Which is the Best Broker in Australia?
The best brokers in Australia are well-regulated and offer a low-cost, user-friendly trading platform suitable for both beginners and experienced traders. Following rigorous testing, we believe that FP Markets is the best broker for Australian traders. FP Markets is regulated by some of the toughest global authorities, including ASIC of Australia, providing security and confidence for its clients. FP Markets’ trading costs are low, with a required minimum deposit of 100 AUD on both the Standard Account and the Raw Account. FP Markets’ Raw Account is particularly great value with spreads starting at 0.10 pips (EUR/USD) with a 6 AUD (RT) commission. Traders can trade on MT4, MT5, or its IRESS trading platform, which offers trading on over 10,000 stock CFDs and a great range of trading tools..
Which Forex Broker has the Best Platform?
ASIC-regulated since 2010, Pepperstone offers some of the best trading platforms in the industry, including MT4, MT5, and cTrader. All of Pepperstone’s platforms offer automated trading, strategy backtesting, customisable charting, and a range of indicators, and integrate with Autochartist and Smart Trader Tools. TradingView, a relatively new platform, offers even more advanced charting abilities, including custom timeframes, over 100,000 custom-built indicators, and integrated financial analysis.
Outstanding Trading Platforms and Features
IC Markets: Known for low-cost trading and a choice of three easy-to-use platforms (MT4, MT5, and cTrader), making it ideal for traders who prioritize cost efficiency.
XM: The ultimate choice for comprehensive beginner education, offering an exceptional range of educational and market analysis resources, including live sessions, webinars, and Forex seminars.
AvaTrade: Best mobile trading experience with its AvaTradeGO App, offering cross-platform compatibility, and unique features like AvaProtect for temporary loss protection.
IG: Best CFD trading account, offering a wide range of instruments, including over 16,000 shares, and a world-class trading platform with access to the IG Academy for learning and improvement.
Importance of Third-Party Reviews and User Feedback
When choosing a Forex broker, it’s crucial to consider not only the financial aspects but also the personal fit. Third-party reviews and user feedback play an essential role in evaluating brokers, as they provide valuable insights from real traders’ experiences. Always consider these sources when making your decision to ensure you select a broker that meets your unique needs and preferences
Is Forex Trading Legal in Australia?
Forex trading in Australia is legal and regulated by the Australian Securities and Investments Commission (ASIC). ASIC requires all Forex brokers operating in the country to hold a valid license and adhere to strict standards, including:
- Timely deposits and withdrawals
- Segregation of funds
- Negative balance protection
- Leverage restrictions
- Capital adequacy to prevent defaults
As well as ASIC, other top-tier global regulators include FCA and CySEC. Whether you decide to use a broker regulated by the FCA or not, it’s important to remember that choosing a regulated broker is the best way to ensure your protection as a Forex trader.
Why is ASIC Regulation Important for Australians?
Regulation by ASIC in Australia is essential for protecting your money and ensuring a fair and transparent trading experience.
When trading Forex, you want to be confident that your broker is operating legally and ethically and that your funds are being handled safely. Regulated Forex brokers must adhere to strict standards set by regulatory bodies, which include requirements for capital adequacy, segregation of client funds, and ongoing reporting and compliance. This means that your funds are protected, and your trading experience is fair.
Unregulated brokers are not forced to hold to the same standards. This can lead to a higher risk of fraud or unethical practices, which can result in financial losses for traders. Choosing a regulated Forex broker gives you peace of mind and security, knowing that your investments are protected and your trading experience is fair.
Scam Brokers and Reporting Regulatory Violations
If you are unsure about the reliability of your Forex broker, you can check our list of brokers to avoid. If you believe you have been scammed by your broker, the first thing to do is warn others and tell your story. You can contact ASIC’s misconduct department here and ask them to investigate. We also have a report a scam broker form which we use to gather information so that we get the word out. Your personal details will not be shared externally.
Do I Need a Broker to Trade Forex?
Yes, you will need a broker to trade Forex. Connecting traders to the Forex market is an expensive and technically complex business. Most Forex brokers form a bridge between the global Forex market and Forex traders; these are called market makers. Market makers buy up large trading positions from the Forex market, which they sell to traders in smaller trade sizes.
Other brokers act as a go-between, taking orders from traders and sending them straight to the global Forex market. These are called ECN brokers or DMA brokers. Both types of Forex brokers require a lot of money to set up and need teams of highly qualified technicians to maintain their trading platforms.
How do Forex Brokers Make Money?
Market markers only make money from the spread – the difference between the buying and selling price of the currency pair. These brokers will be the counterparty to any trade, so they make money when clients lose trades.
ECNs have tight spreads but profit from commissions, which are charged whenever a trade is opened or closed. This type of broker makes money whether a client wins or loses.
Which Forex Brokers are Best for Beginner Traders in Australia?
The best brokers for beginners are ASIC-regulated and have no minimum deposit requirement, ensuring security and a low cost of entry. Also important are low fees and negative balance protection, as these both help to lower risk. Responsive and knowledgeable customer support is essential. Customer service should be available 24/5 via email, live chat, and telephone, though 24/7 is better. Last but not least, beginners should look for a broker with a high-quality education section; this should feature articles, video tutorials, frequent webinars, advanced trading strategies, and chart analysis.
For more detail and to see which brokers we recommend for new traders, check out our dedicated page on the best brokers for beginners.
Which Forex Brokers have the Best Demo Accounts?
The brokers with the best demo accounts understand that beginners should not be forced into trading real money and that experienced traders should be able to test strategies as long as they want to. So the best demo accounts are not time-limited and replicate real market conditions as closely as possible. Beginners looking for a demo account will want a broker with good education, so they can learn about Forex trading as they practice.
For more detail and to see which brokers we recommend for demo trading, check out our dedicated page on the best demo accounts.
Which Trading Platforms do the Best Forex Brokers Offer?
The best Forex brokers generally offer Metatrader 4 (MT4), MetaTrader 5 (MT5), and cTrader. These are third-party trading platforms which you can install on your computer. They are fully customisable and have advanced charting tools, research tools, and options for automated trading or copy trading. Some brokers also have their own trading platforms, which are usually accessed via a browser or on your mobile phone. For more details on trading platforms and how they work, check out our guide on trading platforms.
Recent updates
- May 3, 2023: Specified information regarding Financial Regulation
- April 10, 2023: Revised reviews to provide a balance between detailed information and easy scanning, making the content more accessible for readers
- April 10, 2023: Reinstated more detailed comparison table based on our readers feedback
- April 5, 2023: Removal of Go Markets after multiple complaints about problems withdrawing trading profits from the broker
- March 14, 2023: Implementation of simplified comparison table
- February 17, 2023: Overhaul of the entire page content
Forex Risk Disclaimer
Trading Forex and CFDs is not suitable for all investors as it carries a high degree of risk to your capital: 75-90% of retail investors lose money trading these products. Forex and CFD transactions involve high risk due to the following factors: Leverage, market volatility, slippage arising from a lack of liquidity, inadequate trading knowledge or experience, and a lack of regulatory protection. Traders should not deposit any money that is not considered disposable income. Regardless of how much research you have done or how confident you are in your trade, there is always a substantial risk of loss. (Learn more about these risks from the Australian regulator, ASIC or the UK’s regulator, the FCA).
Our Rating & Review Methodology
Our overall Forex Rankings report and Directory of CFD Brokers to Avoid are the result of extensive research on over 180 Forex brokers. These resources help traders find the best Forex brokers – and steer them away from the worst ones. These resources have been compiled using over 200 data points on each broker and over 3000 hours of research. Our team conducts all research independently: Testing brokers, gathering information from broker representatives and sifting through legal documents. Learn more about how we rank brokers.
Editorial Team
Chris Cammack
Head of Content
Chris joined the company in 2019 after ten years experience in research, editorial and design for political and financial publications. His background has given him a deep knowledge of international financial markets and the geopolitics that affects them. Chris has a keen eye for editing and a voracious appetite for financial and political current affairs. He ensures that our content across all sites meets the standards of quality and transparency that our readers expect.
Alison Heyerdahl
Senior Financial Writer
Alison joined the team as a writer in 2021. She has a medical degree with a focus on physiotherapy and a bachelor’s in psychology. However, her interest in forex trading and her love for writing led her to switch careers, and she now has over eight years experience in research and content development. She has tested and reviewed 100+ brokers and has a great understanding of the Forex trading world.
Ida Hermansen
Financial Writer
Ida joined our team as a financial writer in 2023. She has a degree in Digital Marketing and a background in content writing and SEO. In addition to her marketing and writing skills, Ida also has an interest in cryptocurrencies and blockchain networks. Her interest in crypto trading led to a wider fascination with Forex technical analysis and price movement. She continues to develop her skills and knowledge in Forex trading and keeps a close eye on which Forex brokers offer the best trading environments for new traders.