Can you Trade Forex on Weekends?

In recent years, more and more people have wanted to trade currencies on weekends instead of throughout the week. But, does the forex market work on the weekends? Since the Forex market is closed over the weekends, trading is suspended. However, the prices of currency pairs can still fluctuate and there may be chances of trading forex on weekends if you know where to look. Let’s discuss them in this article.

Can you Trade Forex on Weekends?

The simple answer to forex trading on weekends is that it is technically possible. However, most experts will warn you to refrain from trading forex on weekends for a variety of reasons. Specifically, the weekend trading conditions are not ideal and the majority of forex brokers are closed.

Although most markets are closed during non-business hours, some continue to trade. However, you cannot directly visit these marketplaces on the weekends.

You are instead conducting business with a forex broker directly. Cryptocurrencies and Indices are the most actively traded assets on weekends. During the weekends, you may only be limited to trading in EUR/USD, GBP/USD, and USD/JPY by the brokers who do allow weekend trading.

Why Is It Not Recommended to Trade Forex on Weekends?

There may be many reasons that you may want to refrain from trading over the weekends. Here are some of the top reasons that may change your conception about weekend forex trading:

Reason#1: Large Spreads

Weekend trading is available, although the spreads charged by brokers are substantially wider than those charged during the week.

This can put your trade in the negative quite significantly compared to trading during the week when you open a position. For example, a spread of EUR/USD can be up to 4 pips. Is that what you’re looking for? Probably not, keeping in mind that EUR/USD spreads can go as low as 0 pips during the week.

Reason#2: Low Liquidity

Because there is so little actual trading activity that the retail forex market sees on the weekend, the price of your investments is less likely to rise or fall as rapidly as it would during the week.

Reason#3: Limited Number of Markets

Those brokers who facilitate weekend trading do so by limiting the available markets, making it easier for them to control their exposure to potential losses. After all, brokers only have a fraction of their regular employees available on the weekends, too.

Reason#4: Limited Brokers Available

The number of brokers willing to accommodate weekend trades is small because of the low demand. Just because a broker allows weekend trading is no reason for me to register an account with them. There are many other important factors to consider such as spreads, fees, platforms, tools, deposit/withdrawal options and support.

Which Traders Trade on the Weekends?

Weekend trading may appeal to those who, due to other commitments, cannot participate in the market during the week. The weekend is a possible time for trading for traders with a short holding period, or “scalper,” provided the market is liquid and open. However, for the reasons that we stated above, scalping the forex market during the weekend will be extremely difficult due to the trading conditions and lack of broker availability.

Cryptocurrency trading occurs around the clock, every day of the week. This means that you can trade cryptos on the weekend with relative ease in comparison. In saying that, crypto trading has a whole host of other problems you need to look out for including safety, volatility and high fees.

Top Market Options of Trade on the Weekends

Weekends are not an ideal time to make trades from my experience. Of course, if you insist on trading on the weekends, it helps to know which markets are most active. You can choose from these two alternatives.

Crypto Markets

The cryptocurrency market is your first consideration. Since it never closes, traders never worry about missing out on opportunities because of the weekend. Since this market is easily accessible through a vast range of brokers, it is simple to participate in. This makes it one of the most practical choices for weekend trading, if not the safest.

Weekends can also be a time when typical liquidity levels are present. The bitcoin market may be less volatile on weekends than the foreign exchange or stock exchanges. Traders can also enhance their market analysis thanks to the price data’s constant availability. Just keep in mind crypto is very volatile even on the weekends which can cause significant losses if you are not careful.

Tadawul Index – UAE

Except for a few holidays that vary from year to year, Tadawul Market is open every day of the week. Here is the place to verify and maintain tabs on them.

On this exchange, you can buy and sell standard financial instruments and invest in all the traditional underlying assets. In this market, your best options are:

  • Saudi Telecom Companies
  • Saudi Aramco
  • Saudi Basic Industries

Conclusion

Trading foreign exchange on weekends is risky due to reduced market activity, wider spreads, and lack of volume compared to weekdays. Forex scalpers might look to avoid the market on weekends because of the high transaction fees and lack of liquidity. Not to mention, it is difficult to find a forex broker with weekend trading. If you are limited for time during the week, you could always consider a daily forex strategy or weekly forex strategy that will take up much less of your time.

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