When you go check on the best exotic forex pairs to trade on the internet; you will find a lot of information surrounding this topic, however, there is more to this than just listing a few exotic pairs to trade.

In my experience, I have come to see that any exotic forex pairs can be the best to trade with provided that you understand the basic principles of how the forex market works.

When you constantly make money on a certain forex pair, it certainly becomes your best trading pair.

That being said I will certainly list a few exotic pairs I have traded, with market structure understanding and I will encourage you to put this market analysis into consideration when trading these exotic forex pairs.

WHAT IS EXOTIC CURRENCY PAIRS?

Exotic currency pairs consist of a major currency pair is the base currency and a strong smaller emerging economy which currency will be the quote in the pair example is the USD/MXN.

These pairs come with a much larger spread than the major currency pairs because they lack liquidity due to the fact that they are not traded as often as the major currency pairs.

Exotic pairs are characterized by high volatility and trading with proper market analysis can give you a huge return in profit because of the nature of both economies.

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RELATED: CURRENCY PAIRS THAT MOVE TOGETHER

BEST EXOTIC FOREX PAIRS TO TRADE

best exotic forex pairs to Trade

There are many exotic pairs to trade in the forex market; in my years of trading, this is my choice in the most successful exotic forex pairs to trade.

  1. USD/ZAR
  2. USD/MXN
  3. USD/PLN
  4. USD/NOK
  5. USD/TRY
  6. USD/RUB

RELATED: HOW TO TRADE GBP JPY SUCCESSFULLY

RELATED: BEST TIME TO TRADE NZDUSD

EXOTIC FOREX PAIRS LIST

This is a list of a few exotic forex pairs list and their countries;

PairsCountries
USD/ZARUS Dollar/South African Rand
GPB/DKKBritish Pounds/Danish Krone
USD/SGDUS Dollar/Singapore Dollar
USD/DKKUS Dollar/Danish krone
USD/SEKUS Dollar/ Swedish krona
USD/TRYUS Dollar/ Turkish Lira
USD/NOKUS Dollar/Norwegian krone
USD/MXNUS Dollar/Mexican Peso
USD/HKDUS Dollar/Hong Kong Dollar
EUR/TRYEURO/Turkish Lira
USD/PLNUS Dollar/ Polish zloty
USD/CNHUS Dollar/Chinese Yuan

RELATED: BEST PAIRS TO TRADE DURING TOKYO SESSION

MOST LIQUID CURRENCY PAIRS

most liquid forex currency pairs pie chart to trade

I am going to list the most liquid currency pairs in terms of market volume, before I do that let us first define what forex market liquidity is.

Forex market liquidity refers to an asset’s ability to be sold quickly and at the best possible price.

Liquidity in the forex market also means the most traded currency pairs

In terms of market volume, these are the most liquid currency pairs;

  1. EUR/USD
  2. GPB/USD
  3. NZD/USD
  4. USD/CAD
  5. USD/JPY
  6. USD/CHF
  7. AUD/USD
  8. AUD/JPY

According to the most traded currencies website, these are the top 25 most traded currencies with their shares of daily turnover.

RankCurrencyShare of turnover
(%)*
1US dollar87.62
2European Euro31.27
3Japanese yen21.56
4Pound sterling12.78
5Australian dollar6.94
6Canadian dollar5.13
7Swiss franc4.78
8Chinese Yuan Renminbi3.97
9Swedish krona2.22
10Mexican peso2.20
11New Zealand dollar2.06
12Singapore dollar1.79
13Hong Kong dollar1.73
14Norwegian krone1.67
15South Korean won1.65
16Turkish lira1.40
17Indian rupee1.14
18Russian ruble1.14
19Brazilian real1.00
20South African rand1.00
21Danish krone0.83
22Polish Zloty0.69
23New Taiwan dollar0.63
24Thai baht0.43
25Malaysian Ringgit0.41

RankCurrencyAverage turnover
(Billion US$)
1US dollar4 458
2European Euro1 591
3Japanese yen1 097
4Pound sterling650
5Australian dollar353
6Canadian dollar261
7Swiss franc243
8Chinese Yuan Renminbi202
9Swedish krona113
10Mexican peso112
11New Zealand dollar105
12Singapore dollar91
13Hong Kong dollar88
14Norwegian krone85
15South Korean won84
16Turkish lira71
17Indian rupee58
18Russian ruble58
19Brazilian real51
20South African rand51
21Danish krone42
22Polish zloty35
23New Taiwan dollar32
24Thai baht22
25Malaysian Ringgit20

RankCurrencyISO 4217 code
1US dollarUSD
2European EuroEUR
3Japanese yenJPY
4Pound sterlingGBP
5Australian dollarAUD
6Canadian dollarCAD
7Swiss francCHF
8Chinese Yuan RenminbiCNY
9Swedish kronaSEK
10Mexican pesoMXN
11New Zealand dollarNZD
12Singapore dollarSGD
13Hong Kong dollarHKD
14Norwegian kroneNOK
15South Korean wonKRW
16Turkish liraTRY
17Indian rupeeINR
18Russian rubleRUB
19Brazilian realBRL
20South African randZAR
21Danish kroneDKK
22Polish zlotyPLN
23New Taiwan dollarTWD
24Thai bahtTHB
25Malaysian RinggitMYR

RankCurrencyCountry or territory
1US dollarUnited States
2European Euro19 states of the EU
3Japanese yenJapan
4Pound sterlingUnited Kingdom
5Australian dollarAustralia
6Canadian dollarCanada
7Swiss francSwitzerland
8Chinese Yuan RenminbiChina
9Swedish kronaSweden
10Mexican pesoMexico
11New Zealand dollarNew Zealand
12Singapore dollarSingapore
13Hong Kong dollarHong Kong (China)
14Norwegian kroneNorway
15South Korean wonSouth Korea
16Turkish liraTurkey
17Indian rupeeIndia
18Russian rubleRussia
19Brazilian realBrazil
20South African randSouth Africa
21Danish kroneDenmark
22Polish zlotyPoland
23New Taiwan dollarTaiwan
24Thai bahtThailand
25Malaysian RinggitMalaysia

The most liquid currency pairs in January 2020 are depicted in an image pie chart below. Understand that the data is constantly changing due to the market situation at any given time.

MAJOR CURRENCY PAIRS

major forex currency pairs to trade

Major currency pairs are called major forex pairs for many reasons; one of these reasons is because they are paired with the US dollar and they are the most traded currency pairs in the forex market.

For example, the EUR/USD records a high trade volume amongst other currency pairs in the forex market.

Below are a few major currency pairs

EUR/USD

GPB/USD

USD/CAD

NZD/USD

USD/JPY

AUD/USD

USD/CHF

MINOR CURRENCY PAIRS

Minor currency pairs are also called cross-currencies. For a clearer definition Cross-currency pairs, or simply “crosses,” are currency pairs that do not include the US dollar. An example of this minor/cross-currency pair is the CAD/JPY.

BEST MINOR CURRENCY PAIRS

In my years of technical analysis trading, I have known that the Japanese Yen pair currency is the best minor currency pair to trade and this is why.

The currencies paired with the JPY mostly operate on a different economic model.

Because of the different countries’ economic models, they make a perfect match when paired together, also in terms of their trading sessions. For example when one country’s session opens, the other is closed.

Examples of these best minor pairs are:

  1. GBP/JPY
  2. AUD/JPY
  3. NZD/JPY
  4. EUR/JPY

MOST VOLATILE EXOTIC CURRENCY PAIRS

All the exotic currency pairs are volatile, however, the most volatile exotic currency pairs are

  1. USD/ZAR
  2. USD/PLN
  3. USD/MXN
  4. USD/NOK
  5. USD/TRY

ARE EXOTIC PAIRS WORTH TRADING?

This is a Yes and a No because your level of experience with the forex market will determine your choice of pairs. Generally, exotic pairs are less predictable than major pairs however the volatility of exotic pairs can give Hugh profit return when traded accurately with proper market analysis.

WHICH FOREX PAIR IS BEST FOR TRADING?

The best forex pairs for trading will have the following qualities
1.       High Liquidity (can be easily sold at the closes price)
2.       Good volatility (not crazily high like exotic pairs)
3.       Predictability ( repetition of market structures and patterns)
4.       Good spread (lower spread to exotic pairs)
5.       High trade volume ( traded by many traders and institutions)

WHICH CURRENCY PAIR IS MOST PROFITABLE IN FOREX?

There is no such thing as the most profitable currency pair as your understanding and patience in the forex market will determine how profitable you will be. However, the EUR/USD is the most traded currency pair in the forex market.

WHAT IS THE MOST VOLATILE FOREX PAIR?

Volatility in the forex market is relative; every currency pair is different and unique. It is relative in terms of its economic strength and the global event (fundamental new) at that time.

So the volatility of a currency changes if its economy changes. That being said in the periods of high impact fundamental news the currency will have strong price movement and trading volume increase.

IS ZAR AN EXOTIC CURRENCY?

Yes ZAR is an exotic currency; it is an exotic currency because of its strong smaller emerging economy.

WHAT IS THE SECOND MOST TRADED CURRENCY?

The EURO is the second most traded currency after the dollar; this is based on the daily transaction volume of the currency.