The Major Players of Forex Market:
Global Banks: Global Banks account for most of the volume in Forex Market. In fact, Deutsche Bank, Barclays, UBS, JP Morgan and Citi alone account for half of all trading volume in Forex Market.
Central Banks: In many countries, Central banks are given the responsibility to smoothen the flow of money to and from the country and direction for the currency rates.
Portfolio Investors: Portfolio Investors are Mutual Funds, Endowments investing in Foreign Securities, Venture Capitalists and other type of investors who invest in Global Stock Markets. They Billions of Dollars every day among the markets.
Hedgers: Institutions and Exporters & Importers try to reduce their Currency risk by hedging in the Forex market. For example, if one company knows, it needs to import $10 Million goods from USA next month, it might try to engage by hedging the market that locks in the import price in Dollars.
Speculators: These are Forex Traders like you and me who look to benefit from the price movement and bet their money on short and medium term movements.