The primary participants in the forex market include central banks, commercial banks, multinational corporations, hedge funds, and retail traders. Central banks, such as the U.S. Federal Reserve or the European Central Bank, are critical in managing their countries' monetary policy and stabilizing their currencies. They conduct currency interventions to adjust exchange rates in line with economic goals, significantly influencing the broader forex market.

Commercial banks are the largest players, facilitating currency exchanges for businesses, individuals, and governments. They provide liquidity, manage foreign exchange risk, and execute large transactions that can affect exchange rates. Multinational corporations also impact the forex market when they conduct cross-border trade or invest internationally, often hedging their currency exposure to avoid losses.

Hedge funds are influential due to their high-volume, speculative trading strategies. They use leverage and take large positions, often anticipating macroeconomic events, which adds volatility to the market. Finally, retail traders represent individuals trading smaller amounts compared to institutional investors. Despite their size, retail trading has grown considerably due to online trading platforms, allowing individuals to speculate on currency movements.

Each participant type plays a distinct role, collectively shaping the market dynamics and influencing currency values worldwide.