These pairs are often the most liquid, meaning that they provide traders with the most opportunities to trade that pair on the forex market. They are also not as popular and are, therefore, not aggressively listed with top FX brokerages. All these have ensured that the minor currency pairs have a more erratic price action which translates to wider spreads. Yet another popular currency pair on our list of best pairs to trade in forex has to be the GBP/USD. Pitting the pound sterling against the US dollar, it is the world’s third most traded currency pair. Like most other popular currencies, it is massively liquid and has been listed with virtually all the major FX brokerages.

Information or views expressed should not be taken as any kind of recommendation or forecast. The Reserve Bank of New Zealand also affects the price of this pair. Interest rates set by the Bank of England and the European Central Bank are also important to watch for EUR/GBP.

Though the pair isn’t as actively traded as the USD cross for either EUR or GBP, it still posts decent daily trading volumes. How can you get started forex trading, and which currencies are worth converting? We’ve collected information on 6 of the most popular and profitable forex currency pairs, along with some tips on how to choose a broker and some basic terms you’ll need to know. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

Otherwise, the Bank of Japan issues reports on which investors rely when making their decisions. If the price for GBP/USD is 1.31, for instance, that means that one pound is worth 1.31 dollars. Trading forex on margin carries a high level of risk and may not be suitable for all investors.

best forex pairs to trade

You should consider whether you can afford to take the high risk of losing your money. GBP to USD is the fourth most traded currency pair of the forex market. British Pound Sterling is the currency pair of the United Kingdom and it is used all through fx trader magazine England, Scotland, and Wales. Overall GBP is the third most traded currency of the forex market. It will give high profits to the traders and help them in a better trade. USD to CAD is the third most traded currency pair of the forex market.


Here, we have introduced you to what we consider the best major, minor, and exotic pairs to start trading right now. We have also outlined the key differences between the three categories of forex currencies and told you about the best forex trading platforms. Still on our list of best currency pairs to trade in forex is the USD/CHF cross. Pitting the US Dollar against the Swiss Franc, the pair is considered relatively stable and a safe haven during volatile markets. Also known as the ‘Swissie,’ the pair borrows much of its characteristics from the Swiss finance industry that is considered the global safe haven. Also known as ‘The Gopher,’ the USD/JPY is one of the currency pairs with the most trading volume and, thus, the best pair to trade in forex today.

Either of these setups is a high probability, especially on the daily chart. When either of the above scenarios occurs, move down to the 1-hour or 4-hour chart for a precision entry. Since mid-July, the price has stuck on a strong historical area of support at $0.7320.

Its really freakish how you “hit the nail on the head” especially when it is precisely what i needed to learn at my stage of trading knowledge. I wonder if you or any of your followers have created a flow chart of the most common basics one should be considering prior to, in and after placing a trade. It strikes me that there is such a lot of information to grasp and understand from a holistic perspective through to identifying specific risk ration,entry, exit and money management. Similarly, if you enter a long position on the EURUSD and a short on the USDCHF, you are essentially doubling your risk. This is not to say you should never trade the USDCHF, but just be advised that in my experience the EURUSD and GBPUSD provide better price action trading opportunities.

Foreign exchange market: this week is full of inflation prints releases as we’re about to hear from Sweden, Canada, UK and more

As scalping is the popular form of trading, we thought it is a good idea to tell you which pairs are best for scalping. Moving down the list of the most common trading pairs, the next pair on the list is the USD to Swiss franc . GBP/USD is popularly known as the “cable.” The pair has a negative correlation with the USD/CHF but a positive correlation with the EUR/USD.

The European Central Bank reports monthly on the level of interest rates across European countries, thus affecting the euro price. The Bank of England also has an impact on the movement of the pound price in the UK, so investors have a focus on these banks when it comes to the EUR / GBP trading pair. Because of the strong commodities trading between Canada and the USA, there’s no doubt that this is one of the top 10 forex pairs to trade. Most European Union countries are characterized by developed economies.

best forex pairs to trade

Because each time you buy a breakout, you’ll hold the trade until it hits the previous day low to exit the trade. If a market has a trending behaviour, then the equity curve should slope up over time. This will tell you whether the market you’re trading tends to ufx trading central behave in a trending or in a mean reverting manner. If you apply those strategies to a mean reverting market, you’ll suffer losses consistently over time. If you’re going with a reputable broker, the spread that they offer will be tight and decent to start with.

The major currencies that are also considered “commodity currencies” are the Australian dollar, Canadian dollar, and New Zealand dollar. Try not to trade during session overlaps because, during this time, spreads can increase. It is easier to read these five Forex currencies because they’re either ranging or trending. When a trend begins, the price action tends to move for a significant period.

What is the Safest Currency Pair to Trade?

Forex is one of the most volatile financial markets in the world today. Finding the best pairs to trade forex is also quite challenging, especially for beginner and intermediate traders. USD/CHF is one of the major currency pairs in the foreign exchange market since it involves the dollar.

”, and next week we will address the question “what are the best times to trade? ” You should use this two-part article series as a reference guide to answer any question you may have about which currency pairs to trade and what times to trade them. Beginner traders are recommended to trade major currency pairs and avoid trading exotics. Read trading recommendations for four major currency pairs (EUR/USD, GBP/USD, USD/JPY, and USD/CAD) in JustMarkets daily forecasts. Saying a “stable currency pair,” we mean one that doesn’t tend to sharp price fluctuations throughout a short time period. Given the classification above, the most liquid, and thus the least susceptible to large price swings, pairs are majors.

  • Your actual trading may result in losses as no trading system is guaranteed.
  • The European Central Bank reports monthly on the level of interest rates across European countries, thus affecting the euro price.
  • Not forgetting that it, too, attracts highly competitive spreads on most FX brokerages.
  • To some, more experienced traders would see minors as a better option as they tend to react to technical analysis slightly better.

In the approx 1 year that i have been a member i have never found anything that is contrary to what is explained here. I am trading for a long time now and I am all over the place with my thoughts and actions. Following your guidelines and lessons I can suddenly find even more pleasure in trading. I am 6o and you are 20 so I use your young cleverness to supplement my bit of accumulated wisdom. Now, there are some things we need to discuss about the “majors” before we move on to discuss the “crosses”.

EUR/GBP – (Euro/Pound Sterling)

U.S. and European currency and major pair give you a trading opportunity on the overlap between London and New York trading sessions. It is essential to trade in the forex market to have proper knowledge about trading sessions of the area where you start your trading system. London session, New York session, Sydney and Tokyo sessions are most prominent. The New York session is considered the most popular because of its high-level liquidity and volatility.

This pair tends to negatively correlate with the AUD/USD, GBP/USD, and the EUR/USD. Traders who attempt to trade the exotics often get caught up in analysis-paralysis and are likely guilty of over-trading, they are certainly more susceptible to over-trading. Though EUR/CHF (Euro/Swiss Franc) is not a major currency pair, it is popular among traders, particularly due trading systems and methods to its inverse relationship with EUR/USD. Liquidity in EUR/CHF reaches its peak during the European session. Those trading the currency pair follow European Central Bank releases, European employment rates, and import/export data. Switzerland’s GDP data, inflation rates, and employment rates can affect the Swiss currency thus should be closely monitored by traders.

Thanks Nial, a very useful article for traders and especially the beginners. I would have saved a lot of time, but it never occurred to me that somebody can give the most important things in a simple way for free. In the articles there are things as accurate as arrows in the center of the target.