Banking institutions are corporations that provide services to meet most commercial transactions and a large number of speculative trading every day. Based on different sizes of banking institutions, the category of financial derivatives they offer can vary. Some small banks only offer spot exchange and currency forward, while larger Institutions offer currency options, currency swaps, currency futures, and option-dated currency forwards.
Normally, a large bank can trade billions of dollars a day, much of which is done by customers on its behalf, but some are carried out by proprietary help desks, in other words: trading for the bank’s own account.
A study by Greenwich Associates shows that top Forex dealers are dominated by banking institutions such as Deutsche Bank, UBS, Citigroup, Barclays and Royal Bank of Scotland. Even the exact percentage of global foreign exchange turnover that is accountable to banking institutions every day is unknown, but Deutsche Bank and UBS each account for more than 10% of the market share.