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Australia is one of the leading countries when it comes to Forex trading. Throughout the recent years, it has cemented itself as one of the absolute leaders on the global market. Forex aside, trading is a very widespread and known activity for all sorts of different people. Whether that be regular, everyday people looking for small additional income or “big fish” looking to make huge investments, the Australian market has something for everybody, that’s why the best Forex brokers in Australia are also among the best Forex brokers in the world!
With their keen sense of how to create the best possible conditions for the market to prosper, as well as allow widespread participation and growth, Australia is becoming one of the favorite places for all traders across the globe. Due to its very encouraging conditions, which are represented with a robust regulatory environment, effective anti-fraud measures and great market conditions for profit, Australia’s trading market is a force to be reckoned with. Before you continue on with the guide, make sure to check out XM, one of the top Forex brokers on the Australian market.
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Our top Australia Forex brokers list
There are so many notable Forex brokers in Australia, that it was really difficult putting this list together. The great thing is, all of them have something to offer. Whether that be attractive promotional deals, an easy-to-use website or great customer service, each one of them has their personal flavor of their own. In this list that we compiled after comparing dozens of different brokers, by making a side-to-side comparison for each one of them, you can choose one that works best for you, for your own personal goals and preferences.
Regulatory Environment
If there’s one thing that Forex trading Australian brokers have an advantage at, it’s their regulatory environment, and how supportive and encouraging it is for maximum growth, with as little handicaps as possible. The main regulatory body in Australia is the Australian Securities and Investments Commission (ASIC).
ASIC’s operation dates back since 1989 when it was operating under a different name as the Australian Securities Commission (ASC). ASC started slowly increasing its outreach towards multiple different industries and started undergoing changes, until eventually being renamed to ASIC in 1998.
The main responsibilities for ASIC are overseeing general financial activities of a wide range of industries including insurance, securities and investments, credit companies, and more. Due to its vast experience and track-record, Australian Forex Brokers that are regulated by ASIC are generally given a stamp of trustworthiness by experts and experienced Forex traders. In a nutshell, ASIC is responsible as an independent organization regulating the whole market, whether they be brokers or investors.
What are the main requirements of ASIC?
Like any other regulatory body, ASIC has its own specific requirements for brokers in Australia. These rules and regulations are in place to ensure the consumers’ protection and create favorable market conditions that would encourage maximum growth, as well as to create an effective centralized regulatory environment that would provide specific guidance for all parties involved.
- Any ASIC-regulated broker needs to have a minimum of $1 million Australian Dollars in operating capital. This is a very common and effective regulatory concept that is used not only in Australia but in all other countries with thriving trading ecosystems. It ensures, that the company has means to sustain negative market events like high volatility and serves as not only mainly for the customers’ protection, but their own protection as well.
- All FX brokers Australia must be regulated by the ASIC in order to offer Forex trading services and products to any Australian citizen. In addition, brokers must have a physical office in Australia, and may not offer financial services to Australian citizens from any other office outside Australia. This rule, again, ensures the protection of Australian consumers. Demanding that a company have a physical office in Australia increases the accountability of the firm, and raises the consumers’ confidence and sense of safety, encouraging more investments.
- ASIC demands that the Forex companies be 100% transparent regarding their financial activities, and submit detailed and frequent audits and reports in order to affirm that the companies are following all the necessary rules of ethical and legal financial conduct.
What are ASIC’s Advantages?
ASIC enjoys full respect from not only the consumers and investors but all the brokers as well. Having created a harmonized environment that is beneficial for all parties, they came up with solutions to some of the most common and problematic issues that the market has had over the years. Being one of the main driving forces for popularizing Forex and trading in general, it is now considered to be on the same level as some of the most highly-respected financial regulators like the UK’s FCA. Here’s exactly what ASIC does to create the most attractive environment for market participants:
- Thanks to ASIC, there are no limits imposed on maximum leverage, which is probably one of the main reasons as to why experienced and capable international traders and investors are flocking to best Forex brokers Australia. No limits on the leverage ensure that there’s as much freedom as needed for “high-roller” investors and other experienced traders.
- ASIC ensures that all brokers are guaranteeing the full safety of the investors. This is done by keeping their investments safe in segregated bank accounts in the most trusted Australian banks
- ASIC doesn’t have any needlessly complicated and growth-discouraging rules like restrictions on hedging, which are one of the most common complaints with other international regulators
With benefits like these, it’s easy to see why ASIC is the main regulatory body for all top Forex brokers in Australia. Bringing the brokers and investors together and helping them towards their common goal of safe, profitable and growth-oriented market is what makes ASIC an exemplary regulator that all other regulators can learn at least something from.
Bonuses and Promotions with Australian Brokers
For the beginners, when it comes to searching for and choosing a Forex broker, one of the main deciding points is what kind of bonuses and promotions they offer, and rightly so. As a beginner, you need to ensure that you are given as much of a chance for success as possible, and the brokers that aid in that should always be applauded.
Common bonuses and promotions definitely vary between countries, as they are all dependent on many factors that are all different across those countries, specific to their regulatory environment, number of traders and brokers, and many more. FX trading brokers in Australia are very well-aware of how effective these bonuses are for attracting new customers and keeping the existing ones loyal. Due to this, most, if not all, will be offering at least some kind of a bonus. The difference lies in which one offers the best one, as with such fierce competition on the market, brokerages have to get really creative to differentiate themselves from all the other ones that are more-or-less offering the same bonuses.
No-deposit bonuses
One of the most common types of bonuses attracting new traders to Forex brokers Australia online is the no-deposit bonus. No-deposit bonuses are given to you, as the name implies, without having to make any initial deposits, and are available to you right after creating an account.
These bonuses are extremely attractive for new players due to several reasons. Firstly, it acts as an encouragement for the people who may have some interest in trading Forex, but are still on the fence. A no-deposit bonus can act as an encouraging nudge towards trading, and give you some much-needed confidence when starting out.
Many beginners also see these bonuses as a free opportunity to practice their skills and gaining more experience on how to trade. When you have the sense of security from knowing that your position is protected merely based on the fact that it’s opened via bonus money, you are much more likely to be more experimental and bold with your trading strategy, giving you some much-needed experience that is otherwise very hard to get. Most, if not all, Forex trading brokers Australia, will be offering a demo account, which you can use to play around with the features of the website, and get comfortable with it and see exactly how it works. Helpful as that may be, it still doesn’t give you the same degree of knowledge and experience as the “real thing” does, so these kinds of no-deposit bonuses give you a sort of a free “test-drive” and an opportunity of trying out the broker without any risks of losing your own money.
Speaking of trying out the broker, besides beginners, these bonuses are also very interesting for experienced traders as well. Traders are always looking for newer and better brokers, to ensure that they are with the brokers that can provide them with the absolute best opportunities. A no-deposit bonus is perfect here, as traders can go on a new website and start trading immediately. The added benefit is that if their first trades go well, they can even make some money for free. A lot of money actually, if all goes as it should.
Reload bonuses
Another of the most common bonuses offered by Fx brokers in Australia is a reload bonus. This bonus is mainly popular among more experienced traders, as it’s mainly designed for experienced traders in mind.
Reload bonuses are given to players who are making continuous deposits. They are usually available to anyone who has made at least one initial deposit. These bonuses act as an incentive for traders to keep returning to the broker, and are quite frequent. The amounts vary widely depending on your broker and the regulations that they are subjected to, but they are mostly similar.
How much money do you need to get started with Forex in Australia?
Having understood all of the essential info about the Australian Forex environment, you have likely arrived at the next logical question – how much does it take to get started with Forex? The answer to that question is that it entirely depends on you. Well, almost. The way it usually works is that almost any Forex broker in Australia will have some kind of a minimum starting requirement. The number varies completely depending on the specific broker. For some of the brokers, it’s around $250, while with others it may be as little as $5. The minimum standard amounts for Forex trading are generally much, much lower than the starting points for most other forms of trading. This is the beauty, and one of the main advantages, of Forex. In the past, if you wanted to get into investing money, often, a very large amount of money was required as a starting capital. With Forex, it’s very flexible and accomodating for traders.
Seeing as these starting points are all variable and pretty much any Australia top Forex broker will have its own personal variation. With that being said, how do you go about choosing which one’s a better starting place if you are a beginner? Well, the answer is that it depends. Minimum deposit, while still a factor, can hardly be regarded as one of the main factors for choosing your Forex broker. Other aspects like customer service, bonuses, and how nice-to-use the website is are all equally as important. Therefore, the most appropriate answer here would be that it all depends on you, what it is that you personally favor in a broker. By making a choice based on that, you are much more likely to find your own personal best broker, other than just relying on Forex brokers Australia reviews made by others. If you feel you are ready to go having read this guide, then don’t waste any more time and start trading today with XM, one of our best-reviewed brokers to date
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So, is Australia the right place for you to do Forex?
As we have discussed, Forex brokers Australia are very interesting and attractive. With the amazing conditions that we discussed, all created due to an excellent job by ASIC and great local Forex brokers, a lot of international traders are finding the Australian market more and more attractive. Despite having reached a status of one of the top leading Forex markets in the world, the Australian market can only go higher and higher from here.
Whether you are a complete beginner with Forex looking to start on the right food in this field, or if you are a seasoned veteran looking for greener pastures, you can be absolutely sure that the Australian market won’t disappoint you, and you will be able to find your own personal best Forex broker Australia.
