The surge in the number of forex brokers in Australia is unsurprising, given the substantial interest in the global and local forex trading market. Forex trading, or foreign exchange trading, revolves around the buying and selling of currencies to attain profitability. Traders in the forex market engage in speculation on the fluctuations of currency exchange rates between different countries. The primary aim is to acquire a currency at a low point and sell it when its value appreciates. This article delves into the best forex brokers in Australia.
Forex traders can trade in many different currency pairs, such as the Australian dollar (AUD), euro/US dollar (EUR/USD), the British pound/Japanese yen (GBP/JPY) and the US dollar/Canadian dollar (USD/CAD).
The vast majority of forex trades from retail traders are carried out using CFDs on what are effectively online forex trading platforms. Forex CFDs are a type of derivative asset that allow traders to speculate on the price changes of a currency pair without needing to own the underlying asset.
Successful forex traders often use technical analysis tools to plot out chart patterns, and identify positions of support and weakness, but fundamental analysis is also important in making informed trading decisions. Forex trading can be a lucrative but risky venture, and beginners should educate themselves before investing their money.
Top Australian Brokers
- eToro - market-leading social trading platform - Read our review
- IG - Extensive product array and user-friendly platforms - Read our review
- IC Markets - experienced and highly regulated - Read our review
- Avatrade - powerful trading tools - Read our review
Trading forex often includes the use of leverage, allowing traders to control larger amounts of trading capital with a smaller deposit. This can amplify losses as well as profits so it is vitally important to have a risk management plan in place.
Choosing a good forex broker is crucial for a successful trading journey. A reputable broker can provide access to reliable trading platforms, competitive spreads and fast execution speeds, ensuring that traders can make informed decisions quickly.
Some of the important criteria we are looking for in the best Australian forex brokers are the costs to trade forex there, ASIC regulation and supervision, and user experiences and reviews of the trading experience and platform. These will give a foundation of how trustworthy the broker is first and foremost.
Outside of the essentials, some other services usually provided by good forex brokers include educational resources, market analysis and customer support, which can help beginner traders learn and grow in the forex market.
On the other hand, a poor broker can lead to unreliable trading conditions, slippage, hidden fees and even fraudulent practices, which can result in significant financial losses.
In this article, we will consider the best forex brokers in Australia and break down the reasons why they consistently come out on top.
The Best Forex Brokers in Australia
| Trading Platform | Minimum Deposit | Average spread EUR/USD | Accepts AU Residents | Regulated by ASIC |
|---|---|---|---|---|
| eToro | $50 AUD | 1 | Yes | Yes |
| IC Markets | $200 AUD | 0.62 | Yes | Yes |
| Quadcode Markets | $50 AUD | 0.15 | Yes | Yes |
| IG Markets | $0 AUD | 0.86 | Yes | Yes |
| AvaTrade | $100 AUD | 0.92 | Yes | Yes |
| Pepperstone | $0 AUD | 0.77 | Yes | Yes |
| GO Markets | $200 AUD | 0.1 | Yes | Yes |
eToro
eToro is a popular and well-regulated broker that offers a wide range of financial instruments for trading, including forex, stocks and cryptocurrencies. The company has gained a reputation for being user-friendly and transparent, making it an excellent choice for both novice and experienced traders.
One of the benefits of using eToro is its unique social trading platform, which allows users to follow and copy the trades of successful traders. This feature can be especially useful for those new to forex trading, as it provides an opportunity to learn from more experienced traders.
In addition to social trading, eToro offers competitive pricing on trades, low spreads, and leverage of up to 30:1 for forex trading on major currency pairs. The company also provides a range of educational resources, including webinars and guides, to help users improve their trading skills.
In 2021, eToro celebrated over 20 million registered users in over 140 countries, making it one of the largest online trading platforms in the world. The company is regulated by several financial authorities, including the Financial Conduct Authority (FCA) in the UK and the Australian Securities and Investments Commission (ASIC).
Key Statistics
- Founded in 2007
- Headquarters in Israel
- Over 30 million users
- Available in 140 countries
- 30:1 leverage on major currency pairs
- Regulated by ASIC
eToro AUS Capital Ltd ACN 612 791 803 AFSL 491139. OTC Derivatives are speculative and leveraged. Not suitable for all investors. Capital at risk. See PDS and TMD
IC Markets
IC Markets Australia is a highly respected forex broker that has built a reputation for providing traders with a secure and reliable platform for executing trades. The company offers a wide range of financial instruments for trading, including forex, indices and commodities, making it an excellent choice for traders of all experience levels.
One of the key benefits of using IC Markets is the company’s low spreads, which are among the lowest in the industry.
IC Markets offers leverage from 1:1 to 30:1, which can be useful for traders looking to maximise their potential profits. The company also provides a range of educational resources, including webinars and trading guides, to help traders improve their skills.
IC Markets is regulated by the Australian Securities and Investments Commission (ASIC), which is widely considered to be one of the most reputable financial regulatory bodies in the world. The company also has a strong reputation for fast and reliable trade execution. The IC Markets MetaTrader 4 and 5 servers have a latency of less than 1 millisecond.
Choosing IC Markets over the competition may be beneficial for those seeking a high-quality trading experience with a broker that has a proven track record of success in the industry.
Key Statistics
- Average execution speed of 35 milliseconds
- IC Markets is one of the world’s leading forex CFD providers
- IC Markets holds client money in segregated client trust accounts in Tier-1 banks
- More than 3,500 tradable symbols
- Trade with the best forex trading platforms in Australia
- Founded in 2007
IG Markets
IG Markets Australia is a popular broker for trading forex due to its competitive spreads, range of trading platforms, and extensive market research tools.
With over 45 years of experience in the financial markets, IG Markets Australia has established itself as a reliable and trustworthy broker for traders.
One of the key benefits of trading with IG Markets Australia is its tight spreads, with forex spreads on some currency pairs starting from under 0.6 pips, allowing traders to trade with lower transaction costs, maximising their potential profits.
IG Markets Australia offers a range of trading platforms, including the popular MetaTrader 4 and its own proprietary platform, which are both accessible through desktop and mobile devices.
IG Markets Australia also provides a wide range of market research tools, including daily market analysis, an economic calendar and access to trading signals.
Key Statistics
- 320,000+ active clients worldwide
- 18,000+ markets available to trade
- $1.2tn+ traded annually
- 2,500+ employees worldwide
- Over 40 industry awards won in the past decade
AvaTrade
AvaTrade is a popular choice among forex traders due to its user-friendly trading platform, competitive spreads and range of educational resources.
With over 15 years of experience in the financial markets, AvaTrade has established itself as a reliable and reputable broker for traders and one of the best forex brokers in Australia.
One of the key benefits of trading with AvaTrade is its user-friendly trading platform, which is available on desktop and mobile devices. The platform offers a range of tools and features to help traders make informed decisions, including technical analysis tools and a customisable interface.
AvaTrade also offers competitive spreads, with major forex pairs having an average spread of 0.92 and an all-in cost for active traders of 0.61 pips.
AvaTrade Australia provides a range of educational resources, including webinars and trading guides, to help traders improve their skills and knowledge.
Key Statistics
- Founded in 2006
- 44 forex options and 1,200 CFDs
- Ranks best in class for professional traders
- Trading Central research modules
- AvaSocial, ZuluTrade and DupliTrade for social trading
Pepperstone
Pepperstone Australia is one of the best brokers in Australia. They have a strong reputation for providing traders with a range of benefits, including tight spreads, fast trade execution and access to multiple trading platforms.
With over a decade of experience in the industry, Pepperstone has built a reputation as a trusted broker for traders of all levels.
One of the key benefits of trading with Pepperstone Australia is its low spreads, which average from as low as 0.6 pips. This allows traders to trade with minimal transaction costs and maximise their potential profits.
Pepperstone offers fast trade execution speeds, which are essential for traders looking to take advantage of fast-moving markets.
Pepperstone Australia also provides traders with access to multiple trading platforms, including the popular MetaTrader 4 and 5 platforms, as well as cTrader.
Key Statistics
- More than 10 years of experience
- Trusted by over 400,000 traders from around the world
- Averaging $12.55bn traded daily
- Excellent choice for algo traders
- Regulated by ASIC
Quadcode Markets
Quadcode Markets is a global forex and CFD broker that is headquartered in Australia. It offers a wide range of trading instruments, including forex, commodities, indices and cryptocurrencies.
Quadcode Markets’ main features include competitive pricing, fast execution speeds and advanced trading tools, making it one of the best forex brokers in Australia.
Quadcode Markets is a good choice for forex traders because it offers some of the lowest spreads in the industry, as well as competitive commission rates. This means that traders can keep more of their profits and have greater control over their trading costs. Quadcode Markets offers fast and reliable execution speeds.
Traders can also take advantage of Quadcode Markets’ advanced trading tools, including free access to Trading Central’s technical analysis and daily market reports.
The broker offers a range of educational resources, including webinars and tutorials, to help traders improve their skills and knowledge.
Key Statistics
- Founded in 2022
- 24/7 customer support
- Regulated by ASIC
- Quadcode Markets offers the popular MetaTrader 4 platform, as well as its own proprietary trading platform
- Quadcode Markets holds client funds in segregated accounts to ensure their safety
GO Markets
GO Markets Australia is a forex broker that has been in operation since 2006. It offers traders access to a range of forex trading tools, platforms and products, making it a reliable choice for traders of all levels.
GO Markets spreads are aggregated from over 22 Tier-1 and Tier-2 liquidity providers. This reduces costs to the trader and ensures that the biggest and best liquidity pools are made available to trade.
GO Markets Australia offers low spreads starting from as low as 0.0 pips. This means that traders can trade with minimal transaction costs and maximise their potential profits.
GO Markets Australia offers fast trade execution speeds, which are crucial for traders who need to take advantage of fast-moving markets.
GO Markets Australia also provides traders with access to a range of forex trading tools, such as MetaTrader 4 and 5, as well as its proprietary trading platform, GO Trader.
Key Statistics
- Ranked number one for customer service by Investment Trends
- Over 350 financial instruments available to trade
- GO Plus+ Account commissions start from $2 USD
- Over 15 industry awards won in the past decade
- Over 99.5% platform uptime
Final Word on Forex Brokers in Australia
In summary, choosing the right Australian forex broker is going to be crucial to experience a successful trading experience. By considering factors such as trading costs, range of financial instruments and regulatory status, traders can find a platform that suits their needs and helps them achieve their trading goals. Click on the links provided in each section to start trading on the platform of your choice.
Forex Brokers in Australia FAQs
Is forex trading legal in Australia?
Yes, forex trading is legal and regulated in Australia. The Australian Securities and Investments Commission (ASIC) oversees the forex trading industry and ensures that brokers and traders comply with the necessary regulations and licensing requirements.
Can you trade forex with $1000 dollars?
Yes, it is possible to trade forex with $1000 dollars. Forex trading allows for flexible position sizing, which means you can adjust your trade sizes based on your account balance. However, it’s important to manage your risk effectively and consider proper money management techniques to protect your capital.
What are the best times to trade in Australia?
The best times to trade forex in Australia are during the overlaps of major trading sessions. For example, the overlap between the Asian and European sessions (around 2:00 AM to 6:00 AM UTC) can provide increased liquidity and volatility. Another significant overlap occurs between the European and American sessions (around 12:00 PM to 4:00 PM UTC). These overlapping times often offer more trading opportunities.
How much do forex traders make a month?
The profitability of forex trading can vary significantly from trader to trader. There are no guarantees in the financial markets. Potential profitability depends on various factors such as trading strategy, risk management, experience, psychology, market conditions, and the amount of capital invested. Some traders may generate substantial profits, while others may have more modest returns or even experience losses. It’s important to approach forex trading with realistic expectations and focus on developing a long-term trading plan rather and build out a successful history on demo trading before you begin to think about trading for real.
