Do you know what is a currency pair? A currency pair got of 2 forex currencies involved in the trade. Example of currency pairs are USD/JPY and USD/CHF. Now which is the best currency pair for trading? There are mainly two things that you must take into account while picking up the best forex currency pairs for trading. These factors are activity and the forex trading systems. Now we will see the trade volume part.

What are the Most Active Forex Currency Pairs?
One of the best ways to start currency trading is by choosing the most traded currency pairs. Most experts will advocate you to do so because of a number of reasons. The 1st factor is that highly active currency pairs have more liquidity and this means the stops will more consistantly met without slippage. Besides, in case of currency pairs which are very active in the market, the costs tend to be cheaper. While massive number of people are trading in the forex trading  market it results in a tighter spread, and there is also big war between foreign exchange brokers which will in turn keep the expensiture reduced.
So does this mean we only need to look into the most traded foreign exchange market and select the foreign exchange? Not really. If you are new to Fx trading you may be surprised to know that the most active Fx trading floor is not New Yoky, but London. But the most traded currency globally is of course US dollar. Now one might guess that US Dollar, GBP (British Pound) pair is the most traded forex currency in the foreign exchange market. This is not true. In fact EUR/USD currency pair is the most popular currency pair. The next most traded forex pair is USD/JPY and the third is GBP/USD pair.

Right Currency Pairs for Your currency trading System
The key factor in selecting the forex pair is of course the activity level and your knowledge about the economic situation of a particular foreign exchange. Your forex trading system also could be a factor in picking the foreign exchange pair. You might have the best forex trading system, but if you choose the poor performing currency pair you might end up with losses.
For example if your forex trading system involves the use of automated forex robot, you will most likely find that the particular foreign exchange trading software is set to work with a small number of currency pairs and that the most active foreign exchange pair may always gives you the best results. For example, you might know that FAP which the best selling forex EA available in the market is developed to trade EUR/GBP and Euro Swiss Frabc currency pairs. In case of FAP turbo most users observed that they are able to achieve better results with EUR/CHF pair though EUR/GBP more active pair in this case. Eventhough one can trade numerous currency pairs with a robot, a particular forex ea is usually tend to give better results with its currency pair.
Therefore in cases like this you should pick a forex currency pair which is suitable to your Fx trading system even if the currency pair is not the best. There is a new forex robot called Ivybot which provides you 4 separate forex trading software in which each one is set to perform well for a particular currency pair. You can read the Ivybot review here.

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