Top 10 most traded currencies

What are the most traded currencies in the world?

1. US dollar (USD)
2. Euro (EUR)
3. Japanese yen (JPY)
4. Great Britain pound/ sterling (GBP)
5. Australian dollar (AUD)
6. Chinese renminbi/ yuan (CNH)
7. Swiss franc (CHF)
8. Canadian dollar (CAD)
9. Hong Kong dollar (HKD)
10. New Zealand dollar (NZD)

The global foreign exchange (forex) market often experiences high trading volumes, with total daily trading hitting an all-time high of US$7.5 trillion in April 2022.¹ Below is a summary of the 10 most traded currencies in the world.

These current rankings reflect the evolving dynamics of the global economy and the forex market, with the USD, euro and yen retaining their dominant positions. However, currencies like the CNH and AUD have gained further prominence, reflecting the increasing importance of emerging and commodity-driven economies.

US dollar (USD)

• Share of global forex trading volume: 88.3%

The USD holds the title of the world's most traded and held currency, a position it’s held since World War II. This is mostly due to the size and strength of the US economy, its status as the main reserve currency choice of most central banks, its use for international trade and the Federal Reserve's highly anticipated monetary policy (interest rate) decisions.²

As a result of these and other factors, the USD is also often cited as a 'safe haven' asset and paired with many other major currencies.

Markets to watch: EUR/USD, GBP/USD and USD/JPY

Euro (EUR)

• Share of global forex trading volume: 32.0%

The euro, the official currency of 19 European Union (EU) countries and over 340 million EU citizens, is the second-most traded currency globally. The euro is popular among traders because of its high liquidity — the EUR/USD is the most traded currency pair globally. The euro is also the second most held international reserve currency, accounting for approximately 20% of total global forex reserves.³

Although the eurozone has weathered many political and economic storms over the last few years, ‘uncertainty about persistent core inflation, policy directions and geopolitical conflicts, is dampening the near-term outlook’ of the region.⁴

Markets to watch: EUR/USD, EUR/JPY and EUR/GBP

Japanese yen (JPY)

• Share of global forex trading volume: 16.5%

Like the USD, the Japanese yen is widely regarded as a safe haven currency, attracting investors and traders during times of market volatility, economic or political uncertainty. This ‘stability’ has led the JPY to become the third most held reserve currency in the world.⁵ Investors’ preference for the yen can also be seen in the number of major currencies it’s paired with, including the USD and EUR.

Despite this reputation, the JPY isn’t without its share of volatility, with the JPY appreciating roughly 7% against the USD between end-July 2024 and early-August 2024.⁶

Markets to watch: USD/JPY and EUR/JPY

Great Britain pound sterling (GBP)

• Share of global forex trading volume: 12.8%

The British pound is not only the fourth most traded currency globally, but is also the world’s fourth most held reserve currency.⁷

The GBP’s importance can be traced back to London’s status as a global financial hub since the 17th century, the size of the UK economy (the sixth largest in the world)⁸ as well the UK’s influence on the global geopolitical stage (it’s one of five permanent members of the United Nations Security Council).

Despite uncertainties surrounding Brexit and interest rate changes by the Bank of England, the pound continues to be heavily traded (as part of two popular currency pairs, namely GBP/USD and EUR/GBP).

Markets to watch: GBP/USD and GBP/EUR

Australian dollar (AUD)

• Share of global forex trading volume: 6.9%

The AUD, often considered the world’s foremost ‘commodity-linked currency’, continues to benefit from the country’s status as a major exporter of natural resources⁹ and the Reserve Bank of Australia's ‘softer’ interest rate policies.¹⁰

Australia also has a stable and resilient economy, characterised by low unemployment rates and consistent gross domestic product (GDP) growth.¹¹ These factors continue to render the AUD one of the most important currencies in forex trading.

Market to watch: AUD/USD

Chinese renminbi (CNH)

• Share of global forex trading volume: 6.4%

The Chinese renminbi, also known as the yuan, climbed in the rankings of the world’s most traded currencies (up three places from 2019), driven by a bevy of macroeconomic factors. They include China's continued economic growth, the currency's increased usage in international trade¹² and its inclusion in the IMF's Special Drawing Rights (SDR) basket.¹³

The CNH has also been making head waves in global payments, overtaking the JPY as the world's fourth most active currency in global payments in November 2023. The yuan’s share in global payments has grown from less than 0.1% in 2010 to 4.61% in 2024.¹⁴

Markets to watch: USD/CNH, CNH/JPY, EUR/CNH and GBP/CNH

Swiss franc (CHF)

• Share of global forex trading volume: 5.2%

The Swiss franc is the third traditional ‘safe haven’ currency on our list. The franc’s reputation for stability and low inflation has made it a popular hedging instrument since World War I.¹⁵

The CHF is considered as such because of Switzerland’s political and economic neutrality (which helps to insulate the franc from global turmoil), the franc’s limited supply (controlled by the Swiss National Bank to maintain its value) and the perception of Switzerland as a prosperous country with a robust banking system.¹⁶

Markets to watch: EUR/CHF and USD/CHF

Canadian dollar (CAD)

• Share of global forex trading volume: 5.1%

Another commodity-linked major is the Canadian dollar, a significant player in the forex market.

The CAD is driven by the performance of the Canadian economy, its abundant natural resources and the Bank of Canada's interest rate policies.¹⁷ As a major exporter of commodities, such as oil (Canada is the world’s fourth largest producer of crude oil) and natural gas¹⁸, the CAD is also closely tied to global economic conditions and trade flows.

Additionally, Canada has a strong banking system that has proven reliable in the face of recent crises.¹⁹

Market to watch: USD/CAD

Hong Kong dollar (HKD)

• Share of global forex trading volume: 3.1%

The Hong Kong dollar’s placing on this list is an indicator of its lasting popularity among clients.

The HKD’s trading volumes have been supported by Hong Kong's status as a major financial centre, and global trade and investment hub.²⁰ The East Asian currency has also enjoyed a close association with the USD (USD/HKD) for over 40 years (being pegged to the latter since 1983)²¹, providing it with long-term stability for investors.

Market to watch: USD/HKD

New Zealand dollar (NZD)

• Share of global forex trading volume: 2.1%

The New Zealand Dollar, or the ‘kiwi’, is also considered a commodity-linked currency, as the country's economy is heavily dependent on the export of key commodities like dairy products, meat and agricultural goods.²² This makes the NZD sensitive to fluctuations in global commodity prices.

The NZD is usually traded with the USD as the NZD/USD pair. The NSD/USD saw significant trading activity in 2024 as the New Zealand economy showed signs of resilience in the face of global uncertainty. Its performance was also impacted by the ongoing trade relationships between New Zealand and its key partners, particularly China and other Asia-Pacific nations.

Markets to watch: NZD/USD, EUR/NZD and NZD/JPY

What are the most traded forex pairs in the world?

1. GBP/USD
2. EUR/USD
3. USD/JPY

GBP/USD

The GBP/USD, or ‘the cable’, pairs the Great Britain pound (GBP) with the US dollar (USD). The term pays homage to the historical method of communication used to transmit currency prices between the UK and the US in the 19th century via the first-ever transatlantic cables.

The GBP/USD remained at the forefront of forex trading in 2024, as the United Kingdom (UK) navigated the challenges of a post-Brexit post-pandemic landscape.

EUR/USD

The EUR/USD pairs the currencies of the Eurozone (Euro) and the United States (USD), two of the world’s largest economies. The Euro, introduced in 1999, is the world’s second most widely held currency, while the USD is the world’s most widely held currency.²³

The EUR/USD has stayed hot on the back of interest rate changes and economic recovery indicators. This pair has consistently registered robust trading volumes (thanks to its deep liquidity and tight spreads) accounting for as much as 25% of the total forex market.

USD/JPY

This brings us to the USD/JPY (US dollar/ Japanese yen) pairing, also often considered to be a safe haven during times of market uncertainty. However, the pair experienced greater price volatility in 2024.

Economists said this was in large part due to the Japanese economy’s slow-ish recovery, which resulted in the Bank of Japan taking a dovish monetary policy stance against the Federal Reserve's more hawkish approach.²⁴

Forex pairs explained

Currency trading operates on a fundamental principle of exchange – when you buy or sell one currency, you’re simultaneously buying or selling another. This is why currencies are traded in pairs.

Every currency pair consists of a base currency and a quote currency. The base currency appears first, representing one unit of the asset being purchased or sold. The quote currency thus denotes the amount required to acquire one unit of the base currency. This price is what’s displayed for the currency pair.

For instance, in the EUR/USD pairing, the euro is the base currency, while the US dollar serves as the quote. If the quoted price reads 1.2000, it signifies that one euro can be exchanged for 1.20 US dollars. This rate reflects the relative value between the two currencies at that moment in the foreign exchange market.

Different type of forex pairs

The forex market is generally divided into three groups of currency pairs:

• Major pairs – these are the most actively traded currency pairs, typically involving the US dollar paired with currencies like the euro, yen, pound, and franc. Major forex pairs tend to have the highest liquidity and tightest spreads in the forex market
• Commodity pairs – these pairs have values closely tied to the price movements of commodities like oil, metals or agricultural goods. Notable examples include AUD/USD and USD/CAD. Commodity-linked forex pairs are influenced by the underlying commodity markets
• Cross pairs – these are currency pairs that don’t include the US dollar. Among the most well-known crosses are EUR/GBP and EUR/JPY. Cross pairs provide diversification opportunities outside the US dollar

How to start trading forex

1. Select and research a forex pair of your choice
2. Analyse the pair (technically and fundamentally)
3. Choose a forex trading strategy, practise and assess risk
4. Create an account with us and fund it
5. Open, monitor and close a position on a forex pair

1. Select and research a forex pair of your choice
Select a forex pair you’re familiar with or understand and analyse its past movements. Our platform offers over 80 currency pairs for CFD trading, enabling leveraged trades where profits and losses are based on the full position size. Always ensure that you manage your risk carefully

2. Analyse the pair (technically and fundamentally)
Use technical analysis to study historical price patterns or fundamental analysis to assess economic, political and financial factors affecting the currency pair. Understand how the base and quote currencies interact to identify optimal entry points

3. Choose a trading strategy, practise and assess risk
Develop a strategy that suits your goals, starting with a trading plan and backtesting/ practising it on a demo account. Strategies like day trading capitalise on short-term market volatility. Ensure that you’re comfortable with the associated risks and manage your exposure wisely

4. Create an account and fund it
Open an account by completing an application. Once verified, you can start funding the account to begin trading or practice on a demo account with virtual funds. There’s no minimum deposit, but it’s advisable to trade within your financial means

5. Open, monitor and close a forex position
Execute a forex trade based on analysis and strategy. Monitor the position closely using tools like price alerts and stop-loss orders to manage potential risks. Adjust your position as needed and close it when appropriate

Most traded currencies summed up

• The world’s most traded currencies include USD, EUR, JPY, GBP, AUD, CNY, CHF, CAD, HKD, and NZD, with the USD dominating 88.3% of global forex trading
• Some of these currencies are known for their stability (ie USD, JPY and CHF), while others are known for their connection with commodity prices (ie AUD, CAD and NZD)
• Most traded forex pairs include the GBP/USD, EUR/USD and USD/JPY. They reflect economic trends, geopolitical factors, market liquidity and investor preferences during volatility
• Forex pairs consist of a base currency and a quote currency, with prices showing how much of the quote currency is needed to buy one unit of the base currency
• There are three main types of forex pairs: major pairs, commodity pairs and cross pairs. Major pairs involve the USD, commodity pairs link to resources such as oil and cross pairs exclude the USD

Sources:

¹Bank for International Settlements (BIS) Triennial Central Bank Survey of Foreign Exchange and OTC Derivatives Markets, 2022

²U.S. Department of the Treasury, 'The Role of the Dollar as the World's Dominant Currency', 2023

³European Commission, 'The Euro: A Global Currency'

⁴International Monetary Fund (IMF): Regional Economic Outlook, 'A Recovery Short of Europe’s Full Potential', 2024

⁵IMF: Currency Composition of Official Foreign Exchange Reserves (COFER) database, 2023

⁶Oxford Economics, 'Yen volatility – so far, just a tremor for global markets', 2024

⁷IMF: Currency Composition of Official Foreign Exchange Reserves (COFER) database, 2023

⁸IMF: World Economic Outlook database, October 2024

⁹Observatory of Economic Complexity, 'Australia Exports, Imports, and Trade Partners'

¹⁰Australian Financial Review (AFR), 'Why the RBA can’t cut interest rates as fast as overseas banks', 2024

¹¹The Guardian, 'Steady Australian unemployment rate makes near-term interest cut unlikely', 2024

¹²Asia House, 'The Renminbi’s Rise and its Accelerated Use in Global Trade Finance, May 2023

¹³IMF Launches New SDR Basket Including Chinese Renminbi, Determines New Currency Amounts, 2016

¹⁴The Global Times, 'Yuan's global payment ranking remains in fourth place for eighth consecutive month in June', 2024

¹⁵University of Berne; University of Basel, 'The historical origins of the safe haven status of the Swiss franc'

¹⁶LFA, 'Is the Swiss franc a hedge against global uncertainty?', 2024

¹⁷Tastyfx, 'Canadian dollar gains as Bank of Canada holds rates, crude oil hits $80', 2024

¹⁸Canadian Association of Petroleum Producers (CAPP), 'Oil and Natural Gas in Canada'

¹⁹Chartered Professional Accountants Canada, Trust the system: Canadian banks stand strong', 2023

²⁰Hong Kong Monetary Authority: 'Hong Kong as an International Financial Center'

²¹South China Morning Post (SCMP), 'Explainer | Hong Kong dollar peg: what is it and why is it important?'

²²International Trade Administration, 2023

²³Council on Foreign Relations, 2023

²⁴The Business Times, 2024