Forex Brokers in Australia
Over the last decades, the forex market in the US has emerged as one of the most regulated markets anywhere in the world. Rules that were introduced and backed up by Federal laws have made it quite challenging for forex companies to operate in the US. Presently, only three brokers still operate in the US forex market: Oanda, GAIN Capital LLC, and TD Ameritrade.
Below you will find a list of Forex Brokers accepting US traders as clients.
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The Commonwealth of Australia, the largest country in Oceania, has a thriving economy. Their average wealth was only second to Switzerland from 2013 to 2018. That was when Australia overtook Switzerland's position to become the country with the highest median wealth. They have a high GDP per capita and a pretty low rate of poverty. By 2020, Australia was the 13th on the list of countries with the highest economy by nominal GDP.
62.7% of that high GDP comes from the service sector, manned by 78.8% of the labor force in 2017. Followed by construction at 7.4% and mining at 5.8%. Part of that service sector specifically comes from brokerage service, for many traders in Australia and abroad.
Forex trading in Australia is claimed to be a huge business now, which is stimulated by the investors' attention toward currency trading after the global financial crisis in 2008-2009. Their currency, the Australian Dollar, has growing global importance which is correlated to the Chinese economy and oil prices.
In more than a decade, Australian forex brokers have grown into well-known brokers to millions of traders around the globe. This industry is now worth $380 billion, twice the value since 2007.
Australian government used to regulate this industry in a less restrictive manner when compared to the US which forbids the brokers from offering more than 50:1 leverage to retail traders. Australian Securities and Investments Commission (ASIC) initially allowed the brokers under their regulation to give 400:1 leverage to their traders, but current changes have restricted the leverage offering to only 30:1 on major currency pairs. Still, this doesn't deter Australian forex trading from rising higher in popularity.
Many traders put their trust in Australian brokerage because ASIC keeps a high standard before issuing their license. All brokers who wish to obtain Australian Financial Services License or AFSL must meet several strict specifications such as the demonstration of technical capabilities, sufficient financial resource, provision for staffs training, compliance to a certain set of rules, a clear and efficient procedure for dispute resolution, and adequate protection to their client's funds.
Many forex brokers in Australia offering great features such as Straight Through Processing and True Electronic Communication Network. They have piqued the interest of some of the largest institutional traders and money managers.
- Find the Right Broker
First, you will need to find the right broker for you. We say the right broker because even a good broker might not have a specifically suitable service or products for you. If there is one certain criterion, that would be a broker that is regulated by ASIC. Another thing you need to pay attention to is the broker's policy regarding customer service. Sometimes, you might have a question to pose or problems to solve. A broker with good customer service should be able to answer your question or solve a problem that might occur.
- Set Your Initial Deposit
Next up is the amount of the deposit that they will ask before you open a live account. There are a few brokers that allow you to open an account with just $1 while some other brokers require a minimum deposit of $10,000. Which one is the best? Think of opening a forex account like opening a business, how much room for error if $1 is all you have in your business? Nevertheless, it cannot justify you to put a million dollars on your first forex account. Only use a fraction of what you can afford to lose as your first deposit, keep in mind that this is a pretty risky business.
- Watch the Leverage
Another thing to pay attention to is leverage. This is basically the amount you will borrow from your broker. You may need this if you only place a small deposit. This leverage can help your account moves faster in both directions. If you have a good plan to execute, this leverage can help your account grow. On the other hand, if you poorly executed the trades, the same leverage will blow your account.
The four main sources of Forex trading scams in Australians are the phone, internet, social networking, and email. Con artists may use any of these methods of contact to get in touch with you and try to convince you to invest your money with them.
- Pose as reputable brokers: The con artists may pose as a reputable Forex broker and solicit your investment of funds so they can trade on your behalf.
- Use cryptocurrencies: Scammers frequently utilize Bitcoin and other cryptocurrencies in their schemes.
- Pose as an investment: You should also beware of "traditional investment scams" and other types of investment fraud—such as fake bond, Ponzi, and romance-baiting. Be skeptical of anyone that offers great profits at low risk.
Anything that seems too good to be true, probably is.
Continue Reading at Forex Trading Scams in Australia: Facts and Prevention
Recognizing the warning signs is the best approach to stay clear of Forex Trading scams in Australia. Here are some of them:
- Con artists may promise huge returns with minuscule risk. This is obviously false, because every seasoned trader is aware that 100 percent success rate is unattainable.
- Swindlers may further buttress their offers by asserting that they have some "secret" knowledge about a business or the markets. Even if that were true, trading with any "secret" information about a firm or using insider information is prohibited in Australia.
- Scammers may contact you by sending you phony screenshots of trading gains or images of their opulent lifestyle.
Continue Reading at Forex Trading Scams in Australia: Facts and Prevention
Here's what it means to be an ASIC-licensed forex broker currently:
- All ASIC-licensed forex brokers are required to hold at least AUD1 million in operating capital.
- Like FCA, ASIC will monitor the company continuously to ensure segregation of client funds, periodical report and audit, efficient management including AML and KYC procedures, and proper risk disclosure for clients.
- ASIC Forex brokers are not allowed to have any conflict of interest with their customers. This is the reason why Australian Forex brokers usually offer direct market access through ECN or STP facilities.
- ASIC allows leverage for forex and CFD trading up to 30:1.
Continue Reading at UK FCA vs ASIC, Which Forex Regulator is More Reliable?
If a broker is "registered", that means that the broker's registered as a company in a certain country and has one or more offices in that country. In this category, the broker does not necessarily have a license to operate as a broker and is usually not actively monitored by the country's regulatory body. The company's operations are also not always centered on the main office address but it could be outsourced to other areas.
Continue Reading at The Hidden Truth of Forex Broker License
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