The 5 Most Traded Forex Currency Pairs in 2024 (2024)

A list of the Top Forex Brokers for December 2023:

1. Plus500
2. eToro
3. IG
4. Saxo Bank
5. Admiral Markets

Description of the Best Forex Brokers for December 2023

Another user-friendly entry on our list of the best forex and CFD brokers in the UK is Plus500, providing an easy-to-use and accessible service.

You’ll find over 60 CFD currency pairs with competitive spreads, no commission and available leverage of up to 1:30.

Although MetaTrader and cTrader are not available, Plus500’s own platform is very user-friendly. It comes with a range of intuitive risk management features and is available on web and mobile.

Plus500 requires a minimum deposit of £100 if using a credit or debit card, and £500 if using bank transfer.

Plus500 UK Ltd authorized & regulated by the FCA (#509909).

Below content does not apply to US users.

Founded in 2007, eToro is considered a very low-risk broker as it is highly regulated by the Financial Conduct Authority (FCA) in the UK and many other regulatory bodies elsewhere.

Opening an account is free and you can access a $100,000 demo account to test the system.

It offers 47 currency pairs for trading. Spreads for forex trading have recently been significantly reduced and range from a very competitive 1 to 3 pips for major currency pairs.

Typical spreads for EURUSD and USDJPY trades, for example, are just 1 pip.

You can see the full list of spreads on the eToro website.

You’ll need to deposit a minimum of $200 for Copy Trading, eToro's standout feature which allows you to follow other traders and copy their trades.

This forex broker is great for beginners due to its user-friendly interface and app and 24-hour customer support. It allows you to trade currencies, stocks and cryptocurrencies in one portfolio and the Copy Trading system is a great way to learn.

The company also offers trading courses and features a Learning Lab which houses a variety of tools to support clients with their trading experience.

IG is a great share trading platform for beginners thanks to its user-friendly interface and extensive educational resources.

Pros of IG include a wide range of trading instruments and markets, as well as the ability to access multiple account types and trading platforms. The platform also offers a demo account for beginners to practise trading strategies before investing real money.

However, IG isn’t the cheapest share trading platform, with relatively high trading fees and a minimum deposit requirement of £250 when paying by credit/debit card or PayPal.

In terms of additional fees, IG charges a commission fee for share trading, starting from £8 per trade. There’s also a custody fee of 0.25% per year for holdings of £250 or more.

Overall, IG is a solid choice for beginners looking for a user-friendly platform with extensive educational resources, but investors should be aware of its fees and minimum deposit requirements.

Saxo Bank is a Danish investment bank that was founded in 1992.

As a well-regarded broker, it offers regulation from the Danish FSA and the FCA. Saxo Bank offers lower trading fees depending on volume.

However, the minimum deposit and some higher than average transaction fees could be a barrier for some traders.

This is offset by the better than average customer service on offer, as well as the wide range of trading instruments, however.

Deposits can be made using a bank transfer or credit/debit card, and the minimum deposit is $10,000.

While there are several base currencies offered by Saxo Bank, Pesos are not one of them. Therefore, it is worth remembering that although there is no deposit fee, there will be a conversion fee.

Withdrawals can only be made through bank transfer.

The Saxo Bank proprietary platform is available for web trading as a desktop trading platform or a mobile application.

Both the desktop and web trading platforms have similar, user-friendly designs that are simple to customize.

The two-step login offers a good level of security.

The platforms have several order types that users can make, and you can create alerts and notifications about what matters to you, like price or volatility.

The mobile application is seamless, making trading on the go simple. However, it is not as straightforward as the web or desktop version.

The trading instruments that are available on the Saxo Bank trading platforms include:

• 28 Stock Markets
• 3,100 ETFs
• 182 Currency Pairs
• 40,000 Bonds
• 23 Options Markets
• 23 Futures Markets
• 29 Stock Index CFDs
• 8.800 Stock CFDs
• 675 ETF CFDs
• 19 Community CFDs
• Five Bond CFDs
• Two Cryptocurrencies

As previously mentioned, the customer service and support available from Saxo Bank is excellent.

Although only available through phone and email, the team is responsive and helpful. Customer service is not available 24/7, however.

In terms of research, interactive charting and trading ideas, including analyses and recommendations are complemented with detailed fundamental data about each trading instrument and business, both current and historical.

Saxo Bank also provides daily podcasts from their research team, and a news feed and an economical calendar.

The education available from Saxo Bank might not be as extensive as other platforms; however, there is a demo account, platform tutorials, and some videos and webinars that are useful sources of knowledge and education.

Best for: On demand

Admiral Markets, rebranding to 'Admirals', describes itself as a ‘full-spectrum financial hub’.

In practice, Admirals is a broker that offers several forex and CFD trading instruments in most currencies.

Founded in 2001, Admiral Markets is regulated by JSC, FCA, EFSA and CySEC, and offers traders access to both MetaTrader 4 and 5, with the opportunity to have several active accounts with different base currencies to take advantage of price instability.

There are several account types available, depending on the platform that you want to use.

On MT4, you can choose a standard account known as Trade.MT4. The minimum deposit for this account is 100 USD/EUR/GBP or equivalent, and you can trade 37 currency pairs as well as metal, energy, future, stock and bond CFDs.

In this account, the trading fees come from the spread, apart from with single share or ETF CFDs, which have a standard commission of 0.02 USD.

The Zero.MT4 account offers tighter spreads, with more currency pairs (45) but fewer CFD options.

The commission on forex and metal CFDs is 1.8 to 3 USD per lot, cash indices are 0.5 to 3 USD per lot, and energy CFDs are 1 USD per lot.

If you prefer the upgraded MT5, you can also have an Invest.MT5 account, alongside the Trade.MT5 and Zero.MT5. MetaTrader 5 accounts have access to more trading instruments in both Trade and Zero, but the Invest.MT5 is designed purely for buying stocks and ETFs, with more than 4,350 stocks and 200 ETFs available and a minimum deposit of 1 EUR/USD/GBP.

Deposits are free using bank transfer, card, PayPal or Klarna, but there is a 0.9% fee (or $1 minimum) for deposits made using e-wallets like Neteller or Skrill. You can have one free withdrawal a month as a bank transfer, but two if you use PayPal or e-wallets.

Admirals is available as a trading app on mobile as well as web and desktop, and the user interface and real-time trading that is available across platforms offer a seamless user experience.

The research and analytics are extensive, with technical and fundamental analysis alongside trading news, market sentiment and a market heat map. Access to MetaTrader Trading Central and a weekly trading podcast is also provided.

In terms of education, there are articles and tutorials, eBooks, trading videos, webinars and seminars as well as a FAQ and a handy glossary.

If you are not a UK resident, the conditions might change depending on the regulation. Please, check the Admirals website for details.

Please, be aware that if you want to see UK conditions but you don't have a UK IP address, then you must select Admirals Markets UK at the bottom of the home page.

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.

For more information on investing in this market, read The Best Ways to Learn More About Forex Trading.

The Top Forex Currency Pairs include:

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

The Top 10 Forex Currency Pairs in 2023

Of the many currency combinations that you can choose from, the following are the top 10 forex currency pairs:

1. 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.

76% of retail investor accounts lose money when trading CFDs with eToro. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take two mins to learn more.

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.

7. 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.

8. 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.

9. 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.

10. 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.

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.

76% of retail investor accounts lose money when trading CFDs with eToro. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take two mins to learn more.

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.

For more on this topic, read What Are the Benefits of Forex Trading?

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.

Now that you know the factors that may affect your choice of forex currency pair, why not read Planning a Successful Long-Term Forex Strategy?

Frequently Asked Questions

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.

If you want to discover how three successful Forex traders made it big, read our article Can You Make Money Trading Forex?.

WikiJob 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 circ*mstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal.