Global Forex Market Surpasses $7 Trillion in Daily Trading Volume as Retail Investor Participation Grows
June 25, 2025 — London/New York — The global foreign exchange (forex) market has officially surpassed a daily trading volume of $7 trillion, according to the latest report by the Bank for International Settlements (BIS), marking a 12% increase since the last reporting period.Recommended Forex Trading Platforms become more widespread and market transparency improves, retail investor participation continues to rise across the globe.
The forex market — the world’s largest and most liquid financial market — involves the trading of major currency pairs such as the USD, EUR, JPY, and GBP. While traditionally dominated by banks, hedge funds, and multinational corporations, the forex space has increasingly opened to retail investors due to the appeal of high leverage and low capital entry requirements.
“In the past, retail participation was limited by technological barriers and asymmetric information,” said a financial analyst at BrokerHive, a leading investment research platform. “But today, with more accessible online platforms and educational resources, forex trading is more approachable. That said, the high leverage that draws investors in also significantly increases risk, making risk management and regulatory awareness essential.”
Recent years have also seen a rise in fraudulent platforms, highlighting the importance of using licensed and regulated brokers. According to the European Securities and Markets Authority (ESMA), investor losses linked to unauthorized forex brokers in 2024 rose by 21% in Europe, making it one of the year’s most significant financial complaint categories.
Three Key Risks Retail Forex Traders Must Understand:
Leverage Risk: Many platforms offer leverage ratios from 10x to 500x. While this enables trading with smaller capital, even minor price fluctuations can lead to liquidation.
Platform Risk: Investors should choose brokers regulated by reputable authorities such as the FSA, ASIC, or CySEC.
Information Risk: Currency values are highly sensitive to policy decisions, geopolitical events, and central bank interest rate changes. Without timely analysis, retail traders may misread market signals.
Although Current State of the Global Forex Market offers unmatched liquidity and the potential for rapid returns, these benefits come with significant risk. Experts recommend that new investors begin with demo accounts or small positions, gradually building skills in technical analysis and money management. Utilizing independent resources such as BrokerHive can also help traders stay informed on regulatory updates and broker safety ratings.