Australian Forex Trading & Broker Comparison List 2021

Australian Forex Broker or Trading whatsoever is one of the most broadly looked after topic in the Forex trading sphere. 

Guess what, strangely enough, everybody seems to have their own idea on how to trade or how to find the best Forex broker in Australia!

Hooray, TopAsiaFX got you covered and has prepared a piece of detailed information about everything you need to know - 2021's Forex Trading Process & TOP 10 Broker Comparisons in Australia.

Without any delay, let’s dive in!

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Let's Get to the basic - Australian Forex trading & broker

Before jumping in. Let’s ask you this first: thinking of investing in Australian Forex Trading, but don’t know how it works?

Well, the Australian dollar is a currency actively traded on the foreign exchange market. That includes Australia, eight countries use the Australian dollar. Australia is the largest of these eight countries (Cocos Islands, Heard Islands and McDonalds, Kiribati, Nauru, Norfolk Islands, Tuvalu, and Christmas Island).

When planning to INVEST in a foreign currency, it is wise to know some economic indicators that can affect the value of this currency in foreign exchange transactions. Below you will find several Australian indicators and indices to consider when trading the Australian dollar on a forex trading platform.

  • Australian forex trading: Consumer Price Index

    Do you know about CPI? The Consumer Price Index (CPI) is widely renowned as the perfect indicator of inflation. It deals with the cost of purchasing a set of services and goods at the consumer level. Prices measured for products and services in sectors such as food, housing, clothing, recreation, transportation, and medical care.

    The value of the CPI is read at a base level starting at 100. If the media publishes an index CPI of 106, it means that it now costs 6% more to buy the same set of products at the same time consumption. Well, the Consumer Price Index or CPI is a weighted AVERAGE of consumer goods EXCLUDING more volatile goods and services.

    An ESSENTIAL factor to consider before investing in the Australia forex trading platform is that the PPI does not take into account the price of imported products and that Australia is a major importer. Read Australia's PPI with a grain of salt.
  • Australian forex trading: Wage Price Index

    The Wage Price Index is published quarterly by the Australian Bureau of Statistics. The wage price index includes four different measures of wage prices, but the largest of these four measures is the ratio of total hourly equivalents of wage rates. This index provides a clear picture of what employers are responsible for paying their staff.

We hope this will give you insight into how Australia Forex traded, how profits are made, and, more importantly, how losses are suffered, and how to minimize them. 

Is forex trading legal in Australia?

Forex trading is legal in Australia. It is essential for Australian traders that foreign exchange and CFD companies be regulated by ASICs so that if there is a problem with the supplier, you can contact FOS for claims processing.

Our TOP voted broker is FP Markets for Australian traders - Simplified CFD trading with CFD brokerage platform and its ASIC regulation.

Is forex tax-free in Australia?

You are unsure of your situation. Still, if you are trading most probably, you CALCULATE your gains and losses by converting each transaction to Australian dollars at that time and then pay taxes on that amount.

There is a complex set of rules, but they primarily produce this result. If you use derivatives, it's different.

How does an Australian Forex Broker work?

The FIRST step in successfully implementing your forex trading strategy is to select one of the best forex brokers. It is a personal choice and depends on what you feel comfortable with as a trader. Be very selective and careful, and do your homework correctly.

Remember that you do not have to rush into a decision. Many factors play a ROLE in selecting Australian Forex brokers.

Prepare your selection criteria and start your research. The possible standards elements that you can use are:

Is the dealer registered with the relevant regulatory authorities, the National Futures Association (NFA), or the United States-based Commodity Futures Trading Commission (CFTC)? 

TOP Australian Forex brokers must register with the Financial Service Authority (FSA).

Regulatory compliance is essential!

What are the options of the Australia Forex Broker account? 

  • Commissions -  Brokers EARN money by commissions. Multiple brokers promote that they do not take any commission, which means that they make money with wider spreads.

  • Spreads can be fixed or variable -  The wider the gap, the harder it is to make a PROFIT. Popular pairs of currency must have high spreads than less operated spreads.

  • Initial deposit -  It is the aggregate you are willing to add to the account of your broker. No deposit is required when you open a forex demo account.

  • Easy deposits and withdrawals -  Do not USE a broker where there have been complaints to get money out of the account.

  • Forex trading platform -  The most popular Australia forex trading platform is Meta Trader 4 (MT4), but this is not the only option available. Our TOP 10 recommended trading platforms available that provide web-based, MT5, FIX API, and other. 

The economy is more STABLE, and with it, more and more consumers are getting involved in Forex trading, myself, because there are several advantages. Forex is complex and, although there are no central Forex headquarters, there are thousands of ways to trade, the most popular being the Internet.

The concept is simple, but the systems are complex, and every second, millions of dollars are exchanged.

how to choose an Australian forex brokers

Choosing the Australian best Forex broker is not an EASY task ):

There are many EXCELLENT brokers, so let us quickly explain how to choose Australian forex brokers.

You will want to do a lot of homework. The Internet is the gateway to the market, as well as transaction execution services. End-users are offered the opportunity to connect via exchange-traded funds, foreign exchange markets, international stocks, and an online trading platform. Your Australian forex brokers will act as an intermediary between you and the market.

Okay, so choose the RIGHT broker by following TIPS:

  • DO Research 

    Get all the information you can about the
    Australian forex brokers that interest you. Make a list of forex trading standards for yourself. If you do not know what you are looking for, you need to do more research. Having an understanding of BASICS is necessary. Start by learning the terms that will help you identify the essential features to look for in a broker.

  • Read Reviews

    Make sure you look at the REVIEWS. While conducting my research, I read many reviews. Australian regulated Forex brokers are something that should speak for themselves. Jump on the forums, as well as to find out more about what other traders have to say about the forex brokers with which they have experience.

  • Make A-List 

    Once you have identified the characteristics you are looking for in a forex trader, start comparing traders working in the market. Limit your search to traders that best match your characteristics as a trader. In doing so, you will write your list of brokers.

  • Join Webinars

    Many brokers offer free webinars, which are a great way to help evaluate a company and its systems. We recommend all new traders to attend if the company you are considering offers a free webinar.

What are Forex Leverage Limits available in Australia?

The KEY to Forex trading is leverage.

If you want to trade Forex, a Forex broker will make transactions for you, and for every $ 100,000 you want to sell, you only need to deposit $ 1,000 of your own money. 

It means that your leverage level is 100: 1, which allows you to control something 100 times bigger than your own money. Then, if you take the example above, you earned $ 10 from your $ 1,000, which is a 1% profit.

Not too bad for a day's work. The best part of the Forex market is that it can be extremely volatile, and a pair can move 50 to 60 pips in an hour

If you get $ 10 per pip and you earn 50 pips, you will receive $ 500. If you only needed to spend $ 1,000 of your own money, you would make a massive 50% profit! Wouldn't it be great to do a series of transactions where you earn 50% on each trade? It is where people are led to think that trading on Forex is secure.

In the END, when you go into a transaction, your broker lent you $ 100,000, and all they asked you was $ 1,000. If you start making losses, they will want to recover their $ 100,000 anyway, so any fatalities will be taken from your account!

Are you planning a profession as regulated Australian forex brokers?

Australian authorized Forex brokers prefer working in the altering field of currencies, bringing in billions for their clients. Also, they earn a lot of currency in commissions, betting on the exchange rates of countries that will increase or decrease in the coming time.

  • Who Manages Forex Brokers 

    While the forex brokers in Australia work throughout the biosphere in many cities as well as countries, no organization manages the entire Forex brokers. In spite of this, brokers are governed by the local brokerage regulatory association in their particular areas.
  • Beware of Unregulated Brokers 

    Always be aware of fraudulent activities. Forex fraud is an increasingly common problem that investors need to know. The Commodity Futures Trading Commission estimates that customers have lost more than $ 395 million in fraudulent currency exchange systems.
  • Broker Type

    There are different types of Australian forex brokers. Some are only executions that are to say that they will only act on your instructions and will only be exchanged when you say it. Other brokers will transfer your account on your behalf.
  • Factors Affecting the AUD

    In addition to the economic and political variables that affect exchange rates, some elements are specific to the AUD. On the economic front, Australia stands out for its high dependence on commodities, with the mining industry accounting for more than 5% of its GDP and agriculture 12%.

    Although this dependence has enabled Australia to withstand the global financial crisis than many Western economies better, its manufacturing sector has never been so developed - resulting in a high level of external debt, a massive current account, and high-interest rates.

Why Australian forex trading so popular?

Australian foreign exchange brokerages in the Forex market are rapidly attracting interest from retailers around the globe because of the trading environment and best trading conditions.

In addition to the superb trading options, brokers of Australia are becoming more and more famous in the business because of the ECN accounts provided by the TOP Australian brokers.

The brokers changed the retail industry while offering ECN trading accounts by investing a small share. Multiple brokers are adopting the Trader platform, which provides an ECN atmosphere with fast trading executions and tight spreads. 

What is the best forex broker in Australia?

We have created a LIST of all brokers authorized by ASIC and then ranked the brokers according to their score of trust. The list of the top Australian Forex brokers is here.

  • IG - Best overall, most reliable
  • Saxo Bank is a Best Web Platform, High Minimum Deposit
  • Plus500 - Ideal for ease of use
  • City Index - Well Balanced Offer
  • eToro - Ideal for copy trading

How to select the best forex broker in Australia?

Finding a trustworthy broker is DIFFICULT because they are numerous. The work becomes much more comfortable if you seek according to specific criteria.

Here is a list of circumstances the broker must consider to be reliable:

  • A government agency regulates it

    First, you should confirm that ASIC regulates the brokerage. It manages the Australian company and company name registries, which anyone can search online. The foreign exchange market is decentralized, making it more vulnerable to fraud. However, if the firm is on the list of ASIC regulated brokers, you can be sure that it meets industry standards because the industry continuously audits, reviews, and evaluates it.
  • It has an excellent customer service policy

    If you're new to this area, you're likely to have a lot of questions. Choose a broker with excellent customer service and the ability to answer any questions at any time. Even as an experienced trader, you may encounter all kinds of technical problems and other difficulties. That's why you need a dedicated team to assist and guide you to make your trading experience more accessible.
  • It has good business conditions

    Make sure you can open an account on the company's platform without problems. Also, see how much money you need to open an account. See what leverage they offer and whether they charge commissions or not. 

Leverage is essentially the money you borrow from the broker!

It's a double-edged sword; you could win more but also lose more. Also, check to see if they offer fixed or variable differences. 

Fixed spreads do not change during press releases and volatile market conditions. It would be great if they provided a risk management tool to deal with unexpected market behavior.

Differences between US & AUS forex trading

United States Forex Trading - Forex (currencies) trading in the US is famous among multiple FX traders. Before accepting US traders as clients, the broker must be registered as an RFED broker with the financial regulator, CFTC, and under the control of the NFA. A dealer in the Futures Commission (FCM). The site of NFA is nfa.futures.org. US residents are also encouraged to track the CFTC.

Australian Forex Trading - Forex trading contributes most to the value of the Australian dollar in foreign exchange transactions. The Reserve Bank of Australia pays particular attention to the CPI because it helps to indicate inflation. When the CPI shows a potential rise, the RBA typically raises interest rates to fight inflation, thereby increasing the value of the Australian dollar.

IN CONCLUSION

At TopAsiaFX, we hope you found the disclosed information about Forex Trading and Brokers in Australian so beneficial.

Dude, knowledge is power!

Just use the information discussed here and you’re on your way to rock your Forex trading experience in Australia-AUS. 

Feel we missed something? Please inbox us or let us know in the comments block below (;