The finest forex brokers know the importance of giving customers choices rather than constraints. It might be advantageous if the forex broker you choose enables quick and easy deposits and withdrawals.

Forex is an over-the-counter market, where currencies are traded during Forex trading sessions. Unlike the stock market where stocks are traded on stock exchanges, there is no one centralised exchange in Forex. If on the other hand you wanted to trend trade on the AUD/JPY, you will experience a higher trading volume when both the Sydney and Tokyo sessions are open. Consumer Price Index or CPI is a measure of average change in the prices paid by the consumers in an economy. The news release with CPI data can have a major impact on prices of currency pairs. The best time to trade forex pair depends on the currency pair you are dealing with.

Overlapping Forex Trading Sessions

Then for the European and London open, currencies paired with the EUR, GBP and the CHF as an example. Naturally, you will be considering what the best currency pairs to trade at night are. The best currencies to trade and at what time to trade them, is related to the trading session.

best time to trade forex

The times stated above are the optimal times to trade foreign exchange in Kenya unless you are more of a night owl who wants to trade in the early morning hours. As you probably know, the Forex market is not a single entity, but rather a combination of various components, such as brokers, and traders across the world. Each of those entities experiences peak activity at different times, as it depends on when the local demographic starts to trade. The Forex market becomes extremely active near the scheduled times of very important economic reports, with spreads widening and prices moving fast. This is because extremely large volumes of orders by institutional traders are being presented for execution within a very short timeframe. The summer, especially August, is the worst period to trade with many institutional traders in Europe on holidays and North America on vacation as well.

What is the Best Time to Trade Forex in the UK?

To sum up, traders must become aware of the risks and high volatility that can be created during news release times. This is because Forex can move so quickly and in such a powerful way that it can render several trading techniques practically redundant. Holidays – all the big money best time to trade forex traders are on holiday, so don’t expect the market to move. The second and most explosive overlap happens in the morning for US traders from 8 am to 11 EST . This is the time when the European traders are trading alongside US traders in the 4-hour overlap between the two sessions .

best time to trade forex

Professional traders often recommend excluding a timeframe of 12 AM – 14.00 PM from one’s Forex trading schedule. The reasoning behind it is the low liquidity that the market experiences in the early hours after it is opened and during the aforementioned time period.

How to choose the Right Forex Broker in Kenya

Most importantly, you should have a solid risk management forex trading strategy when trading in different forex markets. Whilst the market is open for 24 hours there are times within the 24 hours that tend to have higher trade volumes. The Asian session is known to be often very quiet, where as the UK and US sessions have a much higher trade volume. This is super important to traders because there are much better times to make trades than others and obviously traders want to be playing their trades when they have the highest chance of success. The best time to trade forex in Kenya is between 4 and 8 pm local time. At 4 pm GMT, the London and New York trading periods begin to overlap. The overlap lasts till midnight and is the market’s most liquid period.

Do other markets overlap similar to the U.S./London Markets?

Choosing the right broker will depend on several factors including your trading style, your trading level, and your budget. Yes, you can certainly trade forex at night in the country you are based in. Popular forex pairs such as the EUR/USD for example, are subject to less volatility because of reduced liquidity. On the other hand, when just a single market is open, the currency pairs are more likely to only move by around 30 pips.

This website is free for you to use but we may receive a commission from the companies we feature on this site. You want to be careful and mindful entering trade setups in the last 2 x 4 hour candles of the week. Often these are traders covering up their positions coming into the weekend and you do not want to be caught in their way entering into the market and false moves. InstaForex is a flexible broker that offers a selection of Educational Materials for novice Kenyan traders and Trading tools for more experienced Kenyan traders. Overall, Admirals is the best STP Forex Broker for traders in Kenya.

You can convert these times to your local time or follow the time in the market watch window. Instead, currencies are bought and sold in major financial centres around the world, called Forex trading sessions. In this chapter, best time to trade forex we’ll cover the best time of day to trade Forex and explain its main benefits to your trading performance. Knowing the best times of the day to trade on the Forex markets can be crucial to your trading success.

This is something a forex trader cannot afford, as it is what forex trading is all about. And keeping in mind the nature of major forex markets, when 2 major markets are operating, trading volume rises, along with their volatility. The is when the market is most active – this is when you’ll get the narrowest spreads and best chance of executing a trade at your desired levels. The forex market is usually most active when the market hours overlap between sessions, as this is when the number of traders buying and selling each currency increases. It is important to take advantage of market overlaps and keep a close eye on news releases when setting up a trading schedule.

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