Best Forex Trading Sites in Australia

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Official Site
ASIC Regulated
International Regulators
Min. Deposit
Max. Leverage (Forex)
No. of FX Pairs
Cost of Trading
Trading Desk
Trading Commission
Support Hours
FP Markets
4.22 /5
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ASIC Regulated Forex BrokersCySEC Regulated BrokersFinancial Services Conduct AuthorityMT4, MT5, IRESSAUD 10030:170USD 7ECN/DMA6 USD / lot - RAW Accounts 24/5
Go Markets
4.44 /5
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ASIC Regulated Forex BrokersCySEC Regulated BrokersFinancial Services AgencyFinancial Services CommissionMT4, MT5AUD 20030:149USD 7Market Maker NDD, ECN/DMA6 USD / lot - GoPlus+ 24/5
4.61 /5
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ASIC Regulated Forex BrokersCySEC Regulated BrokersBundesanstalt für FinanzdienstleistungsaufsichtCapital Markets AuthorityMT4, MT5, cTraderAUD 10030:170USD 6NDDFrom 7 USD / lot - Razor Account 24/7
4.69 /5
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ASIC Regulated Forex BrokersBundesanstalt für FinanzdienstleistungsaufsichtBest Forex Brokers in SingaporeCommodity Futures Trading AssociationMT4, L2 Dealer, ProRealTimeAUD 030:180USD 6Market MakerFees Included in Spread 24/5
4.38 /5
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ASIC Regulated Forex BrokersBritish Virgin Islands Financial Services CommissionCentral Bank of IrelandFinancial Regulatory Services AuthorityMT4, MT5, Avatrade Social, AvaOptionsAUD 10030:155USD 9Market MakerFees Included in Spread 24/5
4.58 /5
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FCA Regulated BrokersCySEC Regulated BrokersASIC Regulated Forex BrokersBritish Virgin Islands Financial Services CommissionMT4, MT5AUD 10030:167USD 7Market MakerFees Included in Spread 24/5
IC Markets
4.46 /5
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CySEC Regulated BrokersASIC Regulated Forex BrokersThe Seychelles Financial Services AuthoritySecurities Commission of the BahamasMT4, MT5, cTraderAUD 20030:164USD 8ECN/DMA7 USD / lot - Raw Spread Account 24/7
3.58 /5
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67% of retail CFD accounts lose money
CySEC Regulated BrokersFCA Regulated BrokersASIC Regulated Forex BrokersThe Seychelles Financial Services AuthorityetoroAUD 5030:149USD 10Market MakerFees Included in Spread 24/5

The FXScouts podcast helps beginner Forex traders get the best start to their trading careers. With years of experience in the world of Forex trading and writing broker reviews, we have unique insight into how to start trading, tips and tricks, and advanced trading strategies. Traders can learn from our experience and make better financial decisions. We cover a range of topics, including how to choose a Forex broker, safety and regulation, how to reduce your risk, trading psychology, trading platforms, and trading strategies, among others. Listen to our podcast here.

What is Forex Trading?

Forex trading is the exchange of currencies to make a profit from fluctuations in the exchange rate. To open a trade, traders must choose a currency pair and the direction they expect the exchange rate to move. As the exchange rate between the two currencies changes, the trader can close the trade for a profit or a loss. More detailed information on how Forex trading works is here.

cTrader GBPUSD

Forex is one asset type in an asset class called Contracts for Difference (CFDs). CFDs are contracts between a trader and a broker to pay any difference in the currency pair price between opening and closing your trade at a future time. When trading CFDs, neither a trader nor a broker holds any of the assets.  Other CFDs assets include commodities, metals, equities, energies and many more.

Is Forex Trading Legal in Australia?

Yes. Forex trading is legal in Australia. Before brokers can legally accept clients resident in Australia, they must attain an Australian financial services (AFS) licence from ASIC.

Regulation in Forex Trading

The Australian financial market and the activities of the financial market participants are supervised by the Australian Securities and Investments Commission (ASIC), whose primary purpose is maintaining a safe and transparent market for all participants. ASIC has the responsibility to:

  • maintain and improve the performance of the entities working on financial markets, with the idea that better-performing financial organizations will contribute to a safer market for all.
  • support institutional and retail traders through education and outreach, thus strengthening the community of participants by increasing knowledge and financial literacy. 
  • swift enforcement of the financial laws of Australia, thus keeping the marketplace safe and free of fraud.
  • publish information about financial companies operating in Australia to increase transparency and trust between the market, companies and investors.

ASIC’s Role in Forex Trading in Australia

ASIC protects Forex traders from criminal and corrupt financial organizations operating within Australia. They are one of the most respected Forex regulators in the world, known for their thorough review of market activities and continual review of legal frameworks that ASIC can use to protect market participants who may not be aware of the market risks or frauds.

While Australian residents are not legally required to register accounts with ASIC-regulated brokers, it is generally advised as the basic protections offered go a long way to protect novice retail clients from unforeseen risks. As long a Forex broker accepts Australian clients, broker activities will be monitored for fraud by ASIC, but the Forex broker will not be required to follow ASIC regulations that govern the trading account.

Advantages of an ASIC trading account

  • Negative balance protection is mandated by law.
  • Segregated bank accounts protect trader funds by keeping them separate from company funds.
  • Leverage is limited to 30:1 to prevent large trading losses on single trades.
  • Trader protection rules require a forced stop-out at 50% of the total initial margin of all open trades, closing all open positions before the client’s account balance becomes negative. 
  • Should a client feel as if the broker has acted in an unethical or illegal manner, the Australian Financial Complaints Authority (AFSC) will resolve the dispute on behalf of the trader, and at the expense of the broker.
  • ASIC brokers must publish all trading costs, including overnight funding costs, in their trading platforms.

What is the difference between Forex trading and stock trading?

When people think of trading, they often think of stock trading and believe Forex trading is almost the same thing. But this is incorrect.

Stock trading is the buying and selling of shares from individual companies. Forex trading is the simultaneous buying and selling of currencies to profit from the change in the exchange rate. A couple of other major differences:

  • The Forex market is a global, decentralised, over-the-counter exchange and all transactions and participants are confidential. Stock markets are based at a single location and public records are kept of buyers and sellers.
  • Forex trading has a low cost of entry. To make serious profits, stock traders use large amounts of money, which is not an option for traders with limited incomes.

Forex trading is not investing. Forex traders never take ownership of the asset being transacted. With Forex trading, the trader is speculating on the future value of a currency pair and to call it an investment would be incorrect.

Laptop Forex Trading

Can I really become a forex trader in my home?

Yes, you need some basic IT equipment and you need to open an account with a forex broker.  You can teach yourself the basics of forex using the myriad of information available on broker websites and the internet generally or from lessons posted on the likes of youtube. It is wise to open a forex demo account where you can practice trading forex with virtual funds.

How do I trade Forex in Australia?

Forex trading is accessible to every Australian with an internet connection. But just because everyone can do it, does not mean that everyone should do it. Serious Forex traders know that education, discipline, and strategy are essential elements of a profitable trading career. If you start trading Forex without these skills, you may profit from a few trades, but you will eventually lose.

If you prepare properly and you are ready to learn, Forex trading can be a great way to create a steady income. But, before we look at the more complex aspects of trading, let us look at the essential things you are going to need:

A fast and stable internet connection

The Forex markets move fast, very fast, and if your connection is slow or drops out you are going to lose money. Winning trades can become losing trades in the blink of an eye. Many Australians trade on their mobile phones, but this should be used as a backup (or to check on open trades when on the move) and not as a primary trading platform.

A Forex broker

Finding a good Forex broker is of the utmost importance, FX Australia maintains an updated list of the best Forex brokers in Australia so it is best to choose one of those. We also keep a complete Forex broker directory which includes brokers we do not trust or recommend. If you have heard of a broker and want to know if you can trust them, the directory is a good place to start.

A Forex Trading platform

This is the software that you are going to use for trading and will be provided by your Forex broker. Some brokers have their own platforms, but most support third-party apps like MetaTrader 4, MetaTrader 5 and cTrader. The best Forex trading platform is the one that you find the most comfortable to use. So, do not be afraid to shop around and check out different platforms at different brokers. Some brokers will offer more than one type of platform.

A demo account

Never start trading with your own money straight away. All Forex brokers will have demo accounts, which let you learn how the market works (and how your trading platform works) without losing any of your own money. They are also great when you want to try out different strategies or trade different currencies without taking any risk.

What do I need to open an account with a forex broker?

The procedure varies from one broker to another but generally involves filling in an online form and providing some form of ID such as a passport, driver’s licence, etc., and a utility bill. You may also have to respond to an email or text message to verify your details. You should be able to open an account online but if this is not possible you may have to send proof of identity in the post. You will also be required to deposit money into the account before you can begin trading.

How much do I need to start trading Forex?

Trading accounts can be opened for as little as 5 AUD, though most brokers require a minimum deposit between 100 AUD and 200 AUD. But how much should you start trading with? The answer depends on how much you can afford and how much risk you are willing to take.

Beginner traders should start with a minimum account balance between 200 – 500 AUD. This allows traders to make small profits, while still maintaining a sensible approach to risk.

Which currencies pairs can I trade?

You can trade in a vast number of permutations of freely floating currencies. Many traders choose to focus on one or two major currency pairs so they build a good level of expertise and knowledge of those currencies, their trading patterns and successful strategies. Examples of major currency pairs include the pound and the dollar, the euro and the dollar or the dollar and the yen. These are called majors because they account for the bulk of trading. Because demand for and the supply of these currencies is so vast it is easy to buy and sell positions.

What is the best time for trading Forex?

The Forex market is open 24 hours a day, Monday-Friday, but the best time to trade Forex is when the world’s major stock markets are most active. The more traders are active in the market, the more volatile the market is – and the more volatile the market is, the easier it is to make profits

Two of the world’s major markets are the Sydney market and the Tokyo market. Trading when these markets crossover is also a good approach and will be the easiest option for most Australians.

Forex Market Hours - Australia

But, the two cities with the largest financial markets in the world are New York and London, so the best time to trade Forex is the crossover period when both the London and New York financial markets are open. Unfortunately, this is in the middle of the night for Australians, so it is a less appealing option.

How to choose the best Forex strategy?

There are a huge number of Forex trading strategies, in fact, traders keep coming up with new ones all the time. The best traders will use many strategies and they will know exactly when to use each one. Forex trading strategies will rely on either fundamental analysis (analysing economic trends and news events) or technical analysis (analysing historical price action on charts).

The most popular trading strategies are:

Price Action Trading: This is the study of historical changes in currency prices to predict which way the price is going to move next. If you love studying charts and looking for patterns, then price action trading is for you. It relies almost entirely on technical analysis and there are many methods of trading using price action.

Range Trading: Range trading relies on figuring out at what point other traders are going to buy or sell a currency. Like price action trading, range trading relies on technical analysis but also needs a good understanding of the currency pair you are trading.

Scalping: Scalping is when a trader opens and closes many trades over the course of a day. The goal is to make lots of small profits. Technical analysis is an important factor with scalping, but the main problem is the time investment required. Scalpers can spend the whole day glued to their trading monitor.

Positional Trading: Positional trading is when a trader holds a position, or several positions, over a long period of time – sometimes for weeks or months or even years. Positional trading is heavily reliant on fundamental analysis, though technical analysis can be important too.

Other factors to consider when planning a Forex strategy are the time of day (as this affects how many other people are trading and the volatility of the market), order types (such as stop loss and take profit orders) and automated trading software/bots (which can see movements in the market that you may miss).

For more detail on analysis and how to use it, we cover strategies and building a trading plan in our learn to trade section.

How do beginners learn to trade Forex?

Beginners should learn to trade using a demo account before depositing money into a real trading account. We have a guide full of practical advice to get you started, and more on how to place your first trade.

It will take some time to learn how to trade Forex successfully, as traders need to understand the many components and strategies to be profitable.

What are the risks of trading Forex?

Trading Forex and CFDs carry a significant risk that includes losing all the money in your trading account over a short period. 75-90% of traders lose money trading these products. You should consider whether you understand how CFDs work and whether you can afford the high risk of losing your money.

The principal risks of Forex trading are:

Risk 1 – Volatility: The Forex market is extremely volatile at times. It is, after all, because of this volatility that we can profit from trades. But the market can move very swiftly, and this can mean a trade can go against you in a short period. If you are trading, you must actively watch your trades all the time.

Risk 2 – Unpredictability: The Forex market is not something you can predict. There are just too many factors and actors on the market for it to be fully predictable. Traders need to set a win-loss target ratio where you account for some losses and use a strategy to minimise them.

Risk 3 – Leverage: Profiting from CFD trading requires using leverage. Leverage is a tool used in trading to amplify your profits, but it also amplifies your losses which are automatically deducted from your trading account. Your account balance can be wiped out with a single bad trade.

Risk 4 – Interest: In some cases, interest will be charged on your trades. For example, interest can be charged when you carry trades overnight and your broker will take funds from your account to pay this fee.

Can I limit my potential losses?

The trading platforms offered by forex brokers offer loss limitation features. It is common, for example, to set a loss limit amounting to 2% of the total funds you have in your account on any trade. You can set up the loss limit you are prepared to accept before you enter into any trade.

For example, If you have a starting balance of 1000 AUD, this means that you should never risk more than 20 AUD on a trade. Many beginner traders cannot afford to start with a balance of 1000 AUD but if you start with an account of 100 AUD be aware that it is going to take patience and solid risk management to create a steady income stream.

Do Forex traders pay tax?

Yes, they do. Forex gains are not tax-free income, and all profits are taxable even if your brokerage and capital are overseas. Australians are expected to declare taxes just as with any other income either as an individual or a company. 

Can I lose more than I hold in my account?

That is impossible with a broker regulated by the FCAASIC or CySEC, who will simply close your account when it gets close to zero.  This is called negative balance protection and is required of all brokers in Australia and activated by default.

Is Forex Trading Right For Me?

Man Thinking

By now you should know that it is a high risk, that you need to find a broker that you feel suits you best and the amount you want to put into your account with a broker. Trading Forex takes a commitment to learning, and you should be ready to:

  1. Compare the best brokers in Australia to find one that suits you.
  2. Read our education section and learn everything you can.
  3. Understand the way the Forex market and CFD trading works.
  4. Learn about the software and tools that will power your trading.
  5. Be prepared to lose all the money you place in an account. Do not deposit any money you cannot afford to lose.

Getting Started

How To Choose A Forex Broker

At FX Australia, we want to help you compare the best brokers in Australia so you can find the right one for your needs. We also want you to feel secure when you place your money with that broker.

Compare Forex Brokers Side-by-Side Using Complete and Accurate Data.

We are big believers in transparency. To help you make an informed choice, we publish our comprehensive broker comparison process and constantly update our State of the Forex Market report

There are several aspects of a broker to examine when making a comparison. To produce our reviews, we compare and rate every Forex broker using the following criteria:

Trust and Reputation

Traders want to know they can trust a broker with their money. And trust in the Forex trading industry is entirely based upon regulation.

There are multiple regulators around the world, and some are better than others. The most trusted regulators are active in both creating new regulations and enforcement of existing rules. The best regulators in the world are ASIC (Australia), the FCA (United Kingdom), and MAS (Singapore).

Trading Conditions

Trading conditions are the aspects of a broker which directly affect the trading experience. For beginners starting their trading career, it is important to look at the minimum deposit required for an entry-level account, the number of Forex pairs available to trade, and the overall cost of trading.

Minimum Deposit

Traders should only deposit money they can afford to lose. Forex trading is high-risk, so brokers who require new traders to deposit large amounts are less favourable. While it is almost impossible to start a trading career with as little as $5, brokers who have entry-level accounts that require less than $100 are good for beginners.

Number of Forex Pairs

A trader should be able to choose from the broadest range of assets possible. Should brokers offer an insufficient number of FX pairs to trade, this will limit a trader’s opportunities and strategy.

Cost of Trading

Comparing the cost of trading between brokers can be difficult to determine exactly. We find that the cost to trade one lot of EUR/USD (using the account with the lowest minimum deposit) is a good measure. This takes both the spread and commission into account and as the EUR/USD is the most traded FX pair, it is a good benchmark for all brokers.

Trading Platforms

Forex traders appreciate having a choice of platforms. All Forex brokers provide clients with at least one trading platform option, but better brokers offer multiple options – including MetaTrader4, MetaTrader5, cTrader and their own proprietary platforms. It is also important that a trader’s experience does not suffer on mobile or web-based platforms.

Assets Available

Forex is only one of a variety of CFDs. Traders often want to trade other kinds of CFD products. Other CFD products offered by a broker could include:

  • Commodity CFDs
  • Cryptocurrency CFDs
  • Metal CFDs,
  • Equity CFDs
  • Energy CFDs
  • Exchange-Traded Fund (ETFs) CFDs
  • Bond CFDs
  • Blend CFDs

A variety of CFD products besides Forex CFDs allow traders more opportunity.

Deposits and Withdrawals

Traders want fast and free deposit and withdrawal options. Most brokers will provide multiple free and instant funding methods for deposits, but some take longer or charge fees to withdraw account funds.

The best brokers will process withdrawal requests within 24 hours without charging fees. All brokers accept traditional payment types such as debit/credit cards and bank transfers. Most also accept online payments through Skrill and Neteller and some will accept Bitcoin.

Education and Analysis

Traders of different experience levels are going to need different kinds of educational material and market analysis from their brokers. Beginner traders need a high-quality, structured, beginners’ course to get started with Forex trading. Intermediate and advanced traders want an advanced education section introducing them to new strategies alongside daily analysis from in-house experts.

And the best place to learn is with a demo account where the trader does not risk their account funds. We favour brokers that offer unlimited demo accounts.

Customer Support

Traders want their broker to be available around the clock, via many different channels and in their language. We favour brokers who offer phone, email, and live chat support 24/7. As most of the best Forex brokers are international, we believe that the more languages the support team speaks, the better. Broad language support gives our global audience a way to get their problems solved in the easiest possible way.

Forex Risk Disclaimer

Trading Forex and CFDs is not suitable for all investors as it carries a high degree of risk to your capital: 75-90% of retail investors lose money trading these products. 

Forex and CFD transactions involve high risk due to the following factors: Over-leveraging, unpredictable market volatility, slippage arising from a lack of liquidity, inadequate trading knowledge or experience, and a lack of regulatory protection for clients.

Traders should not deposit any money that is not disposable. Regardless of how much research you have done, or how confident you are in your trade, there is always a substantial risk of loss. (Learn more from the FCA or from ASIC)

Our Methodology

Our State of the Market Report and Broker Directory are the results of extensive research on over 100 Forex brokers. The explicit goal of these resources is to help traders find the best Forex brokers – and steer them away from the worst ones – with the benefit of accurate and up-to-date information.

With over 150 data points on each broker and over 3000 hours of research and review writing, we believe we have succeeded in our goal. 

In a world where trading conditions and customer support can vary based on where you live, our broker reviews focus on the local trader and give you information about these brokers from your perspective.

All research has been conducted by our in-house team of researchers and writers, gathering information from various company representatives, websites and sifting through the fine print. Learn more about how we rank brokers

We Are Proudly Reader Supported

For us to keep the lights on and our staff paid, we have needed to find a way to make an income from this website.  In the case that you click on any links to visit a broker, we may receive a commission from the partner through something called an affiliate program. 

The size of the commission in no way affects the editorial process, and our reviews can in no way be bought.  We pride ourselves on our transparency and the quality of our comparisons.  We appreciate your support by using our links to sign up with brokers we partner with.  To read more about our methodology, and how we rate Forex brokers, read all about our review process here.

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