Data compiled for the triennial survey conducted by the Bank for International Settlements (BIS) reveals the EUR/USD secured the largest market share in terms of average daily forex trading volume in April 2022. The world’s most liquid currency pair outpaced other leading majors with a 22.7% share of the average daily turnover of the forex market. Then again, this is unsurprising as the pair involves the currencies of the two largest economies on a global scale, the United States and the European Union. Runner-up USD/JPY saw a 16.3% increase in average daily trading volume from 2019 with a turnover of $1.01 trillion. The USD/GBP placed third with $714 billion in turnover (↥13.3%), followed by the USD/CNY ($494 billion) and the USD/CAD ($410 billion).
The JPY and GBP have remained relatively stable, while the CNY has shown a remarkable rise, albeit from a low base. Although still dominant, its share has decreased from 27.7% in 2010 to 22.7% in 2022. Nevertheless, the amount has generally increased over the years, reaching $1,705 billion in 2022.
These pairs provide a way for traders to compare the value of one currency against another and are widely used as benchmarks for other currency pairs. Trading the most traded currency pairs has several benefits, including high liquidity, narrow bid-ask spreads, more trading opportunities, and lower transaction costs. As with the other currency pairs on this list, traders should keep an eye on any ECB and BoE announcements that could affect the exchange rates of the euro and the pound, which would increase volatility further. Also known as ‘the gopher’, the USD/JPY currency pair is made up of the US dollar and the Japanese yen. In 2022, USD/JPY was the second most traded forex pair on the market with a 13.5% share of all daily forex transactions. JPY/AUD average daily turnover rose from $24 billion in 2010 to $37 billion in 2022, while their percentage share decreased from 0.6% to 0.5%.
Interesting Facts About Forex Currency Pairs
This figure encompasses a diverse range of participants, from beginner traders who are just getting started to seasoned institutional investors. By sliding the draggable clock, you can view how each trading session corresponds with the time zone you have selected, as well as the trading volume for that period. At present, New York is the second largest forex trading session, and considered the unofficial close of the forex trading day. If you’re researching the market or new to forex trading, the below statistics most traded currency pairs 2020 are designed to give you an overview of the size, turnover, and regulation. Its economy is stable but does not justify its place among the major currencies.
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- The broker operates on both a dealing desk and STP model, offering a range of platforms and tight spreads.
- FXSI is a domain operated by Zivalea (Pty) Ltd, an authorised Financial Service Provider and is regulated by the South African Financial Sector Conduct Authority (FSCA), (License No. 54231).
- While the sterling and the yen remained practically unchanged from the previous survey period, the CNY registered the most dramatic growth in terms of market share.
- The currency pair USD/HKD has seen a significant rise in trading volume due to turbulence in Hong Kong.
- It is commonly traded against the currencies of other strong economies like the EU, the US, the UK, and Australia through majors and crosses like the EUR/CNY, USD/CNY, GBP/CNY, and AUD/CNY.
These are typically the national currencies of countries with emerging or underdeveloped economies like Bulgaria, Argentina, and Peru, as you can see in the chart below. Russia is one exception as it is often grouped either among developed or developing countries, depending on the classification parameters used. The Hong Kong dollar trailed behind all other currencies in the top 10 as it generated a turnover of $24.9 billion in total. As many as $21.2 billion of this total came from outright forwards, followed by HKD options with $2.3 billion and currency swaps with $1.4 billion in turnover. A Cross Rate is a foreign exchange rate between two currencies that are both then valued against a third currency.
The euro (EUR):
You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. 72% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. The United States dollar (USD) is the most commonly traded currency in the world, and therefore most major forex pairs include the USD as the base or quote currency.
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They should conduct their own technical and fundamental analysis to determine if the currency pair is a suitable trading option at that moment. This assessment should take into account factors such as central bank announcements and ongoing trade disputes. Daily turnover averages in the countries with the largest shares remained relatively unchanged from the previous survey period. In 2022, the United Kingdom generated an impressive amount of $3.76 trillion in average trading volume per day, securing the first place in the ranking.
It was found in 2022 the average daily turnover had increased by 14% from $6.6 trillion to $7.5 trillion in a three-year period. The country witnessed a decline of 5 percentage points from the previous survey period when its share stood at 43%. The US ranked second with a 19.4% share of the overall daily averages (up 17% from 2019), followed by Singapore (9.4%), Hong Kong (7.1%), and Japan (4.4%). Greece, Portugal, Argentina, Bulgaria, Romania, and Peru were the countries with the smallest contribution to the total average turnover per day, with shares of less than 0.1%.
Forex Market Hours and Trading Sessions
- Here is a more detailed breakdown of the turnover each instrument generated.
- The Swiss franc tends to be more volatile due to its lack of liquidity in relatin to other major currencies.
- As a global reserve currency, the dollar is predominantly stable, stored in large quantities by central banks, and commonly used for international transactions.
- Despite this downturn, the USD/HKD remained the 8th most traded currency pair globally, with an average daily turnover of $187 billion.
The EUR/CHF and USD/ZAR were the least traded pairs on the top-20 list during this period, each accounting for a meager 0.9% of the average daily turnover. The EUR/CHF, in particular, saw a nominal decrease of 0.2 percentage points compared to the previous BIS survey period in 2019 when its share amounted to 1.1%. By contrast, the volume share of USD/ZAR remained unchanged from 2019 to 2022 at 0.9%.
How much does trading cost?
Changes in global monetary policy, coupled with inflation, are likely driving forex traders to more reliable fx pairs. Outside of the main currencies, the average daily turnover for emerging market currencies decreased slightly from 19% to 18%. The top 5 most traded currency pairs dominate because they’re tied to giants like the U.S., Europe, and Japan, keeping them liquid and busy for traders worldwide over decades. Banks use them for deals, investors chase rate shifts, and their high volume cuts costs, making them a steady base for beginners to avoid a fail over time. Firstly, the US is the world’s largest economy and a powerhouse in international trade.
BIS stopped receiving data from Russian authorities at the end of February 2022, which also significantly impacted results for the ruble. By contrast, the ringgit and the Colombian peso saw increases in average daily turnover of 40% and 16.7% compared to 2019. The Philippine peso and the Saudi riyal ranked as the 9th and 10th least traded currencies, each with a turnover of $18 billion.
