FOREX RESERVES : Traders in forex trading could be grouped into one of four basic types. These include bankers, brokers, customers and also central banks. There are bankers, banks and other financial institutions who do a huge share of trading. These people make profits by buying and selling currency to each other. About two-thirds of all forex transactions involve banks dealing directly with each other.Brokers or dealers at times act as intermediaries between the banks. This in turn helps them or other traders who are looking for a good deal to find out where they can get the best currency trade. There are buyers and sellers who like working through brokers or dealers. This is because they can trade anonymously through intermediaries. Brokers also make huge profits on currency exchanges. This is done by charging a commission for the transactions they arrange.Customers are mostly major companies. Such companies trade in currency. This is because they can operate globally or invest internationally. There are companies which trade currencies regularly. They have their own trading desks. There are some other companies which conduct their currency trading through brokers or banks.Central banks like the US Federal Reserve, which acts on behalf of their governments, at times participate in the Forex market. This is primarily to influence the value of the currencies of their respective countries. For instance, if the Federal Reserve believes the dollar is weak, it could buy dollars.