Best Forex Pairs to Trade: A Comprehensive Guide
BY TIOmarkets
|November 6, 2025If you’re searching for the best forex pairs to trade, you should start with the most liquid, lowest cost majors and layer in a few cross and commodity pairs when conditions line up.
The best forex pairs to trade for most traders are EUR/USD, USD/JPY, GBP/USD and USD/CHF thanks to their deep liquidity, tight spreads and behavioural characteristics. The AUD/USD and USD/CAD are the best “commodity currencies”, while the EUR/GBP is a reliable and stable cross currency pair.
- Lowest cost for beginners: EUR/USD, USD/JPY
- Best for volatility/momentum: GBP/USD, GBP/JPY
- Best for views on commodities: USD/CAD (oil), AUD/USD (previous metals, China)
- Best cross without USD: EUR/GBP (ECB vs BoE policy)
- Best for safe-haven flows: USD/JPY, USD/CHF
Keep reading to find out how each currency pair behaves, when they shine and a simple checklist to decide the best forex pair to trade based on your goals and trading session.
Let’s get started
The best forex pairs to trade
- EUR/USD: The world’s most liquid currency pair, with abundant news and analysis and it usually has the tightest spreads. It’s driven primarily by Federal Reserve vs European Central Bank policy, Eurozone/US growth and inflation differentials, and high impact economic data like NFP and CPI. Liquidity peaks during the London and New York session overlap, making it ideal for traders that are able to trade during those times.
- USD/JPY: Is highly sensitive to interest-rate differentials between the Federal Reserve and the Bank of Japan, as well as risk sentiment. The Yen also has safe-haven appeal as it tends to strengthen when global economic sentiments are uncertain. When US and Japanese interest rate differentials widen, USD/JPY often trends, which appeals to trend followers and carry trading strategies alike.
- GBP/USD: This currency pair is relatively volatile and technically responsive, with wide daily ranges that attract active traders. It reacts sharply to any Bank of England guidance, UK inflation, employment data, and other fiscal headlines. Liquidity is also excellent, but intraday swings demand disciplined risk management.
- USD/CHF: A go to pair when risk sentiment shifts because the Swiss Franc has a reputation for being a safe haven currency. It often moves inversely to other risk related assets. Traders watch the Swiss National Bank policy and unexpected interventions, which can accelerate price moves.
- AUD/USD: This is a classic commodity linked currency pair due to Australia’s exposure to iron ore and gold. China’s demand cycle also makes AUD/USD an effective way to express views on Asia-Pacific performance and global risk appetite. Range traders find opportunities in the Asian and early London sessions, while trend followers tend to get involved when commodities are trending.
- USD/CAD: This currency pair is highly correlated with crude oil due to Canada’s reserves and export profile. Strong oil typically supports CAD, pressuring the USD/CAD pair lower. While declines in the price of oil can support USD/CAD and drive the exchange rate higher. It’s one of the best forex pairs to trade when you have a clear view on energies or are hedging your exposure to commodities.
- NZD/USD: Similar to AUD/USD but more tied to agricultural exports, especially dairy products and the Reserve Bank of New Zealand’s monetary policy. It can be slightly more volatile with thinner liquidity outside the Asia session, which can potentially reward prepared traders who time entries around scheduled data.
Most traded currency pairs
Daily FX turnover reached roughly $9.6 trillion in 2025, and the lion’s share is concentrated in only a handful of currency pairs. Historically, the most traded include EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CAD and USD/CHF among the majors, with cross pairs like EUR/GBP and select USD/Asia pairs also attracting significant flows.
A high share of global forex trading volume typically translates into:
- Tighter spreads and lower trading costs, especially during session overlaps.
- More reliable technical levels due to broad participation.
- Faster, cleaner fills and less slippage around news although volatility can still spike and gap around these times.
How to choose the best forex pairs to trade
You don’t need to know how to trade everything, the best forex pair for you might not be the best forex pair for other traders. Focus on the driver that matches your trading strategy and edge and pick the pairs that will help you achieve your goals.
- Commodity pairs like the AUD/USD, USD/CAD, NZD/USD are the best forex pairs to trade when you have a view on iron ore, gold, or crude oil; or on China’s growth. Technical traders often pair key commodity inflection zones with the support and resistance levels in forex for confluence and improved decision making.
- Safe-haven dynamics brings the USD/CHF and the USD/JPY into play. When markets wobble or economic sentiments are uncertain, JPY and CHF can attract liquidity flows. USD/JPY tends to fall during “flight-to-safety” periods as the yen strengthens, while the USD/CHF can drop as CHF gains. In calmer markets with wide interest rate differentials, carry trading strategies can become popular and the opposite can unfold.
- Cross currencies that do not include the USD, like the EUR/GBP, GBP/JPY, EUR/AUD, EUR/CHF, GBP/CAD, allow traders to target relative strength or themes within regions. GBP/JPY is among the most volatile of the crosses, which is a great forex pair to trade for momentum based strategies.
Which forex pairs are best for you
There’s no single “best” forex pair to trade for everyone, you should rather match currency pairs to your experience, trading style and time zone. The best forex pairs to trade are those that fit your plan, temperament, risk appetite, capital and trading hours.
Here are some things to consider;
- If you’re a beginner: EUR/USD and USD/JPY are top choices for their liquidity, predictable reactions to data, and tight spreads. Add GBP/USD once you’re comfortable managing volatility and you can potentially capture some bigger moves.
- If you’re a scalper: the EUR/USD and USD/JPY during London and New York session overlaps are also worth considering for low costs and steady flows. You can look for scheduled catalysts, like high impact economic data releases to amplify short bursts of momentum.
- If you’re a swing trader, the GBP/USD and USD/CAD often offer wider ranges and cleaner multi day moves; USD/CAD works well when oil trends.
- If you trade during the Asia hours, the USD/JPY, AUD/USD, and NZD/USD are natural fits due to regional news flow and liquidity. Although volatility is generally lowest during the Asian sessions, currencies domiciled to that region are most likely to be active during those times.
- If you like to trade macro themes, USD/CAD (oil), AUD/USD (China/commodities), EUR/GBP (ECB vs BoE), and USD/CHF (risk cycles) help express specific themes.
Factors that move every forex pair
Before you click “buy” or “sell” to trade, you should assess the core drivers, they’ll help you decide whether the setup is worth taking
- Interest rate differentials and central banks: Track Fed, ECB, BoJ, BoE, SNB, RBA and BoC policy paths. Widening yield gaps can sustain trends; surprise shifts can snap them.
- Economic strength: Focus on inflation, jobs, growth and retail sales. In majors, top-tier releases move price first, while revisions can shape the follow-through.
- Commodities: Oil for USD/CAD; iron ore and gold for AUD/USD; dairy and broader agricultural trends for NZD/USD. Confirm the commodity trend to support your forex convictions.
- Liquidity and spreads: Trade during your chosen currency pair’s most active session to reduce costs and slippage. Thin liquidity can potentially amplify profits and losses due to price gaps and slippage.
- Volatility and risk: Use the Average True Range technical indicator (ATR) or recent price ranges to trade an appropriate lot size and place stops where you think price is unlikely to go. Volatility creates opportunity only when your risk is managed and controlled.
- Currency correlations: Watch the US Dollar index, equities, bonds and commodities. If multiple assets correlate to your view on a currency pair, this can provide further confirmation to trade.
A simple checklist for picking the best forex pairs to trade
- Is there a clear catalyst (central bank, CPI, jobs report, etc)?
- Does session liquidity and spreads favor my style and timing?
- Is the interest rate differential aligned (or about to change)?
- Do correlated markets confirm the trade idea?
- Does current volatility suit my risk management rules?
- Calculate the lot size correctly?
- What would have to happen to invalidate the trade idea?
The bottom line on the best forex pairs to trade
The best forex pairs to trade are the ones you truly understand and can execute at a cost effective price during their most liquid hours. For most traders, that means building core competence in the majors, like the EUR/USD, USD/JPY, GBP/USD and USD/CHF. Then layering in AUD/USD and USD/CAD when commodity themes are clearer or if you have a view to express.
Let the rate path, economic data, commodity trends, and risk sentiment guide you to the best forex pairs to trade and size every position to the market’s volatility and your account balance.
Start by focusing on one or two pairs that match your trading session, risk tolerance and style, track their drivers over time, and journal your trades. When your performance is consistent, you can consider widening your trading universe and discover what the best currency pair to trade is for you.
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