Top Forex Brokers in Australia for FX Trading

AU FlagThe Internet is the best medium used by millions of people across the globe for the sole purpose of investing and trading to make a profit. Australians are no different traders, and this is one of the most active countries when it comes to Forex trade.

In the recent times, there has been an unprecedented rise in the Australian citizens who want to trade in Forex. It is all because of the high levels of internet literacy, penetration of internet and more than average disposable income which is paired with the non-restrictive regulatory framework.

It is a basic concept of economics that if a particular product or service is in a lot of demand, its common supply and production will increase. Hence, there is no surprise in finding some different Australian Forex brokers in the market. These brokerage firms offer an opportunity to the traders to make a significant amount of profit.

Ranking Forex Broker Regulation Min. Deposit Max. Leverage Min. Spread Review
1
IC Markets
ASIC
$200
500:1
1.1 pips
2
IQ Option
CySec
$10
500:1
0.5 pips
3
easyMarkets
CySec, ASIC
$100
400:1
1 pip
4
Plus500
FCA, CySec, ASIC
$100
300:1
0.6 pips
5
tradefred
CySec, ASIC
$250
500:1
0.8 pips
6
XM
FCA
$5
500:1
0 pip
7
LMFX
n/a
$50
1000:1
0 pip
8
LMFX
ASIC, FCA, CySec
$250
400:1
0.4 pips
9
eToro
FCA, CySec
$200
400:1
3 pips
10
BDSwiss
FCA, CySec, MiFID, BaFin
$200
400:1
1.3 pips

There is heavy competition in the market, and because of this, different brokers are offering competitive spreads and lucrative bonus just for the sake of attracting new customers and keeping the current ones.

Australian Forex Brokers

The Function of the Australian Securities & Investments Commission (ASIC)

ASIC or popularly known as “Australian Securities and Investments Commission is an independent organisation that looks after the regulation of Forex brokers in Australia. It came into existence in the year 1991 and was known as Australian Securities Commission (ASC) back then. At the moment, it employs more than 1800 people. The main function of the organisation is the protection of customers, creditors and investors on a federal level and making sure that the financial services law of the country is obliged and enforced.

ASIC follows the Forex brokers in Australia precisely that offers its financial services to the Aussies traders. It makes sure that all the brokers are legitimate and no trader comes in contact with a fraudulent brokerage firm.

Till date, some debates and other discussions are going on to limit the high leverage offered by the Australian Forex Brokers, but such kind of thing is not put into practice as of now. There are very few nations like Japan and United States that limit the highest leverage offered to 25:1 and 50:1 respectively. But in the country of United Kingdom, there is no such limitation, and the most senior leverage provided by the Forex brokers is up to 1000:1. In the country of Australia, many brokers offer leverage up to 500:1.

Basic Forex Trading Tips

Now you have a pretty good idea that your choice of Forex broker should be certified from ASIC, but perhaps there is more to learn about FX trading. Making money from the trade is never going to be easy, and it requires a lot of experience and practice by your side to hone this winning skill. However, there are a set of general guidelines that you should follow and can certainly help you on your way of making profits from your FX trade:

    Setting a realistic bankroll

    Determining maximum bankroll for a single Forex trade

    Selecting the ideal currency pair for trade

    Reading various study material and expert advice but using your skills

    Never chase after trade losses

As a Forex trader, the essential important thing you need to understand is that FX trading can never become your primary source of livelihood. So it is imperative that you remain cautious and plan your money wisely in the Forex market. It realised that the money that is needed for essential amenities like food, shelter, and medicine should not make realization at risk by trading into Forex.

Also, it is not advisable to stake your entire money on a couple of trades. You should divide your bankroll accordingly and make a proper assessment by setting up a total number of trades per week. You should always remember that trading with high leverage ratio is a risky affair and if you lose, your entire bankroll will be erased.

Hence, it is recommended that you should set aside small sums of money for trade so that even if you incur any loss, it won’t affect you on a long term.

Some brokers offer 30 currency pair while some can offer up to 60. If you are not familiar with a given currency, it is better not to trade in it. It is because you are unaware of the trade relationships between the respective countries and your chances of winning are subsequently reduced. Being an Australian, it is likely that you have good knowledge about the Australian Dollar and the respective pairs where it is one of the currency pairs. But it does not mean that you should trade in Australian Dollar all the time.

Some Australian Forex brokers offer free learning material like webinars, video tutorials, and ebooks on FX trade. There are other sources also available. You should understand that no one can predict the deal with hundred percent accuracy and it is not guaranteed that you will make a profit with every single trade. If any broker says so, they are lying to your face. Following the movement of gold price can be an excellent indicator.

Last but not the least, you should know that just because you have lost in your past few trades does not mean you are going to win on your next one. Never believe that losses made in the recent trades can be compensated with a single win. If you have this kind of thinking, you will end up losing more.

Forex Brokers and Their Offers

A right Forex Broker can go a long way in making profits on your Forex trades because it offers the best bonuses, prices and leverage. In addition to this, you will have a pretty decent trading experience. That is why you need to pay attention to the following things mentioned below:

  • Offered Pairs: We have already mentioned above that the Australian Forex Brokers provides a lot of currency pairs. If you are looking forward to trade minor and exotic pairs, this kind of trade can be profitable for you. Sticking with the commonly traded pairs is of little significance.
  • Leverage: As you are aware that ASIC has not put any maximum limit on the leverage ratio, you are free to trade with highest possible rate provided you are confident in it.
  • Spreads: It is the most common way through which Forex traders can book profits. The tighter is the range; less is the amount of profit of the broker. Your choice of broker should offer you competitive spreads so that you can book maximum gains and losses are minimised.
  • Bonus: Many brokers after registering the account or after making the first deposit offer bonus to the traders concerned. The First Deposit Bonus usually matches the first deposit to a certain amount wherein the No Deposit Bonus; it will be a fixed amount. You may increase your chances of profit by choosing the best bonus plan offered by the broker.
  • Deposit and Withdrawal Alternatives: Every licensed and registered broker makes sure that all the financial transactions taking through their website are secure. Some brokers will levy some charges or fees on the type of deposit or withdrawal method whereas some brokers do not charge any such tax. We need not have to explain why brokers that offer multiple features and does not charge any fees are better.
  • Trading Platforms: These days most of the Forex brokers offer a trading platform on the mobile devices. Most brokers also provide more than one trading platform to the individual traders where one platform has its unique features and trade options. Some options may be basic while some can be complex designed for experienced traders.

There are probably other aspects of Forex trading that can be of importance to traders like for instance customer service and user-friendliness of the website as well as the quality of learning material.

FAQ (Frequently Asked Questions)

1. Is there any legal limit on leverage ratio AU Forex Brokers offer?

There is no such limit at the moment, and the Australian Forex Brokers can offer leverage ratio as high as 500:1. In the past, all the discussions regarding putting the legal limit on leverage ratio have been ruled out.

2. Is Forex Trade in Australia subject to taxation?

All the losses and gains incurred from Forex trade come under Income Tax Assessment Act of 1997 or more specifically, Division 775 and Sub Division 960 C and D.

3. How are the profits and losses in Forex trade in Australia taxed?

All the currency gains and losses are subject to taxation only in the case when it is realised. There can be some different realisation events for the foreign currency, the following ones – disposal, ceasing to have right to receive, ceasing to have an obligation to pay/receive and ceasing to have the right to pay (foreign currency).

4. Does Australian Forex Broker offer a bonus in Australian Dollars?

Yes, all the traders can avail the bonus from their respective Australian Forex Broker in their national currency that is Australian Dollar without any hassles.

5. Why is Australian Dollar considered to be an interesting currency for trading?

It is primarily because the economy of this country is entirely dependent on the commodities price that Australia exports. This currency is independent of other currencies of the world that makes it quite interesting for the traders.