What is the best currency to invest in right now?

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Is there even such a thing as the best currency to trade (invest) in? All currencies that are part of the traded instruments of any forex broker can be traded. No? Well no, if we’re to consider the title of this post which forces us to prune the available traded currencies down leaving the ones that are worth trading or the ones that won’t cost us much: The “best” ones. So what are the best currencies to invest in? Which ones are not? How do we find currencies to invest in?

Like I mentioned above, any currency pair on a broker’s list can be invested in. But common sense tells us to find the profitable ones. In my opinion those would be the ones with the least spreads. If you pick the pairs with the least spread or commission, you save yourself some money you could use for trading yourself. I don’t believe there’s anything like a best currency to invest in. No one knows that. If people knew, they would be billionaires and wouldn’t write or talk about it. Same way Warren Buffet won’t tell you exactly how he made his success and neither will Lipschutz nor Michael Marcus. And actually if there was such thing, what would be the use of that knowledge if you didn’t know which direction that currency is going? What’s the benefit if you didn’t know your technical and fundamental analyses? Besides that the direction of currencies are controlled by central banks and governments who can make impromptu decisions at any given moment. These are some of the reasons I don’t go with the “best currency to invest in” flow. Because there isn’t.

If I was forced to give an answer, I would say the best currency to invest in would be your own country’s. Why, because you’re in your country (probably) and you know your country better and know how the government thinks, you get the news first hopefully, and you can trade against or for your own currency. You can invest in your own currency in other ways: You could find a company in your country that makes constant profits and trade its stocks among other things. This will help create more employment and increase the value of your currency in the long run. But wait, who wants “the long run” crap? And how many people care about the interest of their country’s economy? Most people want money and they want it now. And few people care about their country’s economy these days to be honest.

Best currency to invest in

I am a day trader and I do scalp a lot. I don’t think much about the long-term. Most of my clients are impatient and greedy. They want money and they want it quickly. That doesn’t influence my trading decisions though because I have my rules that I follow to keep making constant profits when I’m doing money management. I trade only two instruments — EUR/USD and USD/JPY. Nothing more. And as part of my trading plan, which I would advise you to follow, never ever trade more than two currency pairs. Choose the best two, in terms of the cost of trading them, which means choosing the cheapest pairs to trade; the ones with the lowest spreads and stick to them. Trade them on demo for a long time, learn how they behave and move. With time you will naturally get used to these currencies and make more intuitive trades. Also it’s better and easier to remember the characteristics of two people if you’re introduced to them than it is when you have details of fifty people to remember…you get the idea. Just keep things simple.

If anyone told you about some best currencies to invest in. Ask them if they are investing in it themselves. And if they are, ask them why those currencies, if it’s forex and spreads are not part of their reason, seize to be friends with them, don’t visit their blog again and ask them never to contact you ever again. Seriously.


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