Who are the participants in today’s Forex market?

Who are the participants in today’s Forex market?

In general, there are two main groups in the Forex marketplace:

Hedgers account for less than 5% of the market, but are the key reason futures and other such financial instruments exist. The group using these hedging tools is primarily businesses and other organizations participating in international trade. Their goal is to diminish or neutralize the impact of currency fluctuations.

Speculators account for more than 95% of the market.

This group includes private individuals and corporations, public entities, banks, etc. They participate in the Forex market in order to create profit, taking advantage of the fluctuations of interest rates and exchange rates.

The activity of this group is responsible for the high liquidity of the Forex market. They conduct their trading by using leveraged investing, making it a financially efficient source for earning.
Market making
Since most Forex deals are made by (individual and organizational) traders, in conjunction with market makers, it’s important to understand the role of the market maker in the Forex industry.
Questions and answers about 'market making'
What is a market maker?
A market maker is the counterpart to the client. The Market Maker does not operate as an intermediary or trustee. A Market Maker performs the hedging of its clients' positions according to its policy, which includes offsetting various clients' positions, and hedging via liquidity providers (banks) and its equity capital, at its discretion.
Who are the market makers in the Forex industry?
Banks, for example, or trading platforms (such as Easy-Forex™), who buy and sell financial instruments “make the market”. That is contrary to intermediaries, which represent clients, basing their income on commission.
Do market makers go against a client's position?
By definition, a market maker is the counterpart to all its clients' positions, and always offers a two-sided quote (two rates: BUY and SELL). Therefore, there is nothing personal between the market maker and the customer. Generally, market makers regard all of the positions of their clients as a whole. They offset between clients' opposite positions, and hedge their net exposure according to their risk management policies and the guidelines of regulatory authorities.
Do market makers and clients have a conflict of interest?
Market makers are not intermediaries, portfolio managers, or advisors, who represent customers (while earning commission). Instead, they buy and sell currencies to the customer, in this case the trader. By definition, the market maker always provides a two-sided quote (the sell and the buy price), and thus is indifferent in regards to the intention of the trader. Banks do that, as do merchants in the markets, who both buy from, and sell to, their