The forex market has dozens of different currency pairs, but not all of them are ideal for beginners. So, Top 5 best forex currency pairs for beginners forex traders will be presented in detail by Tipstrade.org in the article below. This will help new traders trade with more confidence. Let’s get started!
Why do beginners need to choose the right Forex currency pairs?
Liquidity and trading volume
The most popular currency pairs are usually accompanied by high liquidity. This means buyers and sellers are always available, making the order opening and closing process fast and the spread low. For beginners, this is a significant advantage as it reduces cost pressure.
Suitable price volatility
Some currency pairs are too volatile, which can easily affect your account in a short period of time. Forex currency pairs for beginners should have moderate volatility so that learners have time to observe, analyze, and adjust their strategies.
Abundant information source
Major currency pairs like EUR/USD or GBP/USD always have a wealth of analysis, news, and reports from central banks, making it easy for beginners to learn and study.
Top 5 best forex currency pairs for beginners
EUR/USD – The most popular currency pair
EUR/USD accounts for about 24% of the total global Forex trading volume. It is considered the ideal forex currency pairs for beginners because:
- Low spread, high liquidity.
- Backed by the two largest economies in the world: the US and the Eurozone.
- There is a lot of analytics and news that is easily accessible to newcomers.
>>See more:
- What are forex currency pairs? How to read currency pairs
- Tips for Choosing the Best Pairs to Trade
- Interest rate forex impact: How it affects currency value
- 5 Major Forex Influencing Factors That Traders Need To Understand Clearly
USD/JPY – Stable and Predictable
The USD/JPY pair (US dollar and Japanese yen) accounts for about 13% of the global trading volume. Strengths:
- Low spreads, price movements are relatively easy to track.
- The Bank of Japan often intervenes to maintain stability, helping the pair to rarely experience large sudden fluctuations.
GBP/USD – Opportunity to learn from volatility
Also known as “cable,” GBP/USD is a more volatile pair than EUR/USD. For beginners, this is an opportunity to get used to rapid price changes, but still within a manageable range.
AUD/USD – Commodity Related
AUD/USD often moves in line with commodity prices such as steel and coal – Australia’s main exports. This is a forex pair for beginners who want to learn how to analyze the relationship between macroeconomics and exchange rates.
USD/CHF – “The Safe Haven Currency”
USD/CHF (US dollar and Swiss franc) is generally considered a stable pair due to the strength of the Swiss financial system. It is a good choice for beginners who want to experiment with hedging strategies.
Key factors to consider when choosing forex pairs for beginners
Trading hours
Each trading session (Tokyo, London, New York) has different liquidity levels. Beginners should choose a currency pair that is active during the time frame that is convenient for them, for example EUR/USD during the London – New York session.
Economic news volatility
Events like interest rate announcements, GDP or non-farm payrolls (NFP) can have a strong impact on prices. Therefore, when choosing forex currency pairs for beginners, it is advisable to prioritize pairs with transparent and easy-to-follow news.
Correlations between currency pairs
Some currency pairs have a close relationship. Therefore, understanding the correlation between them will help beginners avoid opening risky duplicate orders. For example:
- EUR/USD and GBP/USD often move in the same direction.
- USD/JPY and USD/CHF sometimes behave similarly.
Common mistakes when choosing forex currency pairs for beginners
- Choose exotic pairs from the start: These pairs are volatile and have high spreads, which can easily lead to losses.
- Regardless of trading hours: Trading during low liquidity times causes spreads to widen.
- Trading too many pairs at the same time: Newbies should focus on 1–2 major pairs to understand price behavior.
Trading strategies with forex currency pairs for beginners
Start with a demo account
A demo account allows beginners to experiment with trading forex pairs for beginners like EUR/USD without risking real money. This is an important step to familiarize yourself with the concepts of pips, lots, and spreads.
Use small trading volumes
For beginners Forex traders, the useful advice from experts is that you should start with small volumes to limit risk and focus on learning how the market reacts.
Combining technical and fundamental analysis
- Technical analysis: using charts, indicators (RSI, MACD, Bollinger Bands).
- Fundamental analysis: monitoring monetary policy, macroeconomics.
Both of these methods when combined will help make trading with currency pairs more grounded.
Final thoughts
Choosing the right forex currency pairs for beginners is the most important starting point for any new forex trader. Hopefully, with the list of the Top 5 best forex currency pairs for beginner forex traders that we have provided, you have gained the confidence and knowledge necessary to make your first trading decision. Wishing all traders successful trading!