Sign up & start saving!
Get our weekly newsletter for the latest in money news, credit card offers + more ways to save
Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
A crash course in major, minor and exotic currency pairs
Are you just getting started with forex? Then you’ll definitely want to know what currency pairs are.
Updated
Guides
Exchange Rates
In the forex market, you deal with two currencies at a time. For example, when you’re selling US dollars, you need to know what you’re selling it for.
Let’s say you’re selling dollars and getting euros in return. In that case, you’re trading the USD/EUR currency pair.
In forex, you’ll be talking about currency pairs a lot. Whether you’re trading JPY/EUR (Japanese yen and euro) or ZAR/MXN (South African rand and Mexican peso), currency pairs will dominate the discussion at every turn.
There are three types of currency pairs: major,minor and exotic.
Your first transfer is free with the code FINDER.
- Low upfront fees and exchange rates.
- Easy to use with round-the-clock help.
- Get cash to family and friends in minutes.
Major currency pairs
Major currency pairs consist of the most frequently traded currencies globally. Because they have massive liquidity, you’re able to trade them virtually always. Furthermore, you’ll find the lowest spreads — or brokerage costs — when trading these pairs.
Major currency pairs include:
| Currency pairs | |
|---|---|
| EUR/USD | Euro/US dollar |
| USD/JPY | US dollar/Japanese yen |
| GBP/USD | British pound/US dollar |
| USD/CHF | US dollar/Swiss franc |
| USD/CAD | US dollar/Canadian dollar |
| AUD/USD | Australian dollar/US dollar |
| NZD/USD | New Zealand dollar/US dollar |
Notice that every major currency pair has the US dollar on one side. With good reason: The dollar is the world’s leading reserve currency, and it’s involved in about 88% of currency trades.
Foreign exchange currency pairs explained
Minor currency pairs
When a currency pair doesn’t include the US dollar, it’s called a minor currency pair or a cross-currency pair.
Here are a few minor currency pairs:
- EUR/GBP — Euro/British pound
- EUR/AUD — Euro/Australian dollar
- GBP/JPY — British pound/Japanese yen
- CHF/JPY — Swiss franc/Japanese yen
- NZD/JPY — New Zealand dollar/Japanese yen
- GBP/CAD — British pound/Canadian dollar
The most widely traded minor pairs consist of the euro, yen or British pound.
Exotic currency pairs
An exotic currency pair includes a major currency and the currency of a developing economy (such as Brazil or South Africa). You won’t find exotic pairs as often as you’ll find major or minor pairs, which means the spreads can be higher when trading them.
Exotic currency pairs include:
| Currency pairs | |
|---|---|
| EUR/TRY | Euro/Turkish lira |
| USD/HKD | US dollar/Hong Kong dollar |
| JPY/NOK | Japanese yen/Norwegian krone |
| NZD/SGD | New Zealand dollar/Singapore dollar |
| GBP/ZAR | British pound/South African rand |
| AUD/MXN | Australian dollar/Mexican peso |
Which pairs should I trade?
Picking the right currency pairs to trade depends on your experience as a forex trader. If you’re new to the game, it’s best to stick with the major and minor pairs — it’s easier to find trades and you’ll get lower spreads. Exotic pairs are more difficult to work with because they’re far less liquid and you’ll find higher spreads.
That said, it’s possible to make money with exotic pairs as long as you know what you’re doing. These pairs can be riskier, but they can pay off more significantly.
Compare forex trading platforms
Bottom line
The more widely traded a currency is, the easier it will be to trade and the lower spreads you’ll find. Learn more in our guide to foreign exchange.
Frequently asked questions
More guides on Finder
-
TransferMate review
Learn about how TransferMate’s personal product works and what it can do for you.
-
Best places to exchange currency in Calgary
Compare services and find out tips and tricks to help you get the best deal on your next foreign currency exchange in Calgary.
-
IG forex trading review
IG offers tight spreads and lets you access over 80 currency pairs with leverage as high as 1:50, but the platform is far from risk-free.
-
UAE Exchange review
Learn what to expect when using UAE Exchange or one of its subsidiaries and what alternatives are available.
-
AFEX review
AFEX offers fast transfers in all major currencies — but it’s not transparent about pricing. Learn what to expect and what your alternatives are.
-
Azimo review
Azimo sends to 200+ countries worldwide, but should you use it for your next money transfer? See how much it costs, how long it takes and how safe it is.
-
Tax guidelines and regulations for large money transfers into Japan
Your recipient may need to pay taxes on a large remittance, and you’ll likely need to report it.
-
Review: eToro cryptocurrency trading and CFDs
If you’re thinking of trading cryptocurrency and CFDs on eToro, make sure you check out our comprehensive eToro review first.
-
How to buy Bitcoin SV
This how to buy guide will let you in on everything you need to know about buying, selling and trading BSV.
-
Bit-Z exchange review
Find out everything you need to know about the Bit-Z cryptocurrency exchange, including its fees and supported currencies, to decide whether it’s the right trading platform for you.
Ask an Expert