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The Best Online Brokers to trade Forex currency pairs
Which is the best broker to trade Forex?
Defining the best online Forex broker isn’t a simple task.
The preference of Forex brokers can change depending on trader’s strategy and interest.
There are hundreds of online Forex brokers in the world, but many of them provide very competitive trading conditions and pricing.
Within the service of online Forex and CFD brokers, the trading of “Forex currency pairs” is the mostly common, in fact, Forex is the largest and most popular financial market among online traders too.
And now, how do you find the best Forex broker to trade “Forex currency pairs”?
The best way is to refer the “Ranking of Online Forex Brokers” where the list of brokers are ranked by its popularity of the website’s visitors and the number of account openings.
We cannot recommend you only one broker as the “Best”, but we can certainly show you which brokers are more popular and chosen by our traders.
Do you have any specific interest when choosing a broker? Are you looking for a bonus to take advantage of? Do you need special condition to achieve your trading strategy?
Look through the ranking of online Forex brokers, and find the best ones for yourself today.
Ranking of Online Forex Brokers
Which FX currency is the best for trading?
When conducting Forex trading, choosing a trading currency that matches your trading style is one important factor.
First, let’s know the characteristics of each currency.
Each online Forex broker has different market liquidity, trading cost and trading rules.
So you are recommended to research more by visiting the official website of the broker you are interested.
1. US Dollar (USD)
It is still the world’s key currency, with the US dollar having the highest trading volume compared to other currencies.
It is a standard currency for general investors.
The US dollar reacts sensitively to conflicts, changes in the world economy, and the US President’s irregular statements, causing a sudden move.
Such information of a currency that is easily accessible to general investors, are often easily accessible, as is covered in everyday news.
However, even with currencies that are easy to trade, you need to be careful about sudden movements.
The rise in interest rates has had a major impact on the market as a major theme, reflecting the favorable economic movements of the last few years.
Recently, the future outlook remained uncertain due to trade friction with China, and the current trend of interest rate hikes is turning into a cut.
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2. Euro (EUR)
The second key currency is the euro, which has the second largest trading volume after the US dollar.
16 of the 27 EU member states have introduced Euro.
While there was Britain’s departure from the EU (Brexit), there are some movements that follow it.
Since the negative interest rate is applied to the policy rate, in the case of the Euro currency pairs, the swap points are often selling positive and buying negative.
USDEUR is a currency pair that is relatively easy to handle for beginners as it has a relatively large volume of transactions and is relatively calm.
See the Ranking of Forex Brokers
3. British Pound (GBP)
The British pound is also one of the major currencies, but in terms of the trading volume, the GBP/USD is less than half that of the EUR/USD, and therefore tends to be volatile.
The financial district “City” in London is home to various financial companies and is actively trading.
The characteristic of the exchange rate is that it is extremely active and tricky.
Please note that the London group will be actively moving almost all the time.
4. Canadian Dollar (CAD)
Although Canada is also known as a resource-rich country like Australia and New Zealand, mineral products including petroleum account for about 20% of export items, followed by automobile-related products.
Therefore, the price of crude oil has a great influence.
And since the main export destination is the US, which accounts for over 70%, CAD is greatly affected by the US economy.
The outlook for the Canadian economy is affected by the American economy, but the outlook for the American economy is affected by the Chinese economy, so it means that the Canadian dollar will end up being affected by the Chinese economy too.
In addition, the policy interest rate is around 2%, so it can be said that it is an effective currency for swap points.
Canadian dollars are also called candles, candies etc.
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5. Australian dollar (AUD)
It is a representative currency of resource-rich countries and is a developed country boasting higher GDP, but interest rates are high, making it a popular currency to earn swap points.
The resources produced in Australia are mainly iron-related, and their main export destination is China, so they tend to be affected by the Chinese economy.
Therefore, it is necessary to be careful when there are Chinese indicators announced.
It also tends to move according to the currencies of major countries. Sometimes it’s the US dollar, or it’s the Euro, depending on the situation.
It also tends to move in tandem with the New Zealand dollar next door.
Since the transaction volume is only about half of the GBP/USD, it is necessary to be careful of sudden movements when there is a surprise in the content of the indicator announcement.
The Australian dollar is also called Aussie.
See the Ranking of Forex Brokers
6. New Zealand dollar (NZD)
It is a resource-based currency like the Australian dollar, and is popular as a currency with high interest rates.
Even with the same resources, New Zealand is a large dairy farming country, and the ratio of export items is close to 40% when dairy products and meat are combined, which is different from Australia.
However, since the main export destination is China, the Chinese economy remains vulnerable.
Since the neighboring country’s exports to Australia are large, it tends to be affected by the Australian economy. Depending on the results of the dairy bidding held twice a month, the rate may change significantly. The bidding schedule will be announced in advance, so you should check it.
Since the transaction volume is small, it tends to move greatly if there is a surprise as with the Australian dollar.
In particular, the interest rate announced by the Reserve Bank of New Zealand (Central Bank) has a great impact on the movement of the NZ dollar, so it is necessary to grasp and pay attention to the timing of the announcement in advance.
The New Zealand dollar is often called Kiwi, which is also a national bird.
7. Swiss Franc (CHF)
Since Switzerland is a permanent neutral country, it is often said that “buying the Swiss franc in an emergency”, and an emergency refuge currency to avoid risks in the event of war, conflict, terrorism (this is called geopolitical situation) etc.
For this reason, the Swiss franc is also called the “safe currency” along with the Japanese yen.
The Swiss franc is used as the official currency in Switzerland as well as in Liechtenstein.
In Europe, it has the second highest trading volume after the euro and the pound, but it is positioned as the main currency.
Globally, in 2010, the transaction volume was the sixth largest following the US dollar, euro, Japanese yen, British pound, and Australian dollar.
Since the interest rate is kept low, it can be said that it is not suitable for swap-oriented trades.
When geopolitical risk is increasing, it is possible to trade following that trend, but be aware that it may be a sudden movement.
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8. South African Rand (ZAR)
South African Rand has long been a popular currency for swap point traders with high interest rates.
And it can be said that it is a typical resource oriented country.
South Africa’s main resources are gold, rare metals, mineral products, chemical products and foods.
According to 2017 data, the main export countries are China (9.5%), the United States (7.7%), Germany (7.1%) and Japan (4.7%).
Since the economy is not biased towards one country, it is not affected by any particular country, but it is a currency that is easily affected by resource demand.
Looking at the well-known linkage with the gold market, it can be said that there has been little correlation between the gold market and the ZAR market in recent years.
This is not limited to South African Rand, but emerging market currencies with high interest rates are strongly affected by US dollar interest rates.
If the US interest rate rises, sell emerging countries’ currencies to buy US dollars, and if the US dollar interest rates fall, sell US dollars to buy emerging countries’ currencies with high interest rates.
If the outlook for the US economy is not good, the US will try to revitalize the economy by lowering interest rates, but it is common to see that the US rate hike is unlikely for some time to come.
From that point, it can be said that investment in emerging market currencies will be in good condition for some time to come.
See the Ranking of Forex Brokers
9. Turkish lira (TRY)
Located between Asia and Europe, Turkey has finally escaped the past economic crisis in the last few years.
Economic growth is expected in the future as a member of VISTA (Vietnam, Indonesia, South Africa, Turkey, Argentina), a group of emerging countries with high growth potential.
The Turkish lira has become a favorite among FX traders as a representative of high interest rate currencies, but high interest rates mean that the currency has low credit.
One of the reasons that Turkey can be expected to grow is the increase in the working-age population (15 to 65 years old).
According to the Turkish Bureau of Statistics, Turkey’s population will reach 90.8 million in 2020 and is expected to peak at 103 million by 2040.
As a result, the ratio of the working-age population increases and the economic growth accelerates, which can be seen from the past history.
It is important to note that when trading, you need to be prepared for sudden exchange fluctuations due to the small trading volume and pay attention to geopolitical risks.
10. Mexican Peso (MXN)
Among the emerging nation currencies, the Mexican peso has different characteristics from resource-based currencies such as the South African Rand and the Australian dollar.
At the time of the Mexican debt crisis of 1982, oil accounted for over 70% of exports.
After that, during the revitalization of exports centered on industrial products that began in the latter half of the 1980s, and the North American Freedom Agreement (NAFTA) concluded in the 90s, exports of industrial products especially to the United States grew.
According to 2016 data, industrial products account for more than 86% of Mexican exports.
In the same year, oil accounted for only 4.8% of exports.
In addition, automobiles and automobile-related products account for a high percentage of industrial products, and the number of automobiles produced is 6th, behind Germany, which is 5th in the world.
GDP, which represents the economic power of a country, is ranked 15th in the world.
Although Mexico is expected to grow in this way, there are some points to note.
That is the relationship with the United States, which accounts for about 80% of Mexico’s export destinations as of 2020.
In January 2017, the Mexican peso reached a record low due to concerns about the adverse effects on the Mexican economy of the Trump administration’s strong trade policy.
However, since the US economy also depends on cheap industrial products from Mexico, it cannot be unilaterally separated.
It’s good to see that such bargaining will continue for some time to come.
Investing in the Mexican peso should be aware of these points.
