FX Clients Switching Less as Vendor Turnover Drops from 51% to 22%, Says Citi

Citi’s latest FX Vendor Review points to institutional clients that foreign exchange vendors must invest in better integration, smarter execution tools, and compliance with industry standards, or risk becoming obsolete.

In its fifth annual FX Vendor Review, Citi surveyed clients and evaluated vendor performance across key benchmarks. While overall satisfaction with FX vendors remains high at 90%, a strong majority, 85%, of clients flagged the need for improvements, particularly in execution and workflow integration.

The findings suggest a shift in client expectations toward vendors that play a broader, more embedded role in execution workflows.

Vendor Switching Declines, but Pressure Mounts

The survey found a sharp drop in vendor switching, down from 51% in 2021 to just 22% in 2025. This trend suggests growing loyalty—or at least entrenchment—among clients. However, Citi notes that lower switching rates do not signal complacency. Instead, clients appear to seek deeper collaboration and long-term enhancements, with execution and operational efficiency at the forefront of their minds.

“Our ultimate goal is to enhance connectivity, expand product offerings, bolster stability, and improve overall market operations to further benefit our clients, liquidity providers, and all other market participants,” said Ayesa Latif, Global Head of Foreign Exchange Products at Citi.

As FX vendors move beyond the traditional role of Execution Management Systems, they are becoming more deeply integrated into client infrastructure. This trend raises the bar for technical capabilities, connectivity , and regulatory alignment.

You may also find interesting: From IPOs to Buyouts: Why Are Retail FX Brokers Changing Hands?

The review highlights a number of barriers that vendors face in meeting these expectations. Rising infrastructure maintenance costs and regulatory burdens are putting pressure on capital expenditure. In many cases, vendors must prioritize short-term revenue retention over long-term innovation, a dynamic that Citi warns could accelerate client attrition if not addressed.

Review and Outlook

Citi’s FX Vendor Review evaluates platforms across nine key metrics, including functionality, cost, governance, and customer service. The report also incorporates client views on regulatory developments, data use in execution, and the outlook for next-generation FX technologies.

The findings indicate that while vendor switching is slowing, expectations are rising. Vendors that fail to innovate in a capital-constrained environment could struggle to remain competitive in a rapidly evolving FX landscape.