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Forex brokers undoubtedly play a significant role in the Forex trading industry. Forex traders have the luxury of choosing from these numerous brokers to trade any forex pair of their choice, including low spread Forex exotics.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Between 74-89% of retail investor accounts lose money when trading CFDs.
You should consider whether you can afford to take the high risk of losing your money
|Best ECN Forex Brokers||Minimum Deposit||Total number of exotic forex pairs||Spread Type|
|Pepperstone||No minimum deposit||47||Variable|
Table of contents
Top 10 Best ECN Forex Brokers for Exotic Pairs
Here is a list of the top 10 best ECN forex brokers for exotic pairs if you are looking for one:
What are FX exotics?
In Forex, there are three main tradable pairs. These are:
- Major: This usually includes the USD, the most traded and used currency.
- Minor: This is across-currency pairs that include major currencies such as GBP, EUR, and AUD. It doesn’t include the USD.
- Exotic: In this group are emerging economy currencies such as MXN, TRY, ZAR, and a host of others. The term also covers currencies of smaller economies such as DKR, NOK, and others.
High volatility and low liquidity are two of the major qualities of exotic pairs. Thus, a wide spread is applied to them. They are also less stable than major currencies, less predictable, and susceptible to change.
Exotic pairs are riskier and thus, new traders are advised to keep off from them since trading them requires tons of trading experience.
What are the Most Popular Forex Exotic Pairs?
Trading exotic forex pairs is quite risky. Nevertheless, it offers a great profit opportunity. The pair consists of an emerging currency and a strong currency.
Some of the most commonly traded exotic pairs are:
- USD/THB (American Dollar/Thailand Baht)
- JPY/NOK (Japanese Yen/Norwegian Krone)
- EUR/TRY (Euro/Turkish Lira)
- GBP/ZAR (Sterling/South African Rand)
- AUD/MXN (Australian Dollar/Mexican Peso)
- USD/VND (American Dollar/Vietnamese Dong)
What Influences Forex Exotic Pairs?
Major currencies come from stable economies and as such are moved by interest rate differentials and economic data while exotic currencies are likely to be influenced by political and economic instability.
Generally speaking, forex pairs are influenced by the following:
- Interest rate differentials
- Political news
- Economic statistics
- Interest rate moves by central banks
- Changes in monetary policy
These brokers offer their clients great opportunities to trade low spread forex exotics. Seize the opportunity to improve your trading skills and increase your income from trading your favourite pairs.
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