Understanding the Most Traded Forex Pairs in 2025
‘Money never sleeps.’
The iconic phrase from the Hollywood movie Wall Street perfectly blends with the features of the Forex market.
You see, unlike the stock market, the Forex market opens for trading from 22:00 GMT on Sundays until 22:00 GMT on Fridays, allowing trading activity throughout the week. It’s therefore no surprise that the Forex market is the largest financial market in the world, with daily turnover estimated at $7.5 trillion, according to the Bank for International Settlements (BIS).
With such immense traction and round-the-clock trading, some currency pairs naturally attract more attention than others. These ‘top’ or the ‘most traded forex pairs’ are generally considered to have the highest liquidity and tighter spreads.
In this article, we’ll explore which currency pairs are the most traded and why they are so popular among traders worldwide.
Let’s begin.
The information in this article is provided for educational purposes only and does not constitute financial advice. Consult a financial advisor before making investment decisions.
What is Forex Trading?
Forex trading, or foreign exchange trading, is essentially about buying and selling currencies in pairs. To be able to buy and sell currencies, you need to have information about how much each currency in a pair is worth in relation to the other. This relationship is what defines a currency pair.
A currency pair consists of two currencies. The first is known as the base currency and the second as the quote currency. The value of the pair reflects how much of the quote currency is required to purchase one unit of the base currency.
If you look closely, all Forex pairs have a common pattern of presenting the value of one currency in terms of another. Let's say EURUSD was quoted at 1.16 (as on 28th August 2025) which implies that one Euro equals 1.16 US dollars.
In this case, the base currency is the Euro, and the quote currency is the US dollar.
To understand more, check out how to read currency quotes in detail.
What Are the Major Currency Pairs in Forex?
Before looking at the most traded currency pairs, let’s first understand what the major currency pairs are.
Not surprisingly, one of the most dominant and influential currencies, as well as the most widely traded currencies in the world is the US dollar. The reason for that is the large size of the US economy. The US dollar is the preferred reference in the majority of currency exchange transactions globally and is also the world's reserve currency of choice.
There is no strict definition in the case of the major currency pairs, but when individuals refer to the majors, they are typically discussing the ones that are most actively traded and, therefore, generally most liquid.
These generally include:
The values of these major currencies continue to fluctuate in relation to one another based on international trade, economic data, and market sentiment. Because of this, major pairs can see significant daily price movements, particularly during overlapping trading sessions.
To better understand which pairs dominate trader preferences worldwide, let’s look at the most traded forex pairs based on the Bank for International Settlements’ latest survey.
The Most Traded Forex Pairs
According to the Triennial Central Bank Survey conducted by the Bank for International Settlements, the top four most traded forex pairs as a percentage of total turnover were:
USDEUR
According to the Bank for International Settlements’ survey, the USDEUR is ranked the most traded forex pair by volume worldwide. It’s not only widely traded but is generally regarded as highly liquid. The reason for this may be that it is a representation of two of the biggest economies in the world, the United States and the Eurozone, and thus is a benchmark for international currency markets.
USDJPY
The second most actively traded currency pair in the world is USDJPY. The Japanese yen is used as a funding currency because of its traditionally low interest rates, although the U.S. dollar is still the world's primary reserve currency. These factors may result in high liquidity.
USDGBP
The third in terms of global volume is the USDGBP currency pair. It is widely traded because it again represents two of the most influential economies in the world, the United Kingdom and the United States.
Oftentimes, frequent market-moving news from both economies drives fluctuations in the currency pair.
USDCNY
The USDCNY pair is fourth in the list of the most traded forex pairs that trade the U.S. dollar and the Chinese yuan (renminbi). It is closely followed due to the fact that China is the world's second-largest economy by nominal GDP, and its trade activity has a significant influence on the world's economy.
This pair might be relevant for traders who analyse the economic interplay between Western and Asian economies. While it is less liquid than the major pairs like EURUSD or GBPUSD, its significance is growing due to China’s increasing role in international trade and investment flows.
Factors Influencing the Most Traded Forex Pairs
Out of so many currency pairs to trade, why is it that a very few currency pairs attract more attention than others? Here are the reasons why:
High Volatility
Currency pairs will generally be very volatile at times when economic data is to be released, like interest rate announcements, inflation data, GDP growth figures, etc.
Traders may adjust their positions in response to major news events, which might contribute to increased volatility in a currency pair.
Geopolitical Events
Political changes and diplomatic relations between two nations can also affect currencies. As an example, when tensions between the U.S. and China with regard to tariffs escalated, it resulted in fluctuations in the USDCNY currency pair.
Traders generally keep a very close eye on such news events since unexpected news may trigger volatility in the currency pair and might generate potential trading opportunities. But it’s important to remember that higher volatility also brings higher risk.
Market Sentiment
Traders’ perceptions about a country’s economic health also influence the demand and supply for currency pairs. For example, optimism about an economy can increase demand for its currency, which may contribute to upward pressure on the exchange rate and vice versa.
Liquidity and Popularity of a Currency Pair
When a currency pair is highly liquid, large volumes can be transacted.
This typically results in tighter spreads, which is common for the most traded forex pairs.
Benefits of Trading the Most Traded Pairs
Trading the most active currency pairs often comes with certain advantages. Here are a few of them:
High Liquidity
Forex pairs which fall under the major category often attract a large number of participants. So, these orders may get executed quickly.
Tighter Spreads
A spread is the difference between the bid and ask price. As the most traded forex pairs offer high liquidity, the bid-ask difference is smaller. Such pairs are generally used in scalping strategies.
Lower Slippage Risk
Slippage is when the price changes between the moment a trader places an order and when it is executed. Trading in highly liquid pairs reduces the likelihood of such unexpected price jumps, but market risks remain
Abundant Market Information
There’s usually no shortage of news, analysis, and insights on major pairs, which can help traders stay informed.
Risks & Drawbacks of Trading the Most Traded Pairs
Despite several benefits, there are also risks and challenges that traders should be aware of when dealing with highly traded pairs.
High Competition
Big institutional players and algorithms make the market highly competitive.
News-Driven Volatility
Economic updates can cause sudden and sharp moves in price.
Overtrading Temptation
Since these pairs are volatile, trading too frequently can increase risk.
Strategies for Trading the Most Traded Forex Pairs
Just like any other skill, trading requires time and consistent practice. Developing proficiency involves patience, discipline, and continuous learning about the markets.
It’s good to start with a proper trading plan that is based on either technical or fundamental analysis.
- Technical analysis looks at price charts of a financial instrument, using technical indicators or price action.
- Whereas fundamental analysis attempts to forecast price movements based on macroeconomic data and news releases.
Understanding Forex Trading Hours
Understanding Forex trading sessions will help you plan your trading strategy.
The Forex markets are open 24 hours a day during the week, except on holidays. However, the forex market isn't dominated by one geography or one central exchange; instead, there is a global network of brokers and exchanges around the world.
Although the Forex market operates 24 hours during the week but it has some limitations. Positions are not always monitored continuously, which can result in missed market movements or exposure to sudden volatility.
To manage such risks, it’s good to know when markets are typically more active and align trades with those periods.
If you look at the trading hours, you may notice that there is a pattern that generally follows: as one major Forex market closes, there is another one that has opened. There are specific times in which the markets are more active and times when they are less active.
Periods of Higher Market Activity for Most Traded Pairs
When there is low liquidity, which often occurs when markets open, trading can become more challenging. Lower liquidity can create greater volatility.
- The first few hours of a major trading session tend to exhibit stronger momentum, trend, and retracement patterns.
- Certain times, such as the first and last five minutes of an hour, may coincide with increased volatility or notable market movements.
If you would like to know more about trading hours, read this article: A Guide to the Forex Trading Sessions and Hours.
Final Thoughts
Even though the most traded pairs are available, you should choose the one that you are most knowledgeable about. Some traders monitor a currency pair and keep a track of economic announcements using a Forex trading calendar before making trading decisions.
If you’re just starting out, consider opening a free demo account. It allows you to practice trading these currency pairs in real market conditions, without any financial pressure. This way, you can build confidence, test strategies, and understand how economic events impact price movements before moving on to live trading.
Articles that might interest you:
- Forex Trading Plan: Why You Need it and How to Make it
- Trading Risk Management: Top 10 Forex Risk Management Tips
- Top Three Forex Traders
Frequently Asked Questions (FAQ)
What is the most traded Forex pair in the world?
The most traded Forex pair globally is EURUSD.
What are minor and exotic currency pairs?
Minors are pairs without the US dollar, like EURGBP or GBPJPY, while exotic pairs are a major currency with a less traded one, like USDTRY (US Dollar to Turkish Lira).
Do most traded pairs always mean most profitable?
Not necessarily. The most traded pairs offer liquidity, while outcomes depend on a trader’s knowledge, strategy, and sound risk management.
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