Best Forex Brokers for Australians

  • Summary
  • Trading
  • Spread
  • Support
Broker Regulators Max. Leverage Min. Spread Trading Platform Min. Deposit
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FXCM
400:1 Variable pips MetaTrader4, WebTrader, NinjaTrader USD 50
FP Markets
500:1 0.1 pips MetaTrader4, MetaTrader5, WebTrader, IRESS USD 100
AvaTrade
400:1 0.7 pips MetaTrader4, WebTrader USD 100
XM
500:1 1.0 pips MetaTrader4, MetaTrader5, WebTrader USD 5
IC Markets
500:1 0.1 pips MetaTrader4, MetaTrader5, WebTrader, cTrader USD 200
eToro
400:1 1.0 pips Proprietary USD 50
Admiral Markets
500:1 0.1 pips MetaTrader4, MetaTrader5, WebTrader, MetaTraderSupremeEdition USD 100
CMC Markets
500:1 0.7 pips MetaTrader4, Proprietary USD 5
Go Markets
500:1 0.2 pips MetaTrader4, MetaTrader5, WebTrader USD 200
FxPro
500:1 0.6 pips MetaTrader4, MetaTrader5, WebTrader, cTrader, Proprietary USD 100
easyMarkets
400:1 1.8 pips MetaTrader4, WebTrader USD 100
Broker Broker Type Min. Spread Max. Leverage Commission/Fees Markets
Compare
FXCM Market Maker/STP Variable pips 400:1 Cryptocurrencies, Forex, Indicies, Metals, Equities, Bonds, WTIs
FP Markets Pure ECN 0.1 pips 500:1 $3.5 per 100,000 on ECN Raw Account Commodities, Cryptocurrencies, Forex, Indicies, Metals, Bonds
AvaTrade Market Maker 0.7 pips 400:1 Commodities, Cryptocurrencies, Forex, Indicies, Equities, ETFs
XM Market Maker 1.0 pips 500:1 Commodities, Cryptocurrencies, Forex, Indicies, Metals, Equities, Energies
IC Markets True ECN 0.1 pips 500:1 7 USD on True ECN account Commodities, Cryptocurrencies, Forex, Indicies, Equities, Bonds, Futures
eToro Market Maker 1.0 pips 400:1 Commodities, Cryptocurrencies, Forex, Indicies, Equities
Admiral Markets ECN/STP 0.1 pips 500:1 Yes Cryptocurrencies, Forex, Indicies, Metals, Equities, Bonds, WTIs
CMC Markets Market Maker 0.7 pips 500:1 Cryptocurrencies, Forex, Indicies, Metals, Equities, Bonds, WTIs
Go Markets ECN 0.2 pips 500:1 On GoPlus+ Accounts Cryptocurrencies, Forex, Indicies, Metals, Equities, WTIs
FxPro NDD Intervention Market Maker 0.6 pips 500:1 On Raw account Forex, Indicies, Metals, Equities, Energies, Futures
easyMarkets Market Maker 1.8 pips 400:1 Commodities, Cryptocurrencies, Forex, Indicies, Metals, Vanilla Options
Broker EUR/USD USD/JPY GBP/USD FX Pairs Crypto Pairs
Compare
FXCM 1.3 1.4 1.8 39 5
FP Markets 0.1 0.2 0.2 50+
AvaTrade 1.3 1.5 2 50+ 18
XM 1 1 1 55+ 2
IC Markets 0.1 0.2 0.4 60 10
eToro 3 2 4 47 16
Admiral Markets 0.1 0.1 40+ 32
CMC Markets 1.0 330 12
Go Markets 0.2 0.2 0.5 50+ 5
FxPro 1.9 1.6 2.4 70+ 5
easyMarkets 1.8 2.6 3 97 3
Broker Funding Types Account Manager Commission/Fees % Clients Lose Funds Support Hours
Compare
FXCM Skrill, Neteller 76.88% 24/5
FP Markets Bank Transfer, Visa, Mastercard, Skrill, Neteller, Fasapay, BPay, PaySec, POLi $3.5 per 100,000 on ECN Raw Account 24/5
AvaTrade POLi, Visa, Mastercard, Skrill, Neteller, Paypal, Bank Transfer 71% 24/5
XM Bank Transfer, Sofort Banking, Visa, Mastercard, Maestro, Skrill, Neteller, Bitcoin, Unionpay 69% 24/5
IC Markets Bank Transfer, Visa, Mastercard, Skrill, Neteller, Paypal, Unionpay 7 USD on True ECN account 24/7
eToro Bank Transfer, Skrill, Paypal 76% 24/5
Admiral Markets Bank Transfer, Visa, Mastercard, Skrill, Neteller Yes 85% 08.00 to 19:00 Monday to Friday
CMC Markets Bank Transfer, Visa, Mastercard, Paypal, BPay, POLi 75% 24/5
Go Markets Bank Transfer, Visa, Mastercard, Skrill, Neteller, Fasapay, BPay, POLi On GoPlus+ Accounts 24/5
FxPro Bank Transfer, Visa, Mastercard, Maestro, Skrill, Neteller, Unionpay On Raw account 79% 24/5
easyMarkets Bank Transfer, Sofort Banking, Visa, Mastercard, Maestro, Skrill, Neteller, Astropay 81% 24/5
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Forex Trading In Australia: Everything You Need To Know

We want to get you started Forex trading as quickly as possible, but Forex trading is complex and high-risk and is not something you can learn overnight.

You will need to develop a complete understanding of the concepts involved and understand how risk can harm your profit potential. You will also need to understand how different Forex brokers operate and how to find a reliable one. Finally, you will need to develop a winning strategy and put it to work in the live market.

What is Forex Trading?

The Forex market is a global decentralised financial market where currencies are traded. Forex trading is the exchange of currencies on this market, the goal being to make a profit from fluctuations in the exchange rate.

To open a trade, you must choose a currency pair, and indicate the direction you expect the exchange rate to move. As the exchange rate between the two currencies shifts, you close the trade for a profit or a loss.

Currency pairs are an expression of one currency’s value in terms of another currency. For instance, if the AUD/USD is at 1/0.7 we are saying that 1 Australian Dollar is equal to 0.7 US Dollars.

In Forex trading, common currency pairs include GBP/USD, AUD/USD and EUR/USD. If you buy the AUD/USD, you are effectively buying the AUD and selling the USD at the same time. When you close your position, you are selling the AUD that you had bought and buying back the USD. If the AUD has strengthened against the USD in that time, you will have made a profit – as you will now be able to afford more USD than you originally sold.

Forex trading is Contract for Difference (CFD) trading.  In CFD trading, neither the trader nor the broker ever take ownership of the asset itself. Instead, the trader is only speculating on the price of a currency.  Just because you are trading the USD against the AUD, does not mean that you own either currency at any point in time.

Forex trading involves risk, and inexperienced traders can quickly lose all their money because the Forex market is volatile and impossible to perfectly predict.  Using a risk management strategy is essential; 70-95% of retail Forex traders lose money, mainly because they did not follow a sound trading strategy.

How Do You Get Started in Forex Trading?

  1. Choose a reliable broker
  2. Use a demo account until you are comfortable
  3. Educate yourself sufficiently
  4. Develop a trading strategy
  5. Manage your trading risk

How to Choose a Reliable Broker

Brokers differ in a number of ways, and it’s always important to inspect a broker thoroughly before opening an account. Below are the most important criteria used to judge a broker.

Regulation – Is your broker regulated by ASIC (Australia), FCA (UK) or CySec (European Union)? These are the three best regulators of non-banking financial services in the world, so make sure your broker is regulated by at least one of them. Other regulators do exist, but they are not necessarily as thorough in enforcing regulatory policy and protecting customers from unscrupulous brokers. If you are only interested in trading with brokers regulated in Australia, our full list of ASIC regulated brokers is here – be aware that ASIC will be tightening regulation in the coming months for all Australian brokers.

Broker Spreads and Commissions – Forex brokers are businesses and will be trying to make money from your trading.  ECN brokers will take a commission for handling your trades, while others will make money by stretching the difference between the buying and selling price of the pair. This difference is known as the spread, and while the spread is an expected part of trading when it gets too wide, it will eat into your profits. ECN brokers will have tighter spreads, but you may not want to pay the extra fees.

Minimum Deposit – Make sure you are comfortable with your broker’s required minimum deposit but be wary of accounts with very low minimum deposits. Generally, the lower the required minimum deposit, the worse the trading conditions on the account. If you want to use higher leverage and have tighter spreads, you will likely need to invest a minimum of 200 AUD when opening an account.

Withdrawal and Deposits – It is your money, and the broker should treat it as such.  If they charge you to withdraw or deposit funds, you should discuss this with your account manager or choose a different broker.

Trading Platforms – There are a number of different trading platforms, though MetaTrader 4 has been the industry standard for many years and most brokers will support it. Other common platforms are MetaTrader 5 and cTrader. Many brokers have also developed their own trading platforms and these will generally run in your browser.

How to Use a Demo Account

Demo accounts are not for play – they are important educational tools. Good brokers offer unlimited demo accounts with 100,000 USD (or equivalent) virtual money to get started.

You should use a demo account to learn how a broker’s platform functions as well as the basics of trading. Even once you have opened a live account, you should keep your demo account open and use it often, as it’s a perfect place to test strategies and examine the market behaviour of new currency pairs.

How to Educate Yourself

Probably the most important part of preparing for your trading career is to educate yourself. With Forex trading you can never learn enough and you should read/watch as much as you can; a good place to start is our essential guide to Forex trading.

All good brokers will have comprehensive and detailed education sections, full of video tutorials, articles, blogposts: Take advantage of this. Some will even host webinars and live workshops.

When it comes to Forex trading, everything you learn will only help you become a better trader. Learn how to use fundamental analysis and technical analysis, learn how to manage risk, learn how to read charts and use indicators, learn how different currencies react to the same events. Successful traders never stop learning, so cultivate the habit of self-education.

How to Develop a Trading Strategy

Every Forex trader has their own style and strategy and it’s important to develop yours.  It is common that people trade in different ways and on different time schedules.  Each trading method depends on different trading skillsets and how much time you have available, making each unique.

Scalping – This is a high-energy trading strategy, involving the opening and closing of many trades over a brief period.  In extremely volatile markets, scalpers will keep trades open for only a matter of minutes. Volatility is highest when markets open or when major new economic reports are released so scalpers tend to operate at these times.  This trader is heavily reliant on charts and tools to plan the entry and exit of trades. If you relish the idea of market analysis and have the free time to be in front of your computer when required, this could be for you.

Day Trading – For this trader, each day starts new.  Every morning, trading starts, investments are made, and then before the day ends, all positions are closed.  This trading relies heavily on understanding the planned news events for the day and the ability of the trader to find opportunities in the new developments that happen without notice.  If you are well-read and understand geo-politics, then you could be a day trader. You will also need a good understanding of chart analysis for this trading strategy.

Swing Trading – If you have a little less time for being in front of a computer, but you are still very engaged with news events, analysis and significant trends you could be a swing trader.  These traders can hold trades open for days at a time, and if you are a trader on the go, this could be better suited for you.  This strategy does not rely on charts as heavily as day trading and scalping do.

Position Trader – For those who want to play the long game, there is position trading.  This trading styles does not rely on any technical analysis and instead takes advantage of long-term currency trends.  Position traders often hold trades open for months at a time.

Forex trading requires a lot of trial and error. Expect to try several different strategies before you find the right one, or combination, that works for you.

How to Manage Your Risk

The Forex market is renowned for being high-risk and will quickly empty your wallet if you don’t take the necessary precautions. Never deposit more than you can afford to lose into your trading account and never trade more than you want to lose in a single trade. Make sure trading isn’t going to be painful for you and you will have a lot less stress and a lot more fun.

A standard rule to avoid too much risk is to never trade more than 5% of your account on any given day and never trade more than 2% of your account on a single trade. Check out our guide to risk management in Forex for more suggestions on how to manage this essential and potentially dangerous aspect of trading.

Featured Articles

AUD/USD to Benefit from China Nuclear Option in the Trade War

China is the largest foreign holder of US debt. According to the latest statistics, China owns $1.119 trillions worth of US treasuries. What traders need to understand is that China holds a massive US currency reserve which means that whatever China decides to do with its treasury bond holdings will impact the greenback.

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Advantages of Brexit for the Australian Economy

The Australian economy, which has not seen a recession in the past 26 years and has survived every major financial crisis in modern history, is set for steady growth if the Australian government can successfully pull off a trade deal with the UK.

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US Temporary Tariff Exemptions for Australia & AUDUSD Implications If A Deal Is Not Reached

One catalyst that has drawn most of the market’s attention recently is the intensifying trade war rhetoric surrounding US tariffs, and what the retaliatory response will be from affected nations. The Trump administration has granted temporary tariff exemptions for Australia, but the AUD/USD exchange rate is not out of trouble. 

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The Australian Economy and the Aussie Dollar

Aссоrdіng tо thе Intеrnаtіоnаl Monetary Fund, In 2016, Auѕtrаlіа rаnkеd 19th globally in terms of GDP and 20th by export value, but only 50th by population size.  Yet, despite having 0.33% of the world’s population, the Australian dollar (AUD) іѕ оnе of the fіvе mоѕt frequently traded currencies іn thе Forex market.

The value of most major currencies tends to rise and fall together, partly due to trade links and their interdependency. The AUD, in contrast, is relatively independent – its value is more closely linked to commodity prices because mining and agriculture generate a significant portion of the national GDP.

sydney-harbour-australia

Higher commodity prices often create inflationary pressures in developed countries, resulting in the Australian economy looking healthier for Forex traders when resource prices raise concerns about the sustainability of growth in Europe, North America or Japan. This also makes the AUD a popular alternative for traders wanting to go long on commodity exposure and/or Asian resource demand. To find out more, read our analysis on how to trade the AUD/USD currency pair.

In 2019 we have seen an escalation of trade war between the USA and China, which the Trump administration feels has had an unfair trading advantage in recent years. This has been broadly beneficial for Australia, as the export to China of commodities such as iron ore and coal has grown. Exports of liquified natural gas have also increased by some 25% thanks to levies on US exports to China.

On the other hand, the China/US trade war has also led to a devaluation of the AUD relative the USD. The AUD is seen a proxy for the health of the Chinese economy and, as the effects of the trade war bite, Chinese economic growth has slowed significantly. This is not necessarily bad news for the Australian economy though, as much of Australia’s exports (such as iron ore and some agricultural products) are priced in USD.

Australian Farming and Commodities

How long the current situation remains in Australia’s favour is in question though. Chinese growth was already slowing before the trade war started and, as the US continues to put diplomatic pressure on its allies to cut trade ties with China, how long can Australia keep the US government onside while keeping it’s exports to China at the current level?

Expect the outlook for the Australian economy and the value of the AUD to adjust as the relative diplomatic stability of the last 18 months deteriorates.

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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.

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Trading Forex and CFDs is not suitable for all investors and comes with a high risk of losing money rapidly due to leverage. 75-90% of retail investors lose money trading these products. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.