What is a currency pair? A currency pair got of two different currencies involved in a trade. Example of currency pairs are EUR/USD and USD/CAD. So which is the best pair for foreign exchange trading? There are chiefly two factors that you need to keep in mind when deciding the best currency pairs for foreign exchange trading. These factors are trade volume and the foreign exchange trading systems. First let us see the volume part.

Best forex currency pair
If you are new at forex the best ways to start foreign exchange trading is by picking up the most active currency pairs. Most traders will propose you to do so due to numerous reasons. The 1st factor is that heavily traded currency pairs have more liquidity and this means that your stop losses will more regularly met without slippage. Next, in case of foreign exchange pairs which are very active in the market, the costs are likely to be lower. When enormous number of traders are trading in the forex trading market it creates a tighter spread, and there is also big war between Fx brokers which will help to keep the costs lower.
So does this mean we only need to look into the most traded forex trading market and choose the currency? Not really. If you are new to forex trading you may be surprised to hear that the most active forex trading floor is London, UK and not New York. But the most traded currency globally is of course US dollar. Now one might conclude that US Dollar, GBP (British Pound) pair is the most traded currency in the foreign exchange market. This is not correct. In fact EUR/USD currency pair is the most traded forex pair. The second most traded forex pair is USD/JPY and the 3rd is GBP/USD pair.

Best Currency Pairs for Your foreign exchange trading System
The most important factor in selecting the forex pair is of course the activity level and your knowledge about the financial situation of a particular currency. Your forex trading system also could be a factor in picking the forex pair. You might have the best foreign exchange trading system, but if you choose the poor performing currency pair you may end up with poor results.
For example if your foreign exchange trading system involves the use of automated forex robot, you will most likely find that the particular foreign exchange trading EA is set to work with a small number of currency pairs and that the most active currency pair may always gives you the best results. For example, you may know that FAP Turbo which is a popular forex software currently in the market is developed to trade EUR/GBP and Euro Swiss Frabc currency pairs. However most users observed that they are able to achieve good results using EUR/CHF pair though EUR/GBP more active pair here. Though one can trade numerous currency pairs with the Fx software, a particular forex robot is normally tend to give better profits with its currency pair.
So in such cases one must choose a currency pair which is suitable for your foreign exchange trading system even if the currency pair is not the best. There is a new forex EA called Ivybot which provides you 4 separate foreign exchange trading EA in which each one is set to work good for a particular currency pair. You can read the Ivybot review here.

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