When is the best time to trade Forex?

Forex operates non-stop – 24 hours a day, 5 days a week. But that doesn’t mean it’s always a good time to trade! If you want to maximize your chances of making profits, you need to know when the markets are most active, where you can find the best conditions, and when it’s better to take a break. In this article, we’ll explore the best times for forex trading, when spreads are lowest, volatility is highest, and when it makes sense to be at the charts.

How does time work in Forex trading?

Unlike the stock market, which has fixed trading hours, forex runs continuously. However, trading doesn’t happen in one single location – the market is divided into global trading sessions. Each session has specific trading hours, and at certain times, these sessions overlap. These overlapping periods create the best trading opportunities.

Forex trading sessions:

• Sydney (11:00 PM – 8:00 AM CET): The Asian market opens, but activity is lower.
• Tokyo (1:00 AM – 10:00 AM CET): Mainly trading the Japanese yen (JPY) and the Australian dollar (AUD).
• London (9:00 AM – 6:00 PM CET): The highest trading volume and high volatility.
• New York (2:00 PM – 11:00 PM CET): The biggest moves on USD pairs.

When some of these markets overlap, the golden hours for trading emerge.

Best times to trade Forex

London & New York overlap (2:00 PM – 6:00 PM CET) – the Best time for Forex trading!

If you’re looking for the best time to trade forex, this is it! London is the world’s largest forex market, and New York is right behind it. When both sessions are open, liquidity surges, spreads are minimal, and the market moves the most.

What does this mean for you?

• Most currency pairs are traded – mainly EUR/USD, GBP/USD, and USD/JPY.
• Low spreads – better conditions for scalping and day trading.
• Strong price movements – great opportunities to catch big trends.

⚠️ Heads up! Increased volatility can be a double-edged sword – if you don’t have a clear plan, the market can quickly wipe out your trade.

London Session (9:00 AM – 6:00 PM CET) – the second-best option

London is the heart of forex trading, offering great opportunities throughout its session. If you can’t trade during the New York overlap, mornings in London are also a solid choice.

What does this mean for you?

• Best currency pairs: EUR/USD, GBP/USD, EUR/GBP.
• Ideal for: Day traders and swing traders.
• Peak volatility: 9:00 AM – 12:00 PM CET.

⚠️ Disadvantage? After lunch, activity may slow down before the US market opens.

New York Session (2:00 PM – 11:00 PM CET) – big moves on USD pairs

The New York session brings another wave of volatility, especially on currency pairs involving the US dollar (USD). If you trade EUR/USD or GBP/USD, the US session is a must-watch.

What does this mean for you?

• Highest volatility: Between 2:00 PM – 6:00 PM CET (when it overlaps with London).
• After 6:00 PM CET, activity starts to decline as London closes.

⚠️ The biggest price moves happen due to economic news from the US – keep an eye on the economic calendar!

When to avoid Forex trading?

Not all times are good for trading. If you want to avoid markets with low volatility, be cautious of these situations:

Asian Session (11:00 PM – 9:00 AM CET) – low activity, wide spreads

The Asian session is not ideal for beginners since price movements tend to be small and the market is less predictable. The exceptions are JPY and AUD pairs, which tend to have slightly higher volatility.

Monday morning – the market is just waking Up

The start of the week tends to be slower. Liquidity gradually builds up during the morning hours. If you’re looking for fast action, Monday morning won’t be the best choice.

Friday evenings – risk of unexpected moves

After 8:00 PM CET on Fridays, most traders are closing positions, and liquidity drops. That means spreads widen, and the market can become less predictable.

What time is best for your trading style?

Scalping – Best between 2:00 PM – 6:00 PM CET (London & New York overlap).
Day trading – Best 9:00 AM – 6:00 PM CET (London) or 2:00 PM – 6:00 PM CET (New York overlap).
Swing trading – Focus on volatile hours and follow fundamental news.

Summary – when to trade and when to stay away?

✅ Best times to trade:

• 2:00 PM – 6:00 PM CET (London & New York Overlap) – TOP choice!
• 9:00 AM – 6:00 PM CET (London session) – Stable volatility.
• 2:00 PM – 11:00 PM CET (New York session) – Strong USD pair movements.

❎ Times to avoid:

• 11:00 PM – 9:00 AM CET (Asian session, unless trading JPY/AUD).
• Monday morning – Low liquidity, slow start.
• Friday evening – Lower activity, higher spreads.

If you want to trade like a pro, focus on the busiest hours and avoid those when the market stagnates. And most importantly – be patient! It’s not about trading the most, but trading the best.