The Best Currency Trading Providers of 2016

Thinking of dabbling in currency trading or looking to switch Forex brokers?
Before you do, check out our best forex broker comparison.

We carefully analyse & critique each provider for you below:

  • Leverage
  • Guaranteed Stops?
  • No Dealing Desk?
  • Execution Speed
  • Offers MetaTrader Platform
  • No Withdrawal Fee
  • Spread Fee – USD/AUD
  • Minimum Deposit?
  • Regulated In
  • Australia Head Office?
  • Promotional Bonus?
  • Payment Methods
  • Reviews

Best FX Value Broker

IC Markets is Our No. 1 Choice of Broker for Currency Trading

The currency trading industry is flooded with brokers making it incredibly difficult for traders to select a provider that is right for them. Add to that the ever growing number of dubious, offshore operators vying for Australian business, it has never been more important to select a reputable currency trading provider. In early January 2016, we prepared the above comparison table highlighting the best, Australian based currency trading brokers. We recommended IC Markets as the best Forex broker due to the following:

1) 500:1 Leverage – The Most In Australia

Anyone that has spent time currency trading will tell you one of the most important tools in a forex trader’s arsenal is leverage. The more leverage available to a trader the more money they can make when market prices move in their favour. Leverage trading is not for the faint hearted however; if market forces move against you, significant losses may arise. IC Markets offers currency traders maximum leverage of 500:1 which is currently the most on offer by an Australian broker in Australia.

I’m a beginner; can I reduce my risk exposure with IC Markets?

Those that are risk adverse need not worry, IC Markets allows you to choose a level of risk exposure that best meets your circumstances with leverage rates starting at just 1:1. Please note it takes 24 hours to process a leverage change request.Changing Currency Trading Leverage Options With IC Markets

How risky is trading with high leverage?

Trading with leverage ratios of up to 500:1 would not be possible with equities or other financial instruments whose intra-day prices fluctuate by more than 1%. The reason leveraged currency trading is feasible is due to Forex prices moving within a daily band usually less than 1%.

Leverage Is Risky

 

Don’t get us wrong, trading with leverage can expose you to losses greater than the amount deposited in your trading account. You should not attempt leveraged currency trading unless you are competent and can afford to take some risk.

2) The Best Currency Spreads Available in Australia

In our research into Australia’s best currency trading providers, IC Markets and Pepperstone were the leaders of the pack when it came to the AUD/USD offering 0.0 and 0.1 pip spreads respectively.

Visit IC Markets

What exactly are spreads?

Spreads or spread fees are the difference between the bid and ask price of currency pair. The spreads between currency pairs are usually just a few pips. This difference or cut is how the broker earns their money when providing trade-able instruments to clients. Usually brokers will offer lower spreads to clients who trade more frequently than others.

Why do we recommend IC Markets if Pepperstone charge lower fees?

When presenting the information available in the table above, we preferred IC Markets over Pepperstone despite IC’s slightly higher spread fees. The reason for this was because we believed the features on offer at IC Markets, such as the higher leverage, were slightly better than Pepperstone. However, if you are a currency trader simply looking for the lowest fees around, Pepperstone may be a better option for you.

Why Are IC Markets & Pepperstone’s spreads so superior?

The main reason companies such as Pepperstone and IC Markets can offer lower spreads to currency traders is due to technology called an Electronic Communications Network (ECN). An ECN directly links traders up with the deep liquidity pools available to institutional hedge funds and banks. When IC Markets and Pepperstone clients trade currencies they are transacting directly with the big players meaning there is no intermediary or dealing desk, keeping costs to a minimum.

IC Markets can also boast ESP or Executable Streaming Prices which reduces unnecessary price fluctuations and delays, usually the cause of slippage. When currency trading with IC Markets, the price requested when buying or selling a currency pair is the price received.

Considering traders are entering into a market with institutional traders who require extremely high volume and liquidity, currency rates remain lower with IC.

Which IC Markets account is right for me?

This comes down to a matter of preference. IC Markets have 3 different currency trading accounts with slightly different pricing models. The most popular is the True ECN account which boasts spreads starting at just 0.0 and a $3.50 commission charged per lot. A standard account and a cTrader platform are also offered as seen in the image grabbed from the IC Markets website below.

IC Markets Currency Trading Account Types

3) IC Markets Offers the World’s Best Platforms

Considering Forex traders spend most of their lives looking at graphs on a computer screen, choosing the right trading platform is incredibly important. Most people around the world use software that supports the MetaTrader or cTrader platforms due to their simultaneous ease of use and sophistication.

Why is MetaTrader so popular?

MetaTrader is the most renown trading platform on the market and is developed by MetaQuotes. It has been in operation since 2003 with MetaTrader 4 the most widely used version.

MetaTrader 4 Currency Trading Interface

In 2010 MetaTrader 5 was launched. MetaTrader 4 remains more popular due to its one click executions, collaborative charts and graphs and the ability to run automated trading bots called Expert Advisors.

How does cTrader differ to MetaTrader?

cTrader is a little different to MetaTrader in that it is all cloud based and provides traders with direct market access. It is widely used in the retail trading space. However, more of the professional traders use cAlgo as it affords them the ability to develop their own algorithmic trading robots.

cTrader & cAlgo IC Markets Interface

The platform is designed by a company called Spotware and IC Markets was the first company to make the platform available in Asia and Australia.

Visit IC Markets

Background of Compare Forex Brokers

Compare Forex Brokers is run by a team of dedicated marketing and trading professionals. The website was created to help traders make a more informed decision when selecting a Forex broker. All comparison tables found on the website are updated constantly but unfortunately from time to time, some mistakes may be found. Please notify us if you pick up on any errors. It is advised that you validate all information found here on your broker of choice’s website before making a decision.

Share Compare Forex Brokers