Best Forex Brokers in Australia 2020
With a revenue of 5 $trillion daily, the forex market is the largest one. Many countries are generating a lot of revenue from forex trading. Australia is one of them. Forex brokers in Australia are working hard to achieve big goals.
IS Forex Legal in Australia?
Yes, forex trading is legal in Australia. The main thing is their regulation by the country’s regulatory bodies. Once you get registered, forex trading will be legal. But if you are not registered then it is illegal and you may have to visit the courts.
Australian FX market
Like other countries, Australia is also involved in Forex Market. It is also listed in the top-ranked markets. FX market of this country has started working with advancement. This is all the fruit of the work of FX brokers of Australia.
- Australia generates 1.5% to 2.0% revenue of the total Forex Market.
- The AUD/USD is the fourth most traded currency pair. Its trading generates about USD358 billion daily.
- China is Australia’s largest trading partner. It contributes $194.6 billion worth (imports and exports)
Can Australian residents Trade with Overseas Brokers?
No, Australians are not allowed to trade with overseas brokers. It is illegal. Anyone found committing it, can be punished by money laundering laws.
Regulation of FX Brokers in Australia
Regulation is necessary for any company.Forex Brokers in Australia
are regulated by the Australian Securities and Investment Commission (ASIC).
Regulation from ASIC demands conditions to follow by brokers. Here are the objectives, authorities, and guidelines by ASIC.
- It was founded on 1 July 1998 by recommendations from the Wallis Inquiry.
- It is an independent governing body established on the ASIC ACT,2001.
- ASIC can be interrogated by the Australian Parliament via Parliamentary Joint Committee on Corporations and Financial Services. ASIC has an office in Melbourne.
Objectives of ASIC
Australian Securities and Investments Commission follows AISC ACT of 2001. The objectives of AISC are as follows.
- Maintainance and improvement of the financial system’s performance
- To promote confident participation.
- Administer and enforce the law effectively and efficiently
- Make information about companies public promptly
What is covered by ASIC?
ASIC regulates many departments. It is involved in the regulation of
- Australian companies
- Financial markets
- Financial services organizations
- Deposit and credit taking companies
- Professionals or consultants of market
- Different investment companies
Authorities of ASIC
Following are the powers and authorities of the Australian Securities and Investments Commission (ASIC)
- It regulates companies working in Australia.
- ASIC is responsible for managing investment schemes.
- It issues license for financial companies
- This firm has the authority to make rules for the integrity of the Financial Market.
- ASIC is allowed for legal proceedings.
- It can ban any company from providing financial services.
- ASIC can stop the issue of financial production case of providing defective documents.
- ASIC is responsible for the public access to information regarding the reiteration of these companies.
Guidelines by ASIC
Australian Securities and Exchange Commission has set some fine instructions to meet the merit for the forex brokers in Australia. Unlike other countries like the USA and UK, rules by ASIC are not as strict but also protect the customers. The following instructions were issued to all forex brokers in Australia for trading.
- You need an office in Australia.
- The ASIC has also instructed brokers to hold a minimum of $1 million in operating capital. This amount will help them to face the volatility of the et.
- Brokers have to submit all reports regarding transactions.
- ASIC can question any broker. Every broker has to submit all the audit reports.
- ASIC has implemented a limit on credit card transfers of only 1000$. This limit is for the setting of a new account.
- You need a large group of people who are ready to invest in your brokerage house.
- AISC has also instructed its brokers to keep clients funds in isolated bank accounts. This is guided to cope up in case of bankruptcy from one bank.
- Trading Platform must be efficient.
Good Things about Australian FX Brokers
Australian Brokers are highly regulated by ASIC. This regulation lowers chance scams.
Forex brokers in Australia have flexible and easy conditions that anyone can follow.
Regulation of forex brokers in Uk
Following the provisions made under the Financial Services and Markets Act (FSMA) 2000, all financial services providers must be registered. The Financial Conduct Authority (FCA) regulates the financial services industry in the UK.
Benefits for beginners
The standard account has must have the following rules.
- A 100 AUD minimum deposit
- Leverage up to 500:1
- spreads starting at 0.0 pips
- This is well decided ratio for a beginner.
Forex brokers in Australia are also famous for offering ECN. Australian forex brokers offer ECN trading accounts for the lowest investment capital. They use cTrader for the execution of ECN trading.
Let us know you about ECN trading.
ECN stands for Electronic Communications Network. An ECN broker is a Forex financial expert. He uses networks to provide its clients with direct access to other members in the market.
Australian forex market facilitates you by providing different accounts. This difference is based according to your trading capitals. Like ECN, STP, Micro, Standard and VIP accounts.
Forex brokers in Australia allow you to trade the more common pairs (AUD/JPY and AUD/USD. The exotic pairs such as the, AUD/CAD, AUD/MXN, and the AUD/HUF.
Benefits for investors in Australian FX
For the investors, AISC is very generous. AISC protect the investors like no other regulatory bodies did.
Switching of Broker
When you are trading FX in Australia you do not need to worry. According to the guidelines of ASIC, an investor can switch any time to other brokers. An Investor if feels insecure or is not satisfied b the performance of his broker, AISC allows him to change his broker by the code of conduct.
Educating the Investor
ASIC introduced many programs to educate every investor about the basics, importance, and potentials of the financial markets. MoneySmart is one of them and is the most popular one.
Resolution of Investor Problems
ASIC always tried to solve the issues of the investor. It commonly do not involve in the conflict of the investor and broker. But it enforces the broker to handle it on their own as soon as possible.
Protection of Fund
Some brokers make trades without asking. This strictly not allowed in the Australian Forex market. ASIC has the right to punish the broker found guilty of such a crime.
All withdrawals whether profit or loss should take in 24 hours, there should be no delay.
How to choose Forex Brokers in Australia
Choosing a broker is always important. Here are some tips for you while trading in the Australian Forex Market.
- Australian Securities and Investments Commission releases information about the regulated brokers regularly. This information also classify about the Top brokers and Scammers.
- Leverages vary as the asset varies. So if you want to play properly with your pocket you must know about the assets offered by the brokers.
- You must be aware of the minimum deposit limit.
- Withdrawals should be easy and accessible.
- You should know about the commissions and if there are any kind of hidden charges like subscriptions fee or advisory charges.
- Also check about your trading platform.
- The abilities of the forex brokers can be known by checking its old records.
- Customer services should also keep in mind while choosing forex brokers in Australia.
List of Regulated Forex Brokers in Australia
here is a list of Australian brokers.
- FP Markets
- IC Markets
- City Index
- Invast Global
- GMT Markets
- DV Markets
- Hantec Markets
- GO Markets
- Admiral Markets
- Synergy Markets
- FXCM Australia
- PhillipCapital Australia
- Multibank Exchange Group (IKON Capital)
- DMM FX
- KVB Kunlun
- Blueberry Markets
- Global Prime FX
- Rubix Fx
- Aetos AU
- VT Markets
- Cardiff Global Markets
- First Index
- IFS Markets
- Acy Securities
- Royal 450
- ETO Markets
- Ocean Global Markets
- Trend Investor Services
- Trademax Capital
- Alpha Trade
- ZERO Markets
- FX INDEX
- SuperTrader Markets
- Top1 Markets
- Goldland Capital Group (GCG)
- Direct FX
- GHC Trade
- HV Markets
- Halifax Forex
- Berndale Capital
Best Forex Brokers in Australia
The above mentioned was a list of forex brokers that include good and average brokers. Have a look on the best forex brokers in Australia that have the best services.
- CMC Markets
- Saxo Bank
- City Index
If you want to know more about Forex brokers contact us. We will guide you the best according to your investments.