Premier Forex Brokers for Australian Traders: Navigate the Down Under Market
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Australia is considered one of the four major forex hubs, along with the United States, the United Kingdom, and Japan. Essentially, Australia is a forex-friendly country, with its currency being one of the most followed and speculated in the world.
As a favored nation for trading currencies, many providers from the region exist. While this choice is extensive, it also makes it hard to decide which is the go-to option among the best forex brokers in Australia.
Questions arising when tackling such a problem include which firm is appropriately regulated, has the lowest spreads, offers the most markets, etc.
Although readers will learn about the top 5 Australian forex brokers, this guide will also be educational and provide solid advice on what to look for when choosing an Australian forex broker.
Top 6 Australian Forex Brokers
1. TechBerry
Founded: 2015
Location: US, DE, AU, UAE
Currency Pairs: 100+
Min. Spread: 0
TechBerry has a monthly average gain of 11.2 percent and works with over 50 licensed forex brokers. The custom plan configurator can help you determine your monthly gains.
It uses a self-learning algorithm to analyze data from over 100,000 accounts to produce a highly successful automated forex trading approach. Large financial institutions can contact the developer for a customized plan with special features.TechBerry is one of the few social trading brokers that can reimburse up to 100% of your losses.
There are various subscription options at TechBeryy, depending on your trading needs. You can also get a free trial by depositing $5000 on the platform. Subscribers may see the robot’s real-time performance on the website, including the current win rate and live deals.
Pros
- Efficient customer service and a personal manager to answer your queries.
- Monitoring of trades in real-time.
- Average monthly profits of 11.2%
- A free trial is available.
Cons
- Only supports MT 4 and 5 platforms.
2. IC Markets
Founded: 2007
Location: Australia
Currency Pairs: 65
EURUSD Spread: 0.1 pips
Leverage: Up to 1:500
If a trader is looking for global recognition, longevity, and size, IC Markets may just be one of the top candidates. As per a May 2021 study conducted by The Tokenist, IC Markets is statistically the provider with the largest daily trading volume at about $19 billion.
The broker is also renowned for its ultra-tight spreads that are among the lowest in the world for forex, stocks, metals, commodities, indices, and energies. Moreover, IC Markets caters to traders of all experience levels with a reasonable minimum deposit.
Overall, IC Markets is a premier choice since 2007, not just for Australian traders but investors from other countries as well.
Pros
- Regulated by several regulators
- Provides zero spread account
- No inactivity fee
- Many depositing methods
- Accounts can be opened in numerous base currencies
Cons
- Negative balance protection unavailable
Read more about IC Markets in this review
3. Pepperstone
Founded: 2010
Location: Australia
Currency Pairs: 60+
EURUSD Spread: 0 pips
Leverage: Up to 1:30
When it comes to one of the most elite Australian-based, multi-regulated derivates brokerages, Pepperstone is often high on the list. The brand was founded in 2010 in Melbourne with a mission to solve some of the imminent problems at the time of lagging execution, sub-par customer service, and high trading costs.
Potential clients will be glad to know they won’t experience any of these challenges. Traders will also benefit from access to the latest technology to continually improve the trading experience. The broker processes just over $9 billion worth of trading volume on a daily basis, which is amongst the highest globally.
Over 55 000 clients, a mix of retail and institutional, presently use Pepperstone’s services. Since the turn of the 2010s, Pepperstone now boasts offices in a few more regions, namely Germany, London, Cyprus, Nairobi, and Kenya.
Overall, Pepperstone is highly trusted amongst traders all around the world.
Pros
- Licensed by numerous regulators
- Wide range of fee-free payment choices
- Traders can open accounts in numerous base currencies
- Zero spread account available
- Offers social trading through Myfxbook, MetaTrader and DupliTrade
Cons
- Negative balance protection only available for UK and EU clients
- Charges inactivity fee
Read more about Pepperstone in this review
4. FP Markets
Founded: 2005
Location: Australia
Currency Pairs: 60+
EURUSD Spread: 0.1 pips
Leverage: Up to 1:30
Like its name suggests, First Prudential or FP Markets is one of the prudential choices for Australian brokers. As a time-honored provider since 2005, the brand has excelled in size and reputation within the industry.
They provide a get-at-able platform for traders in most countries to access a complete suite of financial instruments, namely forex, indices, stocks, commodities, and cryptocurrencies.
FP Markets possesses all the must-haves of a competitive broker; reliable execution speed, recognized platforms, extensive market range, responsive customer support, and valuable educational resources. In addition to being licensed by CySEC and ASIC, these ingredients are sufficient for any potential client to have confidence in using this firm.
Pros
- CySEC and ASIC-regulated
- ECN/STP execution
- Offers zero spread account
- Flexible leverage offered
- No inactivity fee
Cons
- No negative balance protection available
Read more about FP Markets in this review
5. FXOpen
Founded: 2003
Location: Australia
Currency Pairs: 51
EURUSD Spread: 0.2 pips
Leverage: Up to 1:30
Formed in 2003, FXOpen is one of the oldest forex brokerages for retail and institutional investors. Initially started in Egypt as an educational center, the company eventually set up headquarters in Auckland, Australia as a CFD broker.
FXOpen is also globally recognized with licenses from the United Kingdom, St. Kitts and Nevis and Cyprus, and has offices in the former two. The provider also offers other securities, namely indices, stocks, commodities, and crypto.
FXOpen prides itself on offering a transparent ECN (Electronic Communications Network) model with no dealing desk and requotes. Using this system is beneficial for all traders of all experience levels who receive prices from a vast interbank market with fast execution and tight spreads.
All in all, FX Open leaves little to chance and provides a simple-to-understand brokerage service for many traders around the world.
Pros
- ASIC and FCA-regulated
- Zero spread account has low commissions
- Provides negative balance protection
- Flexible leverage of up to 1:500
- STP broker
- Reasonable minimum deposit for most regions
Cons
- Charges inactivity fee
- Not much educational material available
Read more FXOpen in this review
6. VantageFX
Founded: 2009
Location: Australia
Currency Pairs: 40
EURUSD Spread: 0.1 pips
Leverage: Up to 1:500
VantageFX is an ASIC-regulated retail and social trading forex brokerage in business since 2009. The provider offers CFDs in indices, shares, energies, metals where clients benefit from industry-leading platforms, fee-free deposits and withdrawals, a transparent trading environment, and competitive execution costs.
For retail traders looking for lower spreads, specifically in forex, they can benefit from Vantage’s RAW ECN or zero spread with a low $3.00 per lot per side commission. Another benefit with VantageFX is their offerings in social trading through ZuluTrade, Myfxbook, and DupliTrade.
Therefore, VantageFX is equally brilliant for active and non-active traders in a plethora of instruments.
Pros
- ASIC-licensed
- Accounts can be opened in numerous base currencies
- Fee-free deposits
- Offers social trading
- Huge selection of forex pairs
Cons
- Does not offer negative balance protection
- Restricted in many countries
- High deposit for zero spread account
Read more about Vantage FX in this review
What is important when choosing an Australian forex broker
The factors below are the primary ones to observe when choosing an Australian forex broker:
Regulation
The regulation of any forex brokerage is imperative. With Australian clients, the main regulator is the Australian Securities and Investments Commission (ASIC). They are a highly regarded forex licensing body and considered tier-1 even for any market provider not primarily based in or from Australia.
Among its numerous tasks, the ASIC’s most important job is being a watchdog for brokers in the country, licensing forex providers, prosecuting any offenders, and assuring financial market integrity and ethicality. So, any Australia-based broker clients consider should be ASIC-regulated.
The regulator ensures firms are sufficiently capitalized, have segregated accounts with top-tier banks, and follow specific risk management procedures, among other things. Australian clients should also note any policies regarding insurance and similar schemes pertaining to an individual broker in their region.
Negative balance protection
Because of the highly leveraged nature of forex, negative balance protection is essential to prevent any issues in the rare case someone’s balance falls below zero. Although all brokers employ margin calls and stop-out levels, traders still should find out their policies on handling negative balances.
Spreads, commissions, swaps, and other trading costs
Retail traders should note spreads will be their main trading cost as they apply on every order regardless of how long it’s held. Due to the ever-increasing number of market providers coming into the markets, spreads are pretty low across the board.
Some differences might exist primarily with less traded pairs, namely exotics, where a comparison with other providers is necessary. Traders will also need to understand if they are either getting a fixed or variable spread account and whether that is suitable for their trading frequency and strategy.
Typically, fixed spreads incur commissions. Like spreads, commissions are also fairly competitive in the industry. It’s also important to note that while these fees are a notable consideration when picking a broker, there can be unforeseen circumstances of slippage or spreads widening, which unfortunately increase the trading costs for that moment.
With swaps, these have also remained relatively consistent with most forex brokers, but differences should be briefly compared for anyone trading exotics.
Other trading costs: Other costs users might incur are mainly deposit and withdrawal fees. In many cases, firms waiver these off for card and e-wallet payments, meaning these are the cheapest methods to fund. Withdrawal costs tend to be levied for bank transfers, along with deposits through the same option.
Lastly, inactivity fees are applied by some brokers for funded trading accounts with no activity after a particular period. Potential clients will need to note these and ensure their accounts are closed should they decide to leave a broker.
Markets and trading platforms available
The number of instruments a provider has is an excellent sign of their service’s superiority. Not only does this give one more choice, though should a trader decide to specialize in a different instrument in the future, it makes switching much simpler.
Other innovations such as a mobile app, different platforms, web trader, and other technical tools also play a big role and add real value for a client.
Customer service options
The key factor about customer service is a speedy response. Live chat or any support offered via an instant messaging platform (WhatsApp, Telegram, etc.) by a broker is a must to ensure the best customer service.
While telephone and email options are also necessary, live chat or instant messaging is usually the easiest and quickest.
How do you trade stocks in Australia?
Follow these steps to trade equities in Australia:
1. You must first register a brokerage account with an online stockbroker in Australia before trading stocks online. The Australian Securities & Investments Commission (ASIC) oversees the best Australian stock broker.
2. You must fund your account after it has been opened. Depending on your provider, you can fund your account via a bank transfer, credit card, or other payment options.
3. Before investing, you can use research tools offered by best Australian online share broker or other financial websites to examine stock performance and other pertinent data.
4. You can place your transaction after doing your analysis.
Who is the cheapest stockbroker in Australia?
Per the research results, some sort of trade and the quantity of investment are key factors in determining the cheapest stockbroker in Australia. eToro, on the other hand, is regarded as the most affordable Australian best forex broker based only on commission rates, levying $0 brokerage on both Australian and international stock trading.Think Markets, Pearler, Interactive Brokers, and Tiger Brokers are among the best Australian forex brokers with reasonable costs. It is crucial to remember that there are other variables to consider when picking a stockbroker, including customer service, security measures, and trading platform features.
Conclusion
Australia is prominent in foreign exchange as a currency and country. Consequently, traders are spoilt for choice with the number of brokers. This guide will have hopefully provided all the key points in selecting the best forex broker in Australia.
In formulating this guide, we conducted rigorous research using each broker on the list and considering their security, costs, features, user-friendliness, trading conditions, markets, and customer service.
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