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Australia has a well-regulated financial sector which has made it a haven for forex trading. An estimated $9 trillion worth of trades take place in the country. In fact, the FX market is considered one of the most liquid and largest industries in the country and around the world too.
Currently, there are about 70 forex brokers that are licensed by the Australian Securities and Investments Commission with more springing up daily. The reason for the boom in forex trading in Australia can be traced to favourable government policies for the most part.
Even though FX trading isn’t new in Australia, the industry gained more appeal in 2015, after news hit the airwaves that the Swiss franc was increasing by a wide margin. With that, several experts and potential investors started searching for the best brokers in the region.
In that regard, we’ve compiled the best forex brokers using a set of criteria to determine how good they are. We’re reviewing each broker by their commission and spreads, supported markets, regulations, payment methods, trading tools and more.
Without further ado, let’s get started;
Contents
1. eToro
For those that are familiar with the FX market, eToro is one name that would always pop up when brokers are called. For starters, the broker is one of the top regulated platforms out there. They have licenses with the CySEC, SEC, ASIC, and FCA.
The eToro platform was launched in 2007 and currently has more than 25 million users worldwide. As luck would have it, the platform offers its services to the Australian market. eToro offers a wide variety of minor, major, and exotic currency pairs.
In addition, the broker’s pricing structure is strictly spread-only starting at 1 pip on pairs like USD/JPY and EUR/USD. Without doubt, eToro is the best broker for passive trading offering Australians leverage. In addition, the platform has a feature called Copy Trading, where investors simply mirror the trades of experts on the platform.
For example, a user on eToro decides to invest 500 USD into an experienced trader with a rock-solid history of profitable trades. If the expert trader decides to risk 10 percent of their balance by shorting EUR/USD. By design, the newbie mirroring the expert will copy the same strategy– which is 10 percent of their 500 USD investment.
This tool allows newer users get the required courage to not only learn from experts but to also learn their strategy in real-time. It also comes in handy for those that don’t have the knowledge or time to adequately research the market.
Also, eToro offers CFDs like commodities and indices. However, what makes eToro unique is that users can buy Australian shares with no commission from just 10 USD per trade.
What’s more, eToro also gives its Australian users the option of investing in crypto with minimal fees. With that being said, getting started on eToro is quite easy as opening an account only takes a few minutes. Keep in mind that the platform requires a 50 USD minimum deposit. Lastly, eToro supports payments through debit and credit cards, bank transfers and e-wallets.
- Social Trading Platform: eToro is renowned for its social trading platform, which allows users to follow and copy the trades of successful investors. This feature can be particularly helpful for beginners or those looking to learn from more experienced traders.
- Wide Range of Assets: eToro offers a diverse range of assets for Australians to trade, including stocks, commodities, indices, ETFs, cryptocurrencies, and various currency pairs. This wide selection caters to different investment strategies and risk appetites.
- User-friendly Interface: eToro’s platform is designed to be intuitive and easy to use, even for those new to trading. The user interface is visually appealing, and users can access a range of tools and features to help them make informed trading decisions.
- Commission-free Stock Trading: eToro offers commission-free trading on stocks for Australian users, which can help reduce trading costs and improve potential returns.
- Extensive Educational Resources: eToro provides a wealth of educational content for its users, including webinars, video tutorials, articles, and an online trading academy. These resources can be particularly beneficial for novice traders looking to develop their skills and knowledge.
- Demo Account: eToro offers a free demo account with $100,000 in virtual funds, allowing users to practice their trading strategies and get familiar with the platform before committing real money.
- Regulated by ASIC: eToro is regulated by the Australian Securities and Investments Commission (ASIC), which ensures that the broker complies with stringent regulatory requirements in Australia. This provides an added layer of security and protection for users.
- Withdrawal Fees: eToro charges a withdrawal fee of $5, which can be a drawback for users who frequently withdraw funds from their account. Additionally, there may be conversion fees for Australians withdrawing in AUD.
- Limited Customer Support: Some users have reported difficulties in reaching eToro’s customer support, particularly during peak trading hours. This can be frustrating for users who require assistance or have urgent inquiries.
In conclusion, eToro is a popular and user-friendly online broker for Australians, offering a range of benefits such as its social trading platform, diverse assets, commission-free stock trading, and extensive educational resources. With regulation by the ASIC, users can have confidence in the platform’s security and compliance. However, there are some drawbacks, including withdrawal fees and potentially limited customer support during peak times. Overall, eToro is a solid choice for Australian investors, particularly for those new to trading or interested in learning from experienced traders through the social trading feature.
2. Plus500
Australian traders that prefer a broker that’s ASIC-regulated will find Plus500 a great option. On the platform, traders can access about 60 major, minor, and exotic currency pairs using this CFD provider.
Apart from the web app, traders can use the mobile app for more convenience. As luck would have it, the platform has a demo account they can test to know the bells and whistles of the broker. In addition, they can combine fundamental data and advanced indicators in their analysis as Plus500 offers key market insights and important news.
Plus500 also offers price alerts for investors to know the when currency they’re watching hits a certain exchange rate. There’s also a guaranteed stop order feature traders can use to mitigate losses and while locking in profits.
The platform also offers FAQ sections and free educational content which users can use to get vital key information. Their support centre also stands out as they’re available round the clock to answer all questions the users may have.
With regards to trading, Plus500 allows users to enhance their skills as they have a comprehensive trading academy they can enrol in. Traders have to deposit a minimum of AUD 200 to start and the payment options include Apple Pay, bank wire, credit/debit cards, and Paypal.
Users on the Plus500 platform can fund their account without any hidden fees nor will they be charged a commission for trading. The platform also offers tight spreads for specific currency pairs. However, there are certain fees users need to be aware of and they are the guaranteed stop order, overnight fees and currency conversion if implemented. Lastly, Plus500 charges inactive users 10 USD per month after 3 consecutive months of no activities.
- Wide Range of Tradable Instruments: Plus500 offers a large variety of financial instruments for Australian users, including stocks, indices, forex, commodities, cryptocurrencies, and ETFs. This diverse selection allows traders to create a balanced and diversified portfolio.
- User-friendly Platform: Plus500 has a straightforward and intuitive trading platform, making it easy for beginners to navigate and execute trades. The platform is available on desktop, web, and mobile devices, ensuring users have access to their trading activities at all times.
- Competitive Spreads: Plus500 offers competitive spreads on various financial instruments, allowing users to benefit from reduced trading costs, which can enhance potential returns.
- Free Demo Account: Plus500 provides a free, unlimited demo account for users to practice trading strategies and get familiar with the platform before committing real money.
- Advanced Trading Tools: The platform offers a suite of advanced trading tools, including customizable charts, technical analysis indicators, and risk management features such as stop loss and take profit orders.
- No Commission on Trades: Plus500 operates on a commission-free model, with trading costs incorporated into the spreads. This can be beneficial for users who want to keep their trading expenses low.
- Regulated by ASIC: Plus500 is regulated by the Australian Securities and Investments Commission (ASIC), ensuring compliance with stringent regulatory standards and providing an additional layer of security for users.
- Limited Educational Resources: Plus500 offers relatively limited educational materials compared to other brokers. This could be a drawback for new traders who are looking to learn more about trading and improve their skills.
- Inactivity Fee: Plus500 charges an inactivity fee of $10 per month for accounts that have been dormant for three months or longer. This can be an issue for users who do not actively trade or maintain their accounts.
In conclusion, Plus500 is a reputable and user-friendly online broker for Australians, offering a diverse selection of tradable instruments, competitive spreads, and advanced trading tools in a platform regulated by ASIC. While there are some drawbacks, such as limited educational resources and inactivity fees, the platform remains a strong choice for Australian traders, particularly those who value a straightforward interface and low trading costs. By providing a comprehensive trading experience with a focus on simplicity, Plus500 caters to both beginner and experienced traders in Australia.
3. Vantage
The Vantage platform was launched in 2009 and within this period, the broker has been a massive hit among Australian forex traders. This CFD platform gives investors access to over 44 forex trading pairs when they use its two account types– the Raw ECN account and the standard STP account.
The Raw ECN account allows its users to access the EUR/USD pair from 0.1 pip and above. On the other hand, investors need a minimum deposit of 200 USD for the standard STP account and it gives them commission-free trades. Although, the spread on widely used pairs like the EUR/USD starts at 1.1 pips
On average, the account requires a little $3 commission per lot while the Raw ECN account requires a $500 minimum deposit. When trading on the Vantage platform, accounts can access 1:100 leverage, while limited professional accounts can apply to about 1:500 leverage.
A standout feature is that users can access Vantage MT4 and MT5. This gives them various customization options, technical indicators and advanced charts to help them trade. Also, retail clients can use the Vantage app to trade and it’s available on both the iOS and Android stores.
Vantage offers index CFDs, stock CFDs, cryptocurrency CFDs and commodities CFDs apart from forex trading. It takes about 5 minutes (sometimes less) to create a new account and new users can fund their accounts through various options on the platform. They can choose from bank transfers, credit or debit cards, or e-wallets like Skrill, PayPal, Neteller and more. One thing that may sway users to Vantage is that it doesn’t charge deposit or inactivity fees.
With regards to regulations, the platform is regulated by the FCA, ASIC, and VFSC which gives it the required backing by law.
- Competitive Spreads and Fees: Vantage offers competitive spreads and low fees for Australian traders, which can help reduce trading costs and improve potential returns.
- Wide Range of Tradable Instruments: Vantage provides a diverse selection of tradable instruments, including forex, commodities, indices, stocks, cryptocurrencies, and ETFs. This allows users to create a well-balanced and diversified portfolio.
- Multiple Trading Platforms: Vantage supports both MetaTrader 4 (MT4) and MetaTrader 5 (MT5) trading platforms, which are popular and highly customizable, offering advanced tools and features for traders of all skill levels.
- Educational Resources: Vantage offers a variety of educational materials, such as webinars, video tutorials, articles, and an online trading academy. These resources can be beneficial for novice traders looking to develop their skills and knowledge.
- Customer Support: Vantage provides responsive and knowledgeable customer support, which can be especially helpful for users who require assistance or have urgent inquiries.
- Segregated Client Funds: Vantage keeps client funds segregated from the company’s operational funds, ensuring that users’ money is protected in the event of any financial issues.
- Regulated by ASIC: Vantage is regulated by the Australian Securities and Investments Commission (ASIC), ensuring that the broker adheres to strict regulatory standards and provides a secure trading environment for Australian users.
- Limited Proprietary Trading Platform: Vantage relies on third-party platforms (MT4 and MT5) rather than offering its own proprietary trading platform. This could be a drawback for traders who prefer a unique, broker-specific platform.
- Withdrawal Fees: Vantage charges withdrawal fees for some withdrawal methods, which can be a downside for users who frequently need to withdraw funds from their trading account.
In conclusion, Vantage is a reputable online broker for Australians, providing a comprehensive trading experience with competitive spreads, fees, and a diverse range of tradable instruments. Supporting both MT4 and MT5 platforms, Vantage caters to traders of all skill levels, while being regulated by ASIC ensures a secure trading environment. Despite some drawbacks, such as limited proprietary trading platform options and withdrawal fees, Vantage remains a strong choice for Australian traders seeking a well-regulated broker with a focus on customer support and educational resources.
4. Pepperstone
New Australian investors that want to open an account with raw spread, their best bet is Pepperstone. With this account type, they can trade FX pairs with spreads of little to no pips which are achieved by when directly trading with other participants in the market.
For a user to access zero spread, investors have to pay a $3.50 commission for every currency pair that’s traded. In contrast, users that aren’t comfortable with this fee can choose the Pepperstone standard forex trading account which comes with commission-free trading.
With this account, the trader has to cover a spread that starts from 0.6 pips. Regardless, both accounts give users in Australia access to a myriad of platforms like MT4, MT5, TradingView and cTrader. That’s not all, Pepperstone offers all kinds of currency pairs – major, minor, and exotic – with a 1:30 maximum leverage limit for retail clients.
With regards to funding options, the Pepperstone platforms allow users to fund their account via debit/credit cards, bank transfers, BPay, POLi, and several other e-wallets. In addition to FX commodities, Pepperstone offers other CFD markets like shares, commodities, crypto, and indices.
- Competitive Spreads and Low Fees: Pepperstone offers tight spreads and low fees for Australian traders, which can help reduce trading costs and potentially increase returns.
- Wide Range of Tradable Instruments: Pepperstone provides a diverse selection of tradable instruments, including forex, commodities, indices, stocks, cryptocurrencies, and ETFs. This allows users to create a well-balanced and diversified portfolio.
- Multiple Trading Platforms: Pepperstone supports both MetaTrader 4 (MT4) and MetaTrader 5 (MT5) trading platforms, as well as the cTrader platform. These platforms are popular and highly customizable, offering advanced tools and features for traders of all skill levels.
- Fast Execution and No Dealing Desk: Pepperstone uses a no dealing desk model and provides fast execution, reducing the risk of slippage and ensuring that trades are executed at the best available prices.
- Excellent Customer Support: Pepperstone is known for its responsive and knowledgeable customer support, which can be especially helpful for users who require assistance or have urgent inquiries.
- Educational Resources: Pepperstone offers a variety of educational materials, such as webinars, video tutorials, articles, and an online trading academy. These resources can be beneficial for novice traders looking to develop their skills and knowledge.
- Regulated by ASIC: Pepperstone is regulated by the Australian Securities and Investments Commission (ASIC), ensuring that the broker adheres to strict regulatory standards and provides a secure trading environment for Australian users.
- Limited Proprietary Trading Platform: Pepperstone relies on third-party platforms (MT4, MT5, and cTrader) rather than offering its own proprietary trading platform. This could be a drawback for traders who prefer a unique, broker-specific platform.
- No Direct Stock Trading: Pepperstone does not offer direct stock trading, which can be a downside for users who are specifically interested in trading individual stocks.
In conclusion, Pepperstone is a reputable online broker for Australians, providing a comprehensive trading experience with competitive spreads, fees, and a diverse range of tradable instruments. Supporting popular trading platforms like MT4, MT5, and cTrader, Pepperstone caters to traders of all skill levels, while being regulated by ASIC ensures a secure trading environment. Despite some drawbacks, such as the absence of a proprietary trading platform and direct stock trading, Pepperstone remains a strong choice for Australian traders seeking a well-regulated broker with a focus on customer support and educational resources.
5. AvaTrade
AvaTrade is also another reputable forex broker to consider for Australian users. This platform is regulated by ASIC and seven other top regulatory bodies. Opening an AvaTrade account is so easy that’s its often done under 2 minutes with a minimum first-time deposit of $100.
This platform supports several payment methods like debit or credit cards, bank wires and e-wallets. This CFD trading platform offers its users in Australia leverage of 1:30 and 1:20 on currency pairs. Also, AvaTrade’s forex offering is quite expansive as they offer lots of currency markets.
Users can access all trading pairs on a commission-free basis as spreads are as low as 0.9 pips. Users with FX trading experience often prefer AvaTrade due to how compatible it is with MetaTrader 4 and MetaTrader 5. There’s no doubt these are the preferred platforms for experienced users thanks to their features and high-level tools.
In most cases, rookie traders often go for the AvaTrade web trading platform. This platform can easily be accessed through a regular web browser like Google Chrome or Mozilla Firefox. In addition, there’s the AvaTrade mobile app for Android and iOS who like to trade from mobile devices. That’s not all, the platform offers CFDs in the form of indices, stocks, crypto, and commodities.
- Wide Range of Tradable Instruments: AvaTrade offers a diverse selection of tradable instruments for Australian users, including forex, commodities, indices, stocks, cryptocurrencies, and ETFs. This allows users to create a well-balanced and diversified portfolio.
- Multiple Trading Platforms: AvaTrade supports several trading platforms, including MetaTrader 4 (MT4), MetaTrader 5 (MT5), and their proprietary platform, AvaTradeGo. This provides traders with a choice of platforms to suit their preferences and skill levels.
- Educational Resources: AvaTrade offers a variety of educational materials, such as webinars, video tutorials, articles, and an online trading academy. These resources can be beneficial for novice traders looking to develop their skills and knowledge.
- Free Demo Account: AvaTrade provides a free demo account for users to practice trading strategies and get familiar with the platform before committing real money.
- Customer Support: AvaTrade is known for its responsive and knowledgeable customer support, which can be especially helpful for users who require assistance or have urgent inquiries.
- Negative Balance Protection: AvaTrade offers negative balance protection for users, which means that traders cannot lose more money than they have deposited in their account.
- Regulated by ASIC: AvaTrade is regulated by the Australian Securities and Investments Commission (ASIC), ensuring that the broker adheres to strict regulatory standards and provides a secure trading environment for Australian users.
- Withdrawal and Inactivity Fees: AvaTrade charges withdrawal fees for some withdrawal methods, which can be a downside for users who frequently need to withdraw funds from their trading account. Additionally, there is an inactivity fee for dormant accounts.
- Limited Range of Cryptocurrencies: While AvaTrade offers some cryptocurrency trading options, the range is relatively limited compared to some other brokers, which may be a drawback for users specifically interested in trading a wider range of digital assets.
In conclusion, AvaTrade is a reputable online broker for Australians, providing a comprehensive trading experience with a diverse range of tradable instruments, support for popular platforms, and a focus on education. Regulated by ASIC, AvaTrade offers a secure trading environment, while their responsive customer support ensures a positive user experience. Despite some drawbacks, such as withdrawal and inactivity fees and a limited range of cryptocurrencies, AvaTrade remains a strong choice for Australian traders seeking a well-regulated broker with a commitment to customer satisfaction and educational resources.
6. Forex.com
Perhaps, Forex.com is the best FX broker in Australia when you consider its reputation among users in the country. For starters, this platform has been operating since 2001 and it’s regulated by various tier-one financial companies.
Another feature that makes this platform stand out is its huge trading library which has more than 80 currency pairs. Also, this platform’s forex trading markets are open 24/7. Regarding fees, Australian investors don’t pay any commissions and they enjoy competitive EUR/USD spreads that start at 0.5 pips.
Forex.com also offers a highly comprehensive news and analysis department. This includes forex trading strategies compiled by experienced investors. The ‘Week Ahead’ section is also another feature that appeals to users on the platform as they can monitor important economic developments that may affect their trades.
Another reason to choose Forex.com is that it offers a top-rated educational academy. This allows complete beginners to learn the ropes of forex trading via interactive courses, platform tutorials, and self-assessment quizzes. Finally, Forex.com is also known for its quality customer service team that operates around the clock during standard currency trading hours.
- Competitive Spreads: Forex.com offers competitive spreads on various financial instruments, which can help reduce trading costs and potentially increase returns for Australian traders.
- Wide Range of Tradable Instruments: Forex.com provides a diverse selection of tradable instruments, including forex, commodities, indices, stocks, and cryptocurrencies. This allows users to create a well-balanced and diversified portfolio.
- Multiple Trading Platforms: Forex.com supports several trading platforms, including MetaTrader 4 (MT4), MetaTrader 5 (MT5), and their proprietary platform, Advanced Trading. This provides traders with a choice of platforms to suit their preferences and skill levels.
- Educational Resources: Forex.com offers a variety of educational materials, such as webinars, video tutorials, articles, and an online trading academy. These resources can be beneficial for novice traders looking to develop their skills and knowledge.
- Advanced Trading Tools: The platform offers a suite of advanced trading tools, including customizable charts, technical analysis indicators, and risk management features such as stop loss and take profit orders.
- Customer Support: Forex.com provides responsive and knowledgeable customer support, which can be especially helpful for users who require assistance or have urgent inquiries.
- Regulated by ASIC: Forex.com is regulated by the Australian Securities and Investments Commission (ASIC), ensuring that the broker adheres to strict regulatory standards and provides a secure trading environment for Australian users.
- Limited Proprietary Trading Platform: Forex.com relies on third-party platforms (MT4 and MT5) as well as its own Advanced Trading platform, which may not be as user-friendly as some other broker-specific platforms.
- Withdrawal and Inactivity Fees: Forex.com charges withdrawal fees for some withdrawal methods, which can be a downside for users who frequently need to withdraw funds from their trading account. Additionally, there is an inactivity fee for dormant accounts.
In conclusion, Forex.com is a reputable online broker for Australians, providing a comprehensive trading experience with competitive spreads, a diverse range of tradable instruments, and support for popular trading platforms. Regulated by ASIC, Forex.com ensures a secure trading environment, while their responsive customer support and educational resources enhance the user experience. Despite some drawbacks, such as limited proprietary trading platform options and withdrawal and inactivity fees, Forex.com remains a strong choice for Australian traders seeking a well-regulated broker with a focus on customer satisfaction and advanced trading tools.
7. Oanda
Oanda is a globally renowned CFD broker that offers Australian investors more than 70 plus major and minor trading forex pairs. Opening an account with this broker is quite different from the others as it doesn’t require any minimum deposit. In addition, retail traders use leverage of about 50:1 to the currency pairs.
Also, Oanda doesn’t charge commissions for its standard accounts while the spreads start at 1.2 pips which is considerably low. Oanda has a proprietary platform as the platform can be accessed on mobile, web and desktop apps. For experienced traders, Oanda offers MetaTrader 4 with automated trading tools and TradingView for custom technical indicators.
To entice newer users, Oanda offers new investors a welcome bonus after making a deposit on a new account. However, this is only for a limited time. The bonus isn’t fixed but it can be as high as $5,000 for a deposit of $50,000 or more. For deposits below that, the users can only get a bonus of $500.
Funding an account on the platform is also easy as Oanda accepts bank transfers, credit/debit cards, and several e-wallets too. The platform has a forex news feed, forex webinars, daily technical analysis and economic calendar users can take advantage of.
- Competitive Spreads and No Minimum Deposit: Oanda offers competitive spreads on various financial instruments and does not require a minimum deposit to open an account, making it accessible for Australian traders of all levels.
- Wide Range of Tradable Instruments: Oanda provides a diverse selection of tradable instruments, including forex, commodities, indices, stocks, and bonds. This allows users to create a well-balanced and diversified portfolio.
- Multiple Trading Platforms: Oanda supports several trading platforms, including MetaTrader 4 (MT4) and their proprietary platform, Oanda Trade. This provides traders with a choice of platforms to suit their preferences and skill levels.
- Advanced Trading Tools: The platform offers a suite of advanced trading tools, such as customizable charts, technical analysis indicators, and risk management features like stop loss and take profit orders.
- Educational Resources: Oanda offers a variety of educational materials, such as webinars, video tutorials, articles, and an online trading academy. These resources can be beneficial for novice traders looking to develop their skills and knowledge.
- Customer Support: Oanda provides responsive and knowledgeable customer support, which can be especially helpful for users who require assistance or have urgent inquiries.
- Regulated by ASIC: Oanda is regulated by the Australian Securities and Investments Commission (ASIC), ensuring that the broker adheres to strict regulatory standards and provides a secure trading environment for Australian users.
- Limited Range of Cryptocurrencies: While Oanda offers some cryptocurrency trading options, the range is relatively limited compared to some other brokers, which may be a drawback for users specifically interested in trading a wider range of digital assets.
- Inactivity Fees: Oanda charges an inactivity fee for dormant accounts, which can be a downside for users who do not trade frequently.
In conclusion, Oanda is a reputable online broker for Australians, providing a comprehensive trading experience with competitive spreads, a diverse range of tradable instruments, and support for popular trading platforms. Regulated by ASIC, Oanda ensures a secure trading environment, while their responsive customer support and educational resources enhance the user experience. Despite some drawbacks, such as a limited range of cryptocurrencies and inactivity fees, Oanda remains a strong choice for Australian traders seeking a well-regulated broker with a focus on customer satisfaction and advanced trading tools.
8. XM
Last but not least on FX platforms for Australian users to consider is XM. This CFD broker offers three types of trading accounts and as luck would have it, they cater to all budgets. For example, XM offers the cent account which is perfect for beginners in the forex industry.
This account type allows newbie investors to speculate on currency pairs with as low as 0.01 lots and it has a minimum spread of 1 pip on major currency pairs. In addition, there is the XM ultra-low account that offers minimum trades of 0.01 lots while spreads start from 0.6 pips.
With that being said, no matter the account type chosen, all XM forex trading accounts require a $5 minimum deposit. In addition to this, all account trades are commission-free. A standout feature of this platform is that it offers about 1,000 financial instruments. This includes its 55 forex pairs and other markets like CFDs on indices, commodities, stocks, energies and metals.
Also, XM is well-known for its wide array of trading platforms it supports including MetaTrader 4 and 5. Just like the other platforms reviewed, it can be accessed via desktop, iOS and Android devices.
- Competitive Spreads and Low Fees: XM offers competitive spreads and low fees for Australian traders, which can help reduce trading costs and potentially increase returns.
- Wide Range of Tradable Instruments: XM provides a diverse selection of tradable instruments, including forex, commodities, indices, stocks, and cryptocurrencies. This allows users to create a well-balanced and diversified portfolio.
- Multiple Trading Platforms: XM supports both MetaTrader 4 (MT4) and MetaTrader 5 (MT5) trading platforms, which are popular and highly customizable, offering advanced tools and features for traders of all skill levels.
- Free Demo Account: XM provides a free demo account for users to practice trading strategies and get familiar with the platform before committing real money.
- Educational Resources: XM offers a variety of educational materials, such as webinars, video tutorials, articles, and an online trading academy. These resources can be beneficial for novice traders looking to develop their skills and knowledge.
- Customer Support: XM is known for its responsive and knowledgeable customer support, which can be especially helpful for users who require assistance or have urgent inquiries.
- Regulated by ASIC: XM is regulated by the Australian Securities and Investments Commission (ASIC), ensuring that the broker adheres to strict regulatory standards and provides a secure trading environment for Australian users.
- Limited Proprietary Trading Platform: XM relies on third-party platforms (MT4 and MT5) rather than offering its own proprietary trading platform. This could be a drawback for traders who prefer a unique, broker-specific platform.
- Withdrawal Fees: XM charges withdrawal fees for some withdrawal methods, which can be a downside for users who frequently need to withdraw funds from their trading account.
In conclusion, XM is a reliable and competitive online broker for Australians, offering a wide range of tradable instruments, competitive spreads and fees, and support for popular trading platforms such as MT4 and MT5. Regulated by ASIC, XM provides a secure trading environment and offers valuable educational resources to help users develop their trading skills. However, there are some drawbacks, such as the lack of a proprietary trading platform and withdrawal fees. Overall, XM is a solid choice for Australian traders seeking a well-regulated and comprehensive trading experience.
Choosing the Best Forex Broker in Australia?
Much as we would love to offer a definitive answer, there are a lot of things to consider. Making a choice completely depends on the preferences of each trader.
In truth, MT4 is the go-to app for most traders worldwide. However, a trader that wants a deep dive into stocks, the platform may not fully meet their needs. In the same vein, a broker like AvaTrade may be recommended for FX traders that want to go into retail brokerage.
On the other hand, it may not suit technical traders that want custom-coded automation, advanced charting, and other advanced tools. In this regard, eToro comes in very handy and it’s perfect for beginners.
To choose the best forex broker as an Australian, it’s best to answer the following questions:
- What’s my trading style, and trading strategy?
- What tools would be needed to implement the trading strategy?
- How much time would it take to learn the ropes of the platform?
Trading Taxes in Australia
It is important to note that Australian brokers are mandated to pay tax on gains made from forex trading. This is tax is referred to as CGT or capital gains tax. Under the country’s laws, it’s included in the person’s income tax. The tax rate varies depending on the broker’s tax bracket and trading activity.
The capital gains tax rate can be between 19 percent to 45 percent for resident taxpayers. In addition, non-residents have to pay 32.5 percent for the first $120,000 (Australian dollars) of their income. Also, they have to pay between 37 and 45 percent of the remaining amount.
Conclusion
Choosing an FX broker may not be an easy task, but it’s important to always note key features that may suit one’s needs. With the review of some of the top forex brokers in Australia, it’s important to ensure one’s preferred broker is duly registered by Australian authorities. With this in mind, one of the brokers that stand out is eToro, but there are other brokers that have proven their worth over time.
FAQs
Australia’s well-regulated financial sector, favorable government policies, and the Australian Securities and Investments Commission’s oversight make it a haven for forex trading. This environment has allowed the industry to thrive and become one of the most liquid and largest in the country and around the world.
As of the article’s writing, there were about 70 forex brokers licensed by the Australian Securities and Investments Commission, with more emerging daily.
The industry gained more appeal in 2015 after news of the Swiss franc increasing by a wide margin hit the airwaves, prompting several experts and potential investors to search for the best brokers in the region.
The brokers were reviewed based on their commission and spreads, supported markets, regulations, payment methods, trading tools, and more.
The MetaTrader 4 (MT4) platform is the go-to app for most forex traders worldwide.
StockHax strives to provide unbiased and reliable information on cryptocurrency, finance, trading, and stocks. However, we cannot provide financial advice and urge users to do their own research and due diligence.
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