Top 5 Most Traded Forex Pairs Revealed

The Forex market is the most developed market. It is no wonder that it’s also the most traded and liquid. But have you ever wondered which are the most traded forex pairs? And which pair has the most volume?

In the world of forex trading, where numerous currency pairs are traded, a select few rise to prominence based on their substantial trading volume. Let’s explore these leading pairs in more detail.

1. EUR/USD – Fiber

At the forefront of Forex trading is the EUR/USD pair, combining two of the world’s strongest economies: the European Union and the United States. Representing about 28% of the total forex market volume, this pair is highly traded for its liquidity, leading to tighter spreads. This liquidity is a significant draw for traders, making EUR/USD a favored choice on trading platforms, including ours, where competitive spreads and commissions are a key feature.

2. USD/JPY – The Ninja

The USD/JPY, often called the “Ninja” or “the Gopher,” stands as the second in the list of most traded forex pairs. Comprising roughly 13% of global forex trades, this pair’s popularity stems from the Japanese yen’s status as the most traded currency in Asia. Its liquidity and unique market dynamics, such as its positive correlation with USD/CHF, render it an attractive choice for traders seeking diverse opportunities.

3. GBP/USD – The Cable

The GBP/USD pair, known as “cable,” accounts for approximately 10% of all forex trades. This pair has historical significance, tracing back to the transatlantic cables that connected London and New York. The pair’s movements, especially during economic crises, present unique opportunities for traders to capitalize on the fluctuations between the British pound and the US dollar.

4. AUD/USD – The Aussie

The AUD/USD pair, or “Aussie,” takes the fourth place in the most traded forex pairs, contributing about 5.5% to the total forex trade volume. The Australian dollar’s strong correlation with the country’s commodity exports, particularly raw materials, plays a significant role in its valuation. This link offers traders the opportunity to gauge the pair’s strength based on global commodity price movements.

5. USD/CAD – The Oil Connection

The USD/CAD pair is just like the Aussie linked to commodity prices, especially oil, due to Canada’s export profile. Representing about 4.4% of the forex market volume, fluctuations in oil prices have a direct impact on the Canadian dollar. This pair’s movements offer insights into the interplay between the US dollar and commodity-driven currencies.

These 5 currency pairs – EUR/USD, USD/JPY, GBP/USD, AUD/USD, and USD/CAD – are more than just popular choices among traders. They represent over 60% of the forex market volume, each reflecting the complex interdependencies of global economies. For traders looking to navigate the Forex market, understanding the dynamics of these most traded forex pairs is crucial. Our trading platform offers access to these key pairs, providing a gateway to harness their potential in the global trading landscape.