Is VWAP meaningful in spot forex?

[Shadow Trader]

Volume weighted average price is a popular reference in equities and futures. In spot FX, there is no central volume, so a true VWAP does not exist. Platforms that show one usually weight by tick volume, which is a rough stand-in.

Does it still have value? Possibly, for two reasons. First, tick volume correlates with real activity on liquid pairs. Second, VWAP serves as a shared reference point, and because many traders watch it, price sometimes reacts around it.

The weaknesses are clear. Different brokers produce different tick counts, so each platform's VWAP is slightly different. The anchor point, whether the start of the day, the London open, or something else, changes the result. And because it is based on the local feed, it is not the number institutions use.

Using it as a rough indicator of where the average participant is positioned, not as a precise level, is more realistic.

A neat alternative is to use CME currency futures, where real volume exists, and take the VWAP from there.

Curious whether you have found VWAP useful in spot FX, and which anchor time do you use?