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Foreign exchange market

 

The foreign exchange market (forex, FX, or currency market) is a global decentralized market for the trading of currencies. The main participants in this market are the larger international banks. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends. EBS and Reuters' dealing 3000 are two main interbank FX trading platforms. The foreign exchange market determines the relative values of different currencies.

The foreign exchange market works through financial institutions, and it operates on several levels. Behind the scenes banks turn to a smaller number of financial firms known as “dealers,” who are actively involved in large quantities of foreign exchange trading.  Most foreign exchange dealers are banks, so this behind-the-scenes market is sometimes called the “interbank market,”although a few insurance companies and other kinds of financial institutions, are involved. Trades between foreign exchange dealers can be very large, involving hundreds of millions of dollars. Because of the sovereignty issue when involving two currencies, Forex has little (if any) supervisory entity regulating its actions.

 

As such, it has been referred to as the market closest to the ideal of perfect competition, notwithstanding currency intervention by central banks. According to the Bank for International Settlements,as of April 2010, average daily turnover in global foreign exchange markets is estimated at US$3.98 trillion, a growth of approximately 20% over the US$3.21 trillion daily volume as of April 2007. Some firms specializing on foreign exchange market had put the average daily turnover in excess of US$4 trillion.

The US$3.98 trillion break-down is as follows:

 

Trading in the United Kingdom accounted for 36.7% of the total, making it by far the most important centre for foreign exchange trading. Trading in the United States accounted for 17.9%, and Japan accounted for 6.2%.

 

We believe in the personal touch.  To help us understand your business requirements we have a team of experienced currency specialists who will visit your business to discuss your requirements and propose solutions and services to your company. 

To arrange for one of our team to visit for a no obligation meeting please get in touch.

 


Universal Foreign Exchange has international payment solutions that combine state-of-the-art technology and industry expertise.  Through our professional and consultative approach, our Corporate Division helps businesses of all sizes develop and implement appropriate overseas payment strategies.  We offer a package of services which are tailored to the specific requirements of our clients and which are adaptable to their ongoing business needs.

Universal Foreign Exchange has a range of services that helps many exporters operate in a range of currencies.

As an exporter you will need to invoice, collect and convert currency payments from overseas customers. Universal Foreign Exchange has a range of services and currencies that can help exporters.