The forex market, under the right conditions, can be a great opportunity for making financial returns, depending on how you, as a trader, decide to navigate around it.
For starters, if you want to trade cheap currency pairs in the forex market while on a budget, you will need to understand that the cheapest currency pairs are those with very low spreads.
By spreads here, we simply mean the currency pairs that have low reward ratios with very few risks. The cheapest currency pairs in the forex market are the ones with this feature.
The higher the spread of a currency pair, the riskier it is and the less likely you are to achieve anything of note with a budget because of the large amount of capital needed.
Key Takeaways
• Forex trading on a budget is quite possible once you get the hang of the right currency pairs to trade with and the right trading strategies to utilize as well.
• The USD/CHF currency pair is quite an easy pair to trade, making it very suitable for traders new to the forex market.
• Watch out for currency pairs with low spreads as these pairs are known to offer fewer risks, with reduced chances of you making losses off of the little money you traded with.
That said, this article provides a list of the cheapest currency pairs you can trade successfully if you are a trader on a budget.
Here they are below:
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EUR/USD
This currency pair is one of the most traded in the forex market and for good reason. It has a very low variable spread of between 0.1 and 3 pips and a fixed spread of between 1.3 and 5 pips.
This shows that you do not need to invest a lot of money to make profits from this currency pair, and the fact that this currency pair represents the developed economies of Europe and the United States is another reason why it is highly sought after.
Finally, it has quite the volatility, which means it has an opening for profit-making potential, which is good news for both new and experienced traders.
GBP/USD
GBP/USD is a type of currency pair that can yield you reasonable profits with its low spreads, so long as you make use of the right trading techniques.
This currency pair is also known to be big on market movements, which is once again an advantage for traders who want to make profits.
Also, with a variable spread of between 0.3 and 2.7 pips, the chances that you will make losses while being on a budget are very minimal, if at all.
USD/JPY
A good look at this currency pair and you will notice that they both represent the very strong economies of the United States and Japan.
This alone should provide you with numerous opportunities to make good trades while on a budget.
Also, deciding to trade with these two economies solely in mind, coupled with the fact that it has a low variable spread of between 0.2 and 2 pips, should see you making a 2.1% daily profit at the very least.
EUR/JPY
This currency pair is a minor currency pair on this list, but this doesn’t mean that you can’t still make a profit (up to 1.9% daily profit).
However, you do have to be sure that you are familiar with both economies and be careful to watch out for their erratic movements at times in the forex market so as not to incur an unwanted loss.
At the same time, because it has a spread of between 0.5 and 5.7 pips, you can rest assured that you will have minimal losses.
USD/CHF
The USD/CHF currency pair offers more stability than other currency pairs in the forex market, which is something to take note of, especially if you are an inexperienced trader.
The chances of making reasonable profits while being on a budget are quite achievable, with figures of up to 2.6% daily.
Also, this currency pair, with a spread of between 0.5 and 5 pips, is easy to trade without applying too many trading strategies, making it a favorite for traders looking to trade currency pairs and still make a profit while on a budget.
Final Thoughts
It is important to note that you do not have to throw a lot of money into the forex market to be able to make profits.
If you are a new or experienced trader, all you need to do is simply apply the right strategies and choose the right currency pairs to make a profit from without putting in too much (on a budget).
The above-listed currency pairs are good examples of cheap currency pairs you can utilize to get started trading.
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