Best Currency Pairs for Beginners
Choosing the right currency pairs is crucial when starting out in forex. Here are the five best pairs for beginners and why.
1. EUR/USD (Euro / US Dollar)
The most traded pair in the world.
- Tightest spreads (lowest cost)
- High liquidity — easy to enter and exit
- Abundant analysis and news coverage
- Moderate volatility — not too wild
- Active during London and New York sessions
Best for: All strategy types including our SteadyPips EA
2. GBP/USD (British Pound / US Dollar)
The “Cable” — excellent for momentum traders.
- Good liquidity with slightly wider spreads than EUR/USD
- More volatile than EUR/USD — bigger moves, bigger opportunities
- Strong technical pattern formation
- Very active during London session
Best for: Trend following and breakout strategies
3. USD/JPY (US Dollar / Japanese Yen)
The “Gopher” — great for Asian session traders.
- Very tight spreads
- Influenced by US-Japan interest rate differentials
- Active during Asian and New York sessions
- Good trending behavior
Best for: Carry trades, grid trading, and technical analysis
4. AUD/USD (Australian Dollar / US Dollar)
The “Aussie” — correlated with commodities.
- Good liquidity with reasonable spreads
- Influenced by commodity prices (gold, iron ore)
- Strong trends during Asian/London crossover
- Risk sentiment indicator
Best for: Swing trading and correlation-based strategies
5. USD/CHF (US Dollar / Swiss Franc)
The “Swissie” — the safe-haven pair.
- Tight spreads
- Often moves inversely to EUR/USD
- Swiss franc as safe-haven during uncertainty
- Moderate volatility
Best for: Hedging and range trading
Pairs to AVOID as a Beginner
| Pair | Why Avoid |
|---|---|
| GBP/JPY | Extremely volatile, large spreads |
| EUR/TRY | Exotic pair, very wide spreads |
| USD/ZAR | Low liquidity, unpredictable moves |
| Any exotic pair | High costs, low liquidity |
Tips for Pair Selection
- Start with 1-2 pairs — master them before adding more
- Check the spread — lower spread = lower cost per trade
- Know the active hours — trade when your pair’s market is open
- Understand correlations — don’t trade highly correlated pairs simultaneously
- Match to your strategy — trend-following needs trending pairs, grids need ranging pairs
This article is for educational purposes only. Trading forex carries significant risk. Always practice on a demo account first.