Most forex brokers offer a diverse range of currency pairs. This allows traders to spread their risk across various forex pairs. However, the number of currency pairs offered by a broker may change over time due to market conditions, regulations, or other factors.
In this article, we are going to look at the forex broker with the most currency pairs and see the trading conditions it has to offer. But first, let’s learn a little more about currency pairs.
Types of Currency Pairs
Currency pairs are classified into three types which are major, minor, and exotic. Major currency pairs include the EURUSD, the GBPUSD, the AUDUSD, and the USDJPY. It is worth noting that all major currency pairs include the US dollar. The most actively traded markets are major currency pairs, with the EURUSD accounting for the lion’s share of volume.
Minor currency pairs, such as EURGBP, EURAUD, and GBPJPY, have a smaller market share. Minor currency pairs are those that are not linked to the US dollar but feature popular world currencies from large markets.
On the other hand, exotic currency pairs are those that are linked to emerging markets. Exotic currency pairs, also known as ‘exotics,’ feature currencies from popular large markets and another from a small or emerging economy. GBPMXN (sterling and the Mexican peso) or USDPLN (the US dollar and the Polish zloty) are examples.
CMC Markets has grown to become one of the world’s leading CFD and share trading providers since its launching in 1989. Today, it features probably the highest number of currency pairs on any forex trading platform. In total, the CMC Markets broker site features 330 currency pairs. Some of the currency pairs investors can trade on the CMC Markets broker site include EURUSD, USDJPY, USDCAD, EURGBP, and USDCAD.
For a trading platform, clients can choose between two main software. They can pick and choose between the MetaTrader 4 and the Next Generation trading platform developed by CMC Markets. Both of these platforms are available as desktop applications, web applications and mobile devices. All kinds of traders have a platform to trade with.
In terms of spreads, this broker offers decent numbers. Note that forex currency pairs with the lowest spreads are those with the most trading volume in the markets. The spreads on major currency pairs, like the EURUSD pair, start as low as 0.7 pips for major currency pairs on the CMC Markets broker site. The spreads are a little higher for minors and exotics. For example, the GBPJPY pair has a minimum spread of 2.5 pips.
Nonetheless, forex currency pairs are not the only assets clients can trade on this broker site. Clients can also trade CFDs on indices, cryptocurrencies, commodities, shares, share baskets, and treasuries. Therefore, clients can easily diversify their portfolios across these markets and hence, spread the risk of investment.
Is CMC Markets Safe?
One of the most important things to check about a forex broker is its regulations. Brokers with regulations from reputable organizations are usually more committed to following strict laws to make the market fair for all investors. Nonetheless, regulations alone are not enough. A company still has to demonstrate their commitment to regulatory laws.
Luckily, CMC Markets is both a regulated company and has a reputable track record in the market. This broker is regulated by the FCA in the UK and BaFin in Germany. These are reputable regulators from some of the top markets in the world. Additionally, the company has a long history in the market having launched in 1989. After such a long track record, today the company has a 4.1-star rating out of 5 on Trustpilot. This is an impressive feat to achieve.
Other Brokers With a High Number of Currency Pairs
|Forex Brokers||Number of currency pairs offered||Regulated By:|
|Exness||107||CySEC, FCA, FSCA|
|Interactive Broker||100+||FCA, ASIC|
|IG||87||CySEC, FCA, FCSA|
|TD Ameritrade||70||SEC, FINRA|
|IC Markets||65||CySEC, ASIC, FSA|
|AvaTrade||50||CBI, ASIC, FSCA|
|XTB||48||CySEC, FCA, FSC|
|Saxo Bank||40||FCA, ASIC|
Many investors trading financial markets online seek to diversify their portfolios to help spread the risk of investment. Luckily, most forex brokers in the market provide a wide range of trading instruments from various asset classes. Investing in multiple market instruments is a great way for investors to achieve diversification.
Diversification can also be achieved when a forex broker provides a high number of currency pairs. Traders can diversify their portfolios and reduce their overall risk by trading multiple currency pairs at the same time. When one currency pair falls, other currency pairs may perform well, balancing losses and potentially increasing overall profits.
Nonetheless, it is critical to conduct your own research and compare brokers to find the one that best meets your requirements in terms of trading conditions, regulations, customer support, and other factors.
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