I’ve been trading mostly major pairs like EUR/USD and GBP/USD, but I’m starting to look at some minor pairs like AUD/CAD or NZD/JPY. The thing is, the spreads are significantly higher - sometimes 3-5 pips compared to 1-2 pips on majors.
I’m wondering if anyone here trades minor pairs regularly and whether the potentially bigger moves and profit opportunities actually make up for those wider spreads? It seems like you’d need much larger price movements just to break even, which makes me hesitant.
What’s been your experience with this? Do you find that minor pairs move enough to justify the extra cost, or do you stick to majors for this reason?
Minors can pay off if you aim for 40 pips.
I stick with majors mostly. The spread difference adds up fast on minors and you need perfect timing.
Wider spreads definitely hurt profits more than trading majors. But minors can still work during busy market hours.
I watch for times when both currencies are actively trading - like when Asian and North American sessions overlap. Liquidity gets better and spreads tighten up.
I’m picky about entries and go for bigger moves to make up for the higher spread costs.
Minor pairs can work, but you’ve got to adjust position size and timing. The spreads are wider - you need 15-20 pips just to break even - but these pairs swing harder than majors. AUD/CAD and NZD/JPY move 50-100 pips during active sessions. Trade when their markets overlap for better liquidity and tighter spreads. Avoid scalping. Aim for bigger moves and hold longer. A higher win rate is necessary to cover those spread costs.