Consumer Foreign Exchange Market

The FOREX is a group of approximately 4500 currency trading institutions,
including international banks, government central banks and commercial
companies. Payments for exports and imports flow through the Foreign
Exchange Market, as well as payments for purchases and sales of assets. This
is called the “consumer” foreign exchange market. There is also a “speculator”
segment in the FOREX Companies, which have large financial exposures to
overseas economies participate in the FOREX to offset the risks of international
investing.
Historically, the FOREX interbank market was not available for small speculators.
With a previous minimum transaction size and often-stringent financial
requirements, the small trader was excluded from participation in this market. But
today market maker brokers are allowed to break down the large interbank units
and offer small traders the opportunity to buy or sell any number of these smaller
units (lots).