Major, minor and exotic currency pairs: what the forex groups mean
By SendPay Business · · 2 min read
Forex traders group currency pairs into majors, minors and exotics, based on how widely they are traded. The group a pair falls into helps explain how much it costs to exchange and how sharply its price can move.
The three groups
- Majors pair the US dollar with another widely traded currency, such as EUR/USD, GBP/USD and USD/JPY.
- Minors, or crosses, pair two major currencies without the US dollar, such as EUR/GBP or GBP/JPY.
- Exotics pair a major currency with a less widely traded one, such as USD/TRY or GBP/ZAR.
Why spreads differ
Majors are traded in huge volumes, so the gap between buy and sell prices is usually small. Exotics trade less, so spreads are wider and prices can jump more on news.
What it means when you exchange money
Changing pounds to euros or dollars usually costs less than changing into a less traded currency. Comparing the rate you get with the mid-market rate shows how much the provider is charging.
Where SendPay fits
SendPay does not offer forex trading. A SendPay platform lets your customers hold GBP, EUR and USD and exchange between them at live rates, with a fee you set.
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Build my platform →Questions people ask
How can I check if two currency pairs move together?
Our free correlation calculator compares two price lists and scores how closely they move, from -1 to +1.
Correlation calculator →Can I offer currency exchange in my own app?
Yes, on a branded platform where you set the fee.
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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.