Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

The vast majority of retail client accounts lose money when trading CFDs.

You should consider whether you can afford to take the high risk of losing your money.

Important Notice - Fraud awareness
Important Notice - Scam alert
54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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Most traded exotic currency pairs in the forex market

Conservative traders who prefer long-term forex investments often prefer to trade only exotic currency pairs. Such forex pairs are less volatile and suitable for long-term holding. Exotic currency pairs offer opportunities in long-term investments for swing traders. Beginners find exotic pairs very attractive as it is very easy to master their price movement. Therefore, we have exposed the best exotic pairs for long-term investors and beginners to choose from below.

What is an Exotic Pair?

An exotic pair crosses the significant currencies with any other currency from the developing countries. The term exotic refers to the indigenous currency of the developing countries. These sets of forex pairs are the third most traded in the forex market today. Another way of describing exotic pairs is as a cross between the local currency of those countries with smaller economies against those of a larger one, such as the dollarEuroPounds, and others. 

exotic forex pair

15 most traded exotic pairs in the forex market today 

  1. Euro/Hungarian Forint (EUR/HUF) 
  2. Euro/Polish Zloty (EUR/PLN) 
  3. Euro/Turkish Lira (EUR/TRY) 
  4. US Dollar/South Africa Rand (USD/ZAR) 
  5. US Dollar/Swedish Krona (USD/SEK) 
  6. US Dollar/Russian Ruble (USD/RUB) 
  7. US Dollar/Norwegian Krone (USD/NOK) 
  8. US Dollar/Mexican Peso (USD/MXN) 
  9. US Dollar/Danish Krone (USD/DKK) 
  10. US Dollar/Hong Kong Dollar (USD/HKD) 
  11. US Dollar/Chinese Offshore Yuan (USD/CNH) 
  12. US Dollar/Singapore Dollar (USD/SGD) 
  13. US Dollar/Czech Koruna (USD/CZK) 
  14. US Dollar/Turkish Lira (USD/TRY) 
  15. US Dollar/Hungarian Forint (USD/HUF) 

Advantages of trading Exotic Pairs 

  • They are straightforward to master. 
  • Suitable for long-term investments. 
  • They are not as volatile compared to other pairs. 
  • Lucrative and offer good profits. 
  • Great for diversifying investments. 
  • It is a recommended pair for beginners. 

Disadvantages of trading Exotic Pairs 

  • They have low volumes traded daily and are not suitable for scalping
  • Illiquid and lacking market depth. Thus, more inferior liquidity with higher volatility increases the risk of forex slippage
  • They can be highly volatile when important economic data is released.
  • It could be expensive. The bid-ask spread is usually significant to compensate for the lack of liquidity. 
  • Trading CFDs has some risks associated with them. Every trader needs to understand before venturing into it. 

Learn about factors that influence exchange rates in the forex market

Which broker is best for trading forex?

Given the delicate nature, ECN brokers such as ATFX are the best option for trading as they offer the lowest spread. Using an Electronic Communication Network enables them to place the order directly into the market where we have huge investors bargaining at the same time, therefore reducing slippage. There are several exotic currency pairs provided by ATFX and is readily available for investors to trade.

Last Updated: 13/05/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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