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Using Border Gateway Protocol (BGP) for routing traffic from virtual networks to on-premises locations, especially in a scenario involving multiple sites, is the most effective choice.

BGP is a standardized exterior gateway protocol used to exchange routing information between autonomous systems on the internet. It is particularly well-suited for scenarios where there are multiple connections to different networks, such as various on-premises locations. Its ability to handle multiple routes effectively and make dynamic path decisions based on network conditions makes it an ideal solution for complex routing scenarios.

In a multi-site configuration, BGP facilitates optimal route selection, load balancing, and redundancy. This protocol supports the management of various routing policies and helps maintain connection stability. Its dynamic nature allows for automatic updates to routing tables when network changes occur, which is crucial for maintaining connectivity in environments that require high availability.

While other options such as Azure default routes and User-defined routes can configure routing within Azure environments, they lack the boundary-routing capabilities and dynamic nature that BGP offers for multi-site scenarios. Dynamic Routing is a general term that encompasses various protocols; hence it doesn’t specifically denote the use of BGP for advanced routing needs. This makes BGP the best fit for the given situation.