2022 saw a shift in the top positions of banks with the biggest market share in the global Forex sector, with Deutsche Bank taking the top position with a market share of 10.89%.
Forex Market Hours and Trading Sessions
The trading volume of the currency remained the same compared to data from April 2019. The USD was followed by EUR, JPY, and GBP, representing the remaining currencies that marked the highest trading volumes in April 2022. The biggest change in market share for April 2022 was spotted with the CNY, being a part of 7% of currency pairs traded in April 2022, a surge from 4% recorded in April 2019. Hong Kong retains its position as the fourth largest forex market and posted a daily turnover averaging $684 billion as of last October. This figure indicates a barely noticeable shrinkage of 1.4% compared to the administrative region’s results for April 2022, when daily trading volumes stood at $694 billion despite the pandemic-related disruptions. Average daily turnover improved significantly in April 2024, increasing by 24.6% from October 2023 to reach $852 billion.
The USD/HKD experienced the steepest decline, with its share falling by 0.9 percentage points from April 2019. A decrease was only observed in 2016 when trading in the forex market averaged $5.07 trillion, down 5.4% from the previous triennial survey when it stood at around $5.36 trillion. This was the first market shrinkage in 15 years, and some analysts ascribed it to the significant drop in spot forex transactions and the rising interest in derivative trading during this period. Ultimately, this leads to reduced trading risk and sharper insights into market dynamics, supporting your business and trading models. When it comes to the amount that Forex traders spend on their currency pair trades, it has been reported that most traders (63.75%) have limited their Forex trading expenses to less than 5% of their total budget.
Another Forex broker that saw a massive jump in monthly active traders after the global pandemic is WeBull. When comparing the data between May 2017 and May 2021, we can see that the broker experienced a growth of 747.52%, going from 341,070 traders per month to 3.1 million active monthly trading clients. In 2022, North America was the region that dominated the global Forex broker market, with factors like the increase in income and trading expectancies playing a major role in the region’s Forex broker advancements. In the upcoming years, the Asia-Pacific Forex broker market is also expected to gain significantly in market share, with more brokers expanding their reach to developing countries in the region. The global Forex broker market was estimated to coinbase exchange review be worth $5.2 trillion in 2023, with projections for 2032 predicting a market growth of 10.9%, reaching a market value of $13 trillion. Reporting dealers were the biggest contributors to the Forex broker market growth in 2023.
However, to be successful in forex trading, traders need to have access to accurate and reliable data, including volume data. The most recent data shows the global foreign exchange market is worth $2.73 quadrillion, up from $1.93 quadrillion in 2019, making it the largest financial market globally. It was found in 2022 the average daily turnover had increased by 14% from $6.6 trillion to $7.5 trillion in a three-year period. The second place on the list of forex pairs with the highest daily trading volumes is reserved for the USD/JPY, another major whose turnover increased by 16% from April 2019 to April 2022.