ALGORITHMS NOW DOMINATE BUY-SIDE CURRENCY TRADING

Algorithms have become the dominant force in buy-side currency trading, fundamentally reshaping how traders execute forex transactions. The trend reflects broader automation across financial markets, where speed and data processing capabilities offer competitive advantages. The report highlights a key tension: traditional banks have long dominated forex trading infrastructure, but algo-driven independent firms now challenge that control. Banks argue their experience and relationships provide value. Independent traders counter that algorithms execute more efficiently and at lower costs. The $9.5 trillion daily forex market remains the world's largest, most liquid financial market. As algorithmic systems handle larger trade volumes, questions emerge about market stability, transparency, and fair access. Regulators continue monitoring the shift, weighing innovation benefits against systemic risks. The debate signals forex markets are undergoing transformation similar to equities markets a decade earlier, where algo adoption redefined competition and market structure.