What is the best time to trade forex?

As mentioned earlier forex trades takes place round the clock. Currencies are traded 24 hours a day, from Sunday afternoon EST (Eastern Standard Time) to Friday afternoon EST. It’s evident that through this 5+ day week of market activity, it is ensured that there is at least one forex market opened at anytime of the day. Indeed, as some markets close for the night, others open somewhere else on the planet. Since forex trading hours overlap, currencies are being traded continuously. In a nutshell it can be said, forex markets never sleep.

Traders new to the forex market have a preconceived idea, since the forex markets are opened all 24 hours they can trade at any time in the day. But this idea has to be rectified. There are particular times in the forex market that has high profitability. So what are the times that have greater opportunities?
The best time to trade is when large bulk of currencies is traded. All though forex markets 24 hours a day, the best time to trade is when many countries are trading at the same time. In all time zones forex markets operate between 8am and 4pm. So what the wise men do is to trade when many trading hours of popular forex trading countries overlap. This is the time to earn the optimum in forex trading, as it is the most active period and has thus the largest volume of trades and the biggest pip movements.

Forex Trading opens in New Zealand, followed by Australia, Asia (and particularly Japan), the Middle East, Europe (with London being the main financial center) and America.

Forex Trading Hours (EST):

Australia: 5pm - 1 am
Tokyo: 7 pm - 3 am
Singapore/Hong Kong: 9 pm - 5 am
Frankfurt: 2 am - 10 am
London: 3 am - 11 am

What does this mean? The New York and London trading sessions overlap between 7 and 11 am EST. The volatility is much higher and trading opportunities are much more frequent with bigger moves, especially in these four hours. This is when the largest volume of trades occurs, creating a greater chance of making significant profit in the forex market. This is when you can make 30-100 pips trading in just a few minutes or hours, using any of our strategies in any time frame, especially around news releases.