Friday, November 21, 2008
What are the best currencies to trade? Here we will answer this question and also look at a few over looked currencies and in particular one of the best for novice traders.
Here we are going to look at the best currencies against the US Dollar.
Perhaps the most important consideration is turnover and liquidity of the currency traded. and these currencies also offer the tightest pip spreads which reduce your cost of doing business. You can trade the majors for just 2 or 1 pip spreads and the currencies with the highest volume against the dollar are.
- The Euro - The Japanese Yen - The British Pound - The Swiss Franc
Any trader should consider the above 4 and the euro and the yen are favorites for most traders and will work well for swing traders or trend followers.
I trade the euro, yen and Pound but not the Swiss Franc - nothing against it, it's a great trending currency but it tracks the euro to a degree now as the country has become more integrated with Europe so I have picked the euro.
Two other great currencies to trade are, the Australian and Canadian Dollar.
They don't have the volume of the big 4 and spreads are a little wider but for trend followers they offer some excellent trends and with both being commodity currencies, they have given some great trends over the last few years with the recent surge in commodity prices.
If I was to pick a currency that is good for novices, it wouldn't be the euro or the yen - but the Canadian dollar.
It works well on any technical system and offers reliable trends and the major advantage is it lacks the frequent volatility spikes you see in the big two
Of course any list of best currencies to trade is going to be subjective but if you are a novice trader or trading the majors and want a change, check out the Canadian dollar - it really is a great currency to trade.
Why ForexGen?
1. Lowest spreads in the market with 0-1 pips in 10 pairs, no commissions, no swaps and instant account Activation.
2. Scandinavian quality with Swiss precision, funds secured and local agents in 18+ countries.
3. ForexGen offers Forex trading in the major currency pairs and crosses.
4. Low capital start, with $250 as a minimum account size.
5. Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.
6. ForexGen offers a free trial Forex demo account that allows you to test your skills and practice without risking real money.
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