Forex trading is available through spread betting or CFD trading, both of which are leveraged products. This means that while there is a chance of maximising profits, there is an equal chance of losses, as traders are only required to place a percentage of the full trade value, known as a margin requirement. This article is a guide to some of the most popular forex pairs to trade right now. The majority of the forex trading statistics referenced in this article are sourced from the Bank of International Settlements (BIS) Triennial Central Bank Survey 2022. The survey conducted by BIS is the largest global analysis of financial markets, focusing on OTC derivatives and currency markets. As a retail investor, speculating on forex involves a very high risk of losing money due to high leverage and volatile fx markets.

You get trustworthy and accurate forex data to make informed trading decisions. So, there would be hardly any significant fluctuations in their exchange rates. Yet, only a handful of currency pairs take a large part of the trading volume. For example, City Index (owned by GAIN Capital Holdings), warns 70% of CFD traders lose money trading forex. Kicking off with the top 5 most traded currency pairs means picking one like EUR/USD, opening a broker account, and trading their trends, a simple way to start over time.

• The South Korean economy has grown during the first decades of the 21st century to become the fourth largest in Asia and the tenth largest in the world – measured in terms of nominal GDP – as of August 2021.
• Just like the first two most popular currency pairs on this list, the quote price of GBP/USD is affected by the respective interest rates set by the Bank of England (BoE) and the Fed.
• Changes in global monetary policy, coupled with inflation, are likely driving forex traders to more reliable fx pairs.
• The Euro and British pound pair, known for the economic interconnectivity and trade between the Eurozone and the United Kingdom, attracts traders with its stability and predictable patterns.
• CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
• IG is a trading name of IG Markets Limited and IG Markets South Africa Limited.

MARKETS

Inflation and GDP tend to strongly influence the pound, but the housing market is also important for the British currency. Another problem regarding the euro is the difference between the various economies, as was highlighted by the 2011 debt crisis. In the event of problems, EU leaders have a hard time finding solutions that are beneficial to both the large and small economies. Until the sovereign debt crisis, the EUR was considered to be an alternative reserve currency to the USD. Unfortunately, problems with the economies peripheral to the EU have undermined this confidence in the euro. The British pound versus the U.S. dollar, nicknamed “Cable,” thrives on its tie to UK and U.S. economic moves like Brexit or Fed decisions, active with wider swings over time.

Least Traded Currencies by Averages Daily Trading Volume in 2022 (in bn USD)

Both IG Group and CMC Markets saw a significant increase in active clients during the pandemic years (2020 and 2021), suggesting that more individuals turned to trading during this period. In 2022, the total value of the global cryptocurrency market plummeted to $798 billion from a peak of $2.9 trillion in 2021. Throughout the last year, crypto markets have strengthened again reaching a value of $1.1 trillion in 2023. The landscape for minor and exotic pairs showcases different dynamics, with some like EUR/CNY gaining traction and others like USD/TRY losing ground due to varying economic factors. Despite a slight dip in the middle years, the share and amount have somewhat increased, with the pair clocking $293 billion in 2022.

When are Forex Markets Open?

These trends reflect a shift towards bonds as safe havens and a diversification away from the dollar, heavily impacting the forex trading industry and liquidity worldwide. Retail trading accounts for only 6% of the total foreign exchange market worldwide. The forex market is the largest financial market in the world in terms of trading volume, liquidity, and value. The monetary policies of the Reserve Bank of New Zealand can also have an effect, particularly the interest rates offered and how these compare to those offered by other banks globally. The currency is likely to appreciate when interest rates are relatively high compared to those on offer in other countries and depreciate when they are relatively low. The country’s reputation for financial services and banking secrecy, relatively sound monetary policies and low levels of debt have made the Swiss franc a ‘safe-haven’ currency.

CFD trading

During times of increased volatility, it’s likely the price of this pair would drop as CHF strengthens against the USD after experiencing increased investment. The forex market is open 24 hours a day, from Sunday evening until Friday night, which takes advantage of the international time zone differences of London, Tokyo and New York. This allows currency traders to open and close positions at any time throughout the day without the time restrictions that exist in other markets, therefore forex market hours are considered more flexible. While still the second most traded currency, the EUR has lost forex market share, sliding from a 39.0% share in 2010 to 30.5% in 2022, despite an increase in its OTC turnover amount. The USD has strengthened its grip as the world’s most traded currency, increasing its share in OTC foreign exchange turnover from 84.9% to 88.4% over the last 12 years.

Forex Statistics: The History of Forex Markets

55% of forex traders prefer to use a mobile device and trading app, versus 45% who use a desktop computer or web app. As of 2021, over 80% of online brokers globally offered MT4 to customers, and the trading platform had an estimated user base of over 8 million traders. MT5, on the other hand, can claim only 2 million traders and is offered by just 20% of brokers. Highly volatile (and highly profitable) cryptos are usually traded against the USD (US dollar), EUR (Euro), GBP (British pound sterling), or AUD (Australian dollar). After Australia, the next largest countries in terms of the number of active trades are Germany (84,000) and Poland (80,000).

Where is Forex Trading Most Popular?

• The high daily volume of EUR/USD transactions ensures that the pair has a lot of liquidity which generally results in tight spreads.
• Out of the twenty most heavily traded currency pairs in 2022, the USD/CNY witnessed the most significant growth as its average daily turnover soared by 83% over this three-year period.
• In conclusion, the most traded currency pairs are an important part of the forex market.
• The age group represents 28% of traders, while the age group accounts for 21% of traders.

If the British economy is growing at a faster rate than that of the US, it’s likely the pound will strengthen against the dollar. However, if the American economy is doing better than the British economy, the reverse is true. The yen’s value is highly dependent on the strength of Japan’s economy, particularly its manufacturing sector which is responsible for key exports including vehicles, electronics, machine tools, ships and textiles. As the value of the yen often increases in line with demand for these products, many forex traders pay attention to economic releases. These can include the BoJ meeting announcement, GDP data, the index of industrial production, the Tankan survey, and unemployment numbers. Spot transactions secured the second place with a 28% share of the global forex turnover, representing a decline of two percentage points from the previous three years.

What Are the Most Popular Currencies?

You should not treat any opinion expressed in this material as a specific inducement to make any investment or follow any strategy, but only as an expression of opinion. This material does not consider your investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. No representation or warranty is given as to the accuracy or completeness of the above information. Tastyfx accepts no responsibility for any use that may be made of these comments and for any consequences that result. Its exchange rate is fixed at around HK$7.80 to US$1, with the three authorized banks having to deposit dollars with the HKMA when they issue bank notes to keep its price close to this level.

As a result, traders often turn to CHF during times of increasing market volatility, but the Swiss franc will typically see less interest from traders during times of greater market stability. During times of increased volatility, it is likely the price of this pair would drop as CHF strengthens against the USD after experiencing increased investment. Leveraged trading in foreign currency or off-exchange products on margin carries significant most traded currency pairs 2020 risk and may not be suitable for all investors. We advise you to carefully consider whether trading is appropriate for you based upon your personal circumstances as you may lose more than you invest. You are advised to perform an independent investigation of any transaction you intend to execute in order to ensure that transaction is suitable for you.

Prior to selecting a financial product or fund, it is recommended that investors seek specialized financial, legal and tax advice. All five pairs move with big forces like rates or trade, so a U.S. hike might lift USD pairs while Eurozone growth boosts EUR/USD over years. These drivers mean you’re not guessing but trading on real shifts, a tool beginners use to stay ahead over time. The U.S. dollar against the Japanese yen ranks high, blending U.S. power with Japan’s safe-haven yen, moving with global risk moods over years. It climbs when markets settle and dips in chaos, giving new traders a clear path to catch trends without huge risks, a balance of safety and action.