For traders seeking diversification and unique trading opportunities, non-major currency pairs (also known as cross and exotic pairs) can offer high potential returns. However, trading non-major pairs requires a forex broker with specific features that support these markets effectively. Here’s how to evaluate forex brokers for trading non-major currency pairs.

What Are Non-Major Currency Pairs?

Non-major currency pairs include cross pairs and exotic pairs:

• Cross Pairs: Currency pairs that do not include the US dollar, such as EUR/GBP, AUD/CHF, and GBP/AUD.
• Exotic Pairs: Pairs involving a major currency and a currency from a smaller or emerging market, such as EUR/TRY (Euro/Turkish Lira) or USD/SEK (US Dollar/Swedish Krona).

These pairs often offer higher volatility and larger price movements but come with wider spreads and lower liquidity.

Key Factors to Evaluate

1. Range of Available Pairs

Not all brokers offer a wide range of non-major pairs. Some focus only on major pairs and a limited selection of cross pairs. Check the broker’s full list of tradable currencies to ensure they offer the pairs you’re interested in.

• Cross Pairs: Look for brokers offering EUR/GBP, GBP/AUD, and AUD/CHF.
• Exotic Pairs: Consider brokers that support currencies from emerging markets like the Turkish Lira, South African Rand, and Singapore Dollar.

Tip: Vantage and FP Markets provide a comprehensive list of non-major pairs.

2. Competitive Spreads and Low Fees

Non-major pairs typically have wider spreads due to lower liquidity. Choose a broker with competitive spreads to minimise transaction costs.

• Cross Pairs: Should have spreads of 1–3 pips.
• Exotic Pairs: Expect spreads to range from 5–20 pips.

3. Strong Liquidity and Execution Speed

Liquidity can be an issue with non-major pairs, leading to slippage and delayed execution. Select brokers with access to multiple liquidity providers for smoother execution.

• ECN and STP Brokers: These brokers provide direct access to liquidity pools, improving execution speed.

Example: TiBiGlobe and Pepperstone are known for their fast execution and reliable liquidity for non-major pairs.

4. Platform Features and Charting Tools

Trading non-major pairs requires advanced analysis. Ensure the broker’s platform offers the following:

• Advanced Charting Tools: For technical analysis of exotic pairs.
• Customisable Indicators: To track volatility and unusual price patterns.
• Real-Time Market Data: Essential for monitoring fast-moving cross and exotic pairs.

Tip: MT4, MT5, and cTrader are excellent platforms for non-major pair trading.

5. Risk Management Tools

Since non-major pairs can be highly volatile, strong risk management tools are essential. Look for brokers that offer:

• Guaranteed Stop-Loss Orders: Protects against extreme market moves.
• Negative Balance Protection: Ensures you won’t lose more than your initial deposit.

6. Regulation and Security

Regulation is vital for protecting your funds, especially when trading less-liquid markets. Choose brokers regulated by reputable authorities such as:

• FCA (UK)
• ASIC (Australia)
• CySEC (Cyprus)

7. Swap Rates and Overnight Costs

Holding positions in non-major pairs overnight can be costly due to high swap rates. Review the broker’s swap policy for the pairs you plan to trade.

• Check Positive and Negative Swap Rates: Some pairs may offer positive swaps depending on the direction of the trade.

Top Forex Brokers for Trading Non-Major Currency Pairs

1. Vantage

• Currency Pairs: Offers a broad selection of cross and exotic pairs.
• Platform: MT4, MT5, and cTrader with advanced tools.
• Best For: Traders seeking fast execution and competitive spreads.

2. FP Markets

• Currency Pairs: Comprehensive range of cross and exotic pairs.
• Regulation: ASIC-regulated for added security.
• Best For: Swing traders and position traders.

3. TiBiGlobe

• Currency Pairs: Known for supporting a wide range of exotic pairs.
• Platform: User-friendly with customisable indicators.
• Best For: Traders interested in emerging market currencies.

4. Intertrader

• Currency Pairs: Offers multiple cross pairs and selective exotic pairs.
• Regulation: FCA-regulated with transparent trading conditions.
• Best For: Conservative traders focusing on cross pairs.

5. Pepperstone

• Currency Pairs: Extensive list of cross and exotic pairs.
• Execution: Fast ECN execution with minimal slippage.
• Best For: High-frequency traders.

6. AvaTrade

• Currency Pairs: Supports popular cross and exotic pairs.
• Platform: MT4, MT5, and AvaTradeGO.
• Best For: Beginner and intermediate traders.

How to Verify the Broker’s Currency Offering

1. Visit the Broker’s Website: Most brokers list their available currency pairs on the trading conditions page.
2. Open a Demo Account: Check the platform’s full list of pairs and test execution speed and spreads.
3. Contact Customer Support: Ask specifically about non-major pairs and associated trading conditions.

Conclusion

When trading non-major currency pairs, it’s essential to choose a broker that offers a wide range of pairs, competitive spreads, and reliable execution. Consider platform features, risk management tools, and regulatory oversight to ensure a safe and efficient trading experience.