Best Forex Broker Australia Comparison
There are many factors that Australian forex traders should consider when choosing a forex broker. The key is to understand which ones are the most important for you and to make your decision based on that. Below shows a few of compare forex brokers comparison tables shown on individual pages on this site with a full explanation of the results. Each one of these tables prioritised one key area to find the best forex broker Australia for different traders.
High Leverage Australian FX Brokers
Australia is the ‘lucky country’ when it comes to leverage with the ability for fx brokers to offer high leverage for Australian traders without strict regulation. In some other markets leverage is limited by governments based on the risk it can produce for traders.
Below shows some of the top forex brokers offering high leverage levels. As you can see the highest level offered to Australian forex traders right now is 500:1
It’s critical to fully understand leverage prior to trading with one of these accounts. An example is a trader who deposits $100 and opens an Australian forex broker account that offers 500:1. This forex traders can now trade the equivalent of $100 multiplied by 500 which equals $50,000. This is critical because unlike the stock-market or other financial products, currency only moves my small percentages. So for example, if the order was placed on the AUD/USD correctly and the currency moved 0.1% the total amount made would be $50,000 multiplied by 0.1% leading to a $50 profit. In real terms this would be a 50% profit. What’s critical to note though to consider is that if the currency moved in the other direction the Australian forex trader would lose $50 or if the currency moved by 0.2% the total deposit would be lost.
Australian Forex Brokers Offering The Best Trading Platforms
Experienced Australian forex traders will tell beginners that finding the right platform is critical to becoming a successful traders. This is because the platforms a broker provides determines the graphing, automation and order execution details. Naturally, over time traders become loyal towards the platform they use so it’s critical to make sure not only you choose the right platform first but that this platform is popular and evolves with forex trading Australia in general.
The other factor to consider is speed. Using a broker that has a fast server and allows direct access to the currency trading markets ensures Australian fx traders can make their trades first helping to minimise slippage when fast currency fluctuations occur (such as during rate announcements). As the best forex broker Australia comparison below highlights, Pepperstone has the fastest server for Australian traders and uses the newest MetaTrader 5 for traders.
Are Forex Broker Fees Important?
With Australian forex brokers offering advanced software, leverage and other features it would be no surprise that fee levels can be higher then other financial products such as shares. For most currency traders it is therefore logical that the best forex broker Australia company offers the lowest fees. The most common fee is the spread fee which is the difference between the buy/sell of any currency pairing. This similar to when you visit an airport and see a currency exchange provider which say they will buy a currency at one rate and sell it to you for another. Naturally the difference between these two is the spread (profit they make). This difference is measured by pips which is fractions of a cent.
There are two types of spreads. The first is fixed spreads such as Easy Forex which pre-determine the spread levels for currency pairings (such as AUD/USD). This gives peace of mind of Australian forex traders knowing exactly what the fees will be when trading. The other option is variable spreads which fluctuate not only by currency pairing but the time of the day/day of the week.
Other fees to consider is the rolling fee. This is fee charged when you hold a position over time. As these brokers provide leverage (which essentially a loan) the longer you hold a position the longer you have a loan from them accruing interest hence why they charge this fee. the final is ‘withdrawal fees’ which are less common for locally (Australian) regulated fx brokers.
Best forex broker Australia Offers
The final element that Australian forex traders consider when making a Australian forex broker comparison is the bonus offers provided. These fluctuate month to month but can provide some strong incentive to at least trial their platform and system. As discussed earlier, forex traders generally become loyal to a particular broker and platform so it makes sense to provide some incentive to at least trial them. As the table below shows Plus500 has the strongest offer in the market right now followed by easy forex.
It’s critical to note these bonus offers only provide benefits when you first join and trade. That said, it can be worth trialing a few broker in real trades prior to choosing your final broker or even having a few accounts for different trades.
Final Thought On Finding The Best Forex Broker Australia
The authors at compare forex brokers have focused on making Australian forex broker comparisons based on the factors that matter for forex traders. Leverage, Fees, Trading Platforms and Bonus Offers are the key factors for determining the best forex broker. Other elements could also be considered that are included our compare forex broker tables including payment methods, demo accounts and ‘ease of use’. Use our forex broker comparison tables to help make your decision and remember your not locked in to use one broker so it pays to shop around!