Essentials for Australian Traders
Investment Trends report data indicates that over 100,000 Australians engaged in at least one FX or CFD transaction in 2021. Furthermore, industry insights from Finance Magnates Intelligence reveal that the average monthly deposit by Australians surpassed $8,443 in the first ten months of 2021. Australian traders also displayed an active trading pattern, averaging 119 monthly transactions per trader during this period.
See Also:
High-Impact Australia Economic Data
- Australian GDP (Gross Domestic Product): Represents the total value of goods and services produced within Australia's borders over a specific period, typically a quarter or a year.
- Full Year GDP Growth: Indicates the percentage change in Australia's GDP over a complete fiscal year, usually compared to the previous year.
- GDP per Capita: Calculated by dividing a country's GDP by its population. Represents the average economic output per person in Australia.
- Inflation Rate: Measures the percentage change in the average price level of goods and services over a specific period, typically a month or a year.
- Consumer Price Index (CPI): Reflects inflationary pressures on household budgets and serves as a key indicator of cost-of-living changes.
The Brokers
Australia stands out as a central hub for retail trading, hosting several globally renowned brokers that provide a range of trading services encompassing forex and contracts for differences (CFDs). Notable names include IC Markets, Vantage, Pepperstone, FP Markets, and Blueberry Markets, contributing to the country's prominence in the trading arena.
The Regulations
Last year, the Aussie retail FX/CFDs trading scene saw a significant regulatory shake-up orchestrated by the Australian Securities & Investments Commission (ASIC). Tasked with overseeing the Aussie financial market, ASIC implemented measures to curb leverage offered by brokers to retail traders. The maximum leverage for FX majors was capped at 30:1, and it plummeted to a mere 2:1 for crypto CFDs.
See Also:
- Regulated by ASIC
- The forex market operates 24 hours a day, five days a week
- The Australian dollar (AUD) is one of the major currencies traded in the forex market
- Forex brokers in Australia offer advanced trading platforms
- Low leverage
- High volatility
- Time zone differences
- Susceptible to manipulation by large financial institutions and market participants
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