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By Timothy Woods

The Daily $5.3 Trillion Market: FX Infographic

Published April 24, 2014

The global FX market is a colossus. Its enormous size ($5.3 trillion daily worldwide) means that it is far and away the largest market in the world. Annually it turns over $1,378,000 billion. To put that into context, global GDP is $71,670 billion, with the US economy accounting for $17, 400 billion.

At Kantox we have created an infographic to show the numbers involved in the FX market. We have compiled our information from sources including the World Bank, World Trade Report 2013, BIS survey 2013, and Yahoo Finance.

FX market
Amazingly, every 14 days, the FX market moves more money than global GDP (the market value of all goods and services across the globe in a given year).
It is 28 times bigger than the equity market.
In just one day the FX market moves enough money to buy Apple Inc., the world’s largest company, 11 times over (Using 2013 valuation of $478 billion for Apple Inc.).
While the UK accounts for just 3.4% of global GDP, and the British Pound 11.8% of the global FX market, the UK is the centre of the FX market. London accounts for a whopping 40% of all FX transactions globally. The next closest country is the US, where 18.9% of FX transactions occur.

FX Infographic (Click to enlarge):

US dollar is by far the most traded global currency, with 43.53% of all trades involving US dollar.
The Euro is a distant second, with 16.71% of global trades. The top five most commonly traded currencies are completed by, in order, the Japanese Yen (11.52%), British Pound Sterling (5.90%) and the Australian dollar (4.32%).

FX market growth
FX market growth has been explosive in the last 15 years. The financial crisis had no notable effect on its trajectory. It will likely continue to grow even further, as countries increase trade links and the world continues to become even more globalised. Notably, in 2014 China is expected to begin opening their currencies to wider FX market access, which should help the FX market grow even bigger still

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