In general, anyone who carries out a transaction in the forex market can be considered as a player. However, the key players in the forex market largely include the following groups: foreign exchange banks, government or central banks, forex brokers and clients.
1. Foreign Exchange Banks
Foreign exchange banks are the primary players in the forex market. They specifically include professional foreign exchange banks and large commercial banks without foreign exchange departments that are designated by the central bank.
2. Central Bank
The central bank is the governing body or regulator in the forex market.
3. Forex Brokers
Forex brokers are the middleman between the clients and the central or foreign exchange banks. They have very close contacts with both the banks and the clients.
In the forex market, any company or individual who participates in forex trading with a foreign exchange bank is considered a client of the bank.