Best Forex Pairs to Trade | Top Currency Pairs

What is a Forex Pair?

A forex pair, also called a currency pair, represents two currencies traded against each other in the forex market. The first currency is the base currency, and the second is the quote currency, which shows how much of the quote currency is needed to buy one unit of the base. For example, in EUR/USD, EUR is the base and USD is the quote. In forex trading, forex pairs are grouped into major, minor, and exotic categories, and some of the best forex pairs to trade for beginners include EUR/USD, GBP/USD, and USD/JPY.

What is a Base Currency and Quote Currency?

In forex trading, a currency pair consists of two currencies: the base currency and the quote currency. The base currency appears first and represents the amount being bought or sold, while the quote currency comes second and shows how much of it is needed to buy one unit of the base. For example, in the pair EUR/USD, EUR is the base and USD is the quote. The quote currency is also known as the counter currency and is used to determine the exchange rate value.

How to read forex pairs

Forex pairs are written with a combination of two abbreviations, for instance, (EUR/USD, AUD/USD, or USD/JPY).

The first currency in the pair is known as the “base,” while the second is the “quote.” The forex price is the amount of quote currency it takes to buy 1 unit of the base currency.

For example, AUD/USD 0.67 means you can buy 1 unit of AUD ($1 Australian) with 0.67 of the quote currency ($0.67 US). You must first learn how to read forex charts to interpret price movements and spot trends.

The Most Traded Forex Pairs

EUR/USD

EUR/USD is the most traded pair in the world. On some days, one of every four forex trades involves this pair.

USD/JPY

USD/JPY is the second most traded pair because Japan’s economy is considered a benchmark for Asia.

USD/GBP

USD/GBP is usually ranked third due to transatlantic economic ties.

AUD/USD

AUD/USD is the fourth most-traded pair due to Australia’s status as a regional benchmark and trading partner.

Types of Forex Currency Pairs

While there are many currency pairs on the market, traders should be aware that these pairs fall into three broad categories — major pairs, minor pairs and exotic pairs.

What are Major Forex Pairs?

What are the major forex pairs? Major pairs are among the most widely traded pairs on the global market, as they are tied to the US dollar. Minor pairs involve currencies outside the USD, while exotic pairs are currencies from smaller countries paired with major currencies.

Major Pairs	Minor Pairs	Exotic Pairs
EUR/USD	EUR/JPY	USD/TRY
GBP/USD	EUR/GBP	USD/ZAR
USD/JPY	AUD/NZD	USD/DKK
AUD/USD	GBP/AUD	USD/HKD
NZD/USD		AUD/SGD
USD/CHF		EUR/TRY
		SGD/JPY

What Forex Pairs Move the Most?

This can be difficult to answer as the market changes every second, making it almost impossible to predict the most profitable pairs. However, some top forex pairs, such as USD/CHF, move within tight ranges, meaning swing trading and break-out strategies will not be effective.

Swing traders and those seeking range breakouts typically think that the best forex pairs to trade experience wide price changes. Still, you should only execute trades you are comfortable with and that align with your investment strategy.

Some pairs are more active during certain forex market hours, which can affect spreads and volatility.

The Best Currency Pairs to Trade for Beginners

What are the best forex pairs to trade for novices? It depends on your strategy and risk tolerance. Here is a look at your choices.

Forex Pairs	Why?
EUR/USD and GBP/USD	Opportunities for scalping and swing trading during the day. However, their high trading volume and other economic factors can spike prices.
USD/JPY	Modest profit opportunities and less volatility. Often noted as the best forex pairs to scalp as the pair changes direction at well-defined support and resistance levels.
AUD/USD and NZD/USD	Sense of familiarity to traders in Australia, New Zealand and the US. Access to economic news can also make it easy to predict pricing.
Cross pairs (major currencies aside from the USD, such as EUR/GBP)	Known for their predictability following economic news and events.
Yen pairs (e.g. CAD/JPY, CHF/JPY and GBP/JPY)	Can be predictable based on economic events. For example, energy prices strongly influ ence CAD/JPY.

If you're just starting out, this guide is ideal for exploring forex trading for beginners.

Start Trading Currency Pairs with TMGM

When trading forex, traders must find a regulated broker to help conduct trades securely. TMGM offers clear spreads, leverage and transparent pricing. The spread in forex represents the difference between bids and ask price, and it varies between currency pairs. Price changes in forex pairs are measured in pips, the smallest unit of movement in a quote.

We also have 10+ liquidity providers, rapid NY4 servers for superior trade execution speeds and 24/7 support.

After you decide on the best forex pairs to trade, you’ll also need a trading platform. MetaTrader 4 is a top platform for new forex traders because it offers a demo account mode, back-testing features to test your strategies on historical market data, and customisable charts and indicators so that you can get all the necessary information on one screen. You can download MetaTrader 4 directly from the TMGM website.

Open a forex trading account with TMGM today. For other trading options, please visit our range of markets.