What are the best currencies to trade for bigger profits? Here we will give you some ideas on the currency pairs you should look at and how to pick a mix of currencies to trade to reduce risk and increase your overall profitability.

Here is our personal view of the best currencies to trade which is of course subjective but the combination of currencies below, are ones we consider that all currency traders should consider following in their currency trading strategy.

The Major Currency Pairs

When trading currencies volume, liquidity and volatility are important you need volume and liquidity and low spreads to cut your cost of doing business and you need volatility to make money so lets start with the most popular pairs for speculators against the Dollar which are the Euro, British Pound and Japanese Yen.

EUR-USD

GBP-USD

USD-JPY

The Commodity Currencies

Many traders restrict themselves to the majors above but there are two commodity currencies which can be considered and there the Canadian and Australian Dollar.

AUD- USD

CAD- USD

While not a liquid as the major three we have just looked at these currencies offer excellent long term trends good volatility and if you are trend following pip spreads are very reasonable. Many currency traders ignore these currencies but its a mistake in that they can diversify your portfolio and enhance overall profitability.

Cross Currency Pairs

So far we have looked at 5 currencies all traders should consider trading and there all against the US Dollar however there are some crosses which should be considered which can add diversity which have good volatility, good trends and reasonable pip spreads and the ones all traders should consider are:

EUR – GBP

EUR – JPY

AUS -JPY

Comments on Trading the Above Currencies

So long as a currency has good liquidity, reasonable pip spreads and offers a volatile trending nature then you can look to trade and all the currency pairs and crosses above, will all offer you these advantages.

There are many traders who have favourite pairs but if your currency trading system is based on sound logic, you should look at all the pairs above. At different times different currency pairs, will offer good opportunities when there trending well - but at other times, they will be in periods of consolidation and can generate false trading signals. So when you are applying your trading strategy, don't fall in love with one particular pair because you have made money with it, because it can suddenly start giving you bad signals rather than good ones! That's just the reality of trading currencies

Monitor all the currency pairs above and see them, all in regard to how the chart looks when your trading them and simply trade high odds signals.

In conclusion, there is no single best currency to trade but if you monitor the above currencies with your currency trading strategy, you will have a mix which offer you arguably – the best currencies to trade, as a portfolio.