The forex market represents the largest and most liquid market in the world. In 2019, the forex exchange market accounted for more than $6.6 trillion of daily trading.
There are different forex markets globally, but as per Reuters and City Asset Management, the recognition for the largest forex market in the world goes to London. What is the Largest Market in the World? Which is the biggest forex market in the world?
What is the Largest Forex Market in the World?
World’s largest foreign exchange market is based in London, the capital of the United Kingdom. Based on the latest stats, 37% of all foreign exchange market turnover is made in London. As the largest currency trading market, London has a daily trading average of around £2.7 trillion, which is double or triple of other markets. As per the recorded data in the year 2017, this average kept on rising at a rate of 27% annually in the United Kingdom.
The increment rate in this rate was 11 percent and 10 percent, respectively, for the Hongkong and the New York markets. However, the same rate slumped 5 percent for the Singapore market.
The Top Location for Trading FX Exchange – London
We have stated a few pointers for the favourability of forex brokers and traders towards London.
The timing of the London market has the most preferred time for forex trading as it falls in the time frame that it opens before the U.S markets start and ends after the closing of Asian markets.
The Use of Preferred Language
Many languages are being spoken across the world, but the most common language is English, and of course, that is not uncommon for the London forex market.
Flexible Regulations in Place
In the U.K, no doubt, the Finance Conduct Authority (FCA) has placed rules and regulations, but it is also the regulator known for owning responsibilities and providing flexibility.
Use of the Latest Technology
London is the favorite destination for European developers for making an aspiring career in finance. It uses the latest and advanced technologies to aid traders.
Fin-tech is definitely finding its place in today’s world; it is a boon for traders. Currency brokers handling the massive flow of foreign currencies and transfers believe this to be the best transition of decades.
The Bottom Line
Brexit has hit the largest forex market globally, but it has little or no big impacts on foreign brokers and currency traders, tilting towards London as their top choice. The infrastructural advances, regulatory policies, cultural values, and the welcoming gesture for novice traders make London the most preferred and biggest forex market globally.