Is it the major currency pairs, the cross pairs or the exotic pairs? Well there isn't really a right and wrong answer; it depends on how you define 'best'.
If a currency pair has tight spreads, it may be considered the best trading currency pair for you, but may not apply for others. So now we'll discuss on various factors on choosing a forex pair:1. Spreads - There is always an advantage to trade currency pairs that have a tight spread in foreign exchange trading.
It means that lesser spreads equal to more profit, lesser spreads give you more room for price fluctuation if you have a tight stop loss and lesser spreads may help you to breakeven your FX trade earlier.
2. Trendiness - For chartist traders like me, I depend mostly on technical indicators to help me decide which forex currency pair to trade.
3. Trading Sessions - The best time to trade forex is when the market is the most active and therefore has the biggest volume of trades. During Asian hours when Tokyo opens, the better trading time is from 7PM EST to 10PM EST.
But since not all the currency pairs are actively moving, you may want to trade AUD/USD as it starts to move during the stated timing.
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