Who we trade with?

Each person who is exchanging money in whatever purpose contribute to forex volume. You can say that all people are forex participants in some way because they are using money. We'll focus on trading participants who are using forex market in order to realize profits.
First group would be individual traders. They are people like you or me who invest their own money using some brokerage as a middleman. This group is biggest if you look at number of people who are making this group as you can find literally millions of independent traders out there. Although independent traders are largest group main liquidity is provided by commercial, investment and central banks. Banks are moving huge contracts everyday between themselves making most of daily volume on forex market. Biggest and most active banks on forex are as follows: Bank of America, First Boston, Morgan Stanley, Goldman Sachs, HSBC, J.P. Morgan, Credit Suisse, UBS Warburg and Dean Whiter. Other forex participants are numerous corporations, hedge funds, financial institutions and import/export companies.  All together participating daily in foreign exchange market, its members are building up enormous volume creating most liquid market on earth.