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bilal098's avatar

What is the role of small and medium sized banks in forex market?

Asked by bilal098 (4points) May 12th, 2020

i have been researching about the forex market for very longtime and saw that small and medium sized banks play a big role in the forex hierarchy but couldn’t find any details on what they actually do and how they benefit ?

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3 Answers

elbanditoroso's avatar

The don’t do much. Small banks act as the retailers for their customers, but it is the big banks that are really most involved in Forex.

No small bank is going to be a big player internationally.

elbanditoroso (33550points)“Great Answer” (2points) Flag as…
dabbler's avatar

Depends on the institution.
A lot of small and medium-sized banks have no proprietary trading operation where they go to the forex markets for their own investment/speculation. So their forex dealings will be just enough to settle payments for their customers.
As far as I know much more forex volume is generated by large institutions that have trading operations in many markets including forex.

dabbler (18896points)“Great Answer” (0points) Flag as…
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