Cross-currency pairs are not as popular as major currency pairs, but can bring higher returns if used properly。

The major currencies paired with the U.S. dollar are called major currency pairs, and these currencies are the most actively traded currencies in the world, so they are called "major currencies," such as EUR / USD, AUD / USD, GBP / USD, etc.。At the same time, cross-currency pairs are major currencies that do not include the U.S. dollar in foreign exchange transactions, such as EUR / GBP, GBP / JPY, etc.。

In general, most of the most actively traded currency pairs in the Forex market typically include the US dollar, as the US dollar has the greatest liquidity and accounts for the majority of market volume.。In fact, cross-currency pairs can provide higher profit opportunities, especially when major fundamental events occur。

Why Cross Currency Pair Trading？

Currency trading has changed a lot over the years。Since the end of World War II, many currencies have been pegged to the dollar.。Even after the end of the gold standard in 1971, the dollar was still considered the main reserve currency and became the most liquid currency to date。

The U.S. dollar is often referred to as the "carrier currency" because it is the medium of international transactions.。Not only that, but most agricultural products and important commodities (such as oil) are also denominated in dollars.。Therefore, the dollar plays a vital role in the financial industry。

However, while the dollar remains the world's base currency, the rise of foreign exchange trading has brought cross-currency pairs into the mainstream。In addition to focusing on the seven major currency pairs, a wider range of opportunities can be obtained by crossing currency pairs。Since these currencies are not pegged to the US dollar, they can provide you with various price movements。While most people in the market focus on the dollar, new opportunities can be found in these cross-currency pairs。

The advantage is that you can use more trading tools。If you only trade major currency pairs, there are relatively few opportunities, but if you add cross-traded currency pairs to the portfolio, you can make more combinations according to your trading style。Overall, you will have a wider range of optional strategies and tools。

One of the ways to profit from cross currency pairs is to find highly correlated currency pairs。Some currency pairs may be linked by certain world events。For example, during the Brexit event, the EUR / GBP was a good currency pair - in 2016, the Brexit vote sent the pair up 13% in two weeks。This momentum can be very helpful when you trade with cross currency pairs。

Disadvantages of cross-currency pairs

While cross-currency pairs offer greater opportunities, there are some shortcomings that cannot be ignored。First, cross-currency pair trading may be somewhat more complicated。If you trade using a cross currency pair such as EUR / GBP, profits may settle in EUR or GBP。In this case, if your base currency is US dollars, you must first convert your profits into US dollars before you can deposit them in your account。

In addition to this, cross-currency pair trading may also have higher spreads due to its liquidity.。If we compare it to major currency pairs with more stable liquidity, the spread of cross-currency pairs tends to be larger and more volatile。Therefore, the cost of cross-currency pair transactions may be higher than that of major currency pair transactions。This increases the trading risk that you must know in advance。

Also, be sure to pay attention to the time zone and trading session in which you are trading。For example, during active trading sessions in Asia, many European cross-currency pairs are less liquid。As a result, forex brokers charge higher spreads。

The best broker for trading cross currency pairs

When choosing the best broker to trade cross currency pairs, you should consider some important factors such as transaction costs, security, etc.。The following is a list of suitable brokers for cross currency pair trading:

1. IC Markets

IC Markets is one of Australia's best brokers, established in 2007 and licensed by a number of bodies including ASIC, CySEC and the Securities Commission of the Bahamas.。You can choose from several trading platforms, namely MetaTrader 4, MetaTrader 5 and cTrader。At IC Markets, you can open an account with $200, a maximum leverage of 1: 500, and multiple payment methods for deposits and withdrawals。In terms of transaction costs, IC Markets is known for its raw spreads, with an average spread of 0 across currency transactions..3 to 1.1 point。

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IC Markets is a private company in International Capital Markets Pty Ltd..) an online forex brokerage company operated under。Traders under Australian jurisdiction offer trading services at IC Markets-AU, which is based in Australia and licensed by the Australian Securities and Investments Commission (ASIC).。

On the other hand, non-Australian traders who open accounts with the broker are registered under the Seychelles-based IC Markets SEY and are regulated by the Seychelles Financial Services Authority (SFSA).。This dual operation is the result of the Australian Securities and Investments Commission's relatively new rules, which prohibit its regulated brokers from providing trading services outside Australia.。

IC Markets is classified as an ECN broker offering clients MetaTrader 4, MetaTrader 5 and cTrader as platform trading options。The broker also follows market trends with cryptocurrencies as one of its products, enriching its already wide selection of trading assets, including currencies, indices, metals, energy, software, stocks and bonds.。

IC Markets "minimum deposits are at a moderate level compared to other ASIC-regulated brokers, as each customer has a deposit of $200.。Market analysis materials are also regularly prepared for trading insights on the official website of IC Markets, proving their ability to provide traders with important content created specifically for the market experts they work for.。

For payment methods, IC Markets allows financing and withdrawals via wire transfers, credit cards, PayPal, Skrill, Neteller, FasaPay, UnionPay, and BitPay's Bitcoin。The more interesting aspect of the broker is its multiple base currencies, including the US dollar, Australian dollar, euro, British pound, Singapore dollar, New Zealand dollar, Japanese yen, Swiss franc, Hong Kong dollar and Canadian dollar。

Due to the trading technology of IC Markets equipped with highly centralized servers and extremely low latency (especially on cTrader), the broker is well known for its ability to host traders with special needs for high-frequency trading and order brushing。

In summary, IC Markets is the right destination for active traders looking for well-regulated brokers。IC Markets is also flexible in terms of base currency and payment methods, which demonstrates their commitment to welcoming traders from outside their home countries.。By the end of 2019, IC Markets was offering websites in 18 international languages, including English, Korean, Indonesian, French, Spanish, Italian, Malay, German and Chinese.。

2. Exness

Exness is a well-known broker founded in 2008, based in Cyprus, the Seychelles and the UK, regulated by top regulators such as FCA (UK), CySEC (Cyprus), FSA (Seychelles) and FSCA (South Africa)。Over the years, Exness has expanded its reach to Asia, Europe and Africa。

In terms of transaction fees, Exness offers a variety of options based on different trading accounts。The standard account only needs to deposit $1, and the maximum leverage ratio is 1: 2000。The spread is both variable and fixed, with a minimum of 0 points.。

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The choice of broker is adjusted according to the needs of each trader. If you only need the basic platform and trading functions with the best attributes, then Exness may be your best choice。

Exness with its 0 only.Advantages such as the low spread from 1 o'clock make up for the lack of changes in its functions, which is very suitable for traders using scalping strategies (Scalper)。Spreads for major currency pairs in some account types can also be as low as 0.0 point, depending on market conditions。

Not only that, traders can also enjoy other advantages such as automatic withdrawals。Exness will process most customer withdrawals immediately without manual inspection; however, depending on the payment provider or method selected, withdrawals may be restricted。

Exness is one of the STP / ECN brokers in Europe, and the safety of traders' funds is also guaranteed。Exness became the official partner of Real Madrid football team for 3 years from July 2017, which also proves that the company has a high degree of stability.。

Exness supports deposits and withdrawals 24 hours a day, 7 days a week。However, it should be noted that the Company does not assume any responsibility if there is a problem with the deposit or withdrawal due to the payment system.。

Traders don't need to worry about transaction fees when making deposits and withdrawals.。Exness does not charge traders any transaction fees, and the chosen payment provider may incur some fees。Exness offers traders a variety of payment methods, including wire transfers, bank cards, Neteller, Skrill and more。

Financial reports and metrics on the Exness website are audited quarterly by Deloitte, one of the world's top four accounting firms。

In addition, Exness is one of the most transparent brokers in the online trading industry, and traders can find all the information about the company on the website, such as trading volume, number of active customers, customer deposits, company funds, etc.。

Exness offers different platforms, including MetaTrader 4, MetaTrader 5, web and mobile platforms。This makes it easier for traders to trade on Exness because they can also access the Exness platform anytime, anywhere.。

Over the years, Exness has developed into a broker that attracts traders, who comply with financial regulations such as FCA and CySEC, further strengthening their trust.。

One measure of customer confidence is the volume of transactions。As of December 2018, the monthly trading volume of its clients reached $348.4 billion, with more than 50,342 active traders worldwide.。

With the programs offered by Exness, traders also have the opportunity to earn extra income by becoming their partner。By introducing the Broker (IB) program, partners can earn up to 33% spread commission from each new customer who registers。

Additional income from Exness Partners。Traders who register through the member link can earn up to 25% spread commission per trade.。

Customers can also use their free VPS hosting service when trading at Exness。VPS (Virtual Private Server) provides traders with greater reliability and stability because they can maintain their trading and expert advisors without interruption in the event of unexpected technical problems (such as Internet or power outages)。

In summary, Exness is a trader's favorite broker due to its low spreads and flexible account type, ideal for traders with limited funds but need more opportunities to maximize profits。The broker is also known for its maximum support for new and old partners.。

3. TriumphFX

TriumphFX is a global broker with headquarters in Australia, Cyprus, Hong Kong and Malaysia since its inception in 2009 and is regulated by the Vanuatu Department of Finance and Economic Management.。You can choose from a variety of account options such as Standard, Premium, VIP and Platinum accounts。

In addition to this, the broker also offers forex demo accounts, ideal for beginners。In general, TriumphFX offers a maximum leverage of 1: 500, a minimum deposit of $100, and spreads as low as 0 for cross-currency pairs..4 points。

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TriumphFX offers Forex and CFD trading to retail and professional investors who have successfully opened live accounts with brokers。TriumphFX is regulated by FSA (Seychelles) SD080 and VFSC 17901 and offers Forex and metals trading services to traders from the EU to Cyprus, UK, Korea, Italy, Malaysia, Indonesia, Singapore, Australia and Germany。

TriumphFX was founded in 2009 and now has offices in Malaysia, Hong Kong, Cyprus and Australia。The company has a diversified client base, providing opportunities for less experienced investors as well as institutional traders.。

MetaTrader 4 (MT4) is the main platform provided. In addition to convenient client navigation, the platform also contains comprehensive educational materials for beginners。Traders can also make documentary trades here, where users can copy other successful investors。

After registration, deposits can be made in the following currencies: USD, EUR and GBP。Through bank deposits and withdrawals are usually completed within 2-5 days。TrimuphFX operates according to anti-money laundering guidelines, so documentation verification is required before withdrawals are approved。

The company offers a 5% welcome bonus for the international sector, but EU customers cannot enjoy this offer。TriumphFX offers 1 demo account and 4 different live accounts: Platinum account, VIP account, Premium account and Standard account。The main difference between real accounts is related to the minimum deposit amount。

Customers can contact customer service via ticket, email or phone, and the team will quickly respond to any problems the customer may encounter。

4. Pepperstone

Pepperstone is a popular forex broker founded in 2010。Headquartered in Australia, China, Kenya, Ukraine and the United States, the broker has licenses issued by ASIC, Kenya Capital Markets Authority, CySEC, DFSA and BaFin.。

Pepperstone has served more than 70,000 customers in recent years, with an average of 125 per year..500 million dollars。As a result, the company has received several awards such as Best Global Forex ECN Broker 2019。At Pepperstone, traders can enjoy various trading platforms, Razor accounts on 0.The original spread from 0 o'clock, more than 61 currency pairs and other functions.。

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Founded in 2010 by a team of experienced traders working together to improve online trading, Pepperstone is based in Melbourne, Australia and has grown into one of the world's largest forex brokers.。If a trader wants to find a broker that offers low spreads, fast execution and award-winning support, the answer is Pepperstone。

Pepperstone has strong legal safeguards as it is licensed by Australian regulators ASIC and FCA.。Traders "funds can be deposited into separate accounts at Australia's top banks, one of which is National Australia Bank (NAB).。Therefore, if a trader chooses to open an account in Pepperstone, the safety of funds is not an issue。

They successfully partnered with 23 top banks to bring bids to investors instantly via fiber optics, which enabled all orders to be executed 100% automatically with delays as low as zero..05 milliseconds, no need for trading desk intervention and re-quotation, and ultra-low transaction costs。

Pepperstone is trusted by more than 73,000 traders worldwide, processing an average of 125 per day..$500 million in trading volume and won awards for such things as:

2019 World's Best Forex ECN Broker and Best Forex Trading Support (Europe) Best Australian Broker and Best Trading Platform 2018 by Compare Forex Brokers 2018 UK Forex Awards Best Forex ECN Broker, Best Forex Trading Support and Best Forex Trading Conditions With numerous awards, Pepperstone attracts a growing number of traders from all over the world。Pepperstone's performance rose not only because of its ultra-low spreads and fast execution services, but also because many traders were keen to trade in currencies other than the US dollar.。

As a result, Pepperstone is one of the most responsive brokers to the market because it is willing to accept deposits in 10 currencies, including the Australian dollar, the US dollar, the euro, the Canadian dollar, the British pound, the Swiss franc, the Japanese yen, the New Zealand dollar, the Singapore dollar and the Hong Kong dollar.。

Pepperstone allows traders to choose between 11 trading platforms: MT4 Desktop, MT4 Mac, MT4 iPhone, MT4 Android, MT4 iPad / Tablet, MT5, WebTrader, cTrader WebTrader, cTrader cAlgo and cTrader Mobile。The choice of trading platform is very practical for novices because it executes quickly。

When trading Forex, traders can enjoy 0 on their Razor account.0 pip original spread, over 61 currency pairs, and commission-free account funds for various deposit options。In addition to currency pairs, Pepperstone offers several types of trading tools, including indices and stocks, commodities and cryptocurrency CFD。

Commodity trading tools are very diverse, not only metals, gold and silver, but also soft commodities such as cotton, sugar, coffee, cocoa and orange juice.。Pepperstone also offers energy (oil and gas) trading.。

Pepperstone offers two types of accounts, Razor accounts and Standard accounts。If you are a beginner, it is recommended to choose a EUR / USD average spread of 1.0-1.3 point and commission-free standard account。

Traders with specific trading styles (such as scalping traders and algorithmic traders) may enjoy the traditionally lower-cost setup of Razor accounts, with a trading commission of 7 Australian dollars and a trade of 100,000 US dollars per round..01 (micro) and 1: 400 leverage to start trading。

As Pepperstone customers, traders can deposit and withdraw money through Visa, Mastercard, POLi Internet Banking, Bank Transfer, BPay, PayPal, Neteller, Skrill and Union Pay。

If you are new to trading or want to practice your trading skills in a risk-free environment, you can create a demo account, but if you are experienced or prefer to learn by doing, Pepperstone offers live accounts that allow you to trade with real-time execution and pricing.。

Traders can also use third-party services to follow popular trader scenarios while learning how to improve their trading abilities。Pepperstone works with a range of social trading platforms for traders to choose from, such as Myfxbook, ZuluTrade, Mirror Trader, MetaTrader Signals and Duplitrade。

5. FXCM

FXCM is one of the world's top brokers, founded in 1999, headquartered in the United States, has now moved to Australia, and now has expanded significantly to Canada, Chile, France, Germany, Hong Kong, Israel, the United Kingdom, Japan, South Africa and Italy。FXCM is regulated by a number of regulators including ASIC, CONSOB, CySEC, DMCC, FCA, ISA, SFC and ESMA。

In general, FXCM offers from 0.1 point spread, low negative slippage and fast trade execution。The company also claims that almost 89% of orders are executed at the requested price or better.。

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FXCM (Forex Capital Markets) is the brand name of a retail broker used to trade financial markets, especially the Forex market。The broker was founded in 1999 and was originally based in the United States.。After a series of lawsuits from clients and the settlement of cases by the US regulator (CFTC), FXCM moved from the US to the UK and became a broker authorized and regulated by the Financial Conduct Authority (registration number 217689).。

The transaction with FXCM is supported by enhanced execution through liquidity provider flow quotes on the FastMatch electronic communications network。

FXCM works with several global banks including Barclays Bank, Citadel Securities, Citibank, Deutsche Bank, FASTMATCH, XTX Markets Limited, UBS, Morgan Stanley, Commerzbank and Jefferies Financial Services, financial institutions and other market makers as their liquidity providers.。

This in turn enables FXCM to provide its customers with fast trade execution, competitive spreads, low negative slippage, no re-quotes, no stop / limit limits, and up to 89% of orders executed at the required price or better.。

For the trading platform, FXCM is famous for its proprietary product Trading Station。The latest version of the web display for this platform claims to be built with Mac Friendly HTML5。It offers a range of trading devices such as integrated news, economic calendars, FXCM's top trading tools, social trading capabilities through FXCM Cloud, customized trading analysis, automated strategies and advanced charts for better analysis.。To support flexible traders, FXCM also offers a mobile version of Trading Station for iOS and Android users。

However, the company's internal platform is not the only option for customers。For customers more familiar with MetaQuote products, FXCM also offers the option of using MetaTrader 4。In addition, ZuluTrade is also available for clients interested in cross-broker replication trading schemes。

FXCM has chosen to offer trading accounts based on trading instruments rather than on minimum deposit classification account types。For FX traders, this broker offers Active Trader and Institutional accounts。

Active Trader is the ultimate account type for retail traders with two levels of pricing。Level 1 requires a minimum deposit of $25,000 and a commission of $30 for 1 million volumes, while Level 2 does not have details of deposit requirements but offers better fee conditions。The difference between the two grades is from 0.Start at 2: 00。

Institutional Accounts, also known as FXCM Pro, is marketed as a wholesale execution and liquidity solution for retail brokers, hedge funds and emerging market banks.。The account offers from 0.1 point trading spread and other competitive benefits such as API solutions as well as prime brokerage services。

For non-FX traders, FXCM offers a CFD trading account with low spreads from 0.37 points (in XAU / USD) and there are a range of asset classes, from precious metals, soft commodities and indices。

Finally, FXCM offers a series of in-depth articles to help traders with their knowledge and insights into the Forex market.。Trading tools such as FXCM Plus, Market Scanner, Trading Signals and Technical Levels have also been developed to support traders opening accounts with FXCM。

Overall, FXCM is an experienced retail broker with lots of "ammunition" to help traders with the best execution, pricing and tools。It is a well-regulated broker backed by a long history of financial markets, although the brokerage industry in the United States has a dark history.。

Conclusion

Cross-currency pairs, if used properly, will be likely to earn high returns。

However, cross-currency pair trading has its own drawbacks and risks。Traders must not only focus on events related to the US dollar, but also on the dynamics of other news that may affect other currencies。Not only that, cross-currency pairs are typically more volatile and less liquid, resulting in higher spreads for brokers。