Best Forex Pairs To Trade

This guide will discuss the 10 best forex pairs to trade in 2024. We will examine why these currency pairs are so popular and the factors that influence their price movement. We will also talk about low-spread brokers where you can start your trading journey.

Forex trading can be quite challenging, especially for beginners and casual traders. This is because you must know which currency pairs offer the most attractive opportunity to profit. To trade Forex, you must build a trading plan and identify currencies that work with it. This can help you navigate the market and make a considerable profit.

Let’s get started.

Key Points 

  • Forex markets are the world’s largest and most liquid markets. This is primarily thanks to the global reach of trade, commerce, and finance.l 
  • The forex markets act as a global marketplace, allowing traders to exchange currencies. 
  • Currencies trade against each other as rate pairs. For example, the EUR/USD is a currency pair that allows you to trade the Euro against the US Dollar. 
  • Forex markets exist as spot and derivatives markets, offering traders forwards, futures, options, and currency swaps.

Best Forex Pairs To Trade In 2024

Finding the best forex pairs to trade can be a rather tricky endeavor. This is because several market-related factors can alter a currency’s value. If you want to invest in the Forex market, here are the 10 best Forex pairs to trade in 2024. 

  • GBP/USD – A popular Forex pair that exhibits clear price action. 
  • EUR/USD – The best forex pair to trade with low spreads.
  • USD/JPY – Best currency pair to trade with high liquidity.
  • AUD/USD – The top currency pair for commodity traders. 
  • GBP/JPY – A popular Forex pair for traders with a high-risk tolerance level.
  • USD/CHF – Ranks among the best Forex pairs for scalping.
  • NZD/USD – A Forex pair with a positive correlation with the AUD/USD pair. 
  • USD/CAD – A highly traded Forex pair with a negative correlation to oil. 
  • EUR/GBP – A popular Forex pair with a positive correlation to the USD/JPY pair. 
  • EUR/JPY – A leading minor Forex pair with correlation to the equity markets.

75% of retail investor accounts lose money when trading CFDs with this provider.

Top 10 Best Forex Pairs To Trade Reviewed 

The list above consists of the 10 best forex pairs to trade in 2024. Each of these pairs has its own price structure and characteristics. While the best Forex pair is difficult to pinpoint and is often subjective, the pairs we have listed are extremely popular amongst Forex traders. Keeping this in mind, let’s get started with our list of 10 best forex pairs to trade in 2024.

1. GBP/USD – A Highly Popular Forex Pair 

The GBP/USD pair is the best currency pair to invest in, according to most Forex traders. Traders with a high-risk tolerance level flocked to the GBP/USD trading pair during times of high inflation. This is because its price structure presented textbook support and resistance levels, signaling rebounds.

gbp/usd forex pair

The price chart shows that the GBP/USD trading pair respects technical analysis elements. These include daily and weekly support, resistance levels, and the 200-day EMA. This makes the currency pair relatively easier to trade, as it is less likely that random price action could influence a trader’s idea.

The GBP/USD is the third-largest trading pair and has been dubbed “Cable” by Forex traders. Several factors, such as economic events, can impact the currency pair’s value. For example, if the Federal Reserve took steps to strengthen the Dollar, we could see the price of the GBP/USD pair drop. Currently, the GBP/USD pair is considered one of the best Forex pairs for traders seeking explicit price action.

75% of retail investor accounts lose money when trading CFDs with this provider.

2. EUR/USD – Best Forex Pair With Low Spreads 

The EUR/USD currency pair is the best to trade in Forex. The currency pair puts the Euro against the US Dollar, highlighting how many Dollars are needed for one Euro. Currently, the EUR/USD pair is trading at 1.05, meaning you need just over $1 to acquire €1. Some of the best forex brokers, such as eToro, offer the currency pair as a tradable asset.

EUR/USD forex pair

This means traders can buy or sell EUR/USD with incredibly tight and competitive spreads. For example, Capital.com has spreads starting as low as 0.6 pips for EUR/USD. The EUR/USD trading pair is considered the best because it is less volatile than other currency pairs. This means price action is predictable, enabling traders to tailor their strategies to the currency pair’s movement.

75% of retail investor accounts lose money when trading CFDs with this provider.

3. USD/JPY – Best Currency Pair With High Liquidity 

The USD/JPY currency pair is another one of the best currency pairs in the forex market. What’s more, most Forex trading platforms offer the currency pair. The currency pair pits the US Dollar against the Japanese Yen, acting as a proxy for the health of the Asian economy. The currency pair is also considered one of the most liquid in the entire market, thanks to the volume of Japan’s exports.

USD/JPY Forex Pair

Because US companies purchase a considerable percentage of Japanese exports, the USD/JPY pair is crucial in determining their cost. While the currency pair is considered stable, it displays considerably higher volatility than the EUR/USD pair. Another factor that could influence the USD/JPY pair’s value is economic activity and events in the US and Asia. These factors could include economic events, political developments, and other geopolitical events. Such events could have a positive or negative impact on the trading pair.

75% of retail investor accounts lose money when trading CFDs with this provider.

4. AUD/USD – Top Currency Pair For Commodity Traders

The AUD/USD currency pair pits the Australian Dollar against the US Dollar. The currency pair, often called the “Aussie,” allows traders to gain exposure to the larger Australian economy. Several factors influence the AUD/USD currency pair price. One of the primary influences on this pair is commodity prices.

Because of Australia’s geography, the country produces several vital commodities. These include iron ore, coal, and copper, to name a few. When the price of these commodities increases, Australia earns more revenue. This leads to the AUD/USD pair to rise as well.

AUD/USD Forex Pair

The AUD/USD trading pair negatively correlates with the USD/JPY and USD/CAD. This is because the latter two are not quoted in US Dollars. Additionally, AUD/USD is popular among traders thanks to its predictable price action. The pair respects support and resistance levels and does not spike too aggressively.

75% of retail investor accounts lose money when trading CFDs with this provider.

5. GBP/JPY – A Popular Forex Pair With High Risk Tolerance Levels 

The GBP/JPY trading pair is available on all the leading forex trading brokers and apps. It is the most popular trading pair that does not contain the USD. Currency pairs that do not feature the USD are often called “currency crosses.” These pairs allow traders to gain exposure to international developments that are not relevant in the United States.

GBP/JPY forex pair

A critical characteristic of the GBP/JPY currency pair is that it is regarded as one of the most volatile currency pairs. A simple glance at its price chart will show that retracements typically follow price increases.

Investors with a high-risk tolerance favor such price action since it allows them to profit from both sides of the market. Deemed as one of the most volatile forex pairs, the GBP/JPY pair is best avoided by risk-averse traders.

75% of retail investor accounts lose money when trading CFDs with this provider.

6. USD/CHF – Among The Best Forex Pairs For Scalping 

Those wondering which is the best pair to trade in Forex can consider the USD/CHF trading pair. The trading pair is extremely popular among scalpers. For those out of the loop, scalping is a trading strategy through which traders look to profit from small price movements. These price movements are often in a short time frame, like minutes or even seconds.

USD/CHF Forex Pair

The USC/CHF trading pair is popular with scalpers because it tends to be one of the most highly traded Forex pairs. This means spreads are tight. This feature is vital for scalpers because hefty fees could eat into profits. As such, this would render the strategy ineffective.

Most of the best scalping brokers offer a 0% commission fee structure. This means trading USD/CHF can be lucrative if a suitable strategy is employed. Remember, the USD/CHF trading pair tends to move in the opposite direction compared to popular trading pairs such as the GBP/USD and the EUR/USD. This makes it an excellent option for traders who do not want to short-sell.

75% of retail investor accounts lose money when trading CFDs with this provider.

7. NZD/USD – Forex Pair With A Positive Correlation With The AUD/USD

There is a contentious debate among traders about whether the NZD/USD trading pair can be considered a major currency pair. Nevertheless, it remains one of the most highly traded currency pairs, thanks to its association with New Zealand’s economy. Additionally, the New Zealand Forex market is the first to open each day.

NZD/USD Forex Pair

Like its neighbor Australia, New Zealand is heavily dependent on commodity exports. As a result, the NZD/USD’s value fluctuates with the price of commodities such as dairy. This gives an idea of how much revenue New Zealand will likely receive. The NZD/USD and AUD/USD trading pair is often positively correlated. This is primarily due to the close association of the countries.

Those trading commodities typically keep an eye on both Forex pairs since they provide opportunities when commodity prices are volatile.

75% of retail investor accounts lose money when trading CFDs with this provider.

8. USD/CAD –  Highly Traded Forex Pair With A Negative Correlation To Oil

The next pair in our list of best forex pairs to trade in 2024 is the USD/CAD. This currency pair determines how many Canadian Dollars can be acquired by one US Dollar. The USD/CAD trading pair is highly liquid and offered by all the best trading platforms. However, it would help if you remembered that the pair’s price is negatively correlated with the price of crude oil.

USD/CAD Forex Pair

This is primarily because oil plays a crucial role in Canada’s economy. When the price of oil rises, the Canadian Dollar also rises. This is because, with the increase, Canada generates more revenue per barrel. This currency pair is considered one of the best Forex pairs for those looking for indirect exposure to oil prices.

However, you must remember the USD/CAD pair is considerably more volatile than currency pairs such as the EUR/USD and the GBP/USD. This makes it quite popular with more experienced traders.

75% of retail investor accounts lose money when trading CFDs with this provider.

9. EUR/GBP – Popular Forex Pair With A Positive Correlation To The USD/JPY

The next currency pair in our list of 10 best forex pairs to trade in 2024 is the EUR/GBP. This currency pair pits the Euro against the British pound. This makes it a highly popular trading pair among Forex traders. The currency pair is popular because its price is dictated by two of the world’s strongest economies: The United Kingdom and the European Union.

EUR/GBP Forex Pair

As a result, several factors can directly impact the price of the EUR/GBP currency pair. This makes it extremely popular with experienced traders. It’s not uncommon for the value of this currency pair to fluctuate over 1.50% in a single day. This makes it one of the most volatile pairs on our list. The EUR/JPY currency pair positively correlates with the USD/JPY, although the latter is far more stable.

75% of retail investor accounts lose money when trading CFDs with this provider.

10. EUR/JPY – Leading Minor Forex Pair With Correlation To The Equity Markets

Like the GBP/JPY, the EUR/JPY currency pair puts the Euro with the Japanese Yen. The pair is considered a minor pair, meaning it is less actively traded than major currency pairs. As a result, spreads on the currency pair are generally higher than EUR/USD and USD/JPY. Trading this currency pair can be beneficial since it positively correlates to equity markets.

EUR/JPY Forex Pair

Investors who typically buy stocks can also take a position in the GBP/JPY pair and gain exposure to price movements in the equity market. While this can be effective, the currency pair is quite volatile. As a result, more comprehensive stop losses are generally a good idea.

75% of retail investor accounts lose money when trading CFDs with this provider.

What Is The Forex Market

Before we begin our guide on the 10 best forex pairs to trade in 2024, we must get a general understanding of the forex market. The word Forex is a portmanteau of two words, foreign and exchange. It is the process of changing one currency for another, usually for commerce, trading, or tourism purposes. According to a 2022 report from the Bank of International Settlements, the daily volume of forex trading reached $7.5 trillion in 2022.

Best Forex Pairs

The Forex market is unique because it does not feature a centralized marketplace. Instead, all trades are done electronically, over the counter (OTC). This means transactions occur between traders worldwide rather than on a centralized exchange. The forex markets are open 24 hours a day, for five and a half days of the week. Currencies are traded in major financial cities such as New York, Paris, Singapore, Sydney, Tokyo, Zurich, London, and Hong Kong.

The forex market consists of two levels: the interbank market and the over-the-counter (OTC) market. Large banks trade in the interbank market for purposes such as hedging, balance sheet adjustments, and on behalf of their clients. Individual traders generally trade on the OTC market through online platforms and brokers.

History Of The Forex Market 

Until World War 1, currencies were pegged to precious metals like gold and silver. After the Second World War, this system was replaced by the Bretton Woods Agreement. The Bretton Woods Agreement created three organizations to facilitate global economic activity. 

  • The International Monetary Fund (IMF) 
  • The International Bank for Reconstruction and Development (IBRD)
  • General Agreements on Tariffs and Trade (GATT) 

The system also saw the US dollar replace gold as the peg for international currencies. The United States government promised to back the dollar supply with gold reserves. However, the Bretton Woods Agreement was made redundant in 1971 when President Nixon temporarily suspended the Dollar’s convertibility into gold. Today, global currencies can choose their own peg, with their value determined by supply and demand.

How Does The Forex Market Work? 

The Forex market is the only truly nonstop trading market in the world. This market used to be dominated by large banks and institutions that traded on behalf of their clients. However, Forex has become more retail trader-oriented in recent years. This means traders of all experiences and sizes trade in Forex.

Where Is The Forex Market? 

The Forex market does not consist of any physical buildings or trading venues. Instead, they comprise a series of interconnected trading terminals and computer networks. Investment banks, institutions, commercial banks, and retail investors can participate in the Forex markets.

Who Can Trade On The Forex Market? 

Before the internet, currency trading was extremely difficult for individual investors. Most currency traders were multinational corporations, high-net-worth (HNI) individuals, and hedge funds. This is because Forex trading requires considerable capital. However, with the advent of the internet, individual traders can also enter the Forex markets. However, commercial and investment banks still conduct most of the trading in these markets.

Types Of Forex Markets 

Forex is traded primarily through spot, forward, and futures markets. The largest of the three is the spot market. This is because it is the underlying asset upon which the forwards and futures markets are based. When traders talk about Forex, they generally refer to the spot markets.

The forwards and futures markets are more popular with companies and institutions that need to hedge their Forex risks to a future date.

Spot Markets 

The spot market facilitates the buying and selling currencies based on their trading price. The price is primarily determined by supply and demand and is based on factors such as 

  • Current interest rates
  • Geopolitical developments 
  • Price speculation
  • Economic factors 

Any finalized deal on the spot market is called a spot deal. A spot deal is a bilateral transaction between two parties. One party delivers an agreed-upon currency amount to the counterparty, receiving a specified amount of another currency at an agreed-upon value. Once the position is closed, the transaction is settled in cash. Spot market trades generally take two days to settle.

Forwards And Futures Markets 

In a forwards market, the transacting parties agree to trade a currency for a specific price and quantity at a future date. However, no currency changes hands when the trade is initiated. The two parties in the transaction can be individuals, companies, and even governments. Forward markets are relatively illiquid and lack centralized trading and counterparty risk.

Futures markets are similar to forward markets when it comes to basic functioning. However, there is a crucial difference, which is that futures markets use centralized exchanges. This eliminates counterparty risk for both parties. This also ensures greater liquidity in the market compared to the forward market.

Advantages And Disadvantages Of Forex Trading

This section of our guide on the best pairs to trade in Forex will look at some of the advantages and disadvantages of Forex trading.

Advantages  Disadvantages 
You can trade forex for 24 hours a day for five and a half days a week.  Leverage of up to 50:1 is common.
The forex market is the largest in terms of daily trading volume.  Forex trades can be extremely volatile because of leverage.
Starting capital can multiply exponentially. Considerably lesser regulation when compared to other markets. 
Forex markets are more decentralized than stock or bond markets.  There are no financial instruments generating income.
Same rules as regular trading apply. Requires a considerable understanding of economic indicators and fundamentals. 

Terminology 

Before we get started with our list of 10 best Forex pairs to trade in 2024, it is essential to understand some terminology. Here are a few terms you should be aware of. 

  • Forex Account – A Forex account allows you to make currency trades. Depending on your lot size, three types of forex accounts can exist. 
  • Micro Forex Accounts – These accounts allow you to trade up to $1000 worth of currencies in one lot. 
  • Mini Forex Accounts – These accounts allow traders to trade up to $10,000 worth of currencies in one lot. 
  • Standard Forex Accounts – Standard Forex accounts allow you to trade $100,000 worth of currencies in a single lot. 
  • Ask – An ask or offer is the lowest price at which you are willing to purchase a currency. 
  • Bid – The bid price is the price you are willing to sell a currency. 
  • Leverage – Leverage refers to using borrowed capital to multiply returns significantly. The Forex market is typically characterized by high leverage. Traders often use leverage to boost the positions they take. 
  • Contract for difference (CFD) – A contract for difference refers to a derivative that allows traders to speculate on price movements of currencies without owning the underlying asset.

Forex Trading Strategies 

Forex Market

There are two types of basic Forex trades. These are long and short trades. In long trades, the trader bets that the currency price will increase, and they can profit from it. On the other hand, a short trade is a bet that the currency’s price will decrease. Traders can also use different strategies based on their technical analysis. These can include breakout and moving averages to help fine-tune their approach to trading. 

Forex Trading strategies can further be divided into four categories. 

  • A scalp trade consists of cumulative positions held for seconds or minutes. The profit amounts are also restricted in terms of the number of pips. 
  • Day trades are short-term trades. In this strategy, traders hold and liquidate positions on the same day. The duration of trades varies from a few minutes to a few hours. 
  • A swing trade sees traders hold their position for longer than a day. These trades typically extend for several days or weeks. 
  • A position trade sees the trader hold the currency for an extended period. These trades can last for months or sometimes even years.

Choosing A Forex Currency Pair

Forex Pairs

In this section of our guide on the 10 best forex pairs to trade this year, we will look at how to choose forex pairs. When trading, there are three types of Forex pairs you must know. These are majors, minors, and exotics. Let’s look at each in a little more detail.

Majors 

Majors are currency pairs that are most traded in Forex markets. There is some debate about which pairs can be called majors. However, most agree that the following pairs can be considered majors, 

  • EUR/USD
  • USD/JPY
  • GBP/USD
  • USD/CHF
  • AUD/USD

Like all pairs, majors consist of two ISO currency codes. The currency codes refer to the three-letter term that represents each currency. The base currency is shown first, while the quote currency is shown second. Majors typically tend to be Forex pairs with the lowest spreads. This is because they make up most of the trading volume in Forex markets. Majors are also far less volatile than other pairs, making them ideal for beginners.

Minors 

Minors are Forex pairs that do not contain USD but GBP, EUR, or JPY. Currency pairs such as the EUR/JPY, EUR/GBP, and GBP/JPY are considered minors. Minor currency pairs are also called cross-currency pairs. The trading volume of minor currency pairs is considerably less than that of majors. As a result, these currency pairs are slightly more volatile.

They are also more expensive to trade as spreads are higher. However, these pairs benefit experienced traders or those looking to avoid the US Dollar.

Exotics 

Exotics are the third type of currency pair. These types of currency pairs are rarely traded. As a result, they tend to be highly illiquid. The price quotes on these currency pairs typically contain at least one currency from an emerging economy. Examples of exotic currency pairs are the EUR/TRY, NZD/SGY, and USD/HKD.

Because trading volume is low, the spreads on these pairs tend to be quite wide, making them expensive to trade. Additionally, price movements can be erratic because many exotic currencies come from countries with poor economic health or political turmoil.

What Factors Influences The Price Of Currency Pairs

Next, in our guide on the 10 best forex pairs to trade today, we will look at factors that impact the price of currency pairs.

Inflation 

Inflation is a crucial factor that influences the price of a currency pair. This is because it represents the purchasing power of a currency. If inflation levels are low, the currency will rise because it has more purchasing power, making it more valuable. On the other hand, Stagflation is a phenomenon with high inflation and unemployment levels. Stagflation also features negative economic growth.

Stagflation exacerbates the impact of high inflation, drastically reducing consumers’ purchasing power. It also limits the options available to central banks to alleviate the situation.

Political Developments 

Political developments can also have a significant impact on currency pair prices. Traders will view government policies as good or bad for the economy. Volatility generally occurs during election cycles because they represent political instability. Additionally, all politicians have their own ideas regarding monetary and fiscal policy. This could also have an impact on the value of a currency pair.

Macroeconomic Events 

Major macroeconomic events also impact a currency’s value. For example, interest rate fluctuations can significantly affect Forex rates globally. This is true even if the fluctuation occurs in a different country. When a central bank raises rates, the currency value will also increase, and vice versa.

However, monetary policies from the central bank may not shift currency prices if inflation is high. This generally tends to cause downward price pressure. Apart from rate changes, economic data can also impact Forex prices.

GDP Figures 

Lastly, a country’s Gross Domestic Product (GDP) numbers can also significantly impact the currency’s value. GDP is the value of the country’s goods and services in a specific period. It generally gives a good indication of the economic health of a country.

High commodity prices can have a negative impact on GDP since it leads to higher inflation. This causes downward pressure on a country’s currency because a slowed or negative GDP could indicate an upcoming recession.

Where To Trade Currency Pairs – Best Forex Brokers

Several options are available when selecting a broker to trade Forex. We’ve simplified things and shortlisted two of the most popular online forex brokers. Both brokers offer tight spreads and a user-friendly trading experience. Let’s look at both in a little more detail.

eToro – Best Forex Brokers 2024 

eToro is the most popular Forex broker in the market. The platform has over 30 million users globally. Additionally, it is highly regulated by major financial regulators such as the FCA, ASIC, CySEC, FinCEN, and FINRA.

eToro Forex Platform

eToro is known for its copy trading platform features, allowing traders to automate the trading process seamlessly. eToro’s Copy Trader feature allows traders on the platform to copy the trades of other successful traders. The 50 most copied traders in 2021 generated an average annual profit of over 30%. Such figures highlight how successful and useful eToro’s copy trading feature is.

eToro Features 

eToro is a zero-commission broker and charges no transaction fee when a trade is placed. Like our other example, Capital.com, eToro takes its cut from the bid/ask spread, which is fixed for currencies. However, spreads are tight, typically starting at one pip for currency pairs such as the EUR/USD and the USD/JPY.

eToro Copy Trading Platform

eToro offers users over 49 currency pairs. These include majors, minors, and exotics. Users can access leverage of up to 30:1 on these pairs since they are structured as CFDs. This provides scope for higher returns through effective trading strategies. eToro accepts several deposit methods, such as bank wire transfers, debit/credit cards, and e-wallets like Skrill, PayPal, and Neteller. You can begin trading with deposits as low as $10.

The platform also offers an online trading academy with several courses, guides, and videos to help traders.

Leverage Offered Up to 30:1
Deposit Fees N/A
Number Of FX Pairs 49
Cost To Trade EUR/USD 0% commission
Minimum Lot Size 0.01
Overnight Fees Daily overnight fee of $2.89

Weekend overnight fee of $8.68

Spread On EUR/USD One pip

75% of retail investor accounts lose money when trading CFDs with this provider.

Capital.com – Leading CFD Broker Offering Tight Spreads 

Capital.com is the next broker to trade forex pairs. The popular CFD platform has over 6 million registered users as of 2022. It has also managed to carve out an exceptional reputation for itself. This is because the FCA, ASIC, CySEC, and the FSA regulate the platform.

One of the most appealing aspects of Capital.com is its fee structure. The platform charges no commission when a trader places a Forex trade. This is because all fees are built into the bid/ask spread. However, the spread does vary, depending on market conditions, although despite this, spreads are competitive.

Capital.com Platform

Let’s look at an example. The EUR/USD pair spread can be as low as 0.6 pips at peak trading hours. This makes it highly cost-effective to trade on the platform. Traders can also use micro lots to open positions and fund their accounts for as low as $20. However, beginner Forex traders must learn about the basics of Forex before they begin trading.

The platform offers users over 130 currency pairs to trade. This significantly improves trading opportunities for all types of traders.

Features And Trading Experience 

Regarding payment methods, Capital.com accepts credit and debit cards, bank wire transfers, PayPal, Apple Pay, and Skrill. Withdrawals are free and take just one day to process. Now, let’s talk about the trading experience. Capital.com appeals to all types of traders thanks to its built-in web trading platform. It offers real-time charts with several technical indicators, making it easy for traders to conduct technical analysis.

Traders can also use its mobile app to open positions. The mobile app also comes with a price alert feature. Traders on the platform can also use stop-loss and take-profit orders that help to prevent potential losses. Capital.com is widely recognized as one of the best MT4 brokers, offering complete support for the platform. Beginners will find Capital.com’s demo accounts useful. These accounts come with $10,000 in virtual money and can be used to practice trading strategies before implementing them.

Leverage Offered Up t0 30:1
Deposit Fees Not applicable 
Number Of FX Pairs Over 130
Cost To Trade EUR/USD 0% commission
Minimum Lot Size 0.01
Overnight Fees Long = -0.0076%

Short = 0.0028%

Spread On EUR/USD Variable starting from as low as 0.6 pips

Are Forex Markets Regulated? 

Regulation of Forex markets depends on their jurisdiction. Countries such as the United States have stringent regulations and infrastructure for Forex trading. The National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC) regulate the trades. Meanwhile, developing countries such as India and China have placed restrictions on firms and capital that can be used in Forex trading.

Europe is the largest market for Forex. The markets in the UK are regulated by the Financial Conduct Authority (FCA).

Are Forex Markets Volatile? 

Forex Trading

The Forex market is one of the most liquid markets in the world. This means they are considerably less volatile than other global markets, such as real estate or stock markets. A currency’s volatility and value depend on a number of factors, such as the economics and politics of the country.

Economic events such as a payment default or trade imbalance can result in considerable volatility.

Conclusion – Best Forex Pairs To Trade

And that concludes our guide on the 10 best Forex pairs to trade right now. This guide has tried to present an overview of the best pairs to trade regarding Forex. It has also gone over the key factors that can impact the price of Forex pairs. If you want to start trading, you can do so by creating an account on eToro, one of the leading Forex brokers in the world.

Forex trading offers several advantages over other markets, such as 24/7 trading and high flexibility. However, before you begin trading, you must have a clear understanding of the macroeconomic principles that drive currency values.

Author Checked Reviewed and Fact Checked by Wajeeh Khan, Fintech, Blockchain Writer and Investment Analyst.

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  • Free Copy Trading of Professional Traders
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75% of retail investor accounts lose money when trading CFDs with this provider.

FAQs Best Forex Pairs To Trade

What Is The Safest Currency Pair To Trade?

There is no “safe” currency pair as such. All trading activities come with risk and the potential to lose money. However, if we look at stability, the EUR/USD trading pair is considered to be the most stable currency pair. It doesn’t face sudden spikes or falls, making it ideal for risk-averse traders.

There is considerable debate about what pairs can be considered major pairs. However, most agree that the EUR/USD, USD/JPY, GBP/USD, USD/CHF, and AUD/USD can be considered the five major pairs.

The most valuable currency at the moment is the Kuwaiti Dinar. This is thanks to the country’s substantial oil wealth. 1 Kuwaiti Dinar is worth $3.21.

The most popular Forex pairs among traders are the USD/JPY and the EUR/USD. Both of these pairs are highly liquid, which means spreads are tight. This makes them ideal for several trading strategies.

At the time of writing, the most traded currency pairs are EUR/USD, USD/JPY, GBP/USD, AUD/USD, and USD/CAD.

The profitability of a particular Forex pair is determined by how the pair is traded rather than the pair itself. The USD/JPY and EUR/USD trading pairs are the most popular with traders because they respect technical analysis and have extremely tight spreads.