We all know that currency markets are open 24/5. But just like for any other activity there is a good time to trade and there is a bad time to trade.

The best time to enter trades in currency markets is when the markets at the most active levels. The best time to enter trades is when the spreads are narrow. It is the time when less of your money goes to the market makers leaving most of the assets for you to trade with.

There are four major currency exchanges: London, New York, Singapore and Tokyo. Of course, there are fifteen different exchanges around the world and we need to consider all of them, but these four are the main ones – they make the entire picture and others are left to adjust.

And although all of the exchanges are independent from each other, they all trade the same currencies. And some of their hours may overlap. Here is when the four major exchanges are open All of the times are according to EST time zone.

• London: 3 AM to 12 PM;
• New York: 8 AM to 5 PM;
• Singapore: 3 PM to 12 AM;
• Tokyo: 7 PM to 4 AM.

And as we have been talking about the best times to enter the trades they are as follows:

• 8 AM to 12 PM EST, with both New York and London exchanges open;
• 3 PM to 5 PM, with both New York and Singapore exchanges open;
• 7 PM to 12 AM EST, with both Tokyo and Sydney exchanges open;
• 3 AM to 4 AM EST, with both Tokyo and London exchanges open.

These are the time when the spreads are the narrower and the volume of traded currency is the biggest.

But here I have to say that the best time to trade doesn’t always mean the you are going to see the most profits. It means that you are going to be most comfortable while trading. But, according to multiple studies these are the time frames where most of traders break even or win, so we can at least try and trade within these time scopes.