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Forex Majors vs Minors vs Exotics — Which to Trade?

Answer Capsule: Comparing Major & Minor Pairs vs Exotic Pairs. Beginners should stick to majors (EURUSD, USDJPY) for tight spreads and high liquidity. Intermediate traders can add crosses (EURGBP, GBPJPY). Avoid exotics entirely unless you have a specific fundamental reason — 50-pip spreads on USDTRY mean you start 50 pips in the red on every trade.

Major & Minor Pairs vs Exotic Pairs — Direct Comparison

Major & Minor PairsExotic PairsKey Difference
Majors (7 pairs)0.1-1.5 pipsVery HighEURUSD, USDJPY, GBPUSD, etc.
Minors/Crosses0.5-3.0 pipsMedium-HighEURGBP, EURJPY, GBPJPY, etc.
Exotics5-50+ pipsLowUSDTRY, USDZAR, USDMXN, etc.
Gold (XAUUSD)$0.20-0.50Very HighBehaves like a major. Tight spread.
Indices1-8 ptsHighUS30, SP500, NAS100, GER40, HK50
Oil (WTI/Brent)$0.03-0.05HighCommodities. EIA data drives moves.

Conclusion

Beginners should stick to majors (EURUSD, USDJPY) for tight spreads and high liquidity. Intermediate traders can add crosses (EURGBP, GBPJPY). Avoid exotics entirely unless you have a specific fundamental reason — 50-pip spreads on USDTRY mean you start 50 pips in the red on every trade.

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