Best Currency Pairs To Trade In 2025

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Best currency pairs to trade:

EUR/USD - best for volatility trading.
USD/JPY - best for trading in the Asian session.
GBP/USD - best for trading a defensive asset.
AUD/USD - best for trend trading.

The Forex market is the world’s biggest and most volatile trading market. Due to the many currency pairs, many traders have difficulty knowing which currency pair is most profitable in Forex. Our experts have done all the research to make it easier for you. This article will help you figure out the best Forex pairs to trade. Using the information presented in this piece will improve your Forex trading performance.

Best Forex currency pairs for trading

In 2025, the Forex market continues to feature several key currency pairs known for their liquidity and trading opportunities. Here are six of the most traded currency pairs:

EUR/USD (Euro / US Dollar)

The EUR/USD pair is the most traded currency pair globally, accounting for a significant share of the total Forex turnover. This pair benefits from the economic strength of both the Eurozone and the United States, offering high liquidity and tight spreads. Movements are influenced by economic data, interest rate decisions from the European Central Bank and the Federal Reserve, and geopolitical events affecting these regions.

USD/JPY (US Dollar/Japanese Yen)

The USD/JPY pair is widely traded, reflecting the economic relationship between the U.S. and Japan. This pair is known for its high liquidity. Factors influencing this pair include interest rate differentials, economic indicators, and geopolitical events in the Asia-Pacific region.

GBP/USD (British Pound/US Dollar)

Known as "Cable," the GBP/USD pair highlights the economic ties between the UK and the U.S. Movements in this pair are driven by economic data, interest rate decisions from the Bank of England and the Federal Reserve, and political events such as Brexit developments.

AUD/USD (Australian Dollar/US Dollar)

The AUD/USD pair is closely tied to Australia's economy, which relies heavily on commodity exports such as minerals and metals. Changes in commodity prices and economic data from Australia, along with interest rate decisions from the Reserve Bank of Australia, significantly impact this pair.

USD/CAD (US Dollar/Canadian Dollar)

The USD/CAD pair is influenced by trade relations and commodity prices, particularly oil. Canada's economy relies heavily on oil exports, so changes in oil prices directly affect the value of the Canadian dollar. Economic data and interest rate decisions from the Bank of Canada and the Federal Reserve also play a major role.

USD/CHF (US Dollar/Swiss Franc)

The USD/CHF pair involves the U.S. dollar and the Swiss franc, with the franc being considered a safe-haven currency. This pair is impacted by interest rate differences, economic data, and geopolitical events that drive investors toward safer assets. The Swiss National Bank's monetary policy decisions also affect this pair.

How to choose сurrency pairs in Forex trading

Choosing the right pairs aligns with your financial goals and trading strategy. Here are some steps to guide you through this essential process.

Understand major, minor, and exotic pairs

In the Forex market, currency pairs fall into three main categories: Major, Minor, and Exotic pairs. Major pairs are the most traded and include currencies like the USD, EUR, and JPY. These pairs offer high liquidity and tighter spreads. Minor pairs involve lesser-known currencies and usually have wider spreads. Exotic pairs typically include a major currency and a currency from a developing economy. These pairs are less liquid and come with higher spreads.

Selecting the right category depends on your risk tolerance. Major pairs are a safer bet for beginners due to their high liquidity. Minor and Exotic pairs might offer higher profits but carry more risk.

Analyze your trading strategy

Your choice of currency pairs should align with your trading strategy. Scalpers and day traders may prefer Major pairs for their lower spreads. Meanwhile, those looking for long-term gains might opt for Exotic pairs, as they can offer larger price swings over time. Always backtest your strategy with the currency pair you're considering. Ensure that your risk management plan aligns well with your selected currency pair and trading time frame.

Stay informed

Constantly update yourself on economic news and events that could impact the currency pairs you're trading. Use fundamental analysis to assess how interest rate changes, unemployment rates, or political stability might affect a currency's value. Keep an eye on economic calendars, and follow reliable financial news sources to stay ahead of the game.

Leverage technical analysis

While fundamentals provide the broad strokes, technical analysis lets you dive deep into price behaviour. Indicators like moving averages, RSI, or Bollinger Bands can offer insights into market sentiment. If a currency pair aligns well with your technical indicators, it might be a solid pick.

Evaluate transaction costs

Each trade comes with a cost, often reflected in the spread. Major currency pairs usually have lower spreads compared to Minor or Exotic pairs. Ensure that the costs won't eat into your profits, particularly if you plan on executing many trades in a short timeframe.

We have selected a list of brokers to trade currency pairs, offering reliable platforms for better trading opportunities.

Best Forex brokers
	Min. deposit, $	Max. leverage	Inactivity fee, $	Min Spread EUR/USD, pips	Max Spread EUR/USD, pips	Open an account
Plus500	100	1:300	10	0,5	0,9	Open an account Your capital is at risk.
Pepperstone		1:500		0,5	1,5	Open an account Your capital is at risk.
OANDA		1:200		0,1	0,5	Open an account Your capital is at risk.
FOREX.com	100	1:50	15	0,7	1,2	Study review
Interactive Brokers		1:30		0,2	0,8	Open an account Your capital is at risk.

When is the best time to trade Forex currency pairs?

The Forex market operates 24 hours a day, five days a week, and is broken down into four primary trading sessions: Sydney, Tokyo, London, and New York. Each session has unique trading characteristics, influenced by the countries that are active during those hours. Knowing the start and end times of these sessions can help you optimize your trading strategy.

Sydney session

The Sydney session starts at 5:00 PM EST and ends at 2:00 AM EST. It marks the commencement of the trading week and mainly features the Australian and New Zealand dollars. It's an ideal time for trading AUD and NZD pairs, although it's the least volatile of the sessions.

Tokyo session

The Tokyo session runs from 7:00 PM EST to 4:00 AM EST. During these hours, currencies like the JPY and AUD become more active. This session experiences a moderate level of volatility and liquidity, making it suitable for traders who prefer a balanced trading environment.

London session

The London session operates between 3:00 AM EST and 12:00 PM EST. As a significant financial hub, London sees the highest trading volumes. Major currency pairs involving the GBP, EUR, and USD are particularly active, offering numerous trading opportunities.

New York session

Active between 8:00 AM EST and 5:00 PM EST, the New York session overlaps with the London session for a few hours, typically between 8:00 AM EST and 12:00 PM EST. During this overlap, liquidity and volatility surge, presenting more opportunities but also greater risk. The session also coincides with the release of important U.S. economic data, which can impact currency values.

Optimal trading times

The most favorable trading periods occur during session overlaps, where two markets are open simultaneously, leading to increased liquidity and volatility. Explore the best currency pairs to trade at night.

London and New York overlap (8:00 AM to 12:00 PM EST): This is the most active period, as it involves two major financial centers. Over 50% of daily Forex volume is transacted during this overlap, offering numerous trading opportunities.
Tokyo and London overlap (3:00 AM to 4:00 AM EST): This overlap is shorter and less volatile but can still present opportunities, especially for pairs involving the Japanese yen and European currencies.

Take advantage of overlapping trading sessions

A practical tip for newcomers is to trade during times when major Forex markets overlap. For example, the London and New York sessions both operate between 8:00 AM and 12:00 PM EST, leading to more active trading and better chances to profit. Focusing on pairs like EUR/USD and GBP/USD during these hours can be beneficial, as the increased activity often results in more noticeable price changes.

Another useful strategy is to watch currencies that are affected by commodity prices, such as the Australian Dollar (AUD) and Canadian Dollar (CAD). The AUD often moves with gold prices, while the CAD is linked to oil prices. By staying updated on these commodities, you can get a sense of where these currencies might be headed. For instance, if gold prices are rising, the AUD/USD pair might also go up, offering a trading opportunity. This approach adds another layer to your trading decisions and can help you diversify your strategies.

Summary

Trading Forex currency pairs allows you to make a healthy profit, but your experience, risk appetite, and trading strategy will determine the best pairs to trade. Nevertheless, trading major currency pairs like the EUR/USD, USD/JPY, USD/CAD, etc., is the best option for beginners as they are the most actively traded pairs and have high liquidity.

While Forex trading can be profitable, it is crucial to understand the pros and cons of Forex trading and know how much risk you are willing to take. Our trading recommendations will help you make the best trading judgments.

FAQs

When is the best time to trade Forex?

The best time to trade will depend on the pairs you wish to trade and your time zone. For example, night traders in the US can only trade the American and Asian markets since Europe and the Middle East may be closed.

How can I choose the best Forex broker?

You need a broker that best fits your trading needs. The company’s history, deposit requirements, spread amount, trading instruments, educational tools, and reliability are things to consider.

What is the most traded currency pair?

The EUR/USD pair represents 22.7% of daily Forex trades, making it the most heavily traded currency pair on the Forex market. It includes two of the best economies in the world with the highest volume.

What factors affect the choice of a currency pair for trading?

The main factors include liquidity, volatility, spread type, and slippage probability. Based on these factorsThe major currency pairs are the best choice, particularly for newbies.

Team that worked on the article

Parshwa is a content expert and finance professional possessing deep knowledge of stock and options trading, technical and fundamental analysis, and equity research. As a Chartered Accountant Finalist, Parshwa also has expertise in Forex, crypto trading, and personal taxation. His experience is showcased by a prolific body of over 100 articles on Forex, crypto, equity, and personal finance, alongside personalized advisory roles in tax consultation.

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Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.

As an author for Traders Union, he contributes his deep analytical insights on various topics, taking into account various aspects.

Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).

Volatility

Volatility refers to the degree of variation or fluctuation in the price or value of a financial asset, such as stocks, bonds, or cryptocurrencies, over a period of time. Higher volatility indicates that an asset's price is experiencing more significant and rapid price swings, while lower volatility suggests relatively stable and gradual price movements.

Trend Trading

Trend trading is a trading strategy where traders aim to profit from the directional movements of an asset's price over an extended period.

Investor

An investor is an individual, who invests money in an asset with the expectation that its value would appreciate in the future. The asset can be anything, including a bond, debenture, mutual fund, equity, gold, silver, exchange-traded funds (ETFs), and real-estate property.

Bollinger Bands

Bollinger Bands (BBands) are a technical analysis tool that consists of three lines: a middle moving average and two outer bands that are typically set at a standard deviation away from the moving average. These bands help traders visualize potential price volatility and identify overbought or oversold conditions in the market.

Cryptocurrency

Cryptocurrency is a type of digital or virtual currency that relies on cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies operate on decentralized networks, typically based on blockchain technology.

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