The Top 10 Forex Currency Pairs
- What Are the Types of Currency Pair That You Can Trade?
- Majors
- Minors
- Crosses
- What Makes a Good Currency Pair?
- What Time of Day Will You Trade?
- Liquidity
- Price Stability
- Predictability
- The Top 10 Forex Currency Pairs
- 1. EUR/USD
- 2. GBP/USD
- 3. USD/JPY
- 4. AUD/USD
- 5. EUR/GBP
- 6. USD/CAD
- 7. USD/CHF
- 8. NZD/CHF
- 9. USD/CNY
- 10. USD/HKD
- Final Thoughts
Forex is by far the largest trading market, available 24 hours five days a week. It is also the most volatile market and hence provides the opportunity for heftier profits.
A forex currency pair includes the US dollar and/or other global currencies.
The first currency in the pairing, for instance, the British pound in GBP/USD, is the base currency. The second currency, the US dollar in the above example, is known as the quote currency.
Generally, the base currency will be the trader’s domestic currency.
The price of a forex currency pair is an expression of how much of the quote currency is needed to buy one unit of the base currency.
For instance, EUR/GBP 1.45 indicates that £1.45 is required to buy one Euro. A value of EUR/USD 1.89 means that $1.89 would buy one Euro.
What Are the Types of Currency Pair That You Can Trade?
Forex currency pairs can be divided into the following categories:
Majors
Majors are generally the most popular type of currency pair to trade. They will always include the US dollar and are generally the most liquid; that is, they provide the trader with the greatest ability to trade that pair on the forex market.
Majors have the highest liquidity of the three types of currency pair; however, the fact that these currencies are generally easier to research means that trading majors can be a crowded and therefore competitive market.
Minors
Minors do not include the US dollar but do include one of the other major global currencies (for instance, the Euro).
They have a lower level of liquidity than majors and there is generally less available data on these currencies.
Trading minor currency pairs is therefore a less competitive market which traders may be able to take advantage of.
Crosses
Crosses are any currency pairing that does not include the US dollar.
How is this different from a minor?
A minor must include one of the major currencies (for instance, the Euro), whereas a cross is made up of any non-US dollar currency.
Therefore, a minor is a type of cross.
What Makes a Good Currency Pair?
What factors should you consider when deciding which forex currency pair to choose?
What Time of Day Will You Trade?
Will you trade during the day or at night? This might not seem a relevant question until you consider the route of the trading day:
- Opening in Asia
- Moving next to the Middle East
- Then Europe and London
- Finally, New York and the US
This means that not all of these trading areas will be open continually or at the same time.
For instance, if you are a night trader in the US, the Middle East and Europe/London may be closed and therefore your only option is the US and Asia.
The time of day when you trade will decide which currency markets are available to you.
Liquidity
This is generally the key factor when deciding which currency pairs to trade. As a trader, you want to trade currency pairs that you can easily buy and sell.
The exception to this rule is the trader who seeks to take advantage of the erratic performance of less liquid currency pairs. This method is called scalping and involves taking small profits several times throughout the day.
For more on this topic, read Forex Scalping: A Strategy Guide.
As mentioned in the previous section, majors have the highest liquidity, followed by minors and crosses.
Price Stability
The price stability of a currency is intrinsically linked to the economic health of the nation or nations connected to that currency.
For instance, the US to the US dollar or the UK to the British pound.
When considering which currency pair to choose, you should factor in the likely economic scenario of those countries.
Predictability
In other words, how much historical information is available on a currency.
The benefit of trading major currency pairs or pairs involving any major global currency is the vast amount of data available to judge how a currency is likely to perform.
Lesser global currencies, and especially currencies that are newer to the forex market, will carry less historical data and their performance will therefore be more difficult to predict.
The Best Trading Platforms
Let’s take a look at the best trading to earn more.
1. Liteforex
Best for: Learning from others
Liteforex is one of the most popular online reliable brokers over the world. Over the past 15 years, it has developed a strong reputation for beginners and experienced investors alike, has a minimum $100 deposit.
The Liteforex app aims to use easy for every clients. It is available on Google Play and the App Store and allows you to move seamlessly between devices.
It’s innovative features include:
- Pre-programmed one-click trading
- Copy Trader – Copy the trades of others in real-time
- Its own social networking platform
- Pre provided investment strategies which they call Copy Portfolios
The app boasts the ability to allow you to place online trades even if the trading platform is down.
The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors.
2. FXTM
The FXTM Platform itself is intuitive and easy to use, suitable for those just getting into trading and those more experienced alike.
It is designed to offer a full replication of an institutional trading environment including depth of market.
With advanced risk management and order functionality, this is a detailed platform for trading stocks.
The FXTM app offers a premium range of order types, with advanced technical analysis tools.
You can set up push and email notifications for the important things that you want to know in relation to your stock trading needs – such as price alerts and trade statistics.
Within the app, you can:
- Complete a range of order types
- Work with all your accounts in one app
- Understand detailed trade analysis
- Review detailed order tickets – base currency dollar value and pip distance
As a platform, there are comprehensive educational videos and explanations of symbols, so you can find optimized processing for expert advisors and indicators.
The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors.
3. FBS
Best for: CFDs
This app is designed for those wanting to trade outside of the US. It is considered one of the best for CFDs on shares and has a minimum $100 deposit.
There are low trading fees but considerable fees for inactive users.
The educational section is average, as are the research tools. However, the app is easy to use overall.
This app is recommended for those familiar with CFDs and who are actively trading. Reviews of the app show that users like the:
- Account-opening process
- Deposit and withdrawal features
- Customer service
- Actual trading platform
The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors.
The Top 10 Forex Currency Pairs
Of the many currency combinations that you can choose from, the following are the top 10 forex currency pairs:
- EUR/USD
The Euro and the US dollar represent our two major economies globally, and as such, this is the most-often traded currency pair.
This major pair is highly liquid, and the linked exchange rate is reliant on the European Central Bank, the US Federal Reserve interest rates and NFP (non-farm payroll) announcements.
- GBP/USD
This major pair is made up of the British pound and the US dollar and consequently relies on how well the British and American economies are faring.
The linked exchange rate for this pair is reliant on interest rates set by the Bank of England and the US Federal Reserve.
One additional factor to monitor concerning this pair is the UK’s departure from the EU.
- USD/JPY
Made up of the US dollar and the Japanese yen, this major pair has high liquidity.
This is hardly surprising as the US dollar is the most traded currency globally and the Japanese yen is the most traded in the Asian market.
The exchange rate for this pair relies on interest rates set by the US Federal Reserve and the Bank of Japan. Other factors include the regularity of natural disasters in Japan.
- AUD/USD
Another major, this pair is made up of the Australian dollar and the US dollar.
Factors that affect this pair include the value of commodities exported by Australia such as iron ore, gold and coal, and the interest rates set by the Reserve Bank of Australia and the US Federal Reserve.
- EUR/GBP
This is a minor pair because it does not include the US dollar. It is made up of the Euro and the British pound.
The close link, geographically and due to strong trade arrangements between Europe and the UK, makes this a difficult pair to predict.
The run up to the UK’s departure from the EU has caused a highly volatile price for EUR/GBP.
Further factors to monitor include interest rates set by the Bank of England and the European Central Bank.
- USD/CAD
This major pair includes the US dollar and the Canadian dollar.
One factor to monitor for this pair is Canada’s reliance on the price of oil, its main export.
As the price of oil rises, so too does the value of the Canadian dollar.
- USD/CHF
This major pair, made up of the US dollar and the Swiss franc, is generally seen as a safe investment during times of economic and political turmoil.
Due to the popularity of this pair, there is a high level of data available and hence this pair has a high level of predictability.
- NZD/CHF
This minor pair includes the New Zealand dollar and the Swiss franc.
New Zealand’s increasing agricultural influence worldwide means that any trader looking to invest in this pair must monitor global agricultural product prices.
The price of this pair is also influenced by the Reserve Bank of New Zealand.
- USD/CNY
This major pair is made up of the US dollar and the Chinese renminbi or yuan.
CNY, however, refers to the trading of this currency in the onshore Chinese trading market. When the Chinese renminbi or yuan is traded offshore, it is referred to as CNH.
The leading factor to monitor when investing in this pair is the US-China trade war.
Historically, the value of the CNY has dropped against the US dollar due to the efforts of the Chinese government to drive down the price of their exports.
- USD/HKD
This major pair, made up of the US dollar and the Hong Kong dollar, features a linked exchange rate that allows the HKD to move within a band of HK$7.75/7.85 to one US dollar.
One recent and important factor to monitor in relation to this pair is the ongoing situation in Hong Kong following the protests there in 2019.
Final Thoughts
The best forex pairs for you to trade will depend on many factors:
- What time of day you will trade
- Whether you are interested in making a long-term investment to achieve larger profits or are happy to scalp smaller profits many times each day
- Your knowledge of currency, the forex markets and global economies
Trading forex pairs carries the opportunity to make a healthy profit, but it requires patience and regular research.
Myanfx-edu does not provide tax, investment or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors.
Financial Trading is not suitable for all investors & involved Risky. If you through with this link and trade we may earn some commission.
The Best Brokers for Trading EUR/GBP
- What Is EUR/GBP?
- Is EUR/GBP a Minor Pair or a Major Pair?
- Why Do You Need to Know if Your Forex Pair Is Major or Minor?
- What You Should Consider When Trading EUR/GBP
- Why It’s Important to Choose the Right Broker to Make Your EUR/GBP Trade
- Who Are the Best Brokers for Trading EUR/GBP?
If you are a savvy investor, then you’ll be well aware that forex trading (also known as foreign exchange trading) can be an effective way of generating profit.
It’s a practice which allows you to buy and sell currency pairs, taking advantage of fluctuating exchange rates.
Trading takes place globally by individual traders, investors, even banks and other financial institutions.
The largest markets for forex trading are in London, Tokyo, New York and Hong Kong – and trades take place 24 hours a day, 7 days a week.
We’ve previously published many articles on forex trading, ranging from the benefits of forex trading through to how to trade forex on a low budget and even how to become a successful part-time forex trader.
If you’re interested in learning more about what forex is and how it works, we highly recommend that you read some of our other articles to enhance your knowledge and understanding of the forex market.
You may already know that one of the best ways to trade forex is to use a specialist broker or a dedicated forex trading platform.
In this article, we’ll help you understand who the best brokers are for trading EUR/GBP currencies.
What Is EUR/GBP?
As forex trading relates to foreign currencies, you may already know that EUR/GBP refers to the Euro (which is used in countries such as France, Italy, Spain and Ireland) and the British pound (which is the currency of the United Kingdom).
Is EUR/GBP a Minor Pair or a Major Pair?
The forex market is based on pairs of currency. You buy one currency and you exchange it for another in a bid to make a profit on the currency conversion.
These currency pairs are categorized into three distinct groups:
- Major pairs – Those that are most commonly traded.
- Minor pairs – Those that do not involve the US dollar. They can also be known as cross-currency pairs.
- Exotic pairs are more niche. They tend to be a mix of a major currency (such as the USD) with an emerging currency (such as the Norwegian Krone or the South African Rand).
Although the EUR/GPB pair is a minor currency because it doesn’t involve the US dollar, it is a widely traded pair.
Why Do You Need to Know if Your Forex Pair Is Major or Minor?
The key to successful forex trading is understanding the importance of pairs.
Those new to the market will likely focus on the major pairs such as EUR/USD, USD/JPY or GBP/USD. This is because the trades are far more common and easily accessible.
Trading in exotic pairs tends to be left to experienced traders who have an in-depth understanding of the trading conditions and know how to read the market.
What You Should Consider When Trading EUR/GBP
This is a hugely important pair for many traders as it has high liquidity and a high volume of trade.
As the pair operates within a similar time zone, market fluctuations typically take place between 6 a.m. and 4 p.m. to account for the GMT and European time zones.
As the Euro covers a large part of the European continent, potential traders must pay close attention to the different political and economic challenges facing those countries.
The European Central Bank (ECB) release a variety of reports which can help traders understand how the Euro’s value may fluctuate.
These reports will look comprehensively at a variety of factors such as:
- Unemployment figures in different countries
- Economic prospects
- Interest rates, etc.
These consolidated figures are then used to provide data that predicts how the Euro may behave in the forex market.
Before buying/selling GBP, it’s also important to look at what the Bank of England (BOE) is forecasting.
The Bank of England is in control of interest rates, and much of the UK’s economic prosperity is led by this.
An additional factor to consider when trading EUR/GBP is the impact of Brexit.
When the United Kingdom voted to leave the European Union in 2016, there was much concern in the forex market about what this could mean for the two currencies.
The UK officially left the EU in January 2021 and traders will be carefully considering what the economic fallout could be, both in the short term and the long term.
As with any investment, there is never a guarantee that you will make a profit. However, trading a EUR/GBP pair is deemed a relatively low-risk investment.
This is because both currencies are classed as ‘strong’ currencies and prices typically stay consistent, which limits your potential risk.
Why It’s Important to Choose the Right Broker to Make Your EUR/GBP Trade
Many traders choose to use a dedicated and specialist broker to assist them in their forex trading. But how do you know which is the best broker?
Just because a broker is highly regarded in a specific currency pair, how do you know that they are the best brokers for trading EUR/GBP?
Before you make any investment, you must do your research. You need to feel confident that you are choosing the right forex broker for your needs.
This may depend on your experience in forex trading, your available budget, your expectations of customer service and whether your funds are fully protected.
How to Become a Successful Part-Time Forex Trader
- 10 Ways to Successfully Trade Part-Time
- 1. Pick a Trading Time That Suits Your Schedule
- 2. Use Your Time Wisely
- 3. Keep Track With a Journal
- 4. Focus on Currency Pairs That Are Active When You Want to Trade
- 5. Focus on Beginning and End-of-Day Trading
- 6. Make Quick Decisions
- 7. Set Realistic Goals
- 8. Use Automation and Stop-Loss Orders
- 9. Use Forums and Online Communities
- 10. Take Longer Positions
- Final Thoughts
If you are interested in foreign exchange (forex) trading but can’t make it a full-time pursuit, you can still create a profitable venture as a part-time forex trader.
The 24-hour nature of international financial markets means that there are possibilities for earning money throughout the day and night. As one region of the world closes its doors for the day, another one opens; trading always remains active in some part of the world.
In the UTC time zone, in which the UK sits, some of the leading stock market trading times are as follows:
- London: 08:00 hrs – 17:00 hrs
- Tokyo: 12:00 hrs – 21:00 hrs
- New York: 13:00 hrs – 22:00 hrs
- Sydney: 22:00 hrs – 07:00 hrs
The technology available to assist trading in foreign currency provides new opportunities to dip in and out of the market as you choose. There even exists fully automated trading software (known as forex robots or EAs) that analyses currency fluctuations, reads the market and carries out trades on your behalf.
It’s easy to get drawn into forex trading and, for many, it can prove to be all-consuming. The fast pace and excitement of trading in this dynamic market are thrilling, but you don’t have to trade full time to benefit from it.
As long as you are committed, you can become a forex trader even with little available time, approaching it as a hobby as you learn the ropes.
Participating on a part-time basis can help to avoid emotional or obsessive trading. As a part-time forex trader, you will also have the flexibility to pursue other interests, hold down other employment and enjoy family time.
10 Ways to Successfully Trade Part-Time
Pick a Trading Time That Suits Your Schedule
Forex trading in a small time frame can work, but you need to have a clear strategy in place.
An example of a strategy that can potentially yield good results in a short space of time is scalping. This involves a trader holding a currency pair for just seconds or minutes and repeating this several times. These trades may only bring small gains, but these can be magnified with increased position size.
This style of trading can hold increased risk, so be sure to weigh this up before every trade.
Use Your Time Wisely
When you only have a small window of time, there is a chance that there won’t be suitable trades available when you log on. You can still use this time effectively though.
Back testing is the process of reviewing historical data to see whether a particular strategy would have worked and is the ideal way to practice without risk.
Further practice opportunities are available via software that allows you to experiment with running virtual trades to see how you would have performed in a real-time scenario.
Keep Track With a Journal
A trade journal is a written record of all your trades and trading activity. You complete it daily, using it to plan, reflect and refine your trading strategy. This may seem a bit basic but to become a forex trader you need to be methodical and thorough.
You can track gains as well as losses and analyse what happened and why. Taking these lessons into your trading will give you a good grounding for success as a part-time forex trader.
Focus on Currency Pairs That Are Active When You Want to Trade
A currency pair is the price quote associated with the exchange rate of the two currencies that you are going to trade. Every trade is based on a currency pair.
Common currency pairs are the USD/EUR (US Dollar/Euro), USD/JPY (US Dollar /Japanese Yen) or the EUR/GBP (Euro/Pound Sterling).
The time of day that you are available to trade dictates which international markets are active at that moment and, therefore, which currency pairs are best to focus on.
As a part-time forex trader, you may find that morning is the best time to trade before you start your working day. This ties in very nicely with the London, Tokyo and Sydney stock markets, which are all open simultaneously at 8 a.m. UTC.
Focus on Beginning and End-of-Day Trading
It’s possible to become a forex trader alongside working a full-time job, but it takes careful planning and time management. The obviously available times are at the beginning of the day and the end of the day, to fit around working hours.
You can trade during morning hours while some of the world’s biggest stock markets are active, then catch up with the end of day analysis and charts to review the day. You may also decide to trade in the evenings if you find that currency pairs that appeal to you are active at that time.
Make Quick Decisions
When you only have limited time, every minute counts and taking your time to deliberate over every decision just isn’t possible. By doing your homework, spending time watching the charts, journaling and back testing, you can have your strategy in place to act quickly.
As you don’t have the luxury of time, you could set a strategy of ending your trade as soon as a profit is gained, without holding on to wait for longer-term fluctuations.
Set Realistic Goals
Trading can be a highly emotional endeavor. As a part-time forex trader, you need to be cautious about moving too fast, too soon. Be realistic about what you can achieve in the limited amount of time you have available.
If you set unrealistic goals and then inevitably fail to meet them, this may result in an emotional response that can lead to unwise trades that incur heavy losses. Building up slowly and watching market changes over a length of time are the best ways to ensure success.
If you set achievable goals, you can plan a strategy to reach each one, reviewing it and moving on to the next small goal after that.
Use Automation and Stop-Loss Orders
There are plenty of software programmes and online tools available to help you automate your trading. For a beginner, a fully automated trading programme can monitor charts, decide when conditions are favorable and actually run your trades for you.
Other tools allow you to automate parts of the forex process that you need help with, such as keeping abreast of news, finding currency pairs and calculating pips.
A particularly valuable tool is a stop loss. This is an automatic stop that is activated when an order reaches a specified loss level. So, for example, if you specify a stop loss of 20 pips, when a trade drops to 20 pips lower than the entry price, your trade automatically stops.
The stop loss process prevents traders from making heavy losses due to the need to end the trade manually. As a part-time forex trader, using automation in this way can help you manage your risk.
Use Forums and Online Communities
The best way to become a good part-time forex trader is to learn from those who have gone before you. There are plenty of people who have tried and tested all the possible strategies, tools and methods and are happy to share their findings online.
Online forums provide opportunities to search for and read about any aspect of forex trading. If you have a particular query, you can start conversations yourself asking for direct advice.
There are both free and paid options and opinion is divided on which are better. Although free forums contain an abundance of information on all sorts of aspects of forex trading, not all information is correct or valuable. As it is impossible to know the skill level or experience of a particular poster, there is a limit as to how much you can rely on that input to be factually correct and reliable.
Of course, contributors to paid forums are also anonymous, but the commitment of registering and paying to participate in a private forum indicates some level of seriousness and dedication to learning and sharing genuine information.
Take Longer Positions
There are various trading strategies you will need to understand, even as a part-time forex trader. Scalping, as mentioned above, is just one of them. As an independent trader, it’s entirely up to you how long you hold your trade for.
An alternative strategy is taking a longer position to hold the trade for days rather than minutes. This is known as swing trading as you are monitoring medium-term swings to try to determine when best to trade. It suits a part-time forex trader perfectly, as it requires just enough time each day to keep an eye on what the markets are doing.
This strategy requires patience as in the short term, the rates will fluctuate and you have to hold your nerve until they come back up. Stop losses will also have to be larger to allow for a greater swing than you would tolerate in a short-term trade.
Final Thoughts
Deciding to become a part-time forex trader is a viable option if you have the patience and commitment to research the markets and watch closely before going all-in.
A time restriction isn’t always a bad thing. It can force you to focus and use the spare time in your day to be productive, whether that be by reviewing charts, journaling or trading. Successful forex traders recognize that there is a strong emotional element to trading, and dipping in and out can help to counteract that.
Myanfx-edu does not provide tax, investment or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors.
Financial Trading is not suitable for all investors & involved Risky. If you through with this link and trade we may earn some commission.
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