Best Time to Trade Forex

Best Times to Trade Forex (Hours, Days and Months)

The best time to trade Forex occurs between 10:00 – 17.00 PM (GMT) from Tuesday to Thursday. The best month to trade depends on the Forex pair you have selected as you can see at the end of this analysis.

Here is a full analysis of the Forex Markets Hours:

Forex Market Trading Hours

In general, the best hours to trade occur during overlaps, and especially during the London and New York overlap. We can extend this timeframe to include one hour before the New York opening and two hours after the London session closing. That means:

  • 10:00 – 17.00 PM (GMT) or else 6:00 AM 1:00 PM (EST)

Forex Markets Hours and Overlaps:

The Foreign Exchange market is open 24/5 between Mondays to Fridays. The Forex daily activity is divided into 4 separate sessions. These are the Forex Market hours (summer timezones):

(1) London Session, 7:00 AM to 16:00 GMT (3:00 am to 12:00 noon EST)

(2) New York Session, 12:00 PM to 21:00 PM GMT (8:00 am to 5:00 pm EST)

(3) Sydney Session, 22:00 PM to 7:00 AM GMT (6:00 pm to 3:00 am EST)

(4) Tokyo Session, 23:00 PM to 8:00 AM GMT (7:00 pm to 4:00 am EST)

 

HotForex Security

■ Summer Timezones (April – October)

Time Zone EDT GMT
London Open / London Close 3:00 AM to 12:00 PM 7:00 AM to 16:00
New York Open New York Close 8:00 AM to 17:00 12:00 PM to 21:00
Sydney Open / Close 18:00 to 3:00 AM 22:00 to 7:00 AM
Tokyo Open / Close 19:00 to 4:00 AM 23:00 to 8:00 AM

During Winter, there are some changes in the Forex Market hours, as follows:

■ Winter Timezones (October-April)

Time Zone EDT GMT
London Open / Close 3:00 AM to 12:00 PM 8:00 AM to 17:00
New York Open / Close 8:00 AM to 17:00 13.00 to 22.00
Sydney Open / Close 16:00 to 1:00 AM 21:00 to 6:00 AM
Tokyo Open / Close 18:00 PM to 3:00 AM 23:00 to 8:00 AM

 

Three Forex Market Overlaps

Forex overlaps occur when two of the above sessions are opened simultaneously. During overlaps, the volume activity is maximized. Here are the three Forex Session Overlaps (summer timezone):

(i) London and New York Overlap: 12:00 PM TO 16:00 GMT (or 8:00 AM to 12:00 noon EST)

(ii) Sydney and Tokyo Overlap: 23:00 to 7:00 AM GMT (or 7:00 PM to 3:00 AM EST)

(iii) London and Tokyo Overlap: 7:00 AM to 8:00 AM GMT (or 3:00 AM to 4:00 AM EST)

Many traders prefer to open positions only during these overlaps. Moreover, there are many automated systems (Eas) that are programmed to trade only during overlaps.

 

FOREX TRADING SESSIONS ANALYSIS

 

(A) EUROPEAN SESSION

The European session is a high-volatility session. About 30% of all Foreign Exchange action occurs during this session. The London session commences at 7:30 AM and stays open until 15:30 GMT. This period is expanded from 7.00 AM to 16.00 GMT due to the German and France capital markets operation.

News Releases:

Key news is released, usually between 9:00 AM until 12:00 PM GMT.

Most Active Forex Pairs:

The most active currency pairs during this session are EURUSD, GBPUSD, EURGBP, USDCHF , and other pairs including EUR, GBP, and CHF.

(B) US TRADING SESSION

The US session starts at 12:00 GMT in summer timezone and 13:00 GMT in winter timezone and lasts until 21.00 GMT in summer timezone and 22:00 GMT in winter timezone. High volatility is always expected during the American session.

News Releases:

The most important news is released between 12:00 GMT and 14:00 GMT.

Most Active Forex Pairs:

During the American Session, the US Dollar, Canadian Dollar and Mexican Peso are becoming very active. The most relative active pairs are EURUSD, GBPUSD, USDCHF, USDJPY, but also other pairs that include the US Dollar, and especially USDCAD and USDMXN.

FXCC Forex Trading

(C) SYDNEY TRADING SESSION

The Pacific session is a low-volatility and limited liquidity session.

News Releases:

-Regarding the Australian Dollar, important news is released at 20.30 GMT, at 22.30 GMT but especially at 00.30 AM GMT.

-Regarding the New Zeeland Dollar, important news is released at 20.00 GMT and at 21.45 GMT.

Most Active Forex Pairs:

The most active currency pairs during this session include AUD, NZD, and JPY, for example, NZDUSD, AUDUSD, EURAUD, AUDNZD.

(D) TOKYO TRADING SESSION

The Asian (Tokyo) session is also characterized by limited volatility and liquidity. As the session comes to the end, volatility increases as the market enters the London session. The London and Tokyo Overlap occurs between 7:00 AM and 8:00 AM GMT, or else 3:00 AM to 4:00 AM EST.

News Releases:

Key Japanese Yen news is usually released at 23.50 GMT. Another important news releases time is 4.30 AM GMT.

Most Active Forex Pairs:

The most active currency pairs during this session include JPY, and especially USD/JPY and EUR/JPY. Many times the Tokyo session defines the key trends for the whole Forex trading day including also other pairs that do not include Asian currencies.

 

Best Days of the Week to Trade

As the week comes to an end, at Friday, day-traders prefer to close their positions. They don't like to risk uncertain conditions in the Monday's opening which may blow out their account, no matter if they have placed a tight stop-loss.

  1. Mondays are usually quite reserved. As the market prepares to absorb the upcoming news and updates of the week.
  2. Tuesday is a very good day to trade that is characterized by high liquidity and large fluctuations.
  3. Wednesday isn't as much liquid as Tuesday but it is the third most important day of the week to trade. As Wednesday ends, at exactly 00:00, the swap rates get tripped as Wednesday includes the swap difference of three days (Wednesday, Saturday, and Sunday). That means go long on currency pairs with positive interest rate differential and go short on currencies with negative interest rate differential.
  4. Thursday is a very good day to trade as Tuesday, high fluctuations and good liquidity.
  5. Friday is characterized by moderate liquidity and high risk. Often, important news is released on Friday. As it was mentioned before, most positions are closed as the trading week comes to an end, in late Friday.

 

In overall, the most active part of the week is the middle of the week (from Tuesday to Thursday).

Best Months to Trade

The best month to trade depends on the Forex pair you have selected as you can see in the following table. The analysis is based on 13.5 years of relative currency performance.

Table: Forex Monthly Statistics (TradingCenter.org research)

 MONTHLY CALENDAR  FOREX PAIRS TO GO LONG FOREX PAIRS TO GO SHORT
JANUARY

EURCHF, USDJPY, USDCHF,

GBPJPY, GBPCHF 

 EURUSD, AUDUSD, EURAUD, EURCAD 
FEBRUARY   USDJPY, EURGBP  

GBPCHF, EURUSD, GBPUSD, 

EURCHF, NZDUSD, EURAUD 

MARCH   USDJPY, EURGBP, EURJPY,GBPJPY   GBPCHF 
APRIL

 AUDUSD, GBPCHF, GBPUSD, 

NZDUSD, EURJPY, GBPJPY 

USDCAD, EURAUDEURCAD 
 MAY (-)

 EURUSD, EURCAD, GBPJPY,

USDCAD, AUDUSD, EURCHF  

JUNE

 EURUSD, GBPUSD, AUDUSD, 

NZDUSD, EURJPY, EURCAD 

 EURCHF USDCHF, GBPCHF
JULY  DO NOT TRADE IN JULY
AUGUST  USDCAD, EURGBP, EURAUD 

 AUDUSD, USDJPY, EURCHF, NZDUSD, 

EURJPY,GBPJPY, GBPCHF

SEPTEMBER 

 EURUSD, GBPUSD, EURCHF,

EURJPY, EURAUD 

USDCAD, USDCHF 
OCTOBER  USDCAD, NZDUSD

  USDJPY, EURCHF, USDCHF,

GBPCHF, EURGBP, EURAUD 

NOVEMBER

EURUSD, AUDUSD, NZDUSD,

EURGBP, EURJPY 

 GBPUSD, USDCAD, USDCHF,

EURCHF, GBPCHF 

DECEMBER

EURUSD, EURCAD, AUDUSD, NZDUSD,

EURGBP, EURJPY, EURAUD, GBPJPY

 USDCHF, GBPCHF

 

Full data can be found at TradingCenter.org. » Find the full researching data here

 

More: » How to Choose Forex Brokers  | » MetaTrader4 Shortcuts

 

■ Best Times to Trade Forex (Hours, Days and Months)

ForexExperts.net

Enter the Compare Zone

Compare Forex Brokers Based on the Algorithms of the Forex RatingFormula 5.0..

Compare Zone

Consisting four (4) Rating Factors {Safety, Competition, Options, Technology) -Maximum score is 100%

Review Brokers

Review ECN/STP Online Forex Brokers..

All our plans are free to join, lasting permanently, and most importantly we will never widen your trading spreads, as other IBs do. That is our guarantee.

Trade Systems

A trading system is a set of specific processes and rules that can help traders to optimize their trading process, or to develop automated trading strategies (EAs):

» EA Builder for MT4 and MT5

» Compare EA Systems

» Market Sentiment

» Forex PAMM Accounts

Forex Ratings

Forex Broker Ratings Powered by the Revolutionary RatingFormula 5.0Forex Broker Ratings Powered by the Revolutionary RatingFormula 5.0 (?)

» XM Rating

» FXCC Rating

» IronFx Rating

» HYCM (HYMarkets)

» HotForex Rating

» ICMarkets Rating

» FxGlobe Rating

» Dukascopy Europe

(+) All Forex Ratings

Go to top