Offers two ways to trade: Forex, CFDs
Popular for Major Pairs!
139 traders clicked on ATFX Global Markets this month.
The Ultimate Guide to
Choosing a Broker
For Major Pairs
Not sure which broker is right for you?
Don’t worry - we’ve got you covered. In this guide, you’ll learn:
- Why ATFX Global Markets scored high for major pairs (Jump to section)
- Who ATFX Global Markets is (and isn’t) suitable for (Jump to section)
- An in-depth feature comparison of the top #3 brokers (Jump to section)
- An overview on major pairs (Jump to section)
What is the Best Trading Platform
for Major Pairs?
ATFX Global Markets scored best in our review of the top brokers for major pairs, which takes into account 120+ factors across eight categories. Here's the full list of all the brokers we considered.
The following brokers allow major pairs on their platform:
- ATFX Global Markets
Here are some areas where ATFX Global Markets scored highly in:
- 4+ years in business
- Offers 57+ instruments
- A range of platform inc. MT4, Mac, Web Trader, Tablet & Mobile apps
- 24/7 customer service
- Tight spreads from 0.5 pips
- Used by + traders
- Allows hedging
- 2 languages
- Leverage up to
ATFX Global Markets offers two ways to trade: Forex, CFDs. If you wanted to trade EURUSD through copy trading or other means, skip to part two.
The two most important categories in our rating system are the cost of trading and the broker’s trust score. To calculate a broker’s trust score, we take into account a range of factors, including their regulation history, years in business, liquidity provider etc.
ATFX Global Markets have a B trust score, which is low. This is largely down to them being regulated by CySEC, segregating client funds, being established for over 4 years, and much more. For comparison:
Trust Score comparsion
|ATFX Global Markets|
|Uses tier 1 banks|
|Segregates client funds|
The second thing we look for is the competitiveness of the spreads, and what fees they charge. We've compared these in detail in part three of this guide.
Who ATFX Global Markets is (& Isn’t)
As mentioned, ATFX Global Markets allows you to trade in two ways: Forex, CFDs.
- CFD Trading
- Forex Trading
To trade with ATFX Global Markets, you'll need a minimum deposit of $100. ATFX Global Markets offers a range of different account types for different traders including a micro account, mini account, and vip account.
ATFX Global Markets offer over 57 instruments to trade including forex pairs, indices, and many other asset classes. In the following section we’ve listed ATFX Global Markets’s spreads for a range of popular instruments. You can also see a more detailed breakdown of how ATFX Global Markets’s spreads compare in this ATFX Global Markets review
Finally, ATFX Global Markets isn't available in the following countries: DPRK, Canada, Iran, Japan, Brazil, Mexico, Turkey, Cuba, Sudan, Syria, USA, Bosnia and Herzegovina, Ethiopia, Iraq, Sri Lanka, Trinidad and Tobago, Tunisia, Vanuatu, Yemen.. They do not offer islamic accounts either.
A Comparison of ATFX Global Markets vs. vs.
Want to see how ATFX Global Markets stacks up against and ? We've compared their spreads, features, and key information below.
Spread & fee comparsionThe spreads below are illustrative. For more accurate pricing information, click on the names of the brokers at the top of the table to open their websites in a new tab.
|ATFX Global Markets|
|FTSE 100 Spread|
Comparison of account & trading features
|ATFX Global Markets|
|Accounts offered||Micro account, mini account, standard account, VIP account|
|Platforms||MT4, Mac, Web Trader, Tablet & Mobile apps|
|Risk management features||Limit order, take profit, entry order, one click trading, trailing stops, price alerts, limited risk account and negative balance protection|
|Funding methods||Credit cards, Bank transfer, American Express, MasterCard,|
What are the Forex Major Pairs:
All currencies can be compared as a forex pair but the most traded currency pairs are known as the forex major pairs. The top seven currencies most commonly traded include the British pound, the euro, the US dollar, the Japanese yen, the Australian dollar, Canadian dollar and the Swiss franc. These make up the highest volume of trades in the foreign exchange market and are therefore considered to have “market liquidity” meaning they can be sold quickly without great fluctuation in price. Some of the major pairs are given nicknames when paired with the US dollar such as “swissy” (Swiss franc), “loonie” (Canadian dollar), “Aussie” (Australian dollar) and “Kiwi” (NZ dollar).
The Euro dollar is the comparison of the value of the euro against the US dollar. It had the highest turnover in 2016, making up 23% of the daily average trading volume, according to the Bank for International Settlements. The dollar yen was the second most traded major pair at 17.7% although turnover in 2016 was markedly lower than in 2013 when the Euro dollar achieved 24.1% and the dollar yen 18.3%. One of the least traded of the major pairs was the “kiwi” making up only 1.5% of the daily trading volume.
|Currency Pair||Countries||FX Nickname|
|EUR/USD||Euro zone / United States||“euro dollar”|
|USD/JPY||United States / Japan||“dollar yen”|
|GBP/USD||United Kingdom / United States||“pound dollar”|
|USD/CHF||United States/ Switzerland||“dollar swissy”|
|USD/CAD||United States / Canada||“dollar loonie”|
|AUD/USD||Australia / United States||“aussie dollar”|
|NZD/USD||New Zealand / United States||“kiwi dollar”|
The popular currency pairs that do not include the USD are referred to as the cross currency pairs, for example the GBP/EUR currency pair.
The Euro dollar is the comparison of the value of the euro against the US dollar. It had the highest turnover in 2016 with a daily average turnover of over $1.173 trillion, making up 23% of the forex market. The dollar yen was the second most traded major pair accounting with a daily average turn over of $901 billion accounting for 17.7% of the daily trading volume. One of the least traded of the major pairs was the “kiwi dollar” with a daily average trading volume of 77.6 billion accounting for less than 1.6% of the forex market.
Advantages to trading the Major Pairs
Slippage – These make up the highest volume of trades in the foreign exchange market and are therefore considered to have “market liquidity” meaning they can be sold quickly without great fluctuation in price.
Volatility – The majors are based on the major economic superpowers like the US and Europe and are not as volatile as trading exotic pairs with less stable economies like Zimbabwe (ZWD).
Tighter spreads – They have more trading volume and are generally offered lower spreads than other currencies for example with a Forex broker like AvaTrade, the minimum spread for the EUR/USD is 0.1 compared to 1.9 for a cross currency pair like EUR/JPY.
What Are Forex Pairs?
A forex pair is the comparison of the value of one currency against another. For example, the euro against the British pound or the US dollar against the Japanese yen. These values are ever fluctuating leading to the popularity of currency as a tradable commodity. The value is written as a pair divided by a slash with the first currency called the base currency and the second the counter currency.
Forex Major Pairs
All currencies can be compared as a forex pair but the most traded currency pairs are known as the forex major pairs. These are the top seven currencies most commonly traded and include the British pound, the euro, the US dollar, the Japanese yen, the Australian dollar, Canadian dollar and the Swiss franc. These make up the highest volume of trades in the foreign exchange market and are therefore considered to have “market liquidity” meaning they can be sold quickly without great fluctuation in price. Some of the major pairs are given nicknames when paired with the US dollar such as “swissy” (Swiss franc), “loonie” (Canadian dollar), “Aussie” (Australian dollar) and “Kiwi” (NZ dollar).
The Euro dollar is the comparison of the value of the euro against the US dollar. It had the highest turnover in 2016 by far with a daily average of 23%, according to the Bank for International Settlements (www.bis.org/publ/rpfx16fx.pdf ). The dollar yen was the second most traded major pair at 17.7% although turnover in 2016 was markedly lower than in 2013 when the Euro dollar achieved 24.1% and the dollar yen 18.3%. One of the least traded of the major pairs was the “kiwi” at only 1.5%.
As a global marketplace, foreign exchange is fundamentally influenced by social and political events across the globe and in turn forex itself wields a powerful influence over economic trends and political stability. Forex analysts take into account a variety of economic and political factors for both currencies on a regular basis and then attempt to forecast the overall directional outlook of a particular pair.
If the forecast of a particular pair changes suddenly due to an unexpected political or economic event, then the market may become more volatile as the exchange rate for the currency pair quickly rises or falls.
Information fundamental analysts use to forecast future exchange rates include changes in a country’s gross domestic product (GDP), interest rates, inflation, a country’s trading patterns and general economy based on whether or not their politics are stable and peaceful.
Employment data, retail sales trends, industrial production and the Consumer Price Index also have a powerful influence on the overall value of a country’s currency.
Volatility can arise following a political or economic announcement but can be short-lived as the market settles back to the original trend soon after. If a forex major is considered stable, or liquid, it can be viewed as a less risky pair compared to a naturally volatile currency pair.
Three Factors That Influenced the Majors in 2016
1. China’s Economic Slowdown
As the world’s largest economy, accounting for up to 18% of world economic activity in 2016, any changes in China affect currencies across the globe. In 2016, China’s economy grew by6.7% marking its slowest growth since 1990. As China is the world’s second largest importer of commercial services and goods, the slowdown had a significant impact on the rest of the world, affecting forex prices and commodities like oil.
June 2016’s shock Brexit outcome predicted economic calamity particularly for the value of the British pound. The value of the pound weakened sharply immediately following the vote to leave and further influences have driven it even lower. Sterling plunged 19% after the referendum reaching a low of $1.21 in October.
3. Falling Oil Prices
Oil prices continued to fall as in the previous year. As a result, the Canadian Loonie took a heavy hit and reached an eight month low of 74.07 US cents in November.
Three Events That Might Impact Currency in 2017
Donald Trump’s shock presidential election in the latter part of 2016 left forecast analysers struggling to predict how Trump’s policies of tariffs and border taxes would affect the dollar. Already strengthened by political instability in Europe, the dollar continues to appreciate. Other currencies affected include the Canadian Loonie and the Japanese yen as countries with bigger imports to the US may suffer Trump’s expensive border taxes.
The Bank of England base rate was cut in August and is expected to remain at 0.25% for most of 2017 which keeps the pound low in relation to other currencies especially the US dollar. Sterling is expected to remain in the $1.15-$1.30 range.
3. Slow growth in New Zealand
While weak elsewhere, the pound looks to improve against the NZ dollar due to a fall in New Zealand’s GDP. The NZ dollar fell to 69.73 US cents in March 2017.
How to Trade Forex Major Pairs
For many traders with smaller deposits, trading using a CFD account is a popular method. Retail traders can access a wide range of markets with a CFD broker. Furthermore, using leverage, traders only require a fraction of the total value of the contract. For example, by trading with a broker such as LCG the minimum bet could be as low as £0.50 on the Euro/GBP with a spread margin from 0.9-1.5. However, it is always important to remember that alothough the gains are potentially magnified but so too are the losses.
If you are looking for a CFD broker, it is important to ensure they are regulated by a reputable organisation like the Financial Conduct Authority in the UK, you can view a list of brokers regulated by the FCA here: Top Forex Brokers Regulated by the FCA (UK).
Similarly, traders with higher deposits can also take advantage of opening an account with a broker like LCG which offer ECN accounts with tighter spreads that require a minimum of £10,000 to open.
*All information collected from www.avatrade.com, see website for full terms and conditions. Your capital is at risk. Last updated on March 6th, 2017.
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