This guide was prepared by Zahari Rangelov, Head of Business Development at TraderFactor. Zahari specializes in trading strategies, market analysis, and risk management. He has over a decade of experience helping traders navigate complex financial markets. Small accounts require pairs with low margin requirements and spreads.
How should I manage risk when trading multiple major pairs?
We can also say the same for hundreds of other extremely exotic pairs. However, it’s impossible to determine exactly which one is traded the least. Since more people are interested in an asset, the easier it is to buy and sell. Remember that if the quote currency experiences heavy appreciation, the pair is likely to move lower over time. The US dollar often enjoys the same “safety net” status, however, when matched up against a more formidable safe haven, the currency tends to move lower during times of economic unrest.
GBP/USD (Great British Pound vs. US Dollar)
We’ve analyzed dozens of pairs across five key criteria to match them to your trading style. You’ll find updated star ratings, clear comparisons, and specific recommendations for scalping, day trading, swing trading, and more. Exotic pairs combine a major currency with an emerging market currency, such as USD/TRY or USD/ZAR.
Understanding Spread and Cost in Each Pair
For comparison, EUR/USD generated an average daily turnover of $795 billion in April 2024 (down 22% from April 2022). The euro placed second with $2.77 trillion in daily turnover on average, followed by the yen with $1.61 trillion and the sterling with $981 billion. The Hong Kong dollar exhibited the biggest growth across this metric. The daily turnover of forex transactions involving the HKD increased by nearly 89%, jumping from $194 billion in 2022 to $367 billion in 2025. The euro ranked as the second most traded individual currency regardless of pair, with a 28.9% share. However, its share of all forex trades declined by 1.7 pp from the previous BIS survey period.
What is the difference between a major pair and a cross?
The ECB’s monthly reports can provide direction over future policies. Meanwhile, the Canadian economy is heavily influenced by its exports, spanning a range of commodities and raw materials. The price shows how much of the quote currency is needed to buy one unit of the base currency. This price constantly changes as traders enter and exit the market. When central banks change interest rates, currency values often react quickly. In the case of exotic currencies, these factors can often be the political or economic agenda of the country.
Lower interest rates tend to weaken the currency, as investors seek higher returns elsewhere. High volume allows brokers to offer narrow bid-ask spreads (often under 1 pip), reducing costs and enabling efficient execution even in large fxverge withdrawal sizes. The AUD/USD rate depends on production volumes and commodity prices, as Australia is a major exporter of agricultural products and minerals. The state of the economies of China and Japan also affects the pair’s rate.
We provide in-depth analysis of Forex Brokers, Stocks, CFDs, ETFs, and other financial instruments to help our readers make informed decisions. All else being equal, countries with lower inflation rates will see their currency strengthen relative to a country with higher inflation. The Economic indicators of GDP figures, employment rates, and inflation fluctuate and influence the value of all currencies – the stronger the economy, the stronger the currency.
New forex traders at The Kingdom Bank need to understand how spreads operate for major currency pairs to effectively reduce trading expenses. New forex traders at The Kingdom Bank gain dependable liquidity by concentrating their trading on major currency pairs which dominate the world’s most vital exchange rates. Very often forex traders ask or even wonder what is the best forex currency pair to trade. There is no easy answer, as there are so many factors to take into account to adopt a Forex pair into your trading style and goals.
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If the British economy is growing at a faster rate than that of America, it is likely the pound will strengthen against the dollar. However, if the American economy is doing better than the British economy, the reverse is true. A major pair always includes the US dollar, while a cross pair consists of two major currencies excluding the dollar. Crosses, like EUR/GBP, often have wider spreads and slightly lower liquidity than dollar-based majors. Russia is one exception, as it is often grouped among either developed or developing countries depending on the classification parameters used.
87% of new traders fail because they trade too many pairs simultaneously. Its east to understand why, there are over 100 currency pairs, and when they’re all flashing on your screen, moving 24/5, it’s easy to feel like you should be trading everything. The pairs you trade can either help you stay consistent or drag you into drawdown.
Why USD is Involved in All Major Forex Pairs
Forex can be traded using smaller position sizes such as micro lots or nano lots, depending on the broker and platform. Many traders also practise first on a demo account demo account to understand order placement, spreads, and pip value before using real funds. A forex pair consists of two currencies traded against each other, such as EUR/USD (euro versus US dollar) or GBP/JPY (British pound versus Japanese yen). The price of a forex pair shows how much of the second currency is required to buy one unit of the first currency. There are 28 currency pairs in forex including major and minor forex currency pairs. The USD/HKD is another popular exotic forex pair, with the greenback up against the Hong Kong dollar as the quote currency.
- This characteristic makes them candidates for the Best Currency Pairs for Forex Trading in 2026.
- While silver is more volatile than gold, it shares similar characteristics as a safe-haven asset, responding to economic uncertainty in much the same way.
- If either of these factors is a concern, it may be worth it to consider other options.
- They are the most liquid, so you should usually find good trading opportunities.
- A major pair always includes the US dollar, while a cross pair consists of two major currencies excluding the dollar.
- The high leverage inherent in CFDs can result in a rapid loss of money.
The price of a currency, as well as the actual profitability of trading at one time or another, depends on the state of the economy of the currency country. It is of great importance what the economy of a particular country is based on. If the economy is mainly based on oil, then analyzing the oil market, you can see how the currency of this country behaves. This is a simple example, of course it is also necessary to take into account GDP, interest rates, economic growth (or recession). All these factors affect the price of a currency relative to other currencies.
USD/CAD (US Dollar/Canadian Dollar)
Commodity currency crosses include pairs such as AUD/JPY, AUD/NZD, and CAD/JPY. Currency pairs in the foreign exchange market measure the value of one currency against another. Each pair consists of a base currency (the first currency listed) and a quote currency (the second). The quoted price shows how much of the quote currency is required to buy one unit of the base currency. The time of your trade plays a crucial role in its outcome, as different forex pairs exhibit varying levels of volatility and liquidity depending on the trading session. That’s because the countries involved often release reports that affect their money.
Swiss National Bank and CHF Pairs
Forex trading has gained immense popularity due to the leverage it offers with lower margin requirements. Lastly, practice these strategies in a demo account to improve your trading skills. Survey data from BIS indicates that most of the average daily turnover in currency trading comes from major financial hubs with busy forex markets. Financial centers like the UK, USA, Hong Kong, and Singapore accounted for approximately three quarters of all forex trades in 2025.
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In comparison, minor pairs often have lower liquidity, somewhat wider spreads, and sharper swings outside their most active sessions. Minor currency pair markets can still be highly profitable, but cost and volatility profiles make these symbols less forgiving for novice traders. A strategy that works well on the EUR/USD may need different stop distances, session timing, and expectations on a minor pair.
