Best Forex Brokers Australia
We compared 30+ ASIC regulated forex brokers and then listed the best brokers overall in terms of fees, minimum deposit, support, trading platform convenience & 6 other factors.
Forex trading in Australia is highly regulated by the ASIC or the Australian Securities and Investment Commission. They keep oversight over forex brokers to ensure that investors and traders are protected from unscrupulous practices.
So we recommend Australian traders to only trade with ASIC regulated brokers for the safety of funds & grievance redressal.
There are over 50+ forex brokers that are regulated with ASIC. We have compared these brokers based on our trust factors – years since regulation, benchmark spread for major instruments, minimum deposit, leverage, their platform, available assets, account opening process, support, ease of funding & withdrawal & some other factors.
Below is our data table if you are looking to for quick comparison of the brokers operating in Australia.
Comparison Table of Best Forex Brokers Australia
|Forex Broker||Minimun Deposit||Average EUR/USD spread*||Regulation||Max. Leverage||Available instruments||Visit|
Minimum Deposit: $5
Lowest EUR/USD spread*: 0.8 pips
Regulation(s): ASIC (AFSL No. 443670)
Max. Leverage:Upto 1:888
Available instruments: 57 currency pairs, and 1000+ CFDs
Minimum Deposit: AUD 200
Average EUR/USD spread*: 1.1 pips
Regulation(s): ASIC (AFSL No. 335692)
Available instruments: 60 currency pairs, 100+ CFDs
|Visit IC Markets|
6 Best Australian Forex Brokers
Here’s our list of the best forex brokers for traders in Australia:
We will now compare the detailed review of Trading Conditions, benchmark fees for EUR/USD, support, regulation(s), pros/cons & more of each broker one by one.
#1 XM Trading – Overall Best Forex broker
ASIC Regulation license: AFSL No. 335692
Minimum Deposit: $5
Available Platforms: MT4 & MT5 platforms, WebTrader and Mobile trading
Max. Leverage: 1:888
XM is our highest rated forex broker based on our comparison factors. They are licensed under the regulatory authorities Australia (AFSL No. 443670), so trading with them is considered safe for Australian traders.
In terms of fees – XM Forex charges a spread which varies depending on the currency trading pair. XM Forex does not charge any additional fees or commissions other than the spread with their trading accounts.
For example, if you’re looking to trade EUR/USD, the average spread will be 1.7 pips with their standard account. The EUR/USD spread can be as low as 0.6 pips if you sign up with their Ultra-Low Account.
In terms of Trading conditions: Trading Conditions – You can use their trading platform to trade in 57 currency pairs that include majors, exotics, and crosses. The trading window is open for 24 hours on all weekdays.
Apart from forex, you can also trade 1,183 Stock CFDs, 8 commodity CFDs, 18 equity indices, Gold and Silver, 8 Energy CFDs, and 100 different shares. However, they do not allow you to trade on cryptocurrency CFDs.
You can use their MT4 or MT5 trading platforms to trade on your Windows PC, Mac, Android smartphones, iPhones, iPads, or Android Tablets. They also allow you to access their trading platform through any web browser using XM WebTrader.
In terms of Customer Support: – They provide round-the-clock customer support on weekdays to their clients through a variety of channels. You can get in touch with them through e-mail, live chat, or phone call. We found their chat support to be helpful, and got a response within 2 hours via email. They also offer an Australian phone number for support. Overall their support is good.
What we like about XM
- Regulated with ASIC: XM is regulated with Australian regulator ASIC under company name “Trading Point of Financial Instruments Pty Ltd” since 19/06/2013.
- Competitive spread with Ultra Low account: They offer spread only accounts with tight spreads of 0.8 pips on average for EUR/USD with Ultra Low account. And they do not charge any other commission.
- No deposit/withdrawal charges: They don’t charge any extra fees for funding or withdrawals. But the payment gateway or bank may add their charges so you should check this with their support before funding or making a withdrawal.
- Metatrader Platform: XM’s MT4 & MT5 available in all devices.
- Order Execution is fair: We found their order execution speed to be fair, without re-quotes.
- Customer Support is good: We found their customer support to be fast, reliable, knowledgeable.
- Negative Balance Protection: They offer it with their trading accounts.
- High fees with some accounts: Compared to other brokers, XM’s spread is higher with their Micro account.
How to choose the best forex broker?
There are several factors that you should consider before choosing a forex broker. Conducting proper background research on each forex broker will ensure that there are no surprises later on.
You should take into account your own priorities and trading habits/requirements before settling on a forex broker. We have created this quick checklist, that you should make considerations on before choosing a broker.
1. ASIC Regulation: The forex broker that you choose should be authorized and licensed to operate by the ASIC.
The ASIC is Australia’s regulatory body for the financial markets which includes forex and CFD trading. If a broker has been licensed by ASIC then you can trust them more since brokers are subject to stringent requirements by the ASIC.
You can check if a broker has been licensed by the ASIC by obtaining their license number from their website. Take the number and search it on ASIC’s Search Register on their website to verify if that broker holds a valid license.
Remember, do not trust offshore forex brokers that have not been licensed by the ASIC and only hold a license in loosely regulated jurisdictions such as Belize and Vanuatu.
2. Trading and Non-Trading Fees: The spread is not the only fee that a broker may charge. In addition to the spread, the broker may charge a commission for every lot that you trade. Apart from these trading fees, there are non-trading fees like inactivity charges as well in many cases.
A broker may charge you before allowing you to deposit or withdraw money from your account. Several brokers start charging you a fee if your account has been inactive for more than three to six months.
Even though these charges may not seem like much, they can quickly add up. You should consider these charges when you calculate your total trading costs. In our comparisons, we take the total fees into account & break it down for you to make it transparent for you.
3. Broker’s Trading Platform: The trading platform is the software application that allows you to make your trades. The most popular trading platform is Metatrader (MT4 mainly) and if you are a beginner then we recommended that you choose with a broker that offers Metatrader 4.
If you are considering using a broker that used its own proprietary trading platform, then make sure that the platform is convenient to use and is available on the device you prefer to use.
Also, it is best to test out the broker’s platform on demo for a few months before making any live trade. Although the trading conditions on demo will not be the same as live markets, but you will get an idea of the platform & if you are comfortable using it or not.
4. Trading Conditions: The broker’s trading platform should allow you to execute orders quickly. There should be no slippages or re-quotes. Mostly, ECN brokers such as Pepperstone, IC Markets, FP Markets offer market execution. You should check research user reviews to check there are no cases/reports about bad order execution practice by the broker that you are about to choose.
Moreover, before you start trading, ensure that your trader guarantees negative balance protection. This limits your loss to your account balance so that you do not lose unforeseen amounts. In case there is no negative balance protection, then your losses can exceed your deposited balance. You should also check if your broker makes fund segregation since this ensures the safety of your deposited funds.
Also, check the range of forex pairs, CFD products and instruments available for trading at a broker. It is always good if the instrument(s) that you want to mainly trade are available with lowest possible fees.
5. Ease of Withdrawal and Deposits (and funding charges): You should prefer brokers that allow you to instantly withdraw your funds and make deposits. There are some brokers that charge deposit or withdrawal fees and they should be avoided unless you receive other trading benefits in terms of overall fees.
5. Support and Education: Your forex broker should provide round-the-clock customer service on all weekdays. They should be available through live chat, phone calls, and email.
Email Customer service can be considered to be good if you receive a helpful response within 1-2 hours, and chat support should be knowledgeable without much hold time. They should have an Australian phone number that is preferably toll-free.
It is a good sign if your broker provides educational support through guides and webinars.