Best Forex Currency Pairs to Trade in 2025

It reflects the dynamic risk sentiment and global growth shifts between the two regions. As with the United States, the Eurozone’s positive interest rate differential also presents interesting opportunities in EUR/JPY. Another unique aspect of USD/CAD is its status as a ‘risk-on’ or ‘risk-off’ currency, meaning it moves according to global risk sentiment.

You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Some brokers also demonstrated their platforms live via videoconferencing, and our experts conducted hands-on testing with live accounts to further validate the platforms’ functionality and user experience. This comprehensive approach allows us to present an unbiased, detailed review of today’s best forex brokers. Privately owned and headquartered in Copenhagen, Saxo was established in 1992.

Volatility in the Forex market reflects how quickly and sharply currency prices can change. It’s influenced by shifts in investor sentiment, which could occur unexpectedly due to economic, political, or financial developments. Using an economic calendar helps traders track upcoming releases and plan trades around potentially market-moving events. By anticipating economic announcements, traders could better manage risk and identify opportunities in the Forex market. Given the region’s trade links, the AUD/NZD pair is particularly sensitive to developments in Australia, New Zealand, and China. During periods of market uncertainty or high volatility, investors often turn to the Swiss franc, which could cause the USD/CHF exchange rate to decline as the franc strengthens.

What factors affect the Forex markets?

In conclusion, the significance of selecting the right currency pairs for a successful Forex trading journey cannot be overstated. Your choices profoundly influence both the profitability and risk management of your trades. The strategies and insights provided in this guide are the keys to boosting your profits and managing risks wisely. Remember that the selection of the best Forex pairs to trade is your compass, and informed decisions are your map. In conclusion, selecting the best forex currency pairs to trade involves evaluating factors like volatility, liquidity, and economic conditions. To profit in the forex market, it’s crucial to understand how to select the best currency pair to trade and identify the most volatile forex pairs.

Our commitment to providing unbiased, comprehensive reviews of forex brokers is rooted in extensive research and expert analysis. We evaluated 18 forex brokers based on rigorous criteria, focusing on key aspects such as regulatory oversight, costs, trading experience, and available offerings. Our methodology ensures that our recommendations are based on reliable data and a thorough understanding of the industry.

The most traded forex pairs, typically involve currencies from the world’s largest economies and financial centers.
During periods of market uncertainty or high volatility, investors often turn to the Swiss franc, which could cause the USD/CHF exchange rate to decline as the franc strengthens.
Although it exhibits relatively high volatility and is less liquid than the other major pairs, USD/CHF is often used to hedge against economic risk, making it a strategic choice for some traders.

The overall ratings are a weighted average of the weighted criteria, ensuring a balanced and fair assessment. For a limited time, IG is removing the IG spread on all FTSE100 shares on spread betting products. You will only pay the market spread, giving you the chance to make the most of every market move. Michael is a former senior editor of investing and trading products for Investopedia. He has 20+ years of mutual fund, macro market research, institutional trading desk, and trading education experience.

Some brokers accept deposits as low as $50, while others may require $1,000 or more. It’s crucial to trade only with funds you can afford to lose and to consider the impact of leverage on risk. While not a feature appealing to all traders, it’s perfect for those trading range and breakout strategies.

Minor pairs are less actively traded currency pairs compared to the major pairs, but they still consist of some major currencies. These pairs often have good liquidity and are among the best forex currency pairs to trade. I might consider buying the GBP/JPY since if I believe that the GBP will outperform the JPY due to the market conditions. These major currency pairs typically offer high liquidity, tight spreads, and ample trading opportunities, making them popular choices among forex traders worldwide. However, it’s essential to conduct a thorough analysis and stay informed about the factors driving each currency pair’s movements to make smart decisions. The NZD/USD currency pair consists of the New Zealand dollar quoted in terms of the U.S. dollar.

Beginning investors should educate themselves on the wealth of research and educational resources available through trading platforms and sites such as Investopedia. Whatever a pair’s inherent volatility, it’ll peak when there’s a new release — unemployment, inflation, GDP, or a central bank decision. GBPJPY, also known as the “Beast” due to its unpredictable nature, reflects the economic interactions between the UK and Japan and the policies of their central banks. AUDJPY is known for its volatility, which creates both risks and opportunities, especially during market shifts. AUDUSD is popular in Forex trading strategies because it’s easy to buy and sell due to high trading activity. Traders can be relatively unconcerned with sudden moves in unexpected directions, as this pair is pretty stable.

Whether you prefer the stability of USD/CAD or the rapid movements of GBP/USD, being better informed about these major pairs can improve your forex trading experience and overall profitability.
The GBP/USD isn’t as liquid as the major pairs, but GBP/USD has enough trading volume and can move enough during the London session in response to economic data, to generate a small fortune.
Trend-following strategies may be better suited to pairs with clear and consistent trends.
WR Trading is not a broker, our virtual simulator offers only simulated trading of a demo account.
Despite this, both currencies have safe-haven status, making this pair the least volatile during times of market instability.

Profitable Pairs: A Guide To Choosing the Best Forex Currency Pairs

Here are a few of the major risks to think about before you get started. Forex trading can be profitable, and the same could be said for every type of investing. There is no one way to be profitable in investing, but forex traders tend to do well when they have a defined trading strategy, control their overall trading exposure, and are mindful when using leverage.

How to choose the right currency pairs?

Cryptocurrencies markets are unregulated services which are not governed by any specific European regulatory framework (including MiFID) or in Seychelles. The currencies are listed by standardised abbreviations used in markets around the world. In forex trading, you have to consider both the up and down movements in the market — because you are both buying a currency and selling another at the same time. USDCHF tends to exhibit relatively high volatility, particularly during the European and US trading sessions. Despite this, both currencies have safe-haven status, making this pair the least volatile during times of market instability.

What Is Forex Trading?

Jay and Julie Hawk are the married co-founders of TheFXperts, a provider of financial writing services particularly renowned for its coverage of forex-related topics. While their prolific writing career includes seven books and contributions to numerous financial websites and newswires, much of their recent work was published at Benzinga. FOREX.com gives you direct access to global forex markets with low spreads, lightning-fast execution and powerful trading platforms—all under the regulation of the CFTC. The value of Australia’s currency is closely tied to the role and value of its exports to its economy. A downward movement in that value could affect the AUD/USD currency pair value, strengthening the dollar to the loonie.

George Soros made over a billion dollars in a deep short against the British Pound in the 1990s. That trade probably wouldn’t have been as massive if he were running a risk-controlled trading strategy, but it was made possible by his already significant capital reserves and a strong conviction. For the average forex trader, however, it is better to find your ideal trading timeframe, adopt a style that fits, avoid over-leveraging, and cut your losses while they are small.

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. Therefore, what is the best forex currency pair suited for your strategy? A higher liquidity pair generally means tighter spreads and less price slippage, which you can take advantage of for increased efficiency in implementation. They are the most liquid, so you should usually find good trading opportunities. For traders in the Northern Hemisphere seeking higher volatility, Asian cross-currency pairs that exclude the US dollar, such as AUD/NZD, AUD/JPY, and NZD/JPY, could offer possible overnight trading opportunities.

USD/CHF

Trading Futures and Options on Futures involves a substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. Opinions, market data, and recommendations are subject to change at any time. A skilled forex trader can take advantage of opportunities regardless of the economy related to the currencies. Still, the pairs discussed here offer much-needed geopolitical and economic stability. This makes them more predictable and easier to understand from an analysis perspective.

Explore the benefits of our higher tiers and unlock a world of exclusive learning opportunities. You should seek advice from an independent and suitably licensed financial advisor and ensure that you have the risk appetite, relevant experience and knowledge before you decide best pairs to trade forex to trade. You can start with as little as $100 in most cases, but it’s important to note that forex trades are made in standard lots of 100,000 units of currency. Founded in 2004 by Gain Capital (acquired by StoneX in 2020), FOREX.com is a well-established company that trades on the NASDAQ under the symbol SNEX.

The main benefit of trading with low or reasonable spreads is minimizing trading costs. This is particularly useful for short-term speculators like scalpers, where every pip matters and affects their profits. One slight downer with this pair is the spreads which are usually a bit higher than USD pairs.