Among other things to ensure the best experience in trading AUD/USD is the spread. Which broker has the best spread for AUD/USD?
The forex market has hundreds of currencies to trade with. Among many of those, there are several pairs that become traders' favorites including AUD/USD. In fact, the Australian Dollar/US Dollar currency pair is the fifth-most traded currency in the global foreign exchange market. That is an amazing fact considering that Australia is only the 14th largest country in the world in terms of GDP and the 50th largest in terms of population. The Reserve Bank of Australia (RBA) is very serious in its endeavor to curb inflation, therefore they tend to keep the rates comparatively high among other major central banks. This is one of the reasons why a lot of traders prefer AUD/USD.
Why Should You Trade AUD/USD?
The Australian dollar is often seen as a growth-linked currency, much like the Canadian Dollar or the New Zealand Dollar. Due to the nature of Australia's huge raw materials exports, the currency can be sensitive to the movement of commodity prices. That means, traders can easily analyze the Australian Dollar through the commodity market in addition to technical methods. But that isn't the only benefit of trading AUD/USD.
See Also: Best Forex Brokers in Australia
For traders, the liquidity of a forex pair is very important. A market's liquidity has a big impact on how volatile the market is. Lower liquidity usually results in a more volatile market and causes prices to change drastically. Luckily, AUD/USD is one of the most liquid currency pairs in the forex market, so there will be less slippage, lower costs, and deeper market depth.
2. Economic Stability
Another reason why trading AUD/USD is highly beneficial for traders is that Australia has proven to have great economic stability. In fact, the Australian economy surges through exports and commodities whilst retaining a solid monetary policy with its central bank. It even managed to grow year on year while other countries have suffered due to the global economic downturn. Obviously, trading with a more stable currency could protect them against volatility risks in the forex market.
Spread is another factor traders tend to consider when choosing a forex pair. A bigger spread means that traders would pay more when losing and receive less when winning. This is why most traders would opt for an instrument with a lower spread. Since AUD/USD is a widely traded forex pair, that means it can have a relatively narrow spread for retail traders. Obviously, it can highly reduce the cost trader have to spend for trading.
4. Research and Resources
The Australian Dollar has a wide range of resources available. There are countless websites and forums that offer market overviews and analyses on AUD/USD. Traders can use any indicator to analyze the price movement of this pair. That means there are plenty of features traders can use to assist them in analyzing the market and deciding which strategy works best.
Trade AUD/USD With the Best Spread
AUD/USD is a popular currency pair to trade with, therefore there are countless brokerages offering it. However, not all those brokers provide the best possible conditions for traders. For example, the spread can be extremely high and this can add to the trading costs. Here are some of the best brokers with low spreads for AUD/USD.
1. IC Markets
When it comes to forex trading, IC Markets is one of the best brokers most traders think of. The main reason is that this broker provides super-tight spreads for most instruments, including AUD/USD. Due to their mix of liquidity providers, IC Markets managed to give traders the best spreads in each platform including MT4, MT5, and cTrader. This also makes sure that the spreads will remain tight and the liquidity deep for 24/5 no matter what the market conditions are.
The AUD/USD currency pairs are available in both raw account and standard account. In the standard account, the minimum spread for this pair is 0.6 minimum with an average of 0.77 pips spread. On the other side, the minimum spread of the raw account is 0 and the average is 0.17 pips. For traders who are looking to reduce their trading costs, IC Markets raw account is a great choice, especially because the commission fee is only AUD0.07 per round turn. That alone makes IC Markets one of the best brokers for AUD/USD.
IC Markets is an online forex broker operating under the company of International Capital Markets Pty Ltd. Traders under the Australian jurisdiction are provided with the trading service of IC Markets AU that is headquartered in Australia and licensed by the Australian Securities and Investments Commission (ASIC).
On the other hand, non-Australian traders who open an account in this broker are registered under IC Markets SEY that is based in Seychelles, and regulated under the Seychelles Financial Services Authority (SFSA). The dual operation is a result of the relatively new rules from ASIC that prohibit their regulated broker to offer trading services outside Australia.
Classified as an ECN broker, IC Markets provide clients with MetaTrader 4, MetaTrader 5, cTrader as platform trading options. This broker also follows market trends to include Cryptocurrencies as one of its products, enriching its already wide selection of trading assets that include Currencies, Indices, Metals, Energies, Softs, Stocks, as well as Bonds.
The minimum deposit in IC Markets is in the middle range compared to other ASIC-regulated brokers, as it reaches $200 for every client. Market analysis materials are also prepared regularly for trading insights on IC Markets's official website, proving their competence to serve their traders with important contents created by market experts that work specifically for them.
For payment methods, IC Markets allows funding and withdrawal via wire transfer, credit card, PayPal, Skrill, Neteller, FasaPay, UnionPay, as well as Bitcoin via BitPay. The more interesting aspect from this broker is its multi-base currencies that include USD, AUD, EUR, GBP, SGD, NZD, JPY, CHF, HKD, and CAD.
As the trading technology in IC Markets is highly equipped with co-located servers and extremely low latency (especially on cTrader), the broker is widely known for its capability in hosting traders with the special needs for high-frequency trading as well as scalping.
To sum up, IC Markets is a fitting destination for active traders looking for a well-regulated broker. IC Markets is also flexible in terms of base currency and payment methods, signaling their commitment to welcome traders beyond their home country. As of late 2019, IC Markets provided their website in 18 international languages including English, Korean, Indonesian, French, Spanish, Italian, Malay, German, and Chinese.
Admirals is another great broker for AUD/USD trading. To start, this broker provides two account types for traders that are both available in MT4 and MT5. In the standard account, the spread for AUD/USD is USD 0.00001 with the typical spread of USD 0.0001. In the zero accounts, the minimum spread is pretty much similar, but traders will need to pay a commission fee of USD6 per round turn. Traders can start trading with just AUD100 in Admirals, which makes them one of the most recommended brokers for AUD/USD trading.
Pepperstone uses multiple liquidity providers from tier 1 banks and institutions to make sure their traders get the best price in any currency pair, including AUD/USD. This broker is widely known for its razor spread, at which traders can get 0 minimum spreads and 0.17 average spreads in AUD/USD. The commission for this type of account is fairly low, only AUD0.08 per round turn.
Pepperstone was founded in 2010 by a team of experienced traders with a shared commitment to improve the world of online trading. Based in Melbourne, Australia, they grew to become one of the largest forex brokers in the world. If traders want to find a broker that provides low spreads, fast execution, and award-winning support, then the answer is Pepperstone.
Pepperstone has a strong legality guarantee because it has been licensed by the Australian regulator ASIC and FCA. Traders' funds can be deposited in segregated accounts at top Australian banks, one of which is the National Australia Bank (NAB). Therefore, the safety of funds is not a concern if a trader chooses to open an account in Pepperstone .
They succeeded in collaborating with 23 top banks to bring Bid to investors instantly via optical fiber. This allows all orders to be executed 100 percent automatically with low latency up to 0.05 milliseconds, without dealing desk intervention and requotes, as well as with super low trading costs.
Trusted by over 73,000 traders around the world, Pepperstone processes an average of USD12.55 billion of trading volumes every day. Because of that, they have many awards such as:
- The Best Global Forex ECN Broker 2019 and Best Forex Trading Support-Europe
- Best Australian Broker and Best Trading Platform 2018 by Compareforexbrokers.com
- Best Forex ECN Broker, Best Forex Trading Support, and Best Forex Trading Conditions by UK Forex Awards 2018
With the many rewards gained, Pepperstone hopes to attract more and more traders from all over the world. The rising performance of Pepperstone is not only due to the super-tight spreads and fast execution that it provides, but also because many traders are interested in trading with deposits in currencies other than US Dollars.
For this reason, Pepperstone is one of the most market-responsive brokers because it is willing to accept deposits in 10 currencies, which include AUD, USD, EUR, CAD, GBP, CHF, JPY, NZD, SGD, and HKD.
Trading in Pepperstone would allow traders to choose between 11 trading platforms: MT4 for desktop, MT4 Mac, MT4 iPhone, MT4 Android, MT4 iPad/Tablet, MT5, WebTrader, cTrader WebTrader, cTrader cAlgo, and cTrader Mobile. The choice of trading platforms may seem confusing to novice traders, but actually, it is very useful because it has fast execution.
When trading forex, traders can enjoy raw spreads from 0.0 pips on Razor accounts, over 61 currency pairs, and commission-free account funding on a wide range of deposit options. In addition to currency pairs, Pepperstone provides many types of trading instruments, including CFDs for indices and shares, commodities, and cryptocurrencies.
Instruments in commodity trading are pretty much diversified. Not only metal, gold, and silver, but traders can also trade with soft commodities such as cotton, sugar, coffee, cocoa, and orange juice. Pepperstone also provides trading on energy (oil and gas).
There are two types of accounts provided by Pepperstone, namely Razor accounts, and Standard accounts. If you area beginner, it is recommended to choose a Standard account with an average EUR/USD spread of 1.0-1.3 pips and free commission.
Those with particular trading styles such as scalpers and algorithmic traders may enjoy the lower cost setup traditionally seen in a Razor account, with a commission from AUD7 round turn of 100k traded. The initial deposit starts at USD200 with a minimum lot of 0.01 (micro) and 1:500 leverage.
As a Pepperstone client, a trader can fund and withdraw with alternative methods including Visa, Mastercard, POLi internet banking, bank transfer, BPay, PayPal, Neteller, Skrill, and Union Pay.
If you are new to trading or looking to practice your trading strategies in a risk-free environment, you can create Demo Account in Pepperstone. But if you are an experienced trader or prefer to learn by doing, Pepperstone provides a Live Account that allows you to trade with live executions and pricing.
Traders can also follow and copy strategies from popular traders using third-party services while learning how to improve their trading abilities. Pepperstone has partnered with a range of social trading platforms that traders can choose from, such as Myfxbook, ZuluTrade, Mirror Trader, MetaTrader signals, and Duplitrade.
Exness' standard account offers 1.4 pip spreads for AUD/USD trading. While this might be a little high for some traders, this broker also offers a raw spread account and zero accounts for AUD/USD traders who are looking for a better price. The raw spread account in Exness comes with 0.2 pips spread and a USD7 commission fee per round turn. With the zero spread account, the spread starts from 0 pips with a USD10 commission fee per round turn. While the commission can be a little too high for some traders, the super low spread makes up for its drawback.
The choice of broker is adjusted to the needs of each trader. If you are a trader who only needs a basic platform and trading features with the best attributes, then Exness can be your best choice.
Exness covers its lack of feature variations with other advantages like low spreads starting from only 0.1 pip. This is very suitable for traders who use scalping strategies (Scalper). Spreads on major pairs in certain account types can also be as low as 0.0 pip, depending on market conditions.
Not only that, but traders can also enjoy other advantages such as an automatic fund withdrawal system. If a trader withdraws funds through the e-Payment facility provided by Exness, the processing time is instant and goes straight into the account. This means that when traders make a withdrawal, everything happens automatically without human intervention.
The safety of traders' funds is also guaranteed as Exness is one of the European-based STP/ECN brokers. Exness's ability to become an official partner of the Real Madrid soccer team for 3 years, starting July 2017, also provides evidence that the company has high solidity.
Deposits and withdrawals may be made 24 hours a day, 7 days a week. However, it is important to note that the company shall not be liable fors in processing deposits and withdrawals if suchs are caused by the payment system.
Traders do not need to worry about transaction fees when depositing and withdrawing. When trading on Exness, transaction fees are not charged to traders. A variety of payment methods are provided for traders, including Wire Transfer, Bank Card, Neteller, Skrill, and many others.
All information displayed on the Exness website is tested and proven. Their business is audited quarterly by Deloitte, which is an audit company for financial services.
Moreover, Exness is one of the mote transparent brokers in the online trading industry. Traders can find out all information about this company on the website, such as trading volume, number of active clients, client deposits, company funds, and many more.
The platforms provided by Exness vary in MetaTrader 4, MetaTrader 5, Web, and Mobile platforms. This makes it easy for traders when trading on Exness, as they can also access Exness platforms anywhere and anytime.
Over the years, Exness has developed into a broker that attracts traders. Trader's trust is further enhanced by its compliance with financial regulations like the FCA and CySEC.
One measure of client confidence can be put on the trading volume. By December 2018, their clients' monthly trading volume reached USD348.4 billion and active traders around the world surpassed 50,342.
Through the program offered by Exness, traders also have the opportunity to earn extra income by becoming their partners. From the Introducing Broker (IB) program, partners can earn up to 33% spread commission from every new client that registers with them.
Additional income can also be obtained from Exness Partners. Traders can get a spread commission of up to 25% per transaction made by traders who register through an affiliate link.
When trading with Exness, profit opportunities generated by traders also increase with VPS hosting services. This feature helps to maintain trading activities to progress smoothly and without interruption in the event of unexpected troubles such as lost internet connection or electricity problems that shut down traders' PCs unanticipatedly.
From the review above, it can be concluded that Exness is a favorite broker for traders because of low spreads and flexible account types. This condition is very suitable for traders with limited funds but is in need of more opportunities to get maximum profit. This broker is also well known for its maximum support on both new and existing partners.
Another great AUD/USD broker to consider is XM. To start with, this broker equipped themselves with different kinds of account types. The standard account offers traders with spread as low as 0.00028 with a value of AUD100,000 per lot. The micro account has somewhat similar spreads but with a lower lot value of AUD1,000. Meanwhile, the XM ultra-low standard account offers a spread as low as 0.00011 with a value of AUD100,000. Lastly, XM's ultra-low micro account offers a similar spread with only AUD1,000 per lot.
Established in 2009, XM is a member of an online brokerage company called Trading Point of Financial Instruments Ltd. In providing clients on a global scale, the company has branched into XM Australia and XM Global, and XM Cyprus. Each member has different headquarters and licenses, with XM Australia registered under the Australian Securities and Investment Commission (reference number: 443670), XM Global under the IFSC (60/354/TS/19), and XM Cyprus under the Cyprus Securities and Exchange Commission (reference number: 120/10).
XM is one of the more experienced brokers in the world of online forex trading today. Since its founding, the broker has experienced a lot of changes, including the addition of the Ultra-Low Account and Webinar feature that is accommodated in 19 different languages with 35 native instructors for each language.
In terms of trading instruments, XM is a well-known diverse class assets provider, varying from Forex, Commodities, Equity Indices in CFDs, Precious Metals, Energies, to Shares. XM prides itself to be the ideal broker in trading execution, offering a stat of 99.35% orders to be executed in less than 1 second. Trading in XM would be also provided with a strict no requotes policy, no virtual dealer plug-in, no rejection of orders, real-time market execution, and the choice for traders to place orders online or by phone.
Spreads on all majors can reach as low as 0.6 pips in Ultra-Low Account, while spreads on other accounts usually start from 1 pip. Instead of providing maximum leverage on the scale of 1:500 or 1:1000 (round numbers), XM chooses to limit their leverage on a 1:888 scale, a unique number that is now widely recognized as XM's trademark.
To protect the client's fund in the event of extreme volatility, XM presents each account type with Negative Balance Protection. The deposit starts from $5 in Micro and Standard Account, while Ultra-Low Account requires a minimum deposit of $50. Traders who open accounts in XM are enabled a condition similar to a Cent Account environment in the Micro Account, in which the Contract Size for every lot is only 1,000 units. If it is applied with the smallest lot size in the MetaTrader platform which amounts to 0.01, it means that traders can go as small as 10 units per trade.
For the deposit, XM applies zero-fee deposits in most of its available payment methods. Traders can choose to fund or withdraw their accounts via wire transfer, credit card, as well as the most favorable e-payment choices like Skrill, Neteller, and FasaPay.
XM also provides an Islamic Account for Muslim Traders obligated to Sharia Law that prohibits the use of interest generated by overnight swaps for each currency pairs. To give their clients the best experiment in trading, XM has given access to both MT4 and MT5 platforms, each is available for more than 6 display formats (PC, Mac, Multiterminal, WebTrader, iPad, iPhone, Android, and Android Tablet).
All in all, there is no doubt that XM has gone global with its deep commitment to providing trading services in more than 15 languages around the world. Aside from easing traders' experience with mainstream trading platforms and high-quality trading execution, XM is open to various types of traders, from small capital traders to the more experienced ones with big deposits at the ready. Traders are even provided with a Cent Trading environment should they choose to register under Micro Account.
For their global approach, XM has ensured that traders from various countries could access their service easily. This results in the provision of different domains specified for traders in certain jurisdictions. For example, traders from Indonesia could access XM via this link.
To better compare some brokers above, here is a side by side comparison with further details on each broker:
|❗Information||Testimonials (549), News (56), Articles (21), Webinars (217)||Testimonials (59), News (11), Articles (18)||Testimonials (117), News (49), Articles (22), Promotions (3)|
|💲 Min Deposit||$200||$200||$1|
|⚖ Max Leverage||1:500||1:30||1:2000|
|💡 Min Position||0.01 lot||0.01 lot||0.01 lot|
|💳 Payment||Crypto, BPAY, Credit/debit cards, FasaPay, Neteller, PayPal, Skrill, UnionPay and Wire transfer||Credit/debit cards, PayPal, UnionPay and Wire transfer||Crypto, Credit/debit cards, Neteller, Perfect Money, Skrill, Tether (USDT), USD Coin (USDC), WebMoney and Wire transfer|
|🧩 Demo Account|
|📁 Segregated Account|
|🕋 Islamic Account|
|👨💻 PAMM Account|
|📈 Managed Account|
|🇺🇸 US traders|
|🏆 Trading contests|
|⚡ Automated trading|
|💰 Bonus offers|
|📖 Free education|
|1️⃣ One-click trading|
|⏱ Trailing stop|
|⏳ Pending orders|
|Gold & Silver|
|🗣 Website Languages||Arabic, Chinese, English, German, Indonesian, Japanese, Korean, Malay, Portuguese, Russian, Spanish||Chinese, English, Russian||Arabic, Bengali/Bangla, Chinese, English, French, German, Hindi, Indonesian, Italian, Japanese, Korean, Portuguese, Russian, Spanish, Thai, Urdu, Vietnamese|
|🚪 Trade Now||Open IC Markets||Open Pepperstone||Open Exness|
Aside from the Australian Dollar, the Pound Sterling is also a great currency to trade with the US Dollar. However, not all traders understand what are the best brokers to trade the currency pair. Find out the list in the Lowest Spread Brokers for GBP/USD.