The latest review published today by the Bank for International Settlements shows a 6% fall in daily fx turnover between April and October from USD 5.3 trln to 5.0 trln, with most declines in the euro and yen. Spot trading volumes have fallen from USD 2 trln earlier this year to 1.8 trln.
The update follows the release in September of its three-yearly snapshot of the fx market, and cites uncertainty over a Fed taper and the aftermath of the Abenomics-led sell off in the yen as two major factors.
The review also carries an piece on the retail trading market
Retail FX trading has since grown quickly since 2000. New breakdowns collected in the 2013 Triennial show that retail trading accounted for 3.5% and 3.8% of total and spot turnover, respectively. The largest retail volumes in absolute terms are in the United States and Japan. That said, Japan, which has a very active retail segment, is clearly biggest in Spot. In April 2013, retail trading in Japan accounted for 10% and 19% of total and Spot, respectively.
and notes that
Retail investors differ from institutional investors in their FX trading patterns. They tend to trade directly in relatively illiquid currency pairs rather than via a vehicle currency.
The whole BIS quarterly review can be found here and is definitely worth a read, probably in bite-size chunks though given its sheer size !