| The American public have been oblivious to FOREX for one simple reason, and that is until recently, the currency market was simply financially inaccessible for the general population of investors and traders, and the minimum account requirements were beyond the resources of the average individual investor. Since then, the situation has changed, instead of a minimum of $200K; accounts can be opened for $250. |
| What are the Best Currency Pairs to Trade? |
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When starting out in forex many people may wonder what are the best currency pairs to trade and why? This article will fill you in on the details of the top currencies and the suggested pairs to trade, especially if you’re a beginner. Major CurrenciesThe Worlds major currencies are:
Best pairs for the beginnerWhen starting out in forex it is advisable to stay with just a few of the major currency pairs and “get to know them”. The most news, information and resources, including daily expert analytical data and advice, are available for the following major currency pairs: EUR/USDThis is the most popular pair among traders. It has the lowest spread among most brokers. The pair follows the basic technical analysis, trends nicely and usually isn't too volatile, meaning that there is less risks and closer stops. You’ll be able to find information on the EURUSD very easily at many different websites, giving you everything from news to analysis. USD/JPYThe USDJPY is another currency pair that usually moves in a nice trending fashion. With just a little more volatility than the EURUSD, this currency pair offers slightly larger price moves (not much) with an opportunity for larger profits. Plenty of news, information and analytics also make the USDJPY a great choice for the new trader. GBP/USDThis currency pair is a little more volatile than the other two pairs and offers bigger price moves. The spread is a little higher on the GBPUSD but once you have some quality experience under your belt it may be worth trading. Keep in mind that, whenever the profit opportunity is higher, the risk is higher too. Just as the other two pairs, there is plenty of information dedicated to this pair on the internet. Why these three currency pairs?Because the EURUSD, USDJPY and GBPUSD are some of the most highly traded currency pairs due to their country’s status in the world economy, these three pairs carry the heaviest trading volume giving the trader plenty of liquidity. They also carry low spreads (the cost of your trade) compared too many other currency pairs. When getting your feet wet in forex it’s a good idea to concentrate on these three currency pairs and study the technicals, news, information and analysis available. Practice trading these pairs in your demo account or in Forex Tester 2 if you have it and soon you’ll begin to see how the pair moves and behaves. Remember, knowledge is your best ally when trading. |