Regular banks, central banks, corporations, retail brokers and a handful of independent investors also participate in foreign exchange trading. In FX, the highest level is comprised of large investment banks, with this particular level accounting for majority of market turnover and having the biggest number of deals conducted within the sector everyday. Basically, profit margins in foreign exchange trading are minimal compared with other trading markets; however, the large volume of currency being traded can create vast profits for traders.

An individual trader or a financial institution can participate in Forex by trading a pair of currencies.. Understanding Forex Trading - How is it Different From the Stock Exchange. FX is the largest market exchange in the world, generating an estimated $3 trillion trades daily. Trading at Forex is done simultaneously, with one currency being bought and another being sold at the same time. Forex trading differs from stock trading by the absence of a central exchange. The market for foreign exchange also differs from stock markets in such a way that, in the latter, traders have access to the same prices; while in the former, access is decided by levels.

In FX trading, deals are directly conducted and sealed between two entities without the need for a central body.