When is the Best Time to Trade Forex

Even though the Forex markets are open six days each week not every currency pair is best to trade around the clock. Each marketplace (hub) is most active during its country’s normal business hours. With this said it is important to look at both the base and counter of a Forex currency pair. It is typically best to trade a currency pair when both are active. That is, their Forex trading times overlap. This ensures that the market for the Forex currency pairs have greater price movements and the most volume for trade liquidity.

The Normal Forex Trading Business Hours for each Country

Forex Trading Hub Open Hours (USA EST)

5pm – 1am

2am – 10am

3am – 11am

New York:
8am – 4pm

7pm – 3am

(Times are USA Eastern Standard Time Zone)

Forex Market Hours Overlap (USA EST)

New York and London:
8am – 11am

Sydney and Tokyo:
3am – 4am

London and Tokyo:
3am – 3am

Frankfurt and Tokyo:
2am – 3am

(Times are USA Eastern Standard Time Zone)

Times above are spring season daylight savings times. Adjust non-USA hubs back one hour for fall season daylight savings time.

question-mark-forexFrom the listings above it suggests that Forex currency pairs with combinations of EUR, GBP and USD (EUR/USD, EUR/GBP, etc.) should exhibit their best Forex market hours trading times between about 2am and Noon, Eastern Standard Time (New York). This is a general rule of thumb as some days the currency volume is heavier both earlier and later. Regardless, it is best to not trade during the period from 3pm – 7pm US Eastern Standard Time. There are no overlapping markets during this Forex market trading period.

To summarize, the quiet market time prior to the Asian Markets and Asian market time is generally the worst for Forex trading. During this period PIP movement is typically considerably lower. The better currency trading is the European equities market hours and up to a couple of hours past their close each trading day.

It should also be noted that Forex trading is typically better during the middle of each week.

Although the Forex market hours are continuous for a trading week its typical business hours for commerce in a country are not, and market overlap is not an absolute time on a clock. This is due to groups of related countries having enough geographic separation that their typical business days begin and end a couple of hours apart. This can best be determined by examining when stock exchanges open and close for their daily sessions. Examples include:

Asian/Pacific region stock exchanges:

Nikkei (Japan),Hang Seng (Hong Kong) and,Straits Times (Singapore),ASX (Australia).

European stock exchanges:

FTSE (London, UK),DAX (Frankfurt, Germany)CAC40 (Paris, France).

United States of America stock exchanges:

NYSE (New York City),Nasdaq (New York City),AMEX (New York City).

The above is not a comprehensive list for comparison of all equities trading exchanges or countries.

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