Foreign Exchange Market worth USD 1.1 Trillion by 2030, Growing at 5.8% CAGR as Digital Trading and Liquidity Strengthen; Asia Pacific Emerges as Key Region, Reports Mordor Intelligence

HYDERABAD, India, Nov. 19, 2025 /PRNewswire/ -- According to Mordor Intelligence, the foreign exchange market size stood at USD 0.89 trillion in 2025 and is expected to reach USD 1.18 trillion by 2030, advancing at a 5.83% CAGR. Growth is driven by expanding electronic trading adoption, improved central-bank policy coordination, and the shift toward real-time settlement systems. Rising digital commerce and faster payment rails are strengthening liquidity, while analytics-driven tools continue to narrow spreads and reduce execution costs. Geopolitical uncertainty is also pushing institutions to hedge more actively, keeping derivatives demand elevated.

Regional Market Outlook

Europe remains the central hub for global foreign exchange activity, supported by strong dealer networks, coordinated regulatory frameworks, and high levels of trading transparency. Major financial centers continue to attract cross-border flows, with London maintaining its leadership role and Frankfurt steadily expanding its influence in euro-linked products.

Across Asia-Pacific, growth momentum is accelerating as digital payments scale, regional currency initiatives advance, and demand for hedging instruments broadens. Ongoing regulatory upgrades, enhanced reporting standards, and improving market infrastructure in cities like Hong Kong, Tokyo, and Singapore are strengthening liquidity access and drawing more institutional participation to the region's foreign exchange landscape.

Other Regions Covered in the Report: North America, South America, Middle East and Africa

Major Drivers of the Foreign Exchange Market

Acceleration of Digital FX Trading

Electronic trading continues to expand as more institutions turn to multidealer platforms for faster pricing and broader liquidity access. Asset managers and corporates increasingly rely on aggregated quotes and automated execution, pushing a larger share of activity into digital channels. Advances in messaging standards and smarter routing tools are opening the door to a wider range of instruments, strengthening overall engagement in electronic FX. Banks are upgrading their pricing engines and risk tools to stay competitive, while fintechs attract users with flexible APIs and workflow integrations tailored to modern trading needs.

Strength in Core Currency Trading Pairs

Major currency pairs continue to draw the deepest liquidity, enabling tight spreads and efficient execution for institutions and corporates. Their dominance helps anchor pricing across the wider market and supports stable hedging conditions. Strong participation in related futures markets further enhances liquidity, giving treasurers dependable tools for managing exposure. While occasional volatility shocks can move quickly through electronic venues, resilient infrastructure and coordinated central-bank support help maintain confidence and keep trading conditions orderly.

Key Market Segments Driving Growth

By Instrument Type

• Spot Forex
• Forex Swaps
• Outright Forwards
• Currency Swaps
• Forex Options
• Other OTC Derivatives

By Counterparty

• Reporting Dealers
• Other Financial Institutions
• Non-Financial Customers

By Channel

• Online
• Offline

By Region

• North America
• South America
• Europe
• Asia-Pacific
• Middle East and Africa

Overview – Foreign Exchange Industry

Foreign Exchange Companies

• JPMorgan Chase & Co.
• Citigroup Inc.
• UBS Group AG
• Deutsche Bank AG
• XTX Markets Ltd.
• Bank of America Corp.
• Barclays PLC
• HSBC Holdings PLC
• BNP Paribas SA
• Goldman Sachs Group Inc.
• Standard Chartered PLC
• Morgan Stanley
• Société Générale SA
• State Street Corp.
• BNY Mellon Corp.
• TD Securities Inc.
• RBC Capital Markets
• Nomura Holdings Inc.
• Citadel Securities LLC
• Jump Trading LLC

Read the detailed industry insights on the Foreign Exchange Market: https://www.mordorintelligence.com/industry-reports/foreign-exchange-market?utm_source=prnewswire

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