Forex trading in Australia is a worldwide phenomenon, yet it doesn’t seem to be as well established as it is in many other countries. If you want to trade forex from your home country of Australia, then the Australian Forex broker comparison will help you understand which one of these brokers would suit your needs. Numerous brokers offer versatile trading opportunities, with some companies placing a greater emphasis on stock and commodity transactions while others concentrate mainly on currency trading. If you are interested in day trading for shorter time periods or even scalping movements across currencies, there are online forex brokers that cater specifically to this market segment.
Australian (ASIC) forex brokers are ideal for Australians who are starting out in the market, as most of these brokers provide online accounts with tight spreads. Moreover, some of them even offer demo accounts for practice purposes, which is preferable to new traders who aim to study the intricacies of currency movements.
Are there any Australian-based online forex brokers?
As far as forex trading in Australia goes, there are only 2 Australian-based online forex brokers that have served this market for quite some time: Plus500 and AvaTrade. Most other brokerages based in Australia serve traders around the world, not just in Australia.
How do I start Trading Forex in Australia?
The first thing you need to do is open a forex trading account at a leading Australian Forex broker. After you’ve decided on the right broker, you will be asked to input your personal details, including but not limited to your name, age, e-mail address, and contact number.
After you have opened a brokerage account, you may wish to select an indicative brokerage amount that reflects how much capital you are willing to risk as well as the frequency of your trading. The brokerage amount you select is sometimes referred to as your capital protection. It’s crucial that you do not risk more than the number of your financial means and income.
Unlike trading at a local branch of a bank or even at the office with your colleagues, trading forex online requires more discipline because you are on your own with no one to help you if anything goes wrong. If you are able to properly manage your emotions when trading, then you should be able to achieve positive results in the foreign exchange market.
What is the best currency trading platform for Australian forex traders?
You can use any trading platform that is supported by your brokerage, but the most popular one is Currenex. Most brokers offer to install the Currenex trading platform on your computer.
Are there different types of forex accounts on Australian Forex brokers?
All brokers usually provide 3 different types of accounts: standard, micro, and mini. The more you deposit and trade, the higher your leverage and leverage growth potential becomes. So, if you are a beginner or a trader that executes small transactions, having a micro account will be just fine. Finally, the mini accounts are generally available to only high-volume traders, who use them rarely.
Why should I create an online Forex account and not a physical one?
Online trading is safer than trading at a local bank or a broker’s office. Also, online allows you to read research and news about the foreign exchange market, which can help you improve your trading skills. If you need help, the customer service team of the online forex broker can assist you anytime.
What are the common foreign exchange market trading hours in Australia?
The Australian stock market operates from 9:30 am to 4:00 pm on weekdays. On Sundays, it is closed. Forex trading does not respect such strict hours, given that it is an international financial market span over several time zones. However, most banks and brokers offer forex trading between as early as 7:30 am and 8:00 pm in the evening GMT.
Crucial Factors about Trading Forex in Australia
- Currency trading is not regulated in Australia, which means that no one will regulate your actions and look after your interests. You need to find a reputable broker or even create a free demo account on one of the reliable brokers to study and familiarize yourself with the mechanics of forex trading.
- There are online forex brokers that offer their clients the opportunity to trade with free accounts, though they usually come with disadvantages, such as lower leverage or limited products available for trading (for example Overstock).
- In Australia, forex trading is only done electronically, which means all transactions are done through computers connected via the Internet. This is the main reason why people who are new to forex trading may be unable to comprehend exactly what is happening.
- Before you start trading in the foreign exchange market, it is always a good idea to have full knowledge of the forex markets. This includes basics such as how currencies are valued and even how forex trading works. More advanced topics such as charting, technical analysis, and hedging can also help you become an effective trader in this field.
- Australian Forex brokers tend to be friendlier when it comes to customer service and your overall experience in their online platforms than those based in other countries of the world (such as the United Kingdom).
Forex trading is one of the most popular ways for investors to increase their investment capital. A growing number of Australians who have started trading in this market are hoping to get more out of their investments. While it is clear that some traders may be successful in this endeavour, many others fail. This is mainly because not all people who invest in the forex market know what they are doing and how to maximize their investments. These two factors lead to people losing money on a regular basis.
Conclusion
In Australia, forex trading is a very lucrative business that is growing fast. All the more reason why you should get started on the Australian forex market as soon as possible. It could potentially help you make more profits and build up a good amount of capital to invest in other investment avenues. If you are not satisfied with the results of your foreign exchange trading endeavour, make sure to check out our list of the top 10 best brokers in Australia. This should seriously help you understand what your options are and how to choose one that will suit your trading needs.
