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Best FX Currency Pairs To Trade For Beginners
When reading Forex pairs, the first currency is the base currency, and the second is the quote currency. The price shown indicates how much of the quote currency is needed to buy one unit of the base currency.
For example, in the pair EUR/USD, EUR is the base currency, and USD is the quote currency.
If the price is 1.2000, it means 1 euro = 1.20 U.S. dollars.
Forex pairs are traded because you're always buying one currency while selling another.
Understanding these price movements is crucial for predicting profit or loss.
The four most traded Forex pairs
EUR/USD (Euro/US Dollar) | USD/JPY (US Dollar/Japanese Yen) | GBP/USD (British Pound/US Dollar) | AUD/USD (Australian Dollar/US Dollar) |
The most traded currency pair globally, representing the Eurozone and U.S. economies. It is highly liquid with low volatility and tight spreads, making it a stable choice for traders. | A popular pair due to the liquidity and predictability of the yen's movements. It represents the economies of the U.S. and Japan, making it favored for its stability and trading opportunities. | Known as "Cable," this pair is actively traded between the UK and U.S. While it offers profit opportunities, it is more volatile due to factors like Brexit and economic changes in the UK. | Influenced by commodity prices, especially metals, this pair is popular among traders interested in the Australian economy and global commodity markets. It is highly liquid and sensitive to market movements. |
Best Forex Currency Pairs for Beginners
As a beginner in Forex trading, it’s important to choose currency pairs that are less volatile, highly liquid, and easier to understand. Here are some of the best forex pairs for new traders:
FOREX PAIRS | WHY IT'S GOOD FOR BEGINNERS |
EUR/USD (Euro/US Dollar) | The EUR/USD is the most traded pair globally, offering high liquidity and tight spreads. With two of the world’s largest economies behind it, this pair is generally less volatile and follows predictable trends, making it easier for beginners. |
GBP/USD (British Pound/US Dollar) | Known as "Cable," this pair is highly liquid and offers many opportunities due to its predictability and historical data. It’s slightly more volatile than EUR/USD, creating more profit opportunities but still manageable for new traders. |
USD/JPY (US Dollar/Japanese Yen) | The USD/JPY is another highly liquid and predictable pair. As one of the most traded currencies in Asia, the yen’s relationship with the US dollar often reflects broader economic trends. Moderate volatility makes it suitable for beginners. |
AUD/USD (Australian Dollar/US Dollar) | The AUD/USD pair is popular due to its liquidity and connection to commodity prices. Australia’s economy is closely linked to exports like metals, so this pair provides opportunities influenced by commodity markets |
USD/CHF (US Dollar/Swiss Franc) | Considered a "safe haven" pair, the Swiss franc holds its value during global uncertainty. While the Swiss economy is smaller, this pair’s stability and lower volatility make it a manageable option for beginners. |
NZD/USD (New Zealand Dollar/US Dollar) | The NZD/USD is influenced by New Zealand’s agricultural exports, making it less volatile and relatively easy for beginners to understand. This pair offers good liquidity with manageable volatility for new traders. |
USD/CAD (US Dollar/Canadian Dollar) | As a commodity-driven pair, the USD/CAD is heavily influenced by oil prices, providing a clear understanding of market trends. Its liquidity and the correlation with oil make it a popular choice for beginners. |
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RISK DISCLOSURE: Contracts for Difference (“CFDs”) are leveraged products and carry a high level of risk to your capital as prices may move rapidly against you. Losses can exceed your deposits and you may be required to make further payments. These products may not be suitable for all clients therefore ensure you understand the risks and seek independent advice.
※ We do not provide services to residents of certain regions such as the United States, Canada, Israel and Iran.New Zealand, Australia, and North Korea, officially the Democratic People’s Republic of Korea or any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Company address : RM 1506, 15/F GOLDEN GATE COMM BLDG, 136-138 AUSTIN RD, TST, KLN HONG KONG Registration number : 2475730│Tel : +852 6653 2060│ Email : support@mex-n.com Copyright © 2020 "MEXN POTAL PLATFORM". All Right Reserved
