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Who controls Forex market?

The Forex market is indirectly controlled by big money. The financial institutions having the biggest stack in the market has the potential of determining the direction and movement of the foreign exchange rates.

Knowing how the forex market is mapped out is necessary for any trader who wants to make profits consistently. This is simply because the collective combination of all participants (traders, brokers, banks, and other financial institutions) creates the market. The relative weight of the trading party to the market is measured by how much money that party manages — from billion-dollar hedge funds and investment banks to private traders with a few thousand dollars in action.

Understandably, the parties with the most amount of money in the market can control what happens in the market. For example, if a hedge fund decides to purchase large some of a particular currency, it effectively creates a trend in the market. The pattern created by this hedge fund will push other retail brokers and independent traders into buying the same currency. Based on this example, it can be said that big banks and financial institutions control the Forex market. The opinion of experts also influences the market at a lesser degree.