Best Forex Currency Pairs for Beginners to Trade

The foreign exchange (forex) market is the largest financial market in the world. It is where people buy and sell different currencies to make a profit. Every day, trillions of dollars move through the forex market, making it a fast and exciting place to trade.

For beginners,  forex trading offers many opportunities, but it is also important to make the right choices. One of the first and most important steps in forex trading is choosing the right best forex currency pairs and. The currency pair you trade can affect how much risk you take, how easy it is to enter and exit a trade, and how much profit you can make.

In this guide, we will explore the best forex currency pairs for beginners to trade. We will also share simple and useful tips to help you understand how to  start Forex trading wisely. Whether you are completely new to forex or have some basic knowledge, this blog will explain everything in a way that is easy to understand. Let’s get started!

What is a Currency Pair?

Before starting forex trading, it is important to understand what a currency pair is. In simple words, a currency pair is a combination of two different currencies that are traded against each other.

Forex trading always involves two currencies because you are buying one currency while selling another at the same time. These two currencies together form a currency pair.

For example, if you trade the EUR/USD pair:

• EUR (Euro) is the base currency (the first currency in the pair).
• USD (US Dollar) is the quote currency (the second currency in the pair).
• When you buy EUR/USD, you are buying Euros and selling US Dollars.
• When you sell EUR/USD, you are selling Euros and buying US Dollars.

A currency pair works like a single unit. Its value shows how much of the quote currency (USD in this case) is needed to buy one unit of the base currency (EUR).

How Forex Trading Works with Forex Pairs

Forex trading means exchanging one currency for another to make a profit. Since currencies are always traded in pairs, every trade involves buying one currency and selling the other at the same time. Each currency pair has an exchange rate that keeps changing. For example, if EUR/USD = 1.10, it means 1 Euro = 1.10 US Dollars.

• If the rate goes up, the Euro is stronger.
• If the rate goes down, the Euro is weaker.

Traders make a profit by predicting these changes: If they expect the base currency to rise, they buy the pair and sell later at a higher price. If they expect the base currency to fall, they sell the pair and buy later at a lower price.

Types of Best Forex Pairs?

When trading forex, you must choose a currency pair to trade. These pairs are grouped into three categories: Major Pairs, Minor Pairs, and Exotic Pairs. Each type has different characteristics, risks, and benefits. Let’s explore them in detail.

1. Major Currency Pairs

Major  best forex currency pairs are the most popular and heavily traded in the forex market. They always include the US dollar (USD) and another strong currency from a leading global economy. These pairs are known for their high liquidity, meaning they are easy to buy and sell. Because of their high trading volume, they usually have lower transaction costs and more stable price movements.

Examples: EUR/USD (Euro/US Dollar), GBP/USD (British Pound/US Dollar), USD/JPY (US Dollar/Japanese Yen), USD/CHF (US Dollar/Swiss Franc), USD/CAD (US Dollar/Canadian Dollar), AUD/USD (Australian Dollar/US Dollar).

2. Minor Currency Pairs

Minor best forex currency pairs, also called cross pairs, do not include the US dollar. Instead, they consist of two other major currencies. These pairs have less trading activity than major pairs, meaning they might have slightly higher costs to trade. However, they still provide good opportunities and are less volatile than exotic pairs. Traders choose minor pairs when they want to trade strong global currencies without involving the US dollar.

Examples: EUR/GBP (Euro/British Pound), GBP/JPY (British Pound/Japanese Yen), EUR/CHF (Euro/Swiss Franc), AUD/JPY (Australian Dollar/Japanese Yen).

3. Exotic Currency Pairs

Exotic best forex currency pairs, include one major currency and one currency from a developing or smaller economy. These pairs are more volatile, meaning their prices can change quickly in a short period. Because of this, they carry higher risk but can also offer larger profits. Exotic pairs often have lower trading volume and higher transaction costs compared to major and minor pairs.

Examples: EUR/THB (Euro/Thai Baht), USD/TRY (US Dollar/Turkish Lira), EUR/TRY (Euro/Turkish Lira), USD/SGD (US Dollar/Singapore Dollar). Traders dealing with exotic pairs should be prepared for bigger price swings and unexpected movements.

What Are Forex Major Currency Pairs?

In forex trading, currencies are always traded in pairs. This means one currency is compared to another to determine its value. A currency pair consists of two parts: the base currency, which is the first currency in the pair, and the quote currency, which is the second currency. The base currency is what you are buying or selling, while the quote currency shows how much of it is needed to buy one unit of the base currency.

For example, in the EUR/USD currency pair, EUR (Euro) is the base currency, and USD (US Dollar) is the quote currency. If the exchange rate for EUR/USD is 1.13, it means 1 Euro = 1.13 US Dollars. This exchange rate is not fixed and keeps changing throughout the day.

Currency values rise and fall due to various factors like economic news, market demand, and global events. If the Euro becomes stronger, the exchange rate will increase, meaning more dollars are needed to buy one Euro. On the other hand, if the Euro weakens, the exchange rate will decrease.

How do you know when to buy or sell currency Pairs?

Deciding when to buy or sell a currency pair depends on market analysis, economic events, and price trends. Traders buy (go long) when they expect the base currency to strengthen and sell (go short) when they expect it to weaken.

Technical analysis helps identify entry and exit points using indicators like support and resistance levels, moving averages, and the Relative Strength Index (RSI). Fundamental analysis considers economic factors such as interest rates, inflation, and political events that influence currency values.

Market sentiment also plays a role, as traders react to news, trends, and investor confidence. A clear trading strategy—whether trend trading, breakout trading, or scalping—guides decision-making. Risk management tools like stop-loss and take-profit orders help control losses and secure profits.

The best currency Pairs for beginners to trade

Choosing the Best Currency Pairs is very important for beginners in forex trading. Some pairs are easier to trade, while others can be unpredictable and risky. Experts have reviewed different best forex currency pairs based on three important factors:

1. Liquidity (How Easily You Can Trade)

Liquidity refers to how many people are buying and selling a currency pair. If a currency pair has high liquidity, it means there are many traders, and it is easy to buy or sell at any time. Major currency pairs like EUR/USD and USD/JPY have the highest liquidity, making them a good choice for beginners.

2. Volatility (How Much the Price Changes)

Volatility shows how quickly and how much the price of a currency pair changes. A pair with low volatility moves more steadily, making it safer for beginners. Major pairs usually have lower volatility compared to exotic pairs, which can be unpredictable. EUR/USD is a stable pair with low volatility, making it a beginner-friendly option.

3. Currency Spread (The Cost of Trading)

The spread is the difference between the buying price and the selling price of a currency pair. A smaller spread means traders pay less in costs and get better trading conditions. Major pairs like EUR/USD and USD/JPY usually have smaller spreads, making them cost-effective for beginners.

What are the most traded forex pairs in the world?

The forex market is the largest and most liquid financial market in the world, where traders buy and sell different best forex currency pairs. Some currency pairs are traded more than others due to their stability, economic influence, and high liquidity. These pairs are often linked to strong economies and are preferred by both beginners and experienced traders. Below, we explore the most traded forex pairs and what makes them popular in the market.

EUR/USD (Euro/US Dollar)

The EUR/USD pair is the most traded forex pair in the world. It represents the euro, which is the currency of the European Union, and the US dollar, which is the currency of the United States. This pair is very popular because it connects the two largest economies in the world.

A large number of people trade EUR/USD every day, which means it has high liquidity. High liquidity makes trading easier because buyers and sellers are always available. It also means that the difference between the buying price and selling price (known as the spread) is small, which helps traders save money.

The value of the EUR/USD pair is affected by many factors, especially interest rates set by the European Central Bank (ECB) and the US Federal Reserve (Fed). If interest rates in the European Union go up, the euro may become stronger compared to the US dollar. If US interest rates increase, the US dollar may become stronger compared to the euro.

USD/JPY (US Dollar/Japanese Yen)

The USD/JPY pair, also called "the gopher", is the second most traded forex pair. It represents the US dollar and the Japanese yen. The Japanese yen is the most traded currency in Asia, while the US dollar is the most traded currency in the world.

This pair is very liquid, meaning traders can buy and sell it easily. The exchange rate of USD/JPY is influenced by the Bank of Japan (BoJ), which controls Japan’s interest rates. If Japan’s interest rates are lower than US interest rates, investors may prefer to hold US dollars instead of Japanese yen. This would make the dollar stronger against the yen.

GBP/USD (British Pound/US Dollar)

GBP/USD represents the British pound and the US dollar. This pair is also called "cable" because, in the past, bid and ask quotes were sent between London and New York through deep-sea cables.

The exchange rate of GBP/USD depends on the strength of the British and US economies. If the UK’s economy is performing well, the British pound may become stronger compared to the US dollar. If the US economy is stronger, then the US dollar may rise in value compared to the British pound.

Like other best forex currency pairs, GBP/USD is also affected by interest rates set by the Bank of England (BoE) and the US Federal Reserve (Fed). A higher interest rate in the UK can make the pound stronger, while a higher interest rate in the US can make the dollar stronger.

AUD/USD (Australian Dollar/US Dollar)

AUD/USD is known as "Aussie" and represents the Australian dollar and the US dollar. It is popular among traders because Australia’s economy is highly dependent on natural resources like iron ore and coal.

If the prices of iron ore and coal increase, the Australian dollar may become stronger against the US dollar. If these prices fall, the Australian dollar may weaken. The interest rate decisions of the Reserve Bank of Australia (RBA) and the US Federal Reserve (Fed) also affect the value of this currency pair.

USD/CAD (US Dollar/Canadian Dollar)

The USD/CAD pair is often called "loonie" because of the loon bird on Canadian dollar coins. It represents the US dollar and the Canadian dollar.

Canada is one of the world’s largest oil exporters, and the value of the Canadian dollar is closely linked to oil prices. If oil prices rise, Canada earns more money from oil exports, which makes the Canadian dollar stronger against the US dollar. If oil prices fall, the Canadian dollar may weaken compared to the US dollar.

Traders keep an eye on the price of Brent crude oil and US crude oil, as any changes in oil prices may affect the exchange rate of USD/CAD.

USD/CNY (US Dollar/Chinese Renminbi)

USD/CNY represents the US dollar and the Chinese renminbi, which is also known as the yuan (CNY). The value of this currency pair is largely influenced by the Chinese government, which controls the exchange rate of the yuan.

China’s trade policies and its economic relationship with the US play a big role in the movement of this pair. In recent years, China has allowed the yuan to weaken to make its exports cheaper. A weaker yuan makes Chinese goods more affordable in other countries, increasing China’s trade advantage.

Traders who trade USD/CNY also watch for news on the US-China trade relationship, as any changes can affect the exchange rate.

USD/CHF (US Dollar/Swiss Franc)

USD/CHF represents the US dollar and the Swiss franc. It is also called "Swissie" in the forex market.

Switzerland has a very stable economy, and the Swiss franc is considered a safe-haven currency. This means that during times of economic uncertainty or crisis, investors move their money into Swiss francs because it is considered safer than other currencies.

When financial markets are stable, investors may prefer to hold US dollars instead of Swiss francs. But when there is a crisis, the demand for the Swiss franc increases, causing it to strengthen against the US dollar.

USD/HKD (US Dollar/Hong Kong Dollar)

USD/HKD represents the US dollar and the Hong Kong dollar. The value of this currency pair is controlled by a linked exchange rate system. This means the Hong Kong dollar is allowed to move within a fixed range of HK$7.75 to HK$7.85 per US dollar.

The Hong Kong protests in 2019 increased the trading volume of USD/HKD, as many traders speculated on the future value of the Hong Kong dollar. Political and economic events in Hong Kong can influence the price movements of this currency pair.

EUR/GBP (Euro/British Pound Sterling)

The EUR/GBP currency pair represents the euro and the British pound. Since the UK and the European Union have strong trade ties, this currency pair is often difficult to predict.

The exchange rate of EUR/GBP is affected by economic policies of the European Central Bank (ECB) and the Bank of England (BoE). Events like Brexit caused high volatility in this pair, making it unpredictable.

Traders who trade EUR/GBP closely follow news related to UK-EU relations, as any changes may affect this currency pair.

USD/KRW (US Dollar/South Korean Won)

USD/KRW represents the US dollar and the South Korean won. South Korea is the fourth-largest economy in Asia and the eleventh-largest in the world.

South Korea’s economy has grown rapidly in recent years, and this growth has made the South Korean won more attractive to traders. This currency pair gained popularity because traders and investors want exposure to South Korea’s growing economy.

Since South Korea is a major exporter of technology and automobiles, the exchange rate of USD/KRW is influenced by global demand for South Korean products.

The Most Popular Cross-Currency Pairs

Most of the major forex pairs include the US dollar (USD), but some important currency pairs do not. These are called cross-currency pairs, or minor currency pairs. They usually include the euro (EUR), British pound (GBP), or Japanese yen (JPY). These pairs are widely traded and offer good opportunities for forex traders. Below are the most popular cross-currency pairs and how they work.

EUR/CAD (Euro/Canadian Dollar)

EUR/CAD is a strong cross-currency pair because the euro is the second most traded currency in the world, and the Canadian dollar is the sixth most traded. This pair has been in the market since the euro was introduced in 1999.

The price of EUR/CAD depends mainly on interest rates set by the European Central Bank (ECB) and Canada’s economy, which is driven by exports of natural resources like oil and minerals. If European interest rates rise, the euro usually strengthens. If Canada’s export prices rise, the Canadian dollar may become stronger.

EUR/AUD (Euro/Australian Dollar)

EUR/AUD is not as famous as other forex pairs, but it is important because it is closely linked to gold prices. Australia is the third-largest gold producer in the world, so when gold prices fall, the Australian dollar (AUD) usually weakens.

Another factor that affects EUR/AUD is Australia’s trade with New Zealand and other Asian countries. If these countries increase trade with Australia, the Australian economy improves, and the AUD strengthens. If trade slows down, the Australian dollar becomes weaker against the euro.

EUR/JPY (Euro/Japanese Yen)

EUR/JPY is the seventh most traded forex pair in the world. It is popular because it is very volatile, meaning its price changes often. This makes it attractive to short-term traders who want quick profits.

Japan has a strong industrial economy, and the yen is one of the most important currencies in the world. The price of EUR/JPY is influenced by the Bank of Japan’s (BoJ) interest rates and Japan’s trade with the European Union. If the BoJ lowers interest rates, the yen weakens, making EUR/JPY rise. If Japan’s economy grows, the yen strengthens, and EUR/JPY falls.

EUR/CHF (Euro/Swiss Franc)

The EUR/CHF pair is interesting because Switzerland is not in the European Union, but it is an important trade partner. The Swiss franc (CHF) is a safe-haven currency, meaning traders invest in it when they feel the global economy is unstable.

During the Eurozone debt crisis, when Greece faced financial problems, many traders moved their money into Swiss francs, making the franc much stronger. This made EUR/CHF fall. If the Eurozone economy is stable, the euro strengthens, and EUR/CHF rises. If there is a crisis, traders invest in the Swiss franc, and EUR/CHF falls.

EUR/GBP (Euro/British Pound)

EUR/GBP is one of the most followed forex pairs, especially after the Brexit referendum when the UK decided to leave the European Union. The exchange rate of EUR/GBP shows how many British pounds are needed to buy one euro.

The price of EUR/GBP depends on interest rates set by the European Central Bank (ECB) and the Bank of England (BoE). If the ECB cuts interest rates, EUR/GBP usually falls. If the BoE cuts rates, EUR/GBP rises. Other factors like economic growth, inflation, and trade policies also affect this currency pair.

GBP/JPY (British Pound/Japanese Yen)

GBP/JPY, also called “Geppy” by traders, is a strong indicator of the global economy. The British pound represents the Western economy, while the Japanese yen represents Asia’s economy.

GBP/JPY is known for its big price movements, which makes it risky but attractive for traders. Short-term traders like to trade this pair because of its volatility, but long-term investors find it harder to predict. The exchange rate depends on interest rates set by the Bank of Japan and the Bank of England, as well as global economic conditions.

GBP/CAD (British Pound/Canadian Dollar)

GBP/CAD represents the British economy versus the Canadian economy. The Canadian dollar is strongly connected to the US economy because Canada and the US are major trading partners.

This means that the value of the US dollar affects GBP/CAD. If the US economy is strong, Canada’s economy also does well, and the Canadian dollar strengthens. GBP/CAD is also affected by Canadian exports, especially oil and gold. If oil prices go up, the Canadian dollar strengthens, and GBP/CAD falls. If oil prices go down, the Canadian dollar weakens, and GBP/CAD rises.

The Most Popular Exotic Currency Pairs

Exotic best forex currency pairs include one major currency and one from a developing or less frequently traded economy. These pairs often have lower trading volume and higher volatility compared to major and cross-currency pairs. Exotic pairs can present unique trading opportunities due to their sensitivity to political and economic changes. Let’s take a look at some of the most popular exotic forex pairs.

EUR/TRY (Euro/Turkish Lira)

The EUR/TRY is one of the most widely discussed exotic best forex currency pairs. This pair compares the euro, a major global currency, against the Turkish lira (TRY). The lira is the quote currency in this pair, meaning the exchange rate shows how many Turkish lira are needed to buy one euro.

The EUR/TRY pair is highly volatile due to Turkey’s fluctuating economy and ongoing discussions about its potential membership in the European Union. Turkey’s economic policies, inflation rates, and political developments play a key role in the value of the lira.

USD/HKD (US Dollar/Hong Kong Dollar)

The USD/HKD pair compares the US dollar (USD) to the Hong Kong dollar (HKD). Hong Kong has one of the world’s most open and free-market economies, and the Hong Kong dollar is often seen as a bridge to the Chinese economy.

Unlike most currencies, the HKD is pegged to the USD within a controlled range set by the Hong Kong Monetary Authority. This means that while some fluctuations occur, the currency is tightly regulated, reducing the extreme volatility often seen in other exotic pairs.

NZD/SGD (New Zealand Dollar/Singapore Dollar)

The NZD/SGD pair compares the New Zealand dollar (NZD) against the Singapore dollar (SGD). The Singapore dollar is considered one of the most stable currencies in the world due to the country’s strong financial system.

The New Zealand dollar, on the other hand, is more influenced by global commodity prices, particularly agricultural exports. New Zealand’s economy relies heavily on dairy, meat, and wool exports, making the NZD sensitive to demand from major trading partners like China.

Our Tips To Trade With Major Currency Pairs

Trading major best forex currency pairs is a great way to start in forex, as they are stable, widely traded, and have lower costs. However, to trade successfully, you need a good strategy. One of the most important things is to stay updated with financial news. Economic events like interest rate changes, inflation reports, and employment data affect currency prices. Checking an economic calendar helps you prepare for market movements.

Understanding market trends is also essential. A currency pair can move in an uptrend (prices rising), a downtrend (prices falling), or sideways (no clear direction). Tools like moving averages and the Relative Strength Index (RSI) help traders identify trends. Trading with the trend is usually safer than trading against it.

FAQ 

How do I choose a currency pair to trade?

Choosing a currency pair depends on your knowledge, strategy, and risk level. If you are new to forex, major pairs like EUR/USD or GBP/USD are good choices because they are stable and easy to trade. Cross-currency pairs like EUR/GBP or EUR/JPY provide more price movement, which some traders prefer. Exotic pairs like USD/TRY or NZD/SGD carry higher risks but can offer bigger rewards.

What most affects the movement of currency pairs?

Several factors influence currency prices. Interest rates play a major role—when a country raises interest rates, its currency usually strengthens. Economic growth also matters because strong economies attract investors, increasing demand for their currency. Political events, such as elections or policy changes, can cause sudden price shifts.

What is the highest currency in the world?

The Kuwaiti Dinar (KWD) is the highest-valued currency in the world. Kuwait’s rich oil exports and stable economy keep its currency strong. One Kuwaiti Dinar is worth more than most other currencies.

Which forex pairs are the most traded?

The most traded forex pairs include EUR/USD, USD/JPY, GBP/USD, USD/CHF, and AUD/USD. EUR/USD is the most popular because the Euro and US Dollar are widely used in global trade. USD/JPY is known for strong price movements, while GBP/USD is another highly liquid pair. USD/CHF is often seen as a safe option because the Swiss Franc is stable. AUD/USD is influenced by commodity prices, especially gold.

Which currency is growing fast?

Some of the fastest-growing currencies include the Chinese Yuan (CNY), Indian Rupee (INR), and Brazilian Real (BRL). China’s economy is expanding rapidly, making the Yuan more important in international trade. India’s economy is also growing, increasing the demand for the Rupee. Brazil, as a developing market, is gaining strength, making the Real an emerging currency.

How to Choose the Best Forex Broker?

Not all forex brokers offer the same features, security, and trading conditions. Choosing the right broker is crucial for a smooth and successful trading experience. In this guide, learn how to select the  best forex broker in UAE for your needs and make informed trading decisions in 2025.

Conclusion

While EUR/USD is the most traded forex pair, many other best forex currency pairs offer high liquidity and trading opportunities. Traders have a wide range of options, including major, cross, and exotic best forex currency pairs. Choosing the right pair depends on market conditions, trading strategy, and personal risk tolerance.

Before trading any currency pair, it is important to consider key factors such as economic news, interest rates, and geopolitical events. Traders should also use technical and fundamental analysis to understand price trends and market movements. Monitoring central bank decisions, trade policies, and global events helps traders make better-informed decisions.

Successful forex trading in Dubai requires patience, like  Skyline Markets Limited, knowledge, and risk management. By staying updated on market trends and applying a well-thought-out strategy, traders can increase their chances of making profitable trades.