Find reviews of the leading forex brokers operating in USA. The American foreign exchange market forms a major fraction of the United States economy. This is also one of the largest markets in the world, and it is considered as one of the most important sources of money for the U.S. government. One of the main reasons for the popularity and size of this market is the fact that the official currency in America is the U.S. dollar – a currency that is part of some of the most traded currency pairs.
On the Forex market, the American dollar is symbolized with the letters USD, but in some cases you may see it as US$ or $. At the moment, this is the most traded currency in the world, and it is responsible for a major fraction of the revenue that the foreign exchange market generates on a daily basis.
It also tops the list that includes five of the most traded currencies in the world. Due to the American dollar’s popularity, this currency was adopted by many countries as their functional currency. The process of accepting the U.S. dollar as a functional currency is regularly referred to as dollarization.
The foreign exchange market in the United States is regulated by the Federal Reserve Bank. This is also the institution that is responsible for issuing American dollar coins and banknotes.
Although the U.S. dollar has been the leading currency in the Forex market for many years, currently it is facing strong competition by the Euro, and soon the Euro might turn into the most traded currency in the world.
Foreign exchange market trades in the US are executed by several institutions – central banks, commercial banks, Forex dealers, retail Forex brokers, commercial institutions, investment management institutions and hedge fund institutions.
One of the most special things about the U.S. foreign exchange market is that one of the biggest Forex trading centers is situated there. The city of New York is one of the major trading centers and many of the leading Forex brokers have offices there. All Forex trading brokers and institutions in the US are regulated and licensed by the United States Commodity Futures Trading Commission.
As we mentioned earlier, the Federal Reserve is responsible for issuing the dollar, but it is also the institution that determines the exchange rate of the American dollar compared to other currencies. Another financial institution that plays an important role in the American Forex market is the United States Treasury Department, because it works with the Federal Reserve Bank to create the foreign exchange policies of the US.