Best Times to Trade the Forex Markets: A Guide

The time zone is UTC +3 and it will be the same time for everyone trading on these platforms. You can find this time in the top left hand side of the trading platform. These two minute pauses in trading between week days is when the market rolls over.

If you’re able to manage your trades well and balance everything, then forex trading can be a brilliant side job for you. With over 20 years of investing experience and 10 years of trading, Justin co-founded Compare Forex Brokers in 2014. He has worked within the foreign exchange trading industry for several years and for several of the largest banks globally. Justin achieved Honours in Commerce and has a Master’s degree from Monash University. He also owns Innovate Online offering digital marketing services with over 20 employees. The best time to trade is when the market is active with lots of forex traders opening and closing positions, which creates a large volume of trades.

The image below shows the best times of day to trade Forex during daylight saving time. This is the trade server time for the MT4 and MT5 platforms, which is UTC +3. You can convert these times to your local time or follow the time in the market watch window.

forex trading times

I appreciate that you probably have a job and this might make it difficult to trade during the day. When the US session starts, the CAD, USD, MXN and BRL are good to trade. During the European session, the EUR, GBP, CHF and ZAR are more active. I will talk about this more in a later tutorial but the swap is another way you can potentially make money from trading Forex. Build your confidence and knowledge with a wealth of educational tools and online resources.

Even though dozens of economic releases happen each weekday in all time zones and affect all currencies, a trader does not need to be aware of all of them. It is important to prioritize news releases between those that need to be watched versus those that should be monitored. The Bank for International Settlement survey shows that more than 30% of all forex transactions cix markets happen during the London session. The banks and major FX players are very active during this session, leading to many trading activities in most currency pairs. Of course, long as the week is, a typical trading day would not see action all day long. The most important trading hours in a day are the hours when at least two of the markets are open.

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The impact of news released during the weekend is visible on Monday when the forex market gets active. Last but not least, it is important to know that forex trading is definitely not a monotone job. Things are always changing in the forex industry – the market is highly dynamic and new, sophisticated tools keep popping up every now and then. There’s always something novel to discover that might help you improve your trades.

During the time when only one market is operational, it is usually calmer and the pip spreads thin at about a variance of 30 pips. But as soon as a second or more markets are functional simultaneously, there can be surges with up to 70 pips and above. The round the clock nature of forex trading translates to a long week for the forex market. Technically, the forex market opens by 5 pm EST on Sunday and the week only comes to a close by 5 pm EST on Friday. The US market is up and London is also actively trading and this overlap sees the maximum volatility. Given that the USD and the EUR, the most popular and heaviest traded currencies now in full swing, this overlap sees up to 70% of all trades happening.

forex trading times

Like rate announcements, these directly impact currency pairings and can see large fluctuations. Over 2015, the Chinese announcements have worldwide led to the largest fluctuations. You usually want to avoid trading when only one trading session is open and instead, wait for trading sessions to overlap. Naturally, you will be considering what the best currency pairs to trade at night are. In my opinion, the best opportunities can be found at the beginning of the US session. The second best times of day to trade are at the beginning of the EU session and the London open.

When you open a live forex trading account, the broker needs to offer you access to a user-friendly trading platform. As is evident from above, the best window is between 8 am and noon EST as the two biggest exchanges – New York and London – are open and active. Half of all forex trades that are done originate from these two centres.

The retail forex trading brokers are open for business at any time during the day or night, 24 hours a day, five days a week. From the Wellington opening in New Zealand until the North American market closes on Friday, the forex market is continuously operating without any interruptions. The world of forex trading is a truly global one with the major markets spread across multiple countries. This means that the forex market works around the clock and, as a trader or even someone following it closely, need to adapt to this complexity. As a trader, more so, knowing what are the best forex trading hours is not just helpful but essential. The best time to trade forex pairs depends on the currency pair and the location of the trader.

European Markets

Each trading session is not necessarily and equally the best time to trade though. Use the below Forex Market Clock to check where your current time is in relation to the 4 major forex trading sessions . When trading forex via retail investor accounts, you will be trading financial instruments called contracts for difference . CFDs allow speculating on future price movements without buying or selling the underlying asset. For instance, if you want to take advantage of high volatility in the EUR/USD, you can trade EUR/USD CFDs with no need to exchange the physical currency.

What is the Best Time to Trade Forex in Nigeria

It is thus worth finding out about the economic indicators published in the different major countries, as these coincide with the most active moments of forex trading. Such increased activity means bigger opportunities in currency prices, and sometimes orders are executed at prices that differ from those you expected. Other forex trading hours to watch out for are the release times of government reports and official economic news. Governments issue timetables for when exactly these news releases take place, but they do not coordinate releases between the different countries. Without leverage, making sizeable profits or losses would be near impossible.

The Best Times to Trade the Forex Markets

Investment capital tends to flow to the countries that are believed to have good growth prospects and subsequently, good investment opportunities, which leads the country’s exchange strengthening. The trading activity can be interrupted during the weekdays only by a bank holiday or national holidays, in which case all business operations are partially suspended or suspended. As a general rule, the Pound crosses will usually be most active during the regular London trading hours. While the GBP crosses are actively traded around the clock, they tend to be traded more during the hours when the UK market is open.

Trading Sessions

In case you don’t have your PC at hand, please make sure to have your account login details with you so that our support team can help you with your orders. Manned by 20 multilingual market professionals we present a diversified educational knowledge base to empower our customers with a competitive advantage. In addition our range of platforms for Apple and Android mobile devices will seamlessly allow you to access and trade on your account from your smartphone or tablet with full account functionality. Our forex comparisons and broker reviews are reader supported and we may receive payment when you click on a link to a partner site. Our gain and loss percentage calculator quickly tells you the percentage of your account balance that you have won or lost. Find the approximate amount of currency units to buy or sell so you can control your maximum risk per position.

This coincides with the pre-open trading time of the Australian Stock Exchange in Sydney. are usually marked by the opening and closing times of the major financial exchanges around the world. The most relevant countries where Forex trading times are recorded from are Australia, Japan, Germany, UK and the US. As countries open and close for business, the major financial centers hand over the facilitation of trade to each other like a relay. In terms of the actual trading strategy, trading during the London market opening hour is no different than trading any other time of the day.

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