The list of trustworthy Australian Forex Brokers

The Forex industry in Australia is perfectly regulated. The main regulatory body is ASIC (also known as the Australian Securities and Investments Commission), meaning that all Forex brokers there are required to hold an ASIC license in order to be able to operate in Australia. Despite the fact that the market is huge and full of possibilities, rules and regulations are not very liberal – for instance, brokerage firms wishing to operate in the country must have at least $1 million in working capital.

The local currency of the country – AUD is an important currency for Forex traders not only there but around the world, especially because of its special relationship with the Japanese Yen. Traders from Australia will definitely be able to find a lot of brokerage companies offering AUD for trading purposes.

The maximum leverage in Australia is capped at 1:30. In 2021, ASIC announced leverage changes that must be complied with all the Forex brokerage companies that are regulated by this financial regulatory body.

As in the majority of countries, trading Forex is taxed in Australia. However, there are some rules that one should keep in mind. Mostly, traders are subject to Forex trading tax which has a 23% rate.

If you are someone who wishes to start the trading journey in Australia, then you will be able to choose from a variety of payment methods such as Visa, Mastercard, Skrill, Neteller, or PayPal.

List of the Best Forex brokers in Australia

Finding a suitable Forex broker can sometimes be difficult and other times even overwhelming. Since there exists no single universal set of criteria that would be applicable to each and every trader’s needs and wishes, one needs to dig deep into the research and figure out what works best for them. Fortunately, Australia has a lot to offer in terms of reputable and reliable broker services. We have researched and made a list of the best online Forex brokers in Australia for you to choose from.

AvaTrade

Review of AvaTrade – Broker with over 15 years of experience

Minimum deposit

$100

Regulation

CySEC, CBI, FSA, FFAJ, BVI FSC, FSCA, FSRA

Bonus

Maximum leverage

1:400

Year founded

2006

Trading platform

MT4, MT5, WebTrader, AvaTradeGO

XM Group

XM Forex Review

Minimum deposit

5$

Regulation

CySEC, FCA, ASIC

Bonus

30$, 50%+20%

Maximum leverage

30:1

Year founded

2009

Trading platform

MT4, MT5, WebTrader

Capital.com

Capital.com Forex Broker – Detailed Review

Minimum deposit

20$

Regulation

ASIC, FSA, FCA

Bonus

N/A

Maximum leverage

1:200

Year founded

2016

Trading platform

MT4, TradingView, Mobile, Web

HotForex

HotForex Review – Trade 1,000+ of Symbols with this Broker

Minimum deposit

$5

Regulation

SVGFSA, FCA, DFSA, FSCA, FSA

Bonus

From 30% to 100%

Maximum leverage

1:1000

Year founded

2010

Trading platform

MT4, MT5

CM Trading

CM Trading FX broker review – Is it legit?

Minimum deposit

$250

Regulation

FSCA

Bonus

Maximum leverage

1:200

Year founded

2012

Trading platform

MT4, WebTrader

ForexMart

ForexMart Review – High-class trading experience

Minimum deposit

15

Regulation

CySEC

Bonus

30%

Maximum leverage

1:500

Year founded

2015

Trading platform

MT4, WebTrader

Plus500

Plus500 Review

Minimum deposit

100$

Regulation

FCA

Bonus

N/A

Maximum leverage

30:1

Year founded

2008

Trading platform

Custom

IQ Option

An in-depth IQ Option Review of fees, opportunities and more

Minimum deposit

$10

Regulation

Risk Warning: YOUR CAPITAL MIGHT BE AT RISK

Bonus

N/A

Maximum leverage

1:1000

Year founded

2013

Trading platform

Proprietary

Exness

Exness Broker Review – Should You Trade With It?

Minimum deposit

10 USD

Regulation

FCA, CySEC, FSA

Bonus

N/A

Maximum leverage

1:Unlimited

Year founded

2008

Trading platform

MT4, MT5, WebTerminal

RoboForex

RoboForex review – Everything that this broker has to offer

Minimum deposit

$10

Regulation

IFSC

Bonus

Maximum leverage

1:2000

Year founded

2009

Trading platform

MT4, MT5, cTrader, R WebTrader, R MobileTrader, R Trader

OspreyFX

OspreyFX review – regulations, features and possibility of OspreyFX scam

Minimum deposit

$10

Regulation

N/A

Bonus

N/A

Maximum leverage

1:500

Year founded

2019

Trading platform

MT4, custom

EagleFX

EagleFX review – Start trading with safe and secure broker

Minimum deposit

$10

Regulation

Bonus

Maximum leverage

1:500

Year founded

Trading platform

MT4

Forex.com

Forex.com Review

Minimum deposit

250$

Regulation

FCA, NFA

Bonus

N/A

Maximum leverage

200:1

Year founded

1999

Trading platform

MT4

easyMarkets

Can You Trust easyMarkets? There Are Things You Need To Know

Minimum deposit

$25

Regulation

ASIC, CySEC, FSA, BVI

Bonus

50%

Maximum leverage

1:400

Year founded

2001

Trading platform

WebTrader, MT4, TradingView

Pepperstone

Pepperstone FX Broker – Everything You Need To Know About This Broker?

Minimum deposit

AUD$200

Regulation

ASIC, SCB, CMA, CySEC, FCA, BaFin and DFSA

Bonus

N/A

Maximum leverage

1:500

Year founded

2010

Trading platform

MT4, MT5, cTrader

HYCM

Can you trust HYCM Forex broker? What you need to know?

Minimum deposit

100

Regulation

FCA, CySEC, DIFC, CIMA

Bonus

N/A

Maximum leverage

500:1

Year founded

1977

Trading platform

MT4, MT5

FPMarkets

Is FPMarkets reliable broker? Is it licensed to trade?

Minimum deposit

$100 AUD

Regulation

ASIC

Bonus

N/A

Maximum leverage

500:1

Year founded

2005

Trading platform

WebTrader, MT4, MT5, IRESS

IMGFX

IMGFX Broker Review – Your Best Trading Experience

Minimum deposit

$50

Regulation

N/A

Bonus

N/A

Maximum leverage

1:500

Year founded

2015

Trading platform

MT4

FXOpen

FXOpen Review – The most experienced broker

Minimum deposit

1 USD

Regulation

ASIC, FCA

Bonus

10 USD

Maximum leverage

1:500

Year founded

2005

Trading platform

MT4, MT5, WebTrader

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Who Regulates Forex brokers in Australia?

A single governing body regulates the Forex market in Australia, and this agency has the power to oversee the entire Commonwealth of Australia. The name of the organization is ASIC, which stands for Australian Securities and Investments Commission.

best forex trading platforms australiaThe primary role of the agency is to oversee and control the financial sector, but there are various “smaller” duties and responsibilities that ASIC also has to perform on a daily basis. For instance, some of those tasks include corporate governance, monitoring financial services and operations, protecting the client’s rights and privileges, and so on. Also, ASIC is in charge of controlling the insurance of trader’s funds and protecting the personal information of the investors at all times. Of course, Australian Forex trading platforms are the ones who must perform some of these tasks, but ASIC is continuously monitoring the market and issuing warnings and bans in case any irregularities appear.

Another important role of ASIC is its educational dimension, and this agency is the only regulatory body in the world that provides learning materials on its website. Their portal is called MoneySmart, and as the name clearly indicates – it is designed to educate the investors about clever ways in which they can invest their funds. This unique feature is what separates ASIC from other governing bodies in the world of foreign exchange and binary options, and Australians are lucky to have such a consumer-friendly agency at their disposal. Also, unlike FCA, CFTC, or some other regulatory body, ASIC has slightly easier demands, which means that it is simpler to obtain a license for Forex Brokers Australia.

Trade with a regulated broker – XM

How is Forex trading taxed in Australia?

People trading Forex or other trading assets such as options or futures, have to pay tax which is up to 23%. This rate is calculated based on long/short-term capital gains/losses. As your Forex trading activities aim to gain a profit, it is very likely that you will have to pay tax on your profits throughout the year.

When it comes to Forex trading tax in Australia, you should know that this tax applies to people who are not a resident of Australia but has a source of income in the country. In case you want to have foreign exchange trading activities through a broker based in Australia, you will have to pay tax on your profits.

Are local currency pairs available?

Yes, it is very likely that all Australian regulated Forex brokers you will come across will have AUD currency pairs available as AUD is one of the major currencies available for trading purposes, being in the ten most used currencies in the Forex community.

the best forex broker in australiaThe Australian Dollar is the fifth most-traded currency, which is quite impressive as the economy of the country is not very large. AUD has 6.8% of daily turnover and its popularity is mostly due to the fact that country is rich in natural resources, positions itself as a reliable trading partner, and has high-interest rates.

Considering the fact that Australia is known for a safe trading environment for a couple of reasons, investors from all around the world are quite happy to open accounts and start trading with local currency. This is due to the fact that customers do not need to worry about scams and fraudulent companies, which makes their trading experience much more comfortable and enjoyable.

Start trading AUD with XM

Is there a cap on leverage For Australia Forex brokers?

Yes, Australian Forex brokers have a cap on leverage. Due to regulations set by ASIC, the maximum leverage that brokerage companies can offer to their clients is 1:30, however, it can be even lower for different classes of assets. For instance, a cap is 30:1 for major currency pairs, while the same for minor currency pairs might be 20:1. It is very clear to us that ASIC has decided to follow a European-style approach, trying to protect customers from potential losses.

Usually, financial regulatory bodies put restrictions on leverage due to the simple fact that they can not only help you gain profits but can also play an important role in losing all your funds. Whether you are dealing with an Australian or international broker, it is important to check leverage ratios. The industry’s standard is somewhere between 1:200 and 1:300 and anything above that might already be suspicious, especially with unregulated Forex brokers.

What Payment systems are available in Australia?

forex broker australiaAustralian dollars are in use with the majority of the Australian-based Forex brokers and this lowers the total amount of fees that would otherwise be spent on conversion rates. Credit and debit cards are predominantly used when investors are depositing and withdrawing their funds, but other methods are also possible. For example, wire transfers or modern e-wallets can be a great alternative if you are not a fan of carrying too many plastic cards in your pocket. We have to mention that the absolute favorite payment method of Australian traders is PayPal, which is the most widely accepted payment solution in the world. Most of the brokerage companies based in Australia support the payments through PayPal.

One of the most frequent activities that you will be performing when trading with currency pairs is transferring the funds to and from the accounts that you opened with the broker company. The efficiency and convenience in the transfers will facilitate the overall trading, and it is also important the broker uses reliable and protected payment methods.

Start trading Using Paypal on XM

What should you look out for when trading Forex in Australia?

The first thing you need to do when looking for a Forex broker Australia is to find a company that is credible and legitimate, which means that the broker in question has to be regulated by a reputable agency. The importance of regulation is indeed a crucial determiner of whether to trust the firm or not. The reason behind this is that the regulated agencies are strictly required to conduct audits of their accounts. The audits serve as a guarantee that the brokers will always hold enough funds to ensure the successful accomplishment of their clients’ transaction requirements. Moreover, The company is obliged to hold separate accounts for themselves and their clients. Therefore, if anything goes wrong with the financial stability of the firm and it eventually ceases to exist or goes broke, clients will receive compensation for their funds.

regulated forex brokers australia

Other than finding out whether the firm you are eyeing is regulated or not, researching the best Forex trading platform Australia can offer will educate you on the subject of types of brokers, prices for the services, and what distinguishes them from less credible brokerages. However, one should bear in mind that research should not be limited to solely reading the website of the broker firm, as most likely most of their content will be promotional and subjective. It is always recommended to go through different authentic sources that hire professionals to exam the brokers and write objective, quality reviews about their scope of operations. It will also save you time, as such reviews take the key points, which are the most crucial in deciding whether to consider a particular broker or not and analyze them in-depth.

Another important thing to consider might be execution speed. Execution speed is closely connected with the quality of the trading platform, and this aspect of your future broker is critical if you are planning on making a fortune by investing with Australia’s Forex trading brokers. The quality of the software solution will determine the speed of the trading process, and the entire user experience will suffer if the trading terminal is not good enough. Australian Forex trading platforms mostly include MetaTrader and cTrader, which offer the best performance and are very easy to use.

FAQs on Australian Forex brokers

How much money do you need to start trading Forex in Australia?

Anything from 0 up to the sky is the limit. Starting with no money is a possibility when choosing Australian no deposit bonus Forex brokers.No deposit bonus would allow you to use the funds placed on your trading account by the broker without the need for an initial deposit from you. You can start trading with the bonus and if you are successful in your trades, you keep the money that you earn. But if you lose the money, you will not be getting another no-deposit bonus, meaning that in case you want to continue trading you would have to deposit yourself. Trading with a $100-500 investment from your side is totally acceptable and maybe even preferable if you are inexperienced and you want to commit to a short-term trade strategy. Investing $500 and above would allow you much more freedom in your choices and strategy, however, beware of the risk management in case you decide to trade with thousands of dollars. The best way out would be to consult with your broker and decide what would work the best for you.

What are execution speeds for Australian Forex brokers?

Ideally, the execution speed for the average Australian regulated Forex brokers should be milliseconds. However, the execution speed is determined by the quality of the software that the broker is using along with the number of liquidity providers. The execution speed is almost a crucial factor that has to be taken into account when choosing a suitable broker firm for you. It is highly recommended that you pay attention to this specific information and if it is not available publicly for the broker chosen by you, go on and ask them. Bear in mind that the execution speed should not exceed 1 second, as it might cause certain inconveniences due to delays in processing your orders.

What payment methods are available for Australian traders?

Usually, the best Forex broker Australia will be quite flexible in terms of payment methods. The users are able to use credit or debit cards for funding, as well as wire transfers from their bank accounts. Often, it will be a necessity to have a registered card required to be enrolled with 3D secure. Most of the time, cheques and cash deposits will not be accepted. In case you are interested in buying bitcoin or ether, then POLi™ is one option that will use your internet banking system. The process of the payment is quite simplified and usually, it takes not more than 5 minutes to process the payment. For the specific payment methods, you should check with the broker directly, the information most likely will be available on the broker’s webpage.

Which is the best trading platform for Australian Forex traders?

The best Australian Forex trading platform for beginners or intermediate traders would be XM Group. It is one of the most experienced brokers which has been on market for over a decade. XM Group is an Australian regulated Forex broker with licenses from CySEC, FCA, and ASIC. XM broker is offering a most generous welcome to the newbies to Forex trading, with the $30 and 50%+20% bonuses. The firm offers three different types of accounts for choice – Micro, Standard, and Zero. The accounts differ according to available lots and minimum deposits, and the level of flexible leverage can reach up to 1:500. Even though there are many other options of high-quality brokerage services available in Australia, due to the flexibility and simplicity to start trading XM Group can claim the status of the best Forex broker in Australia.

What are the main features of Australian brokers?

Retail Forex Brokers Australia can offer a broad range of spreads, and this means that traders can easily find the best option for their needs. Equally, the right leverage can increase your profits, and these factors are immensely important when it comes to Forex trading. Australian broker houses typically offer leverage of 300:1, up to 500:1. Also, execution speed will affect the number of trades you can make within a day, and this element can make a significant difference in the long run.

What bonuses are available for Australian Forex traders?

The most common types of bonuses available for Australian Forex traders are the “no deposit” bonus, “deposit” bonus, “welcome” bonus, and other tools that are designed to help you with your trading. No deposit bonus means that the funds are added to your trading account by your broker, however, you are not the one depositing it. The deposit system works in a simple way, if you start trading with the deposit bonus and you lose it, you have no liabilities and it is not your own money that you are losing. Most of the time, deposit bonuses are much more attractive in terms of the bonus’s proportional size and are usually measured or determined as the percentage of your initial deposit.