Best 5 Most Traded Currency Pairs in 2023

Forex is the largest financial market in the world, with $6.6 trillion traded each trading day. The Forex market is open 24-hours a day, five days a week.

There is plenty of opportunity for trading Forex.

There is a lot to learn when you start trading Forex, and, for a beginner, it can be overwhelming. One of the main issues for novice Forex traders is how to select which currency pairs to trade. Not all currency pairs are created equal. What’s the difference between major currency pairs, minor currency pairs and exotic currency pairs? It’s no surprise that you might feel bamboozled by choice.

What novice Forex traders may not realise is that each currency pair has unique characteristics. They don’t all act the same. Some currency pairs have more liquidity and volatility than others.

What are the best currency pairs to trade for beginners?

Your experience and aptitude determine your choice. It also depends on your preferred trading strategies. For instance, do you scalp Forex, or do you day trade or swing trade Forex? This article will explain what currency pairs are, and we will help you decide which currency pairs to focus on for your preferred style of trading.

What Is Forex Currency Trading?

Forex traders buy and sell currency pairs to make a profit from the daily price fluctuations. Each currency pair represents two currencies. For example, GBP/USD is the sterling pound and the U.S dollar. The first currency listed is called the base currency, and the second currency listed is the quote currency. So GBP is the base, and USD is the quote.

If you buy this currency pair, you expect the sterling pound price to rise. If you sell the currency pair, you expect the U.S dollar to be stronger than the pound, and the price will fall.

Even though you are selling the currency pair, you are, in effect, buying the dollar in anticipation of the price of the currency pair falling.

What Are The Best 5 Forex Major Pairs?
There’s some dispute about whether there are seven or eight major currency pairs, so let’s look at what formulates a major currency pair.

The strongest and most widely traded currency is the U.S dollar. Not surprisingly, this is because the United States economy is the largest in the world. The dollar is the dominant reserve currency worldwide and is the preferred global exchange currency. So the dollar carries some weight.

Below are five of the top major Forex currencies:

1. EUR/USD – (Euro – U.S. Dollar)
2. GBP/USD – (British Pound – U.S. Dollar)
3. USD/CHF – (U.S. Dollar – Swiss Franc)
4. USD/JPY – (U.S. dollar – Japanese Yen)
5. AUD/USD – (Australian Dollar – U.S. Dollar)

The above list is not conclusive. USD/CAD is as widely traded as USD/CHF, but oil prices can factor in with the price movement of USD/CAD. Another heavily traded major currency pair is NZD/USD.

The major currency pairs tend to have lower spreads and generally provide better trading conditions for retail Forex traders. The trick is to get to know the top 5 most traded Forex pairs, and, with familiarity, it becomes easier to spot price behaviors and patterns for each currency pair.