The role of commercial banks in the Forex market

Whatever the reason not to have this party to the market, most importantly, that it can affect the supply and demand in the market and change the exchange rate at any time. Commercial and investment banks are among the most influential participants in the market Forex.

Banks form the corner stone of the online currency market Forex, because other than execution of trades on behalf of clients, they also traded on his behalf and form a channel through which all are forced to sell the remaining participants. As a result, they will be the main sellers of currencies in market Forex trading.

Commercial banks can obtain unique data about the market and can monitor the activities of other actors, such as central banks and investment funds.

Commercial banks were at the beginning of the Forex market for years, and their role in general remained the same. However, the introduction of electronic brokerage systems in the early 80's led to the beginning of great changes in the market. Electronic trading systems allow dealers to maintain multiple trades simultaneously and with greater efficiency, lower spreads, low cost, and more importantly - with greater transparency.