The Best Currency Trading Providers in Australia
Currency trading for many Australians is a bit of a scary finance strategy because of all the new terms and concepts associated with it such as leverage, many forex graphs, pips, etc. Choosing the best forex trading platform and broker is important because you’re choosing someone who you’re going to trust with your money.
Before deciding to trade, one should carefully consider his objectives, needs, financial situation, and importantly, level of experience. Although currency trading is exciting due to all the profits it’s also risky. Unfortunately, in the beginning there were a lot of scams that turned into big problems. Although traders are much more protected today, yet we find unscrupulous brokers which have only one thing in mind and that is to take your money. Finding the right one is not an easy task, but that’s why Compare Forex Brokers are here to help you know who are the best currency trading brokers in Australia at the moment and how to recognise the risk of currency trading.
Benefits And Risks Of Trading
• 24 hour market – Whether you want this to be your full-time or a part-time job, currency trading Australia brokers operate from 5 p.m. ET Sunday to 5 p.m. ET on Friday giving you the opportunity to trade whenever your schedule permits.
• Liquidity – Unlike many other markets, the currency forex trading Australia markets are the most liquid of the financial markets and offer the ability of trading big amounts of volume in and out of the trading markets with minimum impact.
• Leverage – leverage amounts are changeable or may not be available all the times. For example, with 500:1 leverage, if you invest only $100 you’ll control $50,000 units. But keep in mind that, although leverage helps building profits in no time, it can also cause catastrophic losses in a short period of time.
• Opportunities in trading – Besides the technical trading, most currency trading Australia markets offer other opportunities to trade primary changes in economy all around the world. All changes and developments are tracked through monthly events and calendars.
• Low cost in currency trading – With most currency trading Australia brokers spread is the cost to trade. They tend to be much tighter than stocks.
• Margin-based trading – These accounts differ from the regular credit card accounts where you have to open an account with a broker first and then deposit money into account (fund the account)
• Leverage Risks – As we mentioned above, leverage amounts are changeable and as it can help you gain profit in the same way it can cause you large losses quickly.
• Price risks – As in any trading market, forex prices are determined by long-term and short-term demand and supply. This can make prices move fast and often unpredictably. Traders need to apply some risk-management techniques for every trade they make. Using stop-loss orders can help determine the maximum exposure users will have in given positions.
• Rate risks – in cases when the interest rate of different currencies comparing to others decreases or increases dramatically, the exchange rate and trading prices can also dramatically change.
• Not dealing with reputable currency trading Australia brokers
• Brokers not having proper regulations
Best Currency Brokers in Australia and How Can They Help Manage The Risk
Starting with Pepperstone, it’s a forex broker that has the best currency trading platform in Australia. They offer lowest spread fees, leverage levels of 400:1 (perfect for intermediate and advanced traders), promotional bonus and fastest speed trade executions.
An Australian currency trading broker that offers a medium leverage level, average fees and spreads and multiple forex platforms. Although charging commissions on top of spreads, the price is reasonable. Guaranteed stops are not offered, which is a bit disappointing, but they do guarantee execution of a stop order.
An award winning, locally regulated forex broker that offers high leverage levels of 500:1. Although a bit risky and intended for those keen to take risks they did everything to help manage that risk by having the great choice of currency trading platforms and top customer support. Undoubtedly their most popular feature would be their tight spreads, but not-so.-great feature would be not offering their users guaranteed stop losses. This is the currency trading platform meant for those only interested in taking risk.
A public listed company that offers low fees and fixed spreads. They do not charge dealing commissions on each trade which is a unique feature among other currency traders. They offer a maximum leverage level of 200:1 which can be a great thing for beginners.
They offer one of the best currency trading platforms in Australia and are made up of experienced market professionals offering their clients excellent customer support. Unlike most other brokers, Easy Forex fixes their spreads which means that Australian currency traders have some kind of certainty when it comes to volatile markets. There are no commissions on any trades and is considered one of the best currency brokers when it comes to the cost of trading. They also have guarantees stop losses which means you can set up the amount you’re “willing” to lose in order not to lose more than one can afford.
Choosing the right currency broker is crucial when it comes to risk management. Many currency brokers offer guaranteed stops which allows users to stop the lose on their trades. Such brokers are Pepperstone. Their feature of “no negative deposit” is great for all those that don’t like to take risks with their money. IT means that you can lose only as much as you deposited. Otherwise, traders would be exposed to high risk levels and lose more than one can afford. Another main thing to look out for when searching for the right broker is that it is certified to operate in Australia. This means traders are protected because their money is segregated in a bank account. Remember: One of the biggest rules in currency trading Australia is that one never trades more than one can afford to lose.