Forex trading hours: The 24/5 market and the best FX trading sessions on nextmarkets

Last updated: 14.10.2020
Paddy Osborn
Author:
Paddy Osborn
Adviser
CFD & Trading
Experience
24 years

Forex trading hours are defined as the times when the foreign exchange market is open to accept trades. The Forex market is open 24 hours a day. This is because there is no one single location for the Forex exchange, and all currencies can be traded at all localised centres of foreign exchange.

Any trader can theoretically trade any currency 24 hours a day, as long as they have brokers and Forex trading software to help them access the different local foreign exchanges in different countries. When one Forex market closes, another will already be open. Traders can access these markets through their nextmarkets platform.

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The Forex Trading Hours on nextmarkets

Forex markets in each country will usually be open for nine or 10 hours during the day. Brokers in each country are set up to facilitate trades within their own territory, but you may need to use an international broker to access international markets. This has become easier in recent times as there are more and more PayPal Forex Brokers to make depositing money into your Forex trading account much easier.

Accessing international markets can be done through online trading software in exactly the same way as you access the London Forex market on nextmarkets. If you wish to trade Forex outside of the Forex trading hours of your own country, you will need to access international markets.

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Forex Trading Hours in the UK

The London Forex exchange is open slightly earlier than general business hours, opening at 8 am. The early start means that they also have an early finish, closing the market at 5 pm. Of course, the London Forex market is not the only place that you can trade foreign currencies.

Before the stock market has closed in London, it has opened in New York, so you can carry on trading beyond 4 pm. However, all of the UK-based brokers will close as the London market closes, so you may have to open trades with a different broker in a different market if you wish to trade outside of the London Forex market hours. nextmarket traders can check their trades 24/7, however, may have to wait for the exchange to open for updates.

Can you trade Forex at the weekend?

There are no Forex trading hours at the weekend, as all Forex markets close on Saturday and Sunday, so you cannot conduct any trades during this time. This is frustrating, especially when it comes to Forex trading for beginners, as many novice traders have regular jobs Monday to Friday. You can, however, check your trades on the nextmarkets platform.

However, having the weekends free from trading allows you to have time to prepare your trading strategy and to read up about financial instruments and Forex signals. During the week, even experienced traders can get caught up with the pace of the markets, leaving little time for studying, reading up or analysing market patterns. The weekend gives you time to make yourself a better trader during the week.

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GMT Forex market hours

Forex markets open at standard times to coincide with daylight hours in the country in which currencies are being traded. It is the time difference between the countries which host these main market exchanges which cause the difference in trading hours between the different centres of the foreign exchanges.

As there is no single global Forex exchange, trading activity will move between different local foreign exchanges during the day. This is the reason that Forex trading can take place 24 hours a day, which is not the case with other financial instruments. For forex traders, the instant accessibility of the markets is part of the attraction and why you should open an account with nextmarkets today.

Fact Check

What you need to know about Forex trading on nextmarkets:

  • Whilst the Forex market may close in the afternoon, retail foreign currency exchanges can take place outside of these hours
  • In 1902, there were just two foreign exchange brokers in the whole of London
  • By 1913, almost 50% of foreign exchanges involved the Great British Pound and there were 71 Forex brokers operating in London
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24-hour trading on nextmarkets

The Forex market is often described as a 24 hour, five-day-a-week market. Markets are closed on Saturdays and Sundays, but during the week, traders can have access to trades 24 hours a day. The nature of currency trading as an international affair is the reason behind this. With stock markets, it is unlikely that you will find a company whose equity is traded across global markets.

Usually, traders buying equity in London will only be able to buy those particular shares on the London Stock Exchange. Once the LSE has closed for the day, traders are no longer possible. However GBP is traded all over the world, so when the London Foreign Exchange closes, traders could continue trading on the New York Foreign Exchange. Access to the nextmarkets platform allows traders instant access to their portfolios.

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Forex Trading hours to look out for on nextmarkets

The Forex markets can be heavily affected by external factors as they are so closely linked to a country’s economic performance. Traders will then often look out for the release times of new government reports and official political or economic news.

These reports can in themselves become Forex indicators, signalling that there is likely to be increased activity in the market. This activity will open up more trading opportunities than usual on nextmarkets, and many traders might choose the Forex trading hours immediately preceding and following these announcements to make their trades. It can be worth creating your own Forex calendar to keep a track of future announcements to look out for.

The Forex market hours clock

The Forex market hours clock is a visualisation tool to help show the Forex markets in real time. The clock will show the time in the country in which you are trading, just like a normal analogue clock. Segments will be drawn around the outside of the clock to show the trading hours of the largest foreign exchange markets. Key data may be marked on in different colours or with different lines. The idea is to map the activity periods of Forex trading to make trader’s lives easier when they place their trades on nextmarkets. The Forex market hours clock is one of the simplest but most useful tools for a trader to have.

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Standard Forex market hours in the UK on nextmarkets

In the UK, the London Forex market opening hours are from 9 am until 5 pm. These trading hours may seem long but for forex traders, a lot can happen between 5 pm and 9 am to change their position and allow traders to make their move on the nextmarkets platform.

All trades using UK brokers accessing the UK Forex market must take place between these hours too, even with a Forex demo account. However, traders in London are able to access international Forex markets too and this way they are able to continue trading activity 24 hours a day if they wish.

Market closing prices

The digital nature of trading means that, of course, it is possible to trade in different markets than the one you are currently located. This means that a London-based trader would be able to trade in foreign currencies on the Sydney, Tokyo and New York Forex markets as long as they have the best Forex broker to access international markets for them. Opening a nextmarkets trading account will allow this.

Despite 24-hour trading being possible, the individual markets still close, and this means that currencies are still deemed to “close” at a certain price in the market. This just refers to the rate that the currency pair was at when the market closed in a certain currency and also applies to forex trading hours weekend trades.

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Active Hours of the Forex Market

Just because exchanges are open 24 hours, this does not mean that it is advisable to trade 24 hours day. All markets will have their active periods when the most trades are taking place. In the Forex Market, the most active hours tend to be during the overlap when more than one global market is open and it’s during this time when the nextmarkets account should be closely monitored.

For example, between 1 pm and 5 pm GMT, when both the London and the New York Forex markets are open, the activity levels are usually higher than usual. For certain Forex trading strategies, traders prefer to trader during these periods as the prices change more quickly, opening up more opportunities.

The best Forex market hours for trading on nextmarkets

Some novice traders prefer to begin trading in markets on nextmarkets which will be open during their evenings. If beginner traders have 9 to 5 jobs, it can be impossible to find the time to make trades and manage a Forex account during the day.

Trading in different centres of activity, such as on the New York Forex market, allows people with 9-to-5 jobs to trade in the evenings. The closure of all global Forex markets at the weekend means that often the evenings are the only time which people might have free to learn to trade foreign currencies. This is where 24-hour trading really comes in useful.

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Did you know?

The Forex market can be an enigma to the novice trader, so here are some facts to start help you get to know the market:

  • The US dollar is the most traded of all currencies, which is one of the reasons why the London Forex market is most active when the US Forex market is also open
  • Around 80% of all Forex trades involve the US dollar
  • 60% of Forex transactions take place in the UK and the US which makes trading on nextmarkets exciting during their trading hours

What are Forex market hours?

What is Forex? Forex is the international exchange of foreign currencies. Forex market hours are the times in which these trades are able to be made. Market opening hours will vary from country to country, but in the UK, the market is open from 8 o’clock in the morning to 5 o’clock in the afternoon.

Other international foreign exchanges are open on nextmarkets when the London Forex market has closed for the day, but you cannot transfer your trades from the international market to the another without closing the trade and withdrawing your money from one account to place into an account to trade internationally.

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How to find out the hours you can trade on nextmarkets

When you register for your Forex account with nextmarkets, you should be provided with a time frame in which you can operate your trades. If there is a certain time which your last trade must be executed in order to get in before the markets close, your broker will inform you of this when you sign up.

Keep the information in a safe and accessible place so that you can refer back to it whenever you need to. Before long, these timings will become ingrained on your memory as you build up your trades and you will have your trading plan worked out accordingly.

What are online Forex signals?

Forex signals are cues which traders take to enter a trade. This is often when a currency pair hits a particular price at a particular time. Traders can use tools such as a Forex signals app to highlight Forex signals. These tools are especially useful to novice traders who have not yet mastered how to spot market indicators from the Forex data in front of them or who do not have the ability to sit and watch the markets regularly. A nextmarkets  Forex trading app can be set up to notify a trader when a currency pair meets the criteria that they have set out.

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Forex Trading Sessions

The 24-hour Forex trading day is broken up into sessions. These sessions refer to periods of the day when the largest centres of trading are open. There are three main sessions to reflect the three largest centre of trading. The first session of the day, known as the London session, is from 8 am GMT to 5 pm GMT when the UK Forex market is open for trading.

The second session, named the US session, takes place between 1 pm GMT and 10 pm GMT when the New York foreign exchange is open for trading. The last session is known as the Asian session and is open from 10 pm GMT to 9 am GMT. Forex market hours GMT are often used as the benchmark, along with forex market hours UK. For traders, the most exciting period on the nextmarkets platform is when the major currencies are at play.

Forex trading regions

The Forex trading sessions on nextmarkets are determined by the hours of trading in the different regions for trading. Australasia, North America and Europe are the three main regions of Forex trading and largely determine the various trading schedules.

Europe comprises the major Forex hubs which include Zurich, London, Frankfurt and Paris. The North American region is dominated by the New York Forex market and the Australasian region includes centres such as Tokyo and Sydney. These markets will overlap in their activity for a few hours each, their opening hours are not completely distinct from one another and this provides traders with ample opportunity to make their move.

How to choose your Forex trading hours on nextmarkets

As a novice trader on nextmarkets, you are unlikely to be able to watch your Forex trades 24 hours a day, 5 days a week. It is therefore important to choose which Forex trading hours you would like to focus on. This can either be decided on the basis of what is most convenient to fit around your lifestyle or according to when you think the market is likely to be more active. This can be determined by pre-existing patterns, such as trade volumes being higher when more than one major global Forex market is open, or based on external factors such as the release of government reports or a dip in the economy.

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