Forex trading has become increasingly popular over the years, with many individuals and institutions looking to take advantage of the opportunities presented by the global currency market. Forex trading is the process of buying and selling currencies with the aim of making a profit. It is a highly liquid and volatile market, which presents both risks and rewards for traders.
The forex market is open 24 hours a day, five days a week, and is the largest financial market in the world, with an average daily turnover of over $5 trillion. With the growth of the market, the number of professional forex traders has also increased. A professional forex trader is someone who trades currencies for a living, either as an individual or as part of a larger organization.
So, how many professional forex traders are there? The answer to this question is not straightforward, as there is no official record or registry of professional forex traders. However, we can estimate the number of professional forex traders by looking at the number of traders who are registered with regulatory bodies, such as the Commodity Futures Trading Commission (CFTC) in the United States or the Financial Conduct Authority (FCA) in the United Kingdom.
According to the CFTC, there were approximately 71,000 registered forex traders in the United States as of December 2020. This includes both individual traders and firms that trade on behalf of clients. The number of registered traders has been relatively stable over the past few years, indicating that the forex trading industry in the United States is not growing significantly.
In the United Kingdom, the FCA regulates forex trading and requires all forex brokers to be licensed and regulated. According to the FCA, there were 3,540 forex trading firms operating in the UK as of January 2021. This includes both UK-based firms and firms that operate in the UK but are based in other countries. The number of firms has been relatively stable over the past few years, indicating that the forex trading industry in the UK is also not growing significantly.
Outside of the United States and the UK, there is no centralized regulatory body that oversees forex trading. However, many other countries have their own regulatory bodies that oversee the forex trading industry. For example, in Australia, the Australian Securities and Investments Commission (ASIC) regulates forex trading, while in Japan, the Financial Services Agency (FSA) oversees the industry.
Given that there is no centralized registry of professional forex traders, it is difficult to estimate the total number of traders worldwide. However, we can assume that the total number of professional forex traders is likely to be in the hundreds of thousands, if not millions. This is based on the fact that forex trading is a global industry, with traders operating in many different countries and regions.
In addition to individual traders, there are also many firms and institutions that engage in forex trading. These include banks, hedge funds, and other financial institutions. According to the Bank for International Settlements (BIS), the total notional value of outstanding forex derivatives contracts was $10.6 trillion as of June 2020. This indicates that there is a significant amount of institutional trading activity in the forex market.
In conclusion, while it is difficult to estimate the exact number of professional forex traders, we can assume that there are likely to be hundreds of thousands, if not millions, of traders worldwide. The forex trading industry is a global one, with traders operating in many different countries and regions. While the number of registered traders in the United States and the UK has been relatively stable over the past few years, the total number of traders worldwide is likely to continue to grow as the forex market becomes more accessible and more individuals and institutions look to take advantage of the opportunities presented by the market.
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