The Best Currency Pairs to Trade as a Beginner First of all, you need to be conscious of the most traded currency pairs to be able to decide on your trades. The best-traded currency pairs are EUR/USD, USD/JPY, GBP/USD, AUD/USD, NZD/USD, USD/CHF and USD/CAD. These top currency pairs account for more than 70 % of the total turnover of the FX Market. Furthermore, the most traded currency pairs can be recognized with the highest liquidity of transactions, worldwide popularity, and a vast number of players.
EUR/USD The EUR/USD is one of the most famous currency pairs of the Forex Market, as the price dynamics can be predicted using technical analysis pointers. Also, there is the accessibility of liquid derivatives on EUR/USD. Hence, it allows you trade on the EUR/USD not only in the spot market, but also to use derivatives such as futures contracts, options, and CFDs.
USD/JPY
The US Dollar and the Japanese Yen (USD/JPY) is one of the top three most liquid instruments in the Forex Market. Moreover, it is the top currency of the Asian trading session and it acts as a worthy competitor to the EUR/USD. The USD/JPY currency is the second level of liquidity in the Forex market and it accounts for 17% of transactions in the forex market. Furthermore, the pair Dollar/Yen has hit volatility as it is at the top of the most unpredictable instruments in the global currency market. Therefore, new traders should avoid trading USD/JPY pairs. Additionally, it has a wide range of instabilities in the share price, which provides good prospects for experienced traders.
GBP/USD The GBP/ USD pair is at the third level of liquidity Forex instrument. This is due to the fact that its operations account for about 12% of the overall trading capacity on the foreign exchange market. This pair is well-known for its high volatility and uncertainty in price. Consequently, it has a place in the list of the most traded currency pairs amongst professional traders. Definitely, traders, who focus on shortterm aggressive strategies are a common way to take benefit of smaller market movements when compared to traditional investments.
AUD/USD and USD/CAD AUD/USD and the USD/CAD currency pairs have much smaller levels of liquidity. Also, traders used to call these pairs commodity currency pairs. The Australian dollar and Canadian dollar have a straight relationship between gold and oil prices. Moreover, since Australia is a large producer of gold, the price of AUD/USD continuously depends on gold prices. Similarly, Canada is one of the largest oil manufacturers worldwide, and the price of USD/CAD is highly associated with oil prices.
Recommended currency pairs for Beginners and Experienced traders To summarize, beginners should start trading with the following pairs: •
EUR/USD
•
GBP/USD
•
NZD/USD
•
AUD/USD
New traders should definitely avoid trading many currency pairs at the same time. Thus, it is better to specialize in one or two instruments at a time, and focusing on them will likely give much better results. For skilled traders, it is best to trade EUR/USD, GBP/USD, NZD/USD, AUD/USD, USD/JPY, EUR/JPY, GBP/JPY, AUD/JPY, USD/CHF or even XAU/USD.