28 Most Liquid and Widely-Traded Currency Pairs on Forex

What makes the majors unique?

Drawing upon their high liquidity, low spreads, stability, and trends, the major Forex pairs stand out as unique in the world of trading. These pairs include EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF, USD/CAD, and NZD/USD. Each of these pairs has its own characteristics, such as trading volume, volatility, liquidity, and other features.

EUR/USD is the most popular pair and accounts for 28% of the total daily trading volume. USD/JPY is the second most popular pair, accounting for 13% of the daily trading volume. GBP/USD is the third most popular pair, accounting for 11%. AUD/USD and USD/CHF account for 6% and 5%, respectively, and USD/CAD and NZD/USD account for 5% and 4%, respectively.

The high liquidity of these pairs means that traders can quickly enter and exit positions with minimal slippage. They also feature low spreads, which helps traders reduce their trading costs. The stability of these pairs makes them ideal for long-term investments, as their prices tend to remain relatively stable.

In addition, these pairs tend to be trend-followers, so traders can take advantage of their price movements to generate profits.

Best Forex Brokers

1

9.4/10

Go to broker

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest.

Minimum deposit:

$50, $100 (for UK clients)

Bonus for deposit:

0%

Regulation:

CySEC, FCA, ASIC

Review

The eToro broker was founded in 2007. The company promotes itself as a social trading platform working with traders from over 140 countries. The broker has several divisions operating under different jurisdictions and licensed by different regulators. For example, eToro (Europe) is licensed by the Cypriot regulator CySEC (109/10) and eToro (UK) is licensed by the British regulator FCA (583263). The broker also has a representative office in Australia and the USA. eToro Profile Details

Pros/Cons

•the minimum transaction amount for copying is $1;

•handy functionality for passive investing;

•regulated by independent monitors;

•it is possible to purchase contracts for fractional shares (that is, to invest amounts less than the cost of one share);

•it is possible to buy shares at once (not CFDs) on the US stock exchanges.

•high spreads;

•periodic technical failures in order execution;

•lack of the most popular platforms such as MetaTrader 4 and MetaTrader 5 in Europe and the CIS;

•no access to ECN systems, orders are processed only according to the STP (straight-through processing) scheme with access to specific liquidity providers;

•there is a commission for withdrawing funds;

•impolite support staff;

•inconvenient website.

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2

9.2/10

Go to broker

Your capital is at risk.

Minimum deposit:

No minimum

Bonus for deposit:

0%

Regulation:

FSC (BVI), ASIC, IIROC, FCA, CFTC, NFA

Review

The name OANDA is an acronym for “Olsen & Associates” or “Olsen AND Associates”. It is registered in the United States and provides its clients with a wide range of financial services in most countries of the world. The company was founded in 1996 and is currently regulated in four jurisdictions. The main regulator of the broker is the UK Financial Conduct Authority (FCA). Oanda Canada is licensed by IIROC. The company has several significant awards to its credit, including a victory in the category "Best Forex Trading Technologies" from the UK Forex Awards, "Best Trading Platform" from FX Week, as well as "Best Customer Service" from the US Foreign Exchange Report.

Pros/Cons

•Minimum deposit from 1 dollar.

•A large selection of the most popular trading instruments.

•Several reliable and reputable financial regulators.

•Inconvenient and poorly functioning site.

•Lack of cent accounts.

•Lack of bonus programs.

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Major financial center currencies

Beyond the major Forex pairs, there are also several currencies traded in major financial centers that are important to consider when trading the Forex market. These currencies include the Euro (EUR), the US Dollar (USD), the British Pound (GBP), the Swiss Franc (CHF), and the Japanese Yen (JPY). Each of these currencies is associated with a major financial center and has distinct features that set it apart from the others.

Commodity currency pairs

In addition to the major Forex pairs, there are also several commodity currency pairs that are important to consider when trading the Forex market. The Australian dollar (AUD), Canadian dollar (CAD), and New Zealand dollar (NZD) are all considered commodity currencies due to their commodity export dependence.

Movement in commodity prices has a direct impact on each of these currencies. The AUD is closely correlated with the price of commodities, such as gold and iron ore, due to Australia’s rich resources. The CAD is tied to global oil prices and is significant in North America. Meanwhile, the NZD is connected to agricultural exports and is important in the Pacific.

Understanding the relationship between commodity prices and these currencies can be very beneficial and lead to better trading outcomes.

Key takeaways