In recent times, Hedge funds have really appeared as one of the major players in forex market. Although, they don't affect market in the way inter-bank market or commercial companies do, but, they still are considered to be important players in the market. Basically, these funds control a great deal of equity which means that they can inspire central banks to take some decisions in terms of foreign exchange reserves. It is the duty of central banks to stabilize their currencies, so, when they are put in a position to take actions then there can be specific effects on the forex market
Hedge funds are important because they can make central bank to take actions. That is one of the reasons that hedge funds are considered to be one of those players that can create some impact over the market in general. Although, the amount with which they affect the market is nominal, yet, they can still bring some changes which are enough to call these funds as one of the major players.
Investment management firms also play an important role in forex exchange market. Invest management firms are those which are associated with the task of managing larger accounts
One of the most important players is a retail broker. Brokers are those people who are considered to be the professional in the field of forex market