Which are the best currencies to trade?
With over $6 trillion traded daily, success often lies in the selection of the right currencies to trade. This is a detailed guide on the best currencies to trade and for what reasons they are the best.

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Major Currency Pairs
Major currency pairs are among the most traded and liquid pairs in the forex market. They often have lower spreads and high volatility, making them ideal for traders looking for opportunities. Some of the major currency pairs include:
• EUR/USD: The Euro-US Dollar pair is the most traded currency pair in the world. It presents high liquidity, low spreads, and is influenced by key economic events from both Europe and the US.
• GBP/USD: Known as the "Cable," this is a volatile currency pair, often influenced by economic data from both the UK and the US, including interest rate decisions.
• USD/JPY: This is a highly liquid currency pairing between the US Dollar and the Japanese Yen, seen to be a safe option during economic turmoil.
• AUD/USD: The Australian Dollar and US Dollar pairing depends on commodities and trade data, making it an excellent choice for traders who like following global markets.
Cross Currency Pairs
Cross pairs do not involve the US Dollar yet are still ok to go regarding trading. They can offer high volatility and profit potential.
• EUR/GBP: The Euro paired with the British Pound is the best for traders who target European markets.
• AUD/JPY: Merging the commodity-driven Australian Dollar with the Japanese Yen as a safe haven makes the combination a dynamic one in which to trade.
• GBP/JPY: This is considered one of the most volatile, with wide-range fluctuations in prices possible.
Exotic Currency Pairs
Exotic pairs, for professional traders, promise high rewards but are riskier due to the lower liquidity and wider spreads.
• USD/SEK: The US Dollar vs. Swedish Krona may be of interest to those following Scandinavian economies.
• EUR/TRY: Euro vs. Turkish Lira is a very volatile currency pair and is often linked to geopolitical events and economic policy in Turkey.
• USD/ZAR: The US Dollar and South African Rand is popular among traders who track commodity trends and emerging markets.
Factors to Consider When Choosing Currencies to Trade
Liquidity: Major pairs typically offer the best liquidity, making them easier to trade with tighter spreads.
Volatility: Traders seeking larger price movements often prefer pairs with higher volatility.
Economic Data: Pay attention to key events such as central bank announcements, GDP reports, and employment figures.
Trading Hours: Assumption of trading sessions, for instance, London, New York, or Asian that coincides with your selected currency pairs for the best liquidity and action.
Further Forex Trading Resources
• News Trading Forex Trading Strategy Video
• Economic Calendar to monitor market moving events
Start Trading with FP Markets
To trade forex, one needs to select a trustworthy broker. FP Markets offer competitive spreads, advanced trading platforms, and excellent customer support. Open an account with them today and access a vast array of forex pairs to start trading with confidence.