There are many forex brokers that operate in Australia, all promising the best trading conditions. It can be very hard to pick and choose the best forex brokers in such a saturated market. This is why proper research is essential before investing. Make sure you choose a forex broker with regulations and the best trading conditions. Today, we are going to look at some of the best forex brokers with AUD as an account base currency. But before we jump into the list, let’s look at some important questions.
Is Forex Trading Legal in Australia?
Yes, forex trading is 100% legal in Australia and regulated activity. In Australia, the Australian Securities and Investments Commission is in charge of regulating forex trading to ensure a fair environment is maintained. This commission is independent of the Australian government to ensure it remains impartial in protecting Australian consumers, investors, and creditors, among others. Here are some of the rules and guidelines that the ASIC has in place for forex brokers.
- Forex brokers must keep client funds in segregated accounts. They cannot keep these funds in the same account as the company’s funds. They cannot use client funds to run business operations.
- The ASIC requires registered brokers to have at least 10% or a minimum of AUD 1 million as net tangible assets of which 50% should be in cash.
- ASIC-regulated brokers must submit yearly audit reports to verify their holdings and financial statements.
- All registered brokers must have a physical office in Australia.
- The ASIC caps the maximum leverage at 1:30 to ensure traders do not overleverage and fall into debt.
How Do You Verify ASIC Authorization?
Many scam brokers will lie about having authorization from the ASIC with the intention of stealing from investors. To combat this, the ASIC implemented a portal for the public to check the registration status of brokers. The public can search for anyone that sells them financial or investment services on the ASIC Register.
Always make sure to double-check a company’s claims before investing. Many shady brokers will claim regulations from the best organizations without any truth to back their claims. Now that we have got that out of the way, let’s look at some of the best forex brokers with AUD base accounts.
FP Markets supports the Australian Dollar as an account base currency. This is convenient for traders in Australia and its territories. They do not need to convert their funds once they make a deposit. The minimum deposit on FP Markets is AUD 100 or equivalent in another currency. Clients can then go straight to trading forex and CFDs on shares, metals, commodities, indices, cryptocurrencies, bonds, and ETFs. There are over 60 different currency pairs including AUDUSD, EURAUD, AUDCAD, AUDJPY, and AUDCHF. In total, there are over 10,000 trading instruments on FP Markets. There is no shortage of markets to diversify one’s portfolio. Clients also have a choice between three main trading platforms. These include MetaTrader 4, MetaTrader 5, and WebTrader.
Finally, we look at the regulatory status of FP markets. FP Markets operates in Australia under the strict regulation of the ASIC with ACN Number 154 461 104. This is one of the best regulators in the market. On top of that, the company is regulated by the CySEC, which is yet another tier-one regulator. This is a good sign from the company, even though regulations are not enough on their own.
There are two main accounts on FP Markets, the Standard account and the Raw account. The Standard account allows clients to trade on spreads as low as 1.0 pips with no commissions. On the other hand, the Raw account features spreads as low as 0.0 pips and a commission of $3 per side per lot. Hence, FP Markets accommodates all kinds of traders.
75.3% of retail CFD accounts lose money
XM operates in Australia under the name Trading Point of Financial Instruments Pty Ltd and is regulated by the ASIC (ACN Number: 164 367 113). The company also operates under the supervision of the CySEC and the FSC which shows its commitment to following the law. Note that regulated companies can also engage in criminal activities. However, you’re better off investing with a regulated company than an unregulated one. Regulated companies have strict rules they have to abide by to keep their licenses. If they break the law, they are blacklisted by regulators.
Luckily for clients in Australia and its territories, XM allows them to have the Australian Dollar as an account base currency. They can trade the Australian Dollar against a couple of currencies including the Euro (EURAUD), the US Dollar (AUDUSD), the Canadian Dollar (AUDCAD), the New Zealand Dollar (AUDNZD), and the Japanese Yen (AUDJPY). Clients can also trade CFDs on stocks, stock indices, oil and gold. They can do this on industry-standard platforms including MetaTrader 4 and MetaTrader 5.
The spreads on XM are industry standard and competitive. There are four main accounts that come with different spreads. For example, the standard account has spreads as low as 1.0 pips for major currency pairs. In contrast, the spreads can go as low as 0.6 pips on the XM Ultra Low account and the Micro account. On the Shares account, the spreads depend on the underlying exchange. The minimum deposit on this broker is $5.
AvaTrade is another ASIC-regulated CFD broker that allows clients to have AUD as the base currency of their accounts. In Australia, the company operates under the name Ava Capital Markets Australia and holds the ACN number 143 340 907. Additionally, the company is regulated by the CySEC, the BVIFSC, the FSCA, and the FFAJ, among others. It is always a good sign when a company has regulations in multiple jurisdictions. It is one of the characteristics of tier-one trading platforms.
The minimum deposit on AvaTrade is AUD 100 but the company recommends a starting balance of AUD 1,000 to enjoy the full range of products. After making a deposit, clients can trade a variety of trading instruments which include CFDs on currencies, stocks, commodities, indices, cryptocurrencies, ETFs, and bonds. Some of the best currencies to trade against the Australian Dollar include USD (AUDUSD), EUR (EURAUD), JPY (AUDJPY), CAD (AUDCAD), and CHF (AUDCHF).
On AvaTrade, clients have access to top-notch trading platforms, MetaTrader 4 and MetaTrader 5. They also have access to AvaTrade’s suite of platforms, AvaTradeGO, AvaOptions, DupliTrade and ZuluTrade. DupliTrade and ZuluTrade allow clients to copy the trades of top-performing traders automatically. This is best suited for clients lacking the experience and time to trade financial markets.
The spreads on AvaTrade are not steep. They are industry standard and relatively low. As expected, the most traded instruments have the lowest spreads on AvaTrade. For example, the spreads for major currency pairs can go as low as 0.9 pips. The minimum deposit amount to open an account is $100 on AvaTrade.
71% of retail CFD accounts lose money
IC Markets gives traders the option to open an account in 1 of 10 supported base currencies. Luckily for traders using the Australian Dollar, it is one of these supported currencies. People can trade this currency against the US Dollar (AUDUSD), the Canadian Dollar (AUDCAD), the Singapore Dollar (AUDSDG), the Japanese Yen (AUDJPY), and the Swiss Franc (AUDCHF). In total, there are over 61 currency pairs on IC Markets. Nonetheless, clients can also trade CFDs on commodities, indices, futures, stocks, and metals.
IC Markets has three main accounts: the Standard account and two Raw Spread accounts. The Standard account allows clients to trade on spreads starting from 0.6 pips for major currency pairs. On the other hand, the Raw Spread accounts feature a commission when trading. One of the accounts is only available on the cTrader platform and features a commission of $3 per $100,000 traded. The other account is available on the MetaTrader platforms. This account comes with a commission of $3.5 per side per lot.
In Australia, IC Markets is under ASIC’s regulation under the ACN number 123 289 109. The company is also under the regulation of the CySEC in Cyprus and the FSA in Seychelles. The minimum deposit to open an account with this broker is $200.
Plus500AU is regulated by the ASIC under the ACN number 153 301 681. While regulations alone are not enough, you are much safer trading with a broker with regulations. Furthermore, Plus500 is also regulated by the FCA, the CySEC, FSCA, and the FMA. The Australian Dollar is one of the base currencies supported by Plus500. This is convenient for clients using the Australian Dollar as their local currency. They can trade this currency in a number of currency pairs including EURAUD, AUDUSD, AUDCAD, GBPAUD, and AUDJPY. These are just a few examples of the currency pairs available on Plus500. In total, there are over 60 different currency pairs on the platform.
Additionally, clients can also trade CFDs on cryptocurrencies, indices, commodities, shares, options, and ETFs. This allows clients to invest in multiple market instruments at the same time. They can do this on the in-house built Plus500 trading platform. This platform is simple and functional, fitting most traders, whether novice or experienced.
Plus500 does not charge clients commission fees when trading forex. However, a variable spread applies to cover trading fees. As an example, the spread on the EURUSD pair can go as low as 0.8 pips depending on the market. The minimum deposit to open an account is $100 US or equivalent in account currency.
For each Interactive Brokers’ account, clients may designate a single base currency. The base currencies available include AUD, CAD, CNH/CNY, CHF, USD, EUR, and GBP, among others. Clients can trade the Australian Dollar against a variety of other major and minor currencies. These include the AUDUSD, EURAUD, AUDCAD, AUDCHF, and GBPAUD. In total, there are over 100 currency pairs on 24 different currencies on Interactive Brokers. These are not the only tradable assets on Interactive Brokers. Traders can invest in stocks, options, futures, currencies, cryptocurrencies, US Spot Gold, bonds, ETFs, funds and more from a single platform. The Interactive Brokers trading platform is available on a variety of devices. It is available on web, mobile, and desktop.
Interactive Brokers is a regulated company in several jurisdictions. In Australia, it is regulated by the ASIC with ACN number 143 551 768. It is also regulated in the UK by the FCA, in the US by the CFTC and SEC, and in Canada by the IIROC. These are some of the best regulatory organizations in the industry which is a good sign. Interestingly, Interactive Brokers does not feature a minimum deposit for clients. Additionally, Interactive Brokers primarily charges a commission for trading. The commission depends on the market instrument a client is investing in and can range from $16 to $40 per million traded. The company does not reveal the average spreads it offers to clients. However, the company promises competitive and low spreads to its clients.
Final Thoughts Forex Brokers With AUD Accounts
Australia has some of the most active forex traders in the world. Understandably, this jurisdiction has a lot of forex brokers boasting of the best services. To determine the best brokers, there are a few key areas to look at. The regulation status of the company is the first thing someone should look out for. Traders should only invest with companies that have ample regulations for the best trading conditions. Other things clients can look out for include the fees, the trading platform available, and the availability of trading instruments.
Today, we looked at some of the best brokers with AUD as an account base currency. As always, we encourage traders to do their own research before they invest their hard-earned cash. Make sure the broker you choose best suits your investment needs. The brokers on this list are a good place to start with the research. Luckily, we have provided some key information about each of the brokers to give you a headstart.