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.
What You Need to Know about Forex Trading in Australia
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.
How to set the right foot into forex trading in Australia?
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.
Once you have a good broker to work with and a reasonable amount to deposit, you should find a good strategy before executing any kind of trade. It is fine if you can only execute a single trade in a week or even a month; waiting for a good opportunity is part of trading as well.
All in all, Australia is a good country to work with when it comes to forex trading. In-depth explanations regarding analysis and technique would be a topic to discuss in this article list.
FAQ
What is the best forex broker in Australia?
Finding the best forex broker in Australia is not much different from choosing the right broker in general. Aside from making sure that the forex broker is available for client registration from Australia, you need to check its regulation, minimum deposit, spread, leverage, payment methods, and other trading-related aspects that may affect your strategy. Furthermore, make sure that the broker has a good credibility and reliable customer support.
Where can I trade forex in Australia?
The list in this page can be a good reference if you look to trade with in Australia. We have sorted specific forex brokers that accept clients from Australia, so you can choose one of the brokers by comparing their minimum deposit, regulation, leverage, and rating. If you are interested to learn further about a certain broker, feel free to click the review button.
What is the best forex broker for beginners?
If you are a beginner and looking for the right broker to trade forex in Australia, some aspects that you need to pay attention to are the low minimum deposit, demo account, and educational features. Apart from that, it's also better to make sure that the broker has good customer service because as a beginner, you may need to consult about broker services that still seem incomprehensible to you.
