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Best Currency Pairs to Trade in Forex

Currency pair is a correlation of the value of currencies making up the currency rate and being the subject of trading in the Forex market. This pair has base and quote currencies. It looks like this: EUR (base currency)/USD (quote currency). Simply put, the former is a product, and the latter is the expression of its cost.

Before trading in Forex, a beginner needs to select a currency pair, which will be his operating tool. The best thing for a beginner trader is to go for one currency pair and trade only it until he masters the laws of the marker, learns to make forecasts, and polishes his skills. So, let’s see how to choose the best currency pair in Forex.

What are currency pairs there?
There is a standard classification according to which they are all divided into three big groups:


They all have their peculiarities and may become a good instrument in the hand of an experienced trader. However, a newcomer needs to choose an option, which he’ll find suitable under his personal parameters.


These are currencies, which make up the basic groups of pairs with the United States dollar. It is them, which are traded on the exchange with the most volume. They are bought and sold really fast. They may be called the perfect instrument for a beginner.

The next pair belong to this group:

Australian dollar / United States dollar;
British Pound / United States dollar, etc.

Secondary (cross rates)

The volume of trading with these currencies is somewhat lower than with the main ones. Nonetheless, they also enjoy popularity both among newcomers and experienced traders. These are currency pairs without the United States dollar. These may be mentioned as an instance:

euro / Australian dollar;
euro / British Pound;
Swiss franc / Japanese Yen, etc.


Not the best trading instrument for a fresh trader. This group is composed of the money units of developing countries, as well as nations with the minimum share on the global market. Trading with exotic currencies bears the highest risks, however, a profit may be very big in the case of success. The volume of trading with these currencies is minimal. As a rule, this pair consists of the United States dollar or euro and one of the following currencies:

Swedish crown;
Turkish pound;
Russian ruble;
Norwegian krone, etc.

Currency pairs including the rates of the dollar, silver and other precious metals make up a separate group.

Currency pair selection parameters
Since that’s the main trader’s trading instrument, you have to approach its choice very carefully. First off, you need to keep your eye out for parameters:

Pair liquidity. That’s the level of demand for specific money units. The higher this indicator, the better. Liquidity depends on the number of sellers and buyers on the market. The most liquid currency pairs are: United States Dollar /Euro; United States Dollar / Japanese Yen; British Pound / United States Dollar. The lower the liquidity currency, the worse.
Spread. That’s a difference between the cost of buying and selling. The lower this indicator, the better. Its size is affected by money unit liquidity, mark condition, transactions volume, etc.
Maximum demand time. This period needs to coincide with the market player’s activity schedule. Otherwise, this trading will result in little to no utility.
Volatility. That’s price fluctuations in certain intervals. If the currency rate changes smoothly in the expected range, it tells of low volatility. If the price changes suddenly, there are great leaps in the drop and increase in the rate, this indicates high volatility. High volatility of a money unit is risky but that’s a good chance to earn on the rate difference.

Despite the diversity of currencies in the Forex market, there are pairs in the world considered the most stable. The leaders include United States Dollar and Euro. That said, you can choose any trading instrument at your discretion.

Popular currency pairs in Forex

Euro/ United States Dollar (EUR/USD). The most popular currency pair among all existing ones. It is it, which shows the highest liquidity indexes. That’s the most straightforward and easy trading instrument for a beginner trader. The currency volatility may be affected by different geopolitical events in the US and EU, as well as news from the US and EU. It’s quite easy to predict the behavior of the pair.

British Pound / United States Dollar (GBP/USD). Yet another instrument, which may fit a beginner. However, spikes are typical of this pair. It is also sensitive to various political events taking place in the country. For example, the unemployment rate in the Albion, inflation, etc. may affect the price. Keep in mind that sometimes British Pound behaves unpredictably.

United States Dollar / Canadian dollar (USD/CAD). Not only geopolitical events in the countries but also raw material prices influence the rate of this pair. The Canadian currency depends heavily on the oil rate and world output. There’s a correlation between the Canadian dollar and the economy of China. This instrument may also fit a beginner trader, however, it will be harder to predict the behavior of the currencies in this case.

Australian dollar / United States Dollar (AUD/USD). That’s quite a stable instrument suitable for carrying out successful trading. The pair perfectly fits beginners making it possible to work on fundamental and technical analysis. The Australian dollar is often called an agricultural currency because any natural phenomena can cause its spikes: droughts, floods, small harvests, etc. Australia also exports gold, which means its cost on the global market should be considered too.

United States Dollar / Swiss franc. One of the most conservative pairs. Its advantages are the lack of leaps in currency rate, simple forecasting, sound liquidity regardless of the time of day. It’s very convenient to work with this instrument in a crisis since it is a safe haven.

The best currency pairs

There are lots and lots of currency pairs, which can be used for Forex trading. However, beginner traders are recommended to focus on one pair. This will allow reducing the risk level and learning the ropes of trading. When choosing a suitable option the following criteria should be considered:

Your broker’s trading requirements set for a specific pair. They are fees, spreads, order execution speed, etc.
Availability of public information on the chosen monetary unit. These may be newspapers, TV news, data from the Internet, etc. Without data, you cannot forecast the behavior of currencies to the full.
Risk factors. The money units of countries in a brittle geopolitical situation feature the most risk factors.

Once a suitable instrument is selected, it needs testing. Beginners are better to do it using a special demo account. In doing so, you’ll not lose real money.

The best options for beginners are:

For experienced traders:

• AUD/JPY, etc.

You shouldn’t go for too many pairs all at once. Many experienced traders intentionally pick one and only one instrument and focus on it. Besides, by paying attention to a great number of monetary units you risk missing the important details and losing profit. Whatever the case is, it is you who has to select the most suitable option.

HappyHamster.i o is not a financial services provider, but only a robot on the platform of the regulated broker Just2Trade Online Ltd is authorised and regulated by the Cyprus Securities and Exchange Commission in accordance with license No.281/15 issued on 25/09/2015. FXTM (ForexTime Limited) is licensed by the Financial Sector Conduct Authority (FSCA) (former Financial Services Board FSB) of South Africa with Financial Services Provider (FSP) license number 46614. RoboForex Ltd is an international broker regulated by the FSC, license No. 000138/333, reg. number 128.572. Address: 2118 Guava Street, Belama Phase 1, Belize City, Belize. All information published on this website is for educational purposes only and should not be regarded in any way as investment recommendation or advice, not even implied.

Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. The displayed results are a combination of real live results and hypothetical trading results.

One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.

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