Foreign exchange banks are the most important participants in the foreign exchange market, and their foreign exchange transactions constitute the main part of foreign exchange market activities.
Foreign exchange dealers use their own funds to buy and sell foreign exchange bills to obtain the bid-ask difference.
Foreign exchange brokers are between foreign exchange banks and between foreign exchange banks and other participants in the foreign exchange market, negotiating foreign exchange trading business on their behalf. It does not buy or sell foreign exchange itself, but only connects buyers and sellers of foreign exchange, facilitates transactions and collects commissions from them.
The central bank regulates the relationship between supply and demand of funds in the foreign exchange market by directly participating in the transactions in the foreign exchange market, thus maintaining or limiting the exchange rate at a certain level. The central bank is not only a participant in the foreign exchange market, but also an actual manipulator of the foreign exchange market.
Foreign exchange speculators buy and sell foreign exchange not for the actual needs of the balance of payments, but by using various financial instruments to pay a certain margin in exchange rate changes and earn the exchange rate difference.
The actual suppliers and demanders of foreign exchange in the foreign exchange market are those individuals or companies who use the foreign exchange market to complete international trade or investment transactions.