Foreign exchange market Germany is a flourishing one. The trading of foreign exchange in Germany was previously done mostly over the telephone, but now it has gone online. The foreign exchange market Germany is mainly controlled by the state banks, the hedge fund sector and the Landesbanks. The prime brokers are absolutely essential for the Germany hedge funds that are a part of foreign exchange trading.
The foreign exchange market of Germany has experienced phenomenal growth over the last few years. Germany foreign exchange market is the largest market in the world in terms of volume of money traded. In Germany, the trade of foreign exchange involves the trading of one currency for another. The major players in the foreign exchange market in Germany are the Central Bank, authorized banks, investment management firms, commercial companies, retail FOREX brokers and the hedge funds.
The Deutsche Bank of Germany is the numero uno currency trader in the world. This bank controls 19.26% of the total world foreign exchange trading.
The following are the major currencies traded in the German foreign exchange market:
The Euro/US dollar pair trade is predominant and popular in Germany though a total of 34 currency pairs are traded in the German market. The Germany foreign exchange market is highly decentralized and a host of market participants can take part in the trading scheme. There are people who carry out personal transactions of small denominations. They are usually the travelers and they access the market through intermediaries. Corporations and big companies gain access to the market through banks.
With the introduction of multi bank foreign exchange portals in Germany, the foreign exchange market of the country has undergone a renaissance and the volume of trade has increased manifold. In Germany, the corporations and banks work in close coordination. The FOREX traders in the country prefer to concentrate on a single provider and they also make use of the services of local bank branches while trading in foreign exchange.