Why Choosing the Right Forex Pair Matters on XM
XM offers 55+ currency pairs across majors, minors, and exotics. But not all pairs are equal — spreads, volatility, liquidity, and trading hours vary significantly. Choosing the right pair for your strategy and timezone (especially Asian market hours) can make a huge difference to your profitability.
This guide ranks the best forex pairs to trade on XM based on spread costs, volatility, liquidity, and suitability for different trading styles.
Best Major Forex Pairs on XM
Major pairs involve the US Dollar and are the most liquid, lowest-spread pairs on XM. These are the best starting point for most traders:
| Pair | Avg Spread (Ultra Low) | Daily Range | Best For | Rating |
|---|---|---|---|---|
| EURUSD | 0.6 pips | 60–100 pips | All styles | ★★★★★ |
| GBPUSD | 0.8 pips | 80–130 pips | Day trading | ★★★★★ |
| USDJPY | 0.7 pips | 50–90 pips | Asian session | ★★★★★ |
| USDCHF | 0.9 pips | 50–80 pips | Swing trading | ★★★★☆ |
| AUDUSD | 0.8 pips | 50–80 pips | Asian session | ★★★★☆ |
| USDCAD | 1.0 pips | 50–80 pips | News trading | ★★★★☆ |
| NZDUSD | 1.1 pips | 40–70 pips | Swing trading | ★★★☆☆ |
Best Forex Pairs for Asian Session Trading on XM
If you're trading from Asia (Singapore, Malaysia, Thailand, Indonesia, Philippines), the Asian session runs from 00:00–09:00 GMT. These pairs are most active during Asian hours:
USDJPY
Spread from 0.7 pips
The most liquid Asian session pair. Japan is the world's 3rd largest economy. High volume during Tokyo session (00:00–09:00 GMT). Tight spreads on XM.
Session: Tokyo (00:00–09:00 GMT)
Best for: Scalping, Day Trading
AUDUSD
Spread from 0.8 pips
Australia's economy is closely tied to Asian trade. Active during Sydney and Tokyo sessions. Correlated with gold and Chinese economic data.
Session: Sydney (22:00–07:00 GMT)
Best for: Day Trading, Swing
NZDUSD
Spread from 1.1 pips
New Zealand dollar is active during the Sydney session. Lower volatility than AUDUSD — good for beginners in the Asian session.
Session: Sydney (22:00–07:00 GMT)
Best for: Swing Trading
EURJPY
Spread from 1.2 pips
A cross pair that combines European and Japanese economic forces. High volatility during Tokyo session overlap with early European open.
Session: Tokyo + Early London
Best for: Day Trading
Best XM Forex Pairs by Trading Style
Scalping (1–5 min charts)
Lowest spreads = lowest cost per trade. Scalpers need tight spreads to be profitable. EURUSD at 0.6 pips on XM Ultra Low is ideal.
Day Trading (15min–4h charts)
Good daily range (60–130 pips) with enough liquidity to enter and exit cleanly. GBPUSD offers the best range for day traders.
Swing Trading (Daily–Weekly charts)
Swing traders hold positions for days to weeks. Spread cost matters less — focus on pairs with clear technical levels and strong trends.
News Trading
These pairs react strongly to major economic releases (NFP, FOMC, BOJ, BOE). High volatility = big moves in short time.
Forex Pairs to Avoid as a Beginner on XM
Not all pairs on XM are beginner-friendly. These pairs have wide spreads, low liquidity, or extreme volatility that makes them risky for new traders:
| Pair | Why to Avoid (Beginners) |
|---|---|
| USDZAR | Very wide spreads (15–30 pips). Extreme volatility. Political risk. |
| USDTRY | Turkish Lira is highly volatile. Overnight swap costs are enormous. |
| USDRUB | Russian Ruble — geopolitical risk, low liquidity, wide spreads. |
| Exotic pairs (USD/MXN, USD/BRL) | Wide spreads, low liquidity, unpredictable moves. |
XM Forex Spreads vs Other Brokers
XM's spreads on the Ultra Low account are competitive with the industry's best. Here's how XM compares on EURUSD:
XM Ultra Low
0.6 pips
XM Zero
0.0 pips*
IC Markets
0.6 pips
Pepperstone
0.7 pips
*XM Zero account charges $3.5/lot commission. Total cost on 1 lot EURUSD ≈ 0.35 pips equivalent.
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