Best FOREX Broker in Australia for 2023
With the number of FOREX brokers always on the rise, FOREX trading companies are putting increased emphasis on keeping their clientele happy as a way to protect their revenues and profitability. FOREX traders, for their part, are concerned about the dangers of trading FOREX with the wrong broker. Because of this, they need the guidance of a qualified voice to stay away from dodgy brokerage firms. For this reason, we will be listing the best FOREX brokers in Australia today. This list is the result of a detailed review process carried out by Arincen. We will share our review methodology so traders can understand why we chose the companies we did.
Best FOREX Brokers in Australia in 2023
| Company name | Regulations | Minimum deposit | Main branch | Open account |
|---|---|---|---|---|
FXDD |
$450 | USA | ||
ICM Capital |
500$ | United Arab Emirates | ||
XTB |
500$ | UK | ||
IG |
500$ | UK |
| Company name | FXDD |
| Regulations | |
| Minimum deposit | $450 |
| Main branch | USA |
| Company name | ICM Capital |
| Regulations | |
| Minimum deposit | 500$ |
| Main branch | United Arab Emirates |
| Company name | XTB |
| Regulations | |
| Minimum deposit | 500$ |
| Main branch | UK |
| Company name | IG |
| Regulations | |
| Minimum deposit | 500$ |
| Main branch | UK |
What is FOREX and Why Do We Need a Broker to Trade?
The FOREX market operates 24 hours a day and five days a week (Monday to Friday), except international holidays. The FOREX market is the largest financial market in the world, with some six trillion dollars changing hands daily. Brokerage firms play a key role in this marketplace by enabling clients to buy and sell through a trading platform. Most trading platforms are accessible in Web and mobile format.
How Do I Choose the Best FOREX Broker in Australia?
Australia is one of the most significant economies in the world and is often thought of as the gateway to the Asia-Pacific region. It is a wealthy nation with a highly competitive and advanced economy and a 2020 GDP per capita of $51,812.15, which compares well with North American counterparts like Canada.
The country has a thriving and dynamic financial market. However, as in life, Australia is a country that is familiar with rules and regulations. It is no surprise to discover that as a highly regulated country in general, Australia also runs its financial markets with the same level of rigor. Regardless, the country is a hotbed of FOREX trading, despite the regulatory hoops brokers must navigate.
An increasing number of significant online brokers have chosen to base themselves in Australia because of its stable and wealthy economy. As such, there are many active FOREX traders in this market ready to make use of the high-end platforms offered by Australian-based brokers. Brokerage firms in this Antipodean nation recognize that before they can offer their services, they must fall in line with the regulatory requirements of the country.
Australia’s Council of Financial Regulators (CFR) is the coordinating body for Australia’s main financial regulatory agencies. Its members are the Reserve Bank of Australia (RBA), the Australian Securities and Exchange Commission (ASIC), the Australian Prudential and Regulatory Authority (APRA) and the Australian Treasury. The CFR’s role is to contribute to the efficiency and effectiveness of financial regulation and promote the stability of the Australian financial system. The CFR also provides advice to the Australian Federal Government on the adequacy of Australia’s financial regulatory arrangements. Of these regulatory bodies, it is the ASIC that is responsible for the supervision of real-time trading on Australia’s domestic markets. This includes supervising Australian FOREX brokers.
FOREX Regulations in Australia
The ASIC has a reputation for being one of the safest regulators in the world. It rightly has a tier-1 rating, which means that across a range of important measures, like reporting and operating models, it stacks up well against counterparts in other parts of the world.
The ASIC has been an important part of the Australian financial system since the early 1990s. It is the key FOREX regulator. With the rise of retail trading in the 1990s, the ASIC was the driver behind a shake-up of the regulatory framework in the country, changing the way it requested information from, and gave operating guidance to, businesses in the sector.
Now one of the most active regulators in terms of safeguarding the interests of investors, the ASIC demands that all FOREX brokers in the country obtain a valid Australian Financial Services License (AFSL). With this license, brokers can start to trade, but they must abide by strict regulations, such as capital adequacy and reporting standards.
Commissions and Fees in Australia
A first step in FOREX trading is identifying the spread differential, defined as the difference between the bid (sell) price and the ask (buy) price of a currency pair. While most FOREX currency pairs are traded without commission, the spread is one “cost” that applies to any trade that you place. This is, indeed, the biggest source of profit for the FOREX broker. Good companies typically offer a EUR-USD spread of three basis points.
As for commissions, FOREX trading brokers can be placed in three categories. The first offer fixed spreads, while the second tender variable spreads, with a third category of companies offering low-cost spreads but that come with a (relatively high) fixed commission.
Tradable Assets and Instruments
Australia operates an open, free market-based trading environment. All the major asset classes, including cryptocurrencies, stocks, mutual funds, bonds, commodities and exchange traded funds (ETF), in addition to FOREX, are allowed. Traders will find they are not constrained by being unable to trade a particular asset class. Like its European regulatory counterparts, the ASIC limits leverage to a maximum of 1:30.
Payments, Deposits and Withdrawals in Australia
Depositing funds into and withdrawing funds out of your Australian FOREX account is straightforward. The Australian banking industry is highly mature and safe. All payment providers are accommodated in the financial ecosystem and are allowed to offer comprehensive services. This means that all major payment methods are accepted by local brokers. These include credit and debit cards, wire transfers, and all major eWallets.
FOREX Trading Customer Service
As timing is key to FOREX trading, you must pick a brokerage firm that is able to provide good customer support around the clock. This most notably includes the company representatives being easy to reach, fast, and polite, which will in turn spare you of having to worry about problems down the road.
Technical Aspects of the Broker’s Website
When it comes to sharing sensitive personal information online, such as a credit card, cyber security is paramount. You should, therefore, always watch for SSL certification and two-factor authentication (especially when registering with a new site).
To provide our users with peace of mind, we at Arincen have introduced the “Company Checker,” which is an online tool directly linked to an international Website called Scamadviser. The latter is an independent site that checks the countries in which these FOREX Websites are managed, where the server is located, in addition to other security and informational aspects. It ranks FOREX firms by granting them a score ranging from 0% to 100%, with the best FOREX firms usually receiving a score of 90% and above. Any company that has achieved a score lower than 85% should thus be avoided. Simultaneously, whenever looking for a new FOREX broker, users must ensure its Website is fast, modern and user-friendly.
FOREX Trading Platforms, Tools and Features
As Australia is such a mature and competitive space, all brokers based in the country provide a range of tools to enhance your trading experience. They can hardly rest on their laurels in this regard as they will quickly be left behind. Some brokers have their own proprietary platforms, while others are well served by tried-and-tested best trading platforms such as MT4, MT5 and cTrader. Australia is a technologically advanced country that supports brokers who require the fastest networks to support high-volume trades.
Ask Other Traders on Our Network
Arincen has gone to extensive lengths to create an enabling environment, where traders of all backgrounds can take part in a vibrant trading space. After all, Arincen’s goal is to simplify the world of trading. Our Website provides an unrivaled slate of tools, like our market-leading signals, rolling news, and a thriving community where traders of all levels of experience can learn and profit from each other.
Which FOREX broker has the best platform?
Many FOREX traders across the world have become accustomed to MetaTrader’s strong and dependable MT4 platform, which is highly regarded, and with good cause. Its features are well-liked and trusted by many traders. However, if you are interested in trying something new that pushes the boundaries of what we accept as possible with a trading platform, you may consider a proprietary platform. In this case, we recommend you try Saxo Bank for its advanced trading features and high-performance tools with deep market analysis.
Which FOREX broker charges the lowest fees and spreads?
Our research shows that FXDD’s ECN account is unmatched for low fees and spreads for entry-level and experienced traders alike.
Which FOREX Broker Offers the Most CFDs?
CMC Markets and IG offer extensive CFD selections. We can confirm that these two brokers offer the most CFDs of the ones we have studied.
Which FOREX Broker Offers the Most Assets?
According to our findings, the FOREX brokers that offer the widest and most comprehensive range of financial assets are CMC Markets and IG.
Which FOREX Broker is Best for Professionals?
Professional traders know what they want. They have put in the time to learn the trading world and do not wish to settle for platforms that offer slow execution times or limited functions. Professional traders are also searching for a platform that features in-depth market analysis that comes with advanced indicators that help them make better decisions. In this case, you should look to brokers that use MT4, an industry stalwart that offers all of the above.
Best 7 FOREX Broker and Trading Platform In Australia
Take a look at our expert’s top 11 FOREX brokers in Australia for 2023
- FXDD 92.15 - Best Overall Broker
- ICM Capital 91.10 - Best Deposit and Withdrawal Broker
- XTB 85.55 - Best Customer Service Broker
- IG 85.45 - Best Regulations Broker plus Convenient Platform
- Saxobank 80.09 - Excellent Private Trading Platform
- CMC Markets 80.07 - More than 9,000 Assets
- Think Markets 80.05 - Aimed at the Audience of Traders
FXDD Broker
FXDD received the highest score in our survey (92.15). One of the first FOREX companies to offer a credit card in order to allow traders to withdraw their profits, this New York-based company has the UK's FCA license under its belt. It also has a rich portfolio of assets, offers a relatively low spread, in addition to the MetaTrader4 (MT4) platform. Further, it has excellent and fast customer service, and also offers traders a variety of ways to deposit money.
| Broker Evaluation | 7.22 |
| Regulatory Bodies | |
| Minimum Deposit | $450 |
| Islamic Account | yes |
| Payment Methods | Bank transfer - credit card - Electronic Banks - Crypto |
| Main Branch | United States of America |
| Customer Service | 24/5 |
| Demo account | Yes |
| Trading Platforms | MT4 - MT5 - C TRADER -Web Platform |
Pros
-
Established in 2002.
-
Segregated client funds.
-
Low minimum deposits.
-
No commissions on the Standard Account.
-
A choice of two account jurisdictions.
-
Multiple platform support and comprehensive market data and analysis.
-
A good range of currency pairs and other assets to trade.
Cons
-
Not available to traders in the US.
-
Relatively limited range of instruments.
-
EU-client leverage restricted to 1:30.
ICM capital Broker
CM Capital is considered the industry leader in deposits and withdrawals, whereby each withdrawal does not take more than five business days. Moreover, the company offers its customers a handy credit card to withdraw their profits, in addition to enabling customers to use various deposit methods. The company, which is licensed by the UK's FCA, has several branches around the world. Among other things, it has a rich portfolio of assets, especially stocks, offers a low spread, as well as the ability to use MT4.
| Broker Evaluation | 8.11 |
| Regulatory Bodies | |
| Minimum Deposit | 500$ |
| Islamic Account | yes |
| Payment Methods | Bank transfer - credit card - Electronic Banks - Crypto |
| Main Branch | United Kingdom |
| Customer Service | 24/5 |
| Demo account | yes |
| Trading Platforms | MT4 - MT5 - C TRADER -Web Platform |
Pros
-
Segregated client funds.
-
Regulated by the UK’s FCA.
-
Established in 2009.
-
More than 10,000 ICM Capital users and traders.
-
Reasonable minimum deposit from $500.
-
Decent funding options.
-
No swaps.
-
MetaTrader4 (MT4) desktop and mobile download.
Cons
-
Does not allow scalping.
-
Not ASIC-regulated.
-
Relatively limited range of instruments.
-
Slow live-chat service.
-
Relatively high trading fees.
-
Limited range of trading tools and resources
XTB Broker
What distinguishes XTB is the fact that it offers the best customer experience among all the companies we have surveyed. Indeed, it boasts the fastest response rate from all the companies under investigation. This is especially relevant, since the market is always on-the-go, and so you need to act fast. XTB offers lots of asset classes, as well as the ability to use the MT4 trading platform. Finally, it maintains a relatively low spread, which is suitable for quick deals.
| Broker Evaluation | 8.55 |
| Regulatory Bodies | |
| Minimum Deposit | 500$ |
| Islamic Account | yes |
| Payment Methods | Bank transfer - credit card - Electronic Banks |
| Main Branch | United Kingdom |
| Customer Service | 24/5 |
| Demo account | yes |
| Trading Platforms | MT4 - MT5 -Web Platform |
Pros
-
Long history of operation.
-
Globally recognized, having won multiple awards.
-
Some of the lowest FOREX spreads in the market.
-
Regulated by the FCA (UK).
-
Offers protection for client accounts.
-
Emphasis on customer service.
-
Excellent support, learning and research tools.
Cons
-
Does not accept US clients.
-
Non-FOREX spread costs are relatively high.
-
No GSLO.
-
No back-testing or automated trading capabilities.
-
Conditions vary according to regulation and entity.
ig markets Broker
IG is arguably the best broker when it comes to security and trust, boasting, as it does, licenses from 10 regulatory bodies, including the all-important FCA from the UK. The company is also a bank and is a publicly traded company in London. It is known for offering more than 10,000 asset classes of currencies, commodities, future contracts, ETFs, indices, cryptocurrencies etc. Further, it has its own state-of-the-art trading platform and offers a relatively low spread.
| Broker Evaluation | 7.54 |
| Regulatory Bodies | |
| Minimum Deposit | 250$ |
| Islamic Account | yes |
| Payment Methods | Bank transfer - credit card - Electronic Banks |
| Main Branch | United Kingdom |
| Customer Service | 24/5 |
| Demo account | Yes |
| Trading Platforms | Proprietary Platform -MT4 - Web Platform |
Pros
-
Easy-to-navigate platform that is simple for beginners to master.
-
Margin rates are easy to understand and affordable.
-
Mobile and tablet platforms offer full functionality of the desktop version.
-
Accepts US clients.
-
Access to more than 100 currency pairs
-
Emphasis on education and research.
-
Regulated by the FCA (UK), as well as the CFTC and the NFA (US).
-
Offers protection for UK/EU client accounts.
Cons
-
US traders can currently only trade FOREX.
-
No GSLO for US-based traders.
-
No account protection for US clients.
-
Relatively high share-CFD fees.
-
No copy trading or back-testing integration on IG platform.
SAXO BANK Broker
Saxobank is considered one of the best investment banks in the area of financial markets and currencies, as it offers the very best trading platform and tools from all the companies we have reviewed. Meanwhile, its spread is very low and, as such, suitable for short-term deals; and it offers a large number of asset classes, including currencies, commodities, indices etc. Finally, its customer service is excellent and very responsive to traders' needs.
| Broker Evaluation | 6.09 |
| Regulatory Bodies | |
| Minimum Deposit | 10000$ |
| Islamic Account | No |
| Payment Methods | Bank transfer - credit card |
| Main Branch | Copenhagen, Denmark |
| Customer Service | 24/5 |
| Demo account | No |
| Trading Platforms | SaxoTrader |
Pros
-
Extensive range of offerings.
-
Regulated by the FCA (UK) and other top regulators.
-
Great trading platform.
-
Among the industry’s best research.
-
Superior user interface.
-
Offers protection for client accounts.
Cons
-
High bond, options and futures fees.
-
Lack of emphasis on customer service.
-
Confusing instrument fee structures.
-
High minimum deposit.
-
Does not accept US clients.
-
No MT4.
-
Lacks live chat.
CMC MARKETS Broker
CMC Markets is thought of as one the best companies, offering some 9,000 asset classes that encompass currencies, commodities, indices, cryptocurrencies, bonds and stocks. The company offers a relatively low spread, the MT4 platform, and fast customer service. It is most suited for traders looking for diversity in asset classes.
| Broker Evaluation | 7.07 |
| Regulatory Bodies | |
| Minimum Deposit | 0$ |
| Islamic Account | No |
| Payment Methods | Bank transfer - credit card - Electronic Banks |
| Main Branch | United Kingdom |
| Customer Service | 24/5 |
| Demo account | not |
| Trading Platforms | Proprietary Platform -MT4 - Web Platform |
Pros
-
Extensive range of offerings.
-
Regulated by the FCA (UK).
-
Low FOREX fees.
-
Emphasis on education and customer service.
-
Great Web and mobile platforms.
-
Offers protection for client accounts.
-
Research amenities are industry leading.
Cons
-
Does not accept US clients.
-
Limited product portfolio.
-
High stock CFD fees.
-
High CFD spreads for certain indices.
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Differences between Next Generation and MT4.
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Complicated account verification.
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No back-testing or automated trading capabilities.
think markets Broker
Originally founded in New Zealand in 2010, and moving to Australia within the space of their first two years, Think Markets is a global online brokerage focusing on FOREX and CFD trading. In addition to a range of major and minor currency pairs. Think Markets has an array of CFDs on offer. This includes indices, as well as hard and soft commodities.
| Broker Evaluation | 8.05 |
| Regulatory Bodies | |
| Minimum Deposit | 0$ |
| Islamic Account | yes |
| Payment Methods | Bank transfer - credit card - Electronic Banks - Crypto |
| Main Branch | Australia |
| Customer Service | 24/5 |
| Demo account | not |
| Trading Platforms | Proprietary Platform -Web platform-mt4- mt5 |
Pros
-
Beginner assistance offered through 24/6 channels.
-
Spreads are as low as 0.0 pips.
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24/7 expert customer service.
-
CFD shares and indices come at no extra fee.
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Zero broker fees for FOREX trading.
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Technical analysis and quality market information.
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Percentage allocation management module (PAMM) and Multi-account manager (MAM) accounts available.
Cons
-
Direct share trading is on a separate platform.
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No binary options offered.
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Commissions charged for two account types.
-
After a strong early start, ThinkTrader user ratings have slid to 3.4 stars.
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No US, Canada or Japan clients allowed.
Most Trusted FOREX Brokers and How to Verify Regulations
At the get-go, it is important to learn more about regulatory bodies and their role in the FOREX market. These are government entities charged with regulating the sector. Their role is two-fold:
1. Observing and regulating the work environment in the FOREX market; and
2. Protecting investors and their funds.
2. Protecting investors and their funds.
FOREX firms must at least obtain one license from a relevant regulatory authority. Otherwise, they should be avoided at all times. In this context, we present the five most important FOREX market regulatory bodies from around the world.
1.The Financial Conduct Authority (FCA), UK;
2.The Swiss Financial Market Supervisory Authority (FINMA);
3.The ASIC;
4.The Financial Markets Authority, New Zealand; and
5.The National Futures Association (NFA), US.
2.The Swiss Financial Market Supervisory Authority (FINMA);
3.The ASIC;
4.The Financial Markets Authority, New Zealand; and
5.The National Futures Association (NFA), US.
While FOREX market regulatory bodies exist in almost every country, these are the most important five and also the strictest. To learn more about other regulatory bodies, please visit en.arincen.com, where you will find a comprehensive global database.
How to Verify that Your Broker has Authorization
To check if a FOREX broker is regulated by the ASIC, you simply need to find the ASIC registration number on the broker's homepage. From there, you can look up the licensing number on the financial register available on the ASIC’s Website to confirm if the broker is currently licensed in Australia.
In this introduction, we looked at the best FOREX brokers in Australia. We began by identifying the best five FOREX brokers in Australia, listing, and ranking them by their Arincen trustscore. We then briefly described the regulatory environment governing these companies (more on this later in the article). Finally, we advised readers how they should go about ensuring that the broker they are looking into is licensed by a tier-1 regulator, such as the ASIC, and, therefore, deemed trustworthy.
The Dos and Don’ts of FOREX Brokers
One of the first things a new FOREX trader ought to do is to check the extent to which the FOREX company abides by the rules and regulations governing its operation. Emphasis must be placed on what it can and cannot do.
There are seven things brokerage firms cannot do:
- The FOREX brokerage firm cannot recommend a buy or sell;
- The FOREX brokerage firm must not provide price or market expectations (rise/fall);
- The FOREX firm cannot control your financial dealings (deposit/withdrawal);
- The FOREX brokerage firm should not “manage” your portfolio under any circumstance;
- The FOREX brokerage firm cannot grant a client a bonus unless there are clear terms guiding it from beforehand;
- The brokerage firm must not use bank accounts not under its name; and
- FOREX brokerage firms cannot have or offer the service of account managers.
In short, the role of brokerage firms is strictly confined to facilitating buyers and sellers to come together toward an agreed-upon commission. FOREX brokerage firms that violate any of the seven rules aforementioned should be avoided. However, should the trader wish to receive any of the above-mentioned services, our advice is to seek an expert Website like Arincen, something we will delve into toward the end of this article.
FOREX Trading Scams and How to Avoid Them
The ASIC’s role is to maintain, facilitate and improve the performance of the financial system and entities in it. It also promotes confident and informed participation by investors and consumers in the financial system. Finally, it seeks to administer the law effectively and with minimal procedural requirements. All this being said, FOREX scams are difficult to launch in a country with so many safeguards.
The ASIC will have no hesitation in suspending the license of any broker that has been found guilty of wrongdoing in terms of partaking in a scam to defraud customers. In terms of external threats, the ASIC has a robust ongoing public awareness campaign where it broadcasts important information on its Website on all identified scams, along with helpful fixes and contact numbers for traders to reach if they need to make a report or lodge a dispute.
Will Your Money be Protected If Your Broker Becomes Insolvent?
The ASIC is an agency that has a comprehensive and exacting set of regulatory guidelines intended to dissuade firms from propagating financial scams. The watchdog continually monitors regulated members by means of detailed scheduled reporting or even unscheduled requests for information.
The ASIC has rolled out a centralized regulatory structure that gives guidance and recommendations on how brokers should conduct their business. Some of the important guidelines include ensuring that brokers keep at least $1 million in operating capital. Brokers should also maintain client funds that are segregated in tier-1 banks. The ASIC also has an investor compensation scheme in place to ensure that client funds are protected in the event of broker insolvency.
Regarding investor compensation, there is a rather complicated compensation mechanism that means discretionary payments can be made by the Finance Minister to affected claimants. This process is run through the Scheme for Compensation for Detriment caused by Defective Administration (CDDA), which allows individuals to apply for compensation in qualifying cases. The ASIC does not get to make decisions on the outcomes of cases.
The ASIC entertains consumer complaints, but encourages claimants to resolve issues at the broker level. If there is no resolution, claimants can contact the Financial Ombudsman service instead.
Recommended Brokers
What Tools and Platforms Should FOREX Brokers Offer?
All traders, be they just starting out or highly experienced, require strong platforms with good performance standards that provide a good trading experience. In terms of FOREX, brokers must either provide their proprietary platform or one of the well-known third-party interfaces, such as MetaTrader.
The best brokers offer platforms that can be used by traders with different requirements. Be they Web-based or downloadable, platforms must be customizable with good technical indicators and strong risk management tools.
On the regulatory front, the ASIC regulations indicate that all regulatory information about the firm should be shared with traders freely and without delay. The ASIC also provides a brief history about regulated members on its official database, which allows traders to learn more about a firm before deciding to open an account.
Who is Arincen and What Do We Do?
Put simply, Arincen is a social networking platform that brings together traders and experts to exchange expertise and ideas. Together, we evaluate the best FOREX companies in the world while offering a compressive suite of services and tools, all in one place, either via a computer or a mobile app. The platform is so rich, one can create their own private portfolio of traders and experts they like and, at the same time, follow their recommendations and investment sentiments.
Further, thanks to Arincen, users can keep an eye on market-price developments, as well as the latest news. Users can also benefit from the network’s educational courses on offer, to say nothing of exciting Webinars – all done in a modern and fast-paced work environment. Get all what you need in one place, not less, not more. In short. Arincen: We Meet to Simplify the Trading World.
Conclusion
If anything, the key message to take away from this article is that the FOREX brokerage firm one picks must be legally licensed and well-regulated. On a final note, it is never advisable to deal with FOREX companies on your own. It is best this is done with the help of industry experts, who can provide you with all the services FOREX companies cannot. Start trading using Arincen and enjoy all the services, advice and tools it has to offer while making your trading experience profitable!
Arincen’s Review Methodology
The team at Arincen collected more than 120 pieces of data covering in excess of 100 licensed FOREX companies. Data collection was done in three ways:
- Companies’ Websites.
- Other Websites that have ranked FOREX companies.
- A survey questionnaire (referred to here as Survey “1”) we had sent to the companies invited to participate in the exercise. We have identified 13 criteria for our assessment, each containing several aspects and carrying its own relative weight. These include licensing, deposits and withdrawals, number of assets, etc.
Afterward we validated the data by:
- Registering with FOREX companies as a secret shopper and/or as Arincen.
- Survey number “2,” in which we asked these companies’ customers for important feedback and past experience.
The next step saw us evaluate and rank each company, relying on the hard work of 15 Arincen employees. We were very careful in ensuring the most accurate assessment possible, including taking into account different languages, as well as the various mobile-app operating systems, e.g., Apple, Samsung etc.
To add credibility to our research project, we sent a final and third survey (referred to here as Survey “3”) to enable participating FOREX companies to evaluate our own research and whether it accurately reflects the realities on the ground. We were fortunate enough to receive a mark of 9.9 out of 10! We have kept to a minimum the margin of error, which stood at a measly 1%. To learn more on how we came up with the evaluation, please click here.
FAQ
Is FOREX trading legal in Australia?
Yes, trading FOREX trading is legal in Australia. FOREX trading is considered to be an activity that can lead to gainful profits, as such it is highly regulated, making it easy to keep it legal.
What is FOREX?
The FOREX market is a place where global currencies are bought and sold. It is a large and active marketplace that requires technologically superior tools if you are to participate as a retail trader. The market operates 24 hours a day and five days a week (Monday through Friday), except international holidays.
What is FOREX trading?
FOREX trading involves buying and selling different worldwide currencies for a profit. Retail traders select a currency pair and, in anticipation of market-driven changes in value, wait for the right moment to make a sale for a profit.
What costs and commissions are associated with FOREX trading?
FOREX brokers in Australia charge any combination of commissions, spreads, and financing fees. Brokers can either charge a spread (the difference between the buy and sell price of a currency pair) and include their facility fee in the spread, or they can charge only a market rate spread and levy a commission per trade outside the spread.
Financing fees come into play if you hold your position overnight. You must pay a financing cost for the benefit of keeping your positions open for an extended time.
How important is good customer service in FOREX trading?
Good customer service is vital to FOREX trading as it is a fast-moving marketplace where traders can lose money if their account is non-functional or deactivated for any length of time. As such, you must select a broker that can offer excellent customer support whenever you need it. Company staff must be accessible and knowledgeable enough to be useful in times of difficulty.
Is FOREX trading taxable in Australia?
Yes, FOREX trading is taxable in Australia. FOREX trading is recognized as a genuine activity that can generate personal income, meaning that the profits you make from these trades are subject to tax. You will only be expected to pay taxes if you have made profits within the tax assessment year. Consult a tax expert to find out how you can comply with tax regulations in Australia.
Written by
Marwan Kardoosh
The Editorial Department at Arincen makes an important contribution to the world-class content that can be found on the site. Arincen’s Head of Content and Chief Economist Marwan A. Kardoosh brings with him over 24 years of experience working in the...
Edited by
Adrian Ashley
Adrian Ashley is a seasoned business and finance writer. With a corporate career spanning over 20yea...
Fact Checked by
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Bahaa Khateeb
Bahaa Khateeb is currently the CEO of Arincen, a start-up Fintech company based in Haifa. Baha...
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