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Forex Trading-Comparison of Best Forex Brokers & Trading Platforms In Australia (2020)
Onyeka
2020-09-07 351

Forex (FX) trading is the practice of trading currencies against each other. Also known as currency or foreign exchange trading, it is the largest investment market in the world with a high degree of liquidity - making it a popular way to diversify your financial portfolio. Along with cash markets, there are other choices for traders within forex that include futures, forwards, contracts for difference (CFDs), and options.


Forex trading is increasing in popularity all over Australia, resulting in the appearance of many new brokers. This can present a challenge in making the best choice. This article will help you understand forex trading and compare the 10 popular options so you can find the best suitable forex broker in Australia who fits your needs.

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How Forex Currency Trading Works?

Traders profit on forex when the currency bought increases in value when compared to the currency sold. 


The components of a forex trade can be expressed through the following terms:


Currency Pair


Currency pairs are expressed as quotes between currencies, particularly the value of one currency when compared to another. 


For example: EUR/USD = 1.30 means that every euro costs $1.30, with the base currency being the euro and the quote currency being the USD. 


Exchange Rate


The exchange rate is a similar quote, defined as the rate at which one currency is exchanged for another. 


Using the above example, the exchange rate is expressed as follows: EUR/USD = 1.30


The amount of the quote currency (USD) required to buy the base currency (EUR) is $1.30. 


Let's view the real-time exchange rate of EURUSD on Mitrade platform.

Will you Buy or Sell EURUSD? - Get Started


F/X Quote


An F/X quote is similar to the exchange rate and currency pair. It is expressed by two figures representing the bid/selling price and the ask/buying price.


For example: EUR/USD = 1.00/1.30


The quote above means that every 1.00 euros costs $1.30 USD.


Spread


The spread is the difference between the selling and buying or bid/ask prices. For most brokers, particularly those offering “no commission” trades, the cost of the trade is built into the spread. 


The spread is calculated by pips, units used to denote the difference in the quote. 


For example: EUR/USD = 1.1000/1.1001


The spread in the above quote would be expressed as 1 pip.



F/X Strategy: Long vs. Short


Going long or short in forex trading is essentially making a bet on whether the base currency will rise or fall. 


Long Position:  When the trader takes a long position they do so with the hope that the base currency will go up. 


Short Position:  Traders taking short positions do so with the expectation that the base currency will go down in comparison to the quote currency. 


Closing a position refers to the action of exiting the trade.


Leverage


Leverage or margin refers to credit given to the trader by the broker in order to place larger positions on trades. It is the ratio of the funds actually put down by the trader when compared to the amount borrowed by the broker. 


Traders willing to take large risks use leverage as a way to magnify their gains by trading larger volumes. 


Rates of leverage can vary greatly depending on the broker, from as low as 2:1 to 500:1. 


For example, with 500:1 leverage, a trader can place a $2500 position with $5. While the potential for profits can be massive with leverage it also can create tremendous losses. This makes it suitable for advanced traders with experience. 


Discover leverage trading with Mitrade Trade now!

Risks & Benefits of Forex Trading

There are many benefits to forex trading that include:


●  No commissions


Since most forex brokers make money through the spread they are able to offer low or no commissions on trades. 


●  No fixed trade size


Low minimum trade sizes allow more traders to enter the market. 


●  24/5 Trading  


Traders can operate around the clock, 24 hours a day, 5 days a week. 


●  Leverage


Leverage offers the potential for massive gains with low upfront amounts through credit offered by brokers, but also increase the risks of losing money.


●  High liquidity


Currency is highly liquid and can be transferred immediately following the closure of a position. 


●  Low Barriers to Entry


Most brokers offer lower deposits, zero commissions and demo accounts, giving access to traders across all experience levels. 

10 Leading Forex Brokers and Trading Platforms In Australia

* The following forex brokers for Australia is just for your reference. There are still many other good forex trading platforms outside our list and they may be more suitable for you than anyone on our list. (This list is also in no particular order. )


1. Mitrade

Regulations: ASIC

Platforms:  Proprietary Web Platform for Phone and Desktop

Minimum Deposit: $50AUD

Leverage: Up to 200:1*

Average Spreads: Mitrade charges low spread and no commission on a floating basis where the spread displayed depends on the product being traded. ( AUD/USD: 0.0007*

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Mitrade Global is an online trading broker based in Melbourne Australia that is regulated by ASIC. The brokerage features a wide range of instruments including forex, commodities, major indices and cryptocurrencies trading, and almost 100 other leveraged instruments. The clean and intuitive trading platform features an easy-to-use interface designed to simplify trading for both beginner and advanced traders.


Regulated by ASIC and featuring negative balance protection, Mitrade is a wise choice for traders looking for security. As a multiple award winner, Mitrade has earned an enviable reputation built on trust in the marketplace. 


Pros: 

+ Lower deposit requirement

+ Lightening-fast execution from 0.1s

+ Simple and intuitive platform

+ Real-time financial news

+ $50 Trial bonus for new clients and other promotions


2.  ThinkMarkets


Regulations: FCA, MIFID-ESMA, ASIC

Platforms:  Mirror Trader, MT4 Desktop/Web, Proprietary Desktop/Web, MAC Platforms

Minimum Deposit: $250 AUD

Leverage: Up to 500:1*

Average Spreads:  USD/JPY: 1.0* pips, AUD/USD: 0.8* pips, USD/CHF: 1.0* pips

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Based in Australia and regulated by ASIC, ThinkMarkets is an Australian forex broker that is also very popular in the Asian market. Featuring a proprietary trading platform called ThinkTrader, ThinkMarkets is popular with both beginner and advanced traders. 


Pros: 

+ Wide range of platforms

+ Competitive spreads

+ Extensively regulated


2. IC Markets


Regulations: ASIC, CYSEC, Offshore

Platforms:  cTrader desktop/web, Mirror Trader, ZuluTrade, MT4/MT5 Dekstop/ Web

Minimum Deposit: $200AUD

Leverage: Up to 500:1*

Minimum Spreads: EUR/USD–0.0* pips, Gold–0.00* pips, S&P 500–0.6* pips, Bitcoin–5.0* pips

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Based in Sydney, IC Markets is one of the biggest global names in forex brokerage. With a focus on ECN brokerage, it serves clients in legal jurisdictions and is regulated by ASIC. 


Pros: 

+ Offers high-quality ECN accounts with exceptionally high execution speeds 

+ Low spreads for the majority of markets offered

+ Waived fees for breaks in trading

+ No-fee deposits and withdrawals


3. FP Markets


Regulations: ASIC

Platforms:  MT4/MT5 Desktop/Web, Proprietary Desktop Platform, MAC Platforms

Minimum Deposit: $100* AUD

Leverage: Up to 500:1*

Average Spreads: EUR/USD–0.45* pips, SPX500–0.2* pips, Gold–0.2* pips, BTC–2.0* pips

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FP markets is an ECN STP forex broker that holds a strong position in the Australian market. In business since 2005, FP Markets has a strong reputation for compliance and is regulated by ASIC.


Pros: 

+ Low minimum deposit

+ Wide range of account types

+ Extensive stock brokering service

+ Excellent base currency offering

+ Low spreads and commissions.

+ No inactivity fees 


4. Pepperstone


Regulations: FCA, ASIC, DFSA, Offshore

Platforms:  cTrader desktop/web, ZuluTrade, MT4/MT5 Dekstop/Web, MAC Platforms

Minimum Deposit: $200* AUD

Leverage: Up to 500:1*

Minimum Spreads: EUR/USD–0.13* pips, Gold–from 0.5* pips, S&P500–from 0.4* pips, Bitcoin– from $10*

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Pepperstone is a highly-regarded Forex broker established in 2010 that has grown to become the 11th largest forex trading brokerage in the world. Based in Australia, Pepperstone offers an extensive suite of trading options for both beginner and advanced clients.


Pros: 

+ Allows trading techniques like hedging and scalping

+ Implementation of social and copy trading features

+ Premium traders have a wide range of benefits that reward high volumes of trades


5. Vantage FX


Regulations: FCA, MIFID-ESMA, ASIC, Offshore

Platforms:  ZuluTrade, MT4/MT5 Dekstop/Web,  MAC Platforms

Minimum Deposit: $200* AUD

Leverage: Up to 500:1*

Minimum Spreads: EUR/USD–0.1* pips, Gold–0.1* pips/lot, SPX500–2.7* pips, US Shares–$6*/trade

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Founded in 2009, VantageFX is a trusted Australian forex broker that is regulated by ASIC in addition to the FCA and CIMA. With a strong reputation regulatory compliance, Vantage FX is one of the most trusted brokers in Australia. 


Pros: 

+ Demo account provided to allow new users to learn the platform risk-free

+ Selection of 6 base currencies for varied f/x trading

+ Competitive spreads 

+ No inactivity fees


6. CMC Markets


Regulations: MAS, FCA, MIFID-ESMA, ASIC, IIROC, FMA, CBRC

Platforms:  Proprietary Web Platform

Minimum Deposit: $0*AUD

Leverage: Up to 500:1*

Average Spreads:  CMC Markets only offers floating spreads which are the price difference between the ask and bid that change depending on the market.

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Founded in 1989, CMC has an excellent reputation reported to be the first to perform online currency trades. Based in London with offices in Sydney, CMC is regulated by ASIC.


Regulated by ASIC and featuring negative balance protection, CMC Markets is a wise choice for traders looking for security. As a multiple award winner, CMC Markets has earned an enviable reputation built on trust in the marketplace. 


Pros: 

+ Choice of trading platforms

+ Bonus given with $0* deposit

+ Special benefits through active trader program

+ Guaranteed stop-loss tool


8.  Ava Trade


Regulations: FSA, MIFID-ESMA, ASIC, IIROC, FSCA, Offshore, FSC (British)

Platforms:  Mirror Trader, ZuluTrade, MT4/MT5 Web, Proprietary Web, MAC Platforms

Minimum Deposit: $100* AUD

Leverage:  up to 400:1*

Average Spreads: EURUSD-0.9*, GBPUSD-1.6*, USDJPY-1.1*, Gold-0.28*

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Headquarters are in Dublin, Ireland, Ava Trade also has offices in Sydney in addition to other major centers in the world. The broker supports smaller trades while also serving larger traders too and is compliant with regulations across five continents. 


Pros: 

+ Multi-jurisdiction regulation 

+ Worldwide presence 

+ Negative balance protection


9.  Hantec Markets


Regulations: FCA, ASIC, FMA, Offshore

Platforms:  MT4 Desktop/Web, MAC Platforms

Minimum Deposit: $1000* AUD

Leverage: Up to 500:1*

Average Spreads: EUR/USD: 0.2*, GBP/USD: 0.5*, USD/JPY: 0.5*, USD/CAD: 0.6*, AUD/USD: 0.6*

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Founded in Sydney in 2008, Hantec Markets has been in operation for longer than a decade and growing in size and reputation. Fully regulated by ASIC, the brokerage has a reputation of trust among traders with trading availability in more than 100 markets and 50 forex pairs.


Pros: 

+ High leverage rate

+ Competitive spreads

+ Trading in 100+ markets

+ Based in Australia


10. Easy Markets


Regulations: MIFID-ESMA, ASIC, CYSEC

Platforms:  Proprietary Web Platform

Minimum Deposit: $100 *AUD

Leverage: Up to 400:1*

Average Spreads: EUR/USD–1pip, SPX500–0.5* pips, Gold–75* pips, BTC/USD–35*$

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Regulated by ASIC and featuring negative balance protection, Easy Markets is a wise choice for traders looking for security. As a multiple award winner, Easy Markets trading platform has earned an enviable reputation built on trust in the marketplace. 


Pros: 

+ Unlimited demo account

+ Low-cost VIP account

+ Extensive number of base currencies

+ Wide range of deposit and withdrawal methods

+ No inactivity fee


* Kindly note that the information is accurate at the time of writing this article, but might change in the future. Past performance is no guarantee of future results. please refer to their official website for the exact figures.

What To Look For in a Forex Broker?

There are many factors to weigh in when choosing a forex trading broker such as trading instruments available, commissions, fees and the type of trading platform. Other critical factors include: 

→  Transaction costs

→  Ease of withdrawal and deposit

→  Variety of trading platforms

→  Price execution timing

→  Security & Regulation

What are the best forex brokers and trading platforms for beginners?

The best forex brokers and trading platforms for beginners take safety, ease of platform use, and leverage into account. While most brokerages cater to every experience level, beginner traders will benefit from simpler platforms and lower leverage levels. 


Advanced platforms like the Metatrader MT4/MT5 can be difficult for beginners getting started. 


The clean and intuitive interface proprietary platform may be considered a better trading platform for beginner traders in Australia. 


Personally, I feel that trading on Mitrade's platform is very simple and orders are executed quickly.  


The platform is minimal-looking, intuitive, and much “cleaner” compared to Metatrader, 


Also important is the availability of a demo account so beginners can learn the intricacies of forex trading prior to using their own money. 


Why Mitrade is the Right Forex Broker for You? 

Mitrade is an online Forex and CFD Broker providing traders a simplified trading platform to trade across the global markets. We are driven to change the way people trade forex, providing low-cost conditions and good trading experience across all Forex, Commodities, Indices, and Cryptocurrencies CFDs with the security of financial regulation. 


Mitrade provides 5*24 hours online live support, supporting users to trade on the web and mobile APP for iPhone, Android, and tablets.

Mitrade doesn't require you to download any files, you just need to log in to your online account and just focus on trading.


✔️ Regulated by ASIC (AFSL 398528)


✔️ Simple and intuitive platform


✔️ Almost 100 most popular trading tools


✔️ Competitive transaction threshold conditions


✔️ Super fast execution


✔️ Protect your account from negative balances


✔️ Trade at any time with web and mobile apps


✔️ Try $50,000 demo account to experience CFD trading without risk

Start Trading Today ››


How To Trade Forex Effectively With Mitrade Australia? 


1 Login Mitrade account / Choose demo or real account, register online


When opening a trading account, you don't need to deposit if you are not ready to invest. The demo account provides with 50000 dollars virtual currency.  (Trade now→ )



2 Deposit / initial capital


Depending on the market you want to buy and the leverage you use, deposit the margin into your trading account.



3 Find out trading opportunities 


You can work with Mitrade's trading tools (such as Strategy / Economic Calendar / News ) to explore the trading possibilities when the market fluctuates


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4 Make a Buy / Sell Position


Based on your prediction about the market, place a Long - Short order via mobile trading app or web version. Also, set up the Take Profit, Stop Loss, Sell limit, etc. on the order.



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5 Track positions, take profits and cut loss


Track the price of the market you trade using the Mitrade tool to see if it is currently profitable.

 

Currently, Mitrade supports leverage of 1:200 on AUDUSD, SPX500, NAS100 ... and also gives you 50 USD trial bonus for free trading.

 

Mitrade currently offers two promotions: 


→ $50* Trial Bonus, take the Winnings within 48 hours 

→ Get cumulative trading points and receive up to $3,000* bonus!

Start Trading Today ››

FAQs About Forex Trading In Australia

How much do you need to start trading forex with Mitrade?


It depends on what forex trading platform you use and what markets you will trade. There only need about 50 AUD deposits when you open an account with Mitrade. 


How to use leverage in forex trading?


To use the leverage ratio you must multiply the funds used by the margin amount. For example, if the leverage ratio is 200:1, then a trader can trade $200,000 on a currency pair with a $1,000 deposit.


What is a stop-loss order? How do you execute a stop-loss order on Mitrade?


A stop loss is a market order that automatically closes a trading position when it reaches a predetermined level. To execute a stop loss on the Mitrade platform you must input the amount on the dealing order before hitting the “buy” button.


What factors can affect foreign exchange rates?


Foreign exchange rates are affected by events that govern the countries issuing the currencies. Factors include economic and geopolitical events, monetary policy the overall health of the economy. Traders often look to the economic calendar for the latest news governing the values of currencies and how they affect exchange rates. 


What is the best time to trade forex in Australia?


The forex market operates 24 hours a day during the normal business hours across four different parts of the world and their respective time zones. The overlap times are considered to be favourable such as the U.S./London markets overlap between 8 a.m. to noon EST and the Sydney/Tokyo markets overlap between 2 a.m. and 4 a.m. EST. 


How to verify if a forex broker is regulated in Australia?


To verify that a broker is on the list of ASIC regulated forex brokers, visit the broker’s website and find the disclosure text at the bottom of the website to find the  AFSL number. The next step requires a visit to the ASIC website to validate the regulatory status and verify the numbers. 


Is forex trading taxable in Australia?


Yes, any gains made from forex trading are subject to the tax laws of Australia.


Is forex trading legal in Australia?


Yes, forex trading is legal for all brokerages regulated by ASIC.


What forex should I trade now?


The most popular currency pairs include EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CAD, USD/CNY, and USD/CHF.


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The content presented above, whether from a third party or not, is considered as general advice only.  This article does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Mitrade does not represent that the information provided here is accurate, current or complete. Mitrade is not a financial advisor and all services are provided on an execution only basis. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks. *CFD trading carries a high level of risk and is not suitable for all investors.  Please read the PDS before choosing to start trading.

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