9 Best Forex Brokers in Australia [2024]

Are you venturing fresh into the world of Forex trading? Or perhaps you're an experienced investor looking to expand your horizons. Regardless of where you fall, one thing is clear—you're searching for the best forex brokers in Australia to navigate the currents of the Australian market.

But with an array of options as diverse as the Great Barrier Reef, selecting the optimal one can seem like navigating through a labyrinth. Fear not. In this article, we’ll provide a detailed review showcasing the best Australian Forex brokers. Each review is written to provide trustworthy information and guide you toward the top choices in the industry.

Quick Snapshot

For the time-pressed traders, here are our top three Australian brokers:

IG Markets

Best overall broker with a $50 minimum deposit, free standard bank transfers, and over 16,000 tradable instruments with an average AUD/USD spread of 0.7%.

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CMC Markets

Best trading platform with innovative technology, a $0 minimum deposit, an average AUD/USD spread of 0.7 (5% margin rate), and 12,000+ tradable instruments.

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Pepperstone

Best Australian-based broker for competitive rates (no minimum deposit, withdrawal, or deposit fees) with over 2300 tradable symbols and 60+ forex pairs.

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Top 9 Forex Brokers for Australians

Remember, the choice of a broker can make a significant difference in your Forex trading journey. Our incisive, detailed reviews for each of these forex brokers can help make an informed, well-thought-out decision.

1. IG Markets

Best Overall Broker

Founded in 1974, IG Markets has solidified its position in the Forex trading domain, offering access to an impressive array of over 16,000 markets, spanning Majors and Minors to Emerging and Exotic markets. The platform holds regulatory approval from esteemed financial authorities such as ASIC, FCA, and CFTC, ensuring a secure trading environment. Its proprietary web-based platform is a user-friendly interface loaded with features, including integrated research tools and trading signals.

While IG Markets isn’t a discount broker, it shines in our assessment with its scalable execution and competitive pricing for active traders. It offers a Direct Market Access (DMA) account, an attractive option for seasoned traders, with tiered pricing based on the previous month's trading volume. It also has a well-structured educational academy that offers resources for beginners.

Despite its robust offerings, IG Markets falls short in the lack of social or copy trading features, which could deter beginners looking for a simple start. Its higher minimum deposit requirement also discourages newbies or those interested in passive investing. If you are planning to use your mobile to trade on IG, you might find a minor inconvenience as its mobile app doesn't sync chart indicators added on the web platform.

Pros

• Broad range of markets with over 16,000 options
• Supports both MT4 and MT5 platforms
• Comprehensive educational resources
• Strong safety measures
• Competitive pricing for active traders

Cons

• Lack of social or copy trading features
• Higher minimum deposit requirement
• Mobile app doesn't sync charts with web indicators

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2. Saxo Bank

Best Web-Based Trading Platform

Saxo Bank is licensed by six tier-1 regulators, including the ASIC. It has over 60,000 tradeable instruments, including forex options, micro-futures, and, depending on your region, crypto derivatives. For platform performance, we believe Saxo Bank continues to raise the bar with platforms like the SaxoTraderGo app and SaxoTraderPro desktop software.

The user interfaces are consistent and incredibly user-friendly. The flagship SaxoTraderGO offers advanced charting capabilities with a plethora of indicators and drawing tools. Its charts sync seamlessly across devices, allowing for flexible access to analysis tools. SaxoTraderPRO, on the other hand, targets professional traders, supporting up to six monitors and algorithmic orders.

The SaxoTraderGO mobile app mirrors the web-based platform experience. It is meticulously designed for easy access to information. This includes related videos, articles, news headlines, market research, and trading signals, providing a comprehensive trading experience right at your fingertips.

In terms of pricing, we note that Saxo Bank's VIP and Platinum accounts offer highly competitive rates, whereas the Classic account lies closer to the industry average for pairs like AUD/USD. It operates on a commission-free basis, with the exception of a ticket fee for low-volume traders. Notably, the minimum deposit for the Classic account stands at €2,000, and a significant jump to AUD 300,000 for the Platinum account.

Pros

• High trust score
• Broad selection of tradeable instruments
• High-quality research materials
• Seamless platform and mobile app experience
• Commission-free trading

Cons

• High minimum deposit requirement
• No trading of cryptocurrencies

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3. CMC Markets

Best Platform Technology

CMC Markets has established itself as one of the most trusted brokers, with a robust regulatory framework and a publicly traded status underpinning its credibility. The platform has a wealth of features for ease of use. Its mobile app, for example, is robust, offering an array of research tools, charts, and predefined watchlists. However, indicators on the web version don't automatically sync with the mobile version.

For investment offerings, the broker has over 12,000 CFDs available, a multitude of forex pairs, and access to international equity markets. They also quote 158 currency pairs both ways, effectively doubling the total number of available pairs. Though cryptocurrency trading is only available through CFDs, it adds another dimension to their diverse range of offerings.

CMC Markets distinguishes itself as a low-cost leader. It offers consistently low trading costs, enabling its users to maximise their returns. Its active trader program, Price Plus Scheme, offers discounts on trading costs calculated based on the markets you trade and your overall monthly volumes.

CMC also provides comprehensive market research, advanced tools, and educational content for advanced and new users. However, it lacks progress tracking and quizzes, and its video content output has diminished.

Pros

• Competitive pricing and low-cost leader
• Over 12,000 tradeable instruments
• Robust, user-friendly platforms
• Comprehensive market research and advanced tools

Cons

• Lack of progress tracking in educational content
• Decrease in video content production

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4. City Index

Outstanding All-Round Offering

Operating under the NASDAQ-listed StoneX group, City Index's market includes crypto, CFDs, indices, and 84 forex currency pairs with over 25 global commodities. Its popularity is backed by affordable trading costs, zero minimum deposits, fee-free withdrawals, and an easy-to-use platform. The 0.5 - 1.22 pips minimum spread for major currencies is quite competitive and with no commission charged.

City Index's MetaTrader 4 platform is a familiar name to most forex traders. It also presents its proprietary 'At Pro' platform and 'Advantage Web' solution for a browser-based experience. The company's regulation under ASIC in Australia instills a sense of security and trust. You also get access to fast deposits and withdrawals through local banks, providing a safety net in case of any discrepancies.

New traders on City Index can access free video tutorials and trading examples and take advantage of Recognia, a premium analysis and trade recommendation tool. The broker's market news section provides regular updates on global markets by a team of dedicated market analysts. As a bonus, City Index offers a demo account option, an important feature for beginner traders wanting to practise and build confidence before plunging into the live markets.

Pros

• Wide array of trading markets, including forex, commodities, and cryptocurrencies
• Competitive spreads and zero commission on forex trading
• Comprehensive customer support options
• Robust educational resources and market analysis tools
• Regulated by ASIC in Australia

Cons

• CFD trading is inherently risky
• No direct shares or currency trading, only CFDs

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5. AvaTrade

Best for Novice Traders and Copy-Trading

Established in 2006, AvaTrade adheres to strict regulatory standards, being regulated in three tier-1 and four tier-2 jurisdictions worldwide, including the Australian Securities & Investment Commission (ASIC). The broker provides its proprietary platforms AvaTrade WebTrader, AvaOptions mobile app, and AvaTradeGO alongside the popular MetaTrader suite.

In terms of trading offerings, AvaTrade presents over 1,200 CFDs and 44 forex options. While the number of tradeable symbols varies per trading platform and the global entity that holds your account, the extensive range still presents traders with ample opportunities. You also get AvaSocial, ZuluTrade, and DupliTrade, which are efficient social copy-trading platforms, making AvaTrade one of the best forex traders for novices and copy-trading.

When it comes to pricing, AvaTrade aligns with the industry average. The spreads are roughly under one pip (0.9 pips), which, while not the most competitive, are reasonable. One aspect that AvaTrade needs to improve is the AvaOptions desktop platform. We found it slow to load and outdated, contrasting with its mobile counterpart's sleek design.

Pros

• Strong regulatory standing
• Variety of trading platforms
• Impressive selection of Forex options and CFDs
• Social copy trading platforms

Cons

• Average pricing model
• AvaOptions desktop platform is slow
• Mobile app isn't very advanced

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6. FXCM

Good Trading Platforms and Tools

FXCM has exceptional trading platforms and tools, professional trading, algorithmic trading, and social copy trading tools. In addition to MetaTrader's native Signals market, FXCM provides a mobile trading app and the ZuluTrade platform (only available in certain regions) for copy trading. Furthermore, whether you're a novice using Capitalise.io or an advanced Python coder, FXCM offers algorithmic trading solutions.

FXCM's cryptocurrency trading is available through CFDs, although the broker doesn't allow trading the underlying asset (e.g., buying Bitcoin). Regarding commissions and fees, FXCM's pricing for Forex trading is marginally higher than the industry average. However, the active trader discounts and the multi-tiered Active Trader Rebate Program somewhat mitigate this.

While FXCM's research and educational content is of good quality, it lags behind leaders like IG and Saxo Bank in terms of quantity and variety. Its range of CFDs is also relatively limited, and the recent discontinuation of its exchange-traded securities offering was disappointing. Plus, the effective spreads for Forex and CFD trading, with commissions factored in, are slightly above the industry average. MetaTrader 5 (MT5) is also missing from its platform lineup.

Pros

• Highly regulated with robust safety measures
• Excellent platforms and tools for algorithmic trading
• Monthly execution reports boosting transparency
• Wide range of trading platforms

Cons

• Limited CFDs and discontinued exchange-traded securities
• Above-average spreads for Forex and CFD trading
• Lack of MetaTrader 5 (MT5)

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7. Plus500

Best User-Friendly CFD Platform

Plus500 is a user-friendly platform regulated in several tier-1 and tier-2 jurisdictions. We appreciate the versatility of its CFD trading, which allows traders to speculate on price movements without owning the underlying asset. Forex trading at Plus500 is exclusively done through CFDs, offering a robust range of tradeable symbols, industry-average spreads, and CFD option contracts.

We cannot ignore Plus500's mobile app and WebTrader platform, both of which are seamlessly integrated. The design and functionality of the Plus500 app are user-friendly, closely resembling the WebTrader browser platform, making it easy for beginners to switch between the two. However, the mobile app does lack some advanced tools and features. Plus, it does not support MetaTrader, algorithmic trading, or social copy trading for Australians.

While Plus500 falls short of comprehensive educational content, it makes strides in its market research offering. We were impressed by its new +Insights module, which presents insightful data about Plus500 trader activity. This tool, along with the advanced sentiment features from Trading Central and FactSet, adds considerable value to the platform. Still, it has a long way to go to match the research prowess of leaders such as CMC Markets or Saxo Bank.

Pros

• Regulated in multiple tier-1 jurisdictions
• Easy-to-use trading platform ideal for beginners
• Competitive spreads for major forex pairs
• Robust CFD trading platform with a variety of tradable symbols

Cons

• Limited educational content
• Absence of MetaTrader, algorithmic, and social copy trading
• Market research could be improved
• Lack of advanced tools in the mobile app

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8. Pepperstone

Best for Competitive Rates

Established in 2010, Melbourne-based Pepperstone has a significant niche in the Australian forex market. Its dual offering of MetaTrader and cTrader makes it an ideal fit for those keen on algorithmic or copy trading. Their range of platform add-ons considerably enriches the MetaTrader experience, and their research offerings exceed industry norms.

With its agency execution model, Pepperstone presents competitive pricing on the Razor account when paired with the Active Trader program. And although the Standard account features higher spreads, it proves more cost-effective when considering the all-in cost of the Razor account. The Active Trader program also offers incentives with its rebate system tied to trading volumes.

In the realm of mobile trading apps, Pepperstone provides access to third-party platforms, including TradingView, MetaTrader (MT4 and MT5), and cTrader. Its collaboration with third-party providers such as Autochartist and Delkos offers pattern recognition, trading signals, and risk management tools. Their in-house research, daily articles, and videos cover technical and fundamental analysis, keeping traders informed about market trends.

Pros

• Highly regulated in two tier-1 jurisdictions
• Wide range of MetaTrader and cTrader add-ons
• Above-average research offerings
• Competitive pricing for active traders
• Array of tradeable markets

Cons

• Lack of a proprietary mobile app
• Average educational content
• No interactive courses or progress tracking

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9. Interactive Brokers Australia

Best for Global Market Access

Interactive Brokers is a reliable multi-asset broker. It offers competitive fees, insightful research and education, and an advanced, institutional-grade trading platform suite. For forex trading, commissions per side start at 0.00002 of the U.S. dollar trade value and can drop significantly for very active traders. However, the complexity of the trading tools may daunt beginners, and the absence of MetaTrader is disappointing.

Interactive Brokers impresses with its comprehensive access to global financial markets. It aggregates prices from 17 of the world's largest interbank forex dealers, boasting 135 market centres across 33 countries and 23 currencies, accessible on the Trader Workstation (TWS) desktop platform. Its primary mobile app, IBKR, has an Impact dashboard to assess portfolio metrics in relation to Environmental Social Governance (ESG) factors.

Finally, Interactive Brokers shines in the arena of market research, offering an array of third-party research unrivalled in the industry. It provides 220 services from 86 news and research providers, including forex-specific content. However, we would appreciate a further expansion of its forex-focused research and educational resources, particularly for less experienced traders.

Pros

• Extensive access to global financial markets
• Competitive pricing and discounts for active traders
• Robust mobile trading app
• Rich and varied third-party research

Cons

• Complexity of the TWS platform may overwhelm beginners
• Minimum commission implies higher costs for smaller trades
• Absence of MetaTrader as an alternative platform

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How We Choose the Best Forex Brokers in Australia?

We've been busy bees, sifting through the vast field of brokers, examining each under a microscope. We've compared them on crucial aspects such as:

#1. Regulatory Compliance

First and foremost, it's essential to check each Forex broker's regulatory compliance. We've analysed whether these brokers are fully licensed and regulated by the Australian Securities and Investments Commission (ASIC), ensuring Australian law protects your trading activities.

#2. Trading Platform and Software

A broker's trading platform can make or break your trading experience. We've evaluated each broker's platform for its user-friendliness, features, charting tools, and overall performance. These platforms must offer advanced functionality while still being intuitive enough for traders at all levels.

#3. Forex Pairs and Other Trading Opportunities

The variety of currency pairs and other trading instruments available can significantly impact your trading strategy. We've examined each broker's diversity and range of Forex pairs, indices, commodities, and cryptocurrencies.

#4. Fees and Commissions

When it comes to trading, every dollar counts. That's why we've scrutinised the fee structures, commissions, and hidden costs of each broker. A favourable fee structure can mean more profit for you.

#5. Customer Service

Even the most experienced traders may need assistance from time to time. We've assessed the quality of customer service provided by each broker, focusing on response time, communication channels, and the overall professionalism of their support staff.

#5. Educational Resources and Tools

Whether you're a novice or a seasoned trader, continual learning is key in Forex trading. We've explored the educational resources and tools provided by each broker, including webinars, eBooks, articles, and training courses, to help you stay ahead of the curve.

#6. Leverage and Margin Requirements

Leverage can amplify your profits, but it can also increase your losses. We've evaluated each broker's leverage and margin requirements policies, ensuring they strike a healthy balance between risk and reward.

Forex Trading in Australia

Forex trading in Australia is meticulously regulated by the Australian Securities and Investments Commission (ASIC). This financial regulator is tasked with maintaining the integrity of the market, weeding out malpractice, and issuing operational licenses to brokers. In alignment with Australian legislation, brokers are required to hold an ASIC license to facilitate Forex and CFD trading.

The Australian dollar (AUD) holds a prominent position in the global currency arena and has been a free-floating currency since 1983. It now ranks amongst the top five most frequently exchanged currencies worldwide. The fluctuating value of the AUD is closely tied to the volatile commodity prices, given Australia's abundant natural resource reserves.

The global currency market is a vast and liquid environment, teeming with buyers and sellers at all times. However, a cautionary note for those new to this domain - Forex trading involves complex and risky financial products. This complexity and risk mean they may not be suitable for every investor, with potential losses equalling the total amount invested.

Be thoroughly educated and prepared before venturing into the highly liquid and volatile world of Forex trading. The key is to approach the market cautiously, with comprehensive knowledge and a solid trading strategy.

How to Avoid Forex and CFD Scams in Australia?

The Forex and CFD markets offer a world of opportunity for traders, but they also attract their fair share of unscrupulous operators looking to take advantage of inexperienced investors. Here in Australia, we're not immune to such threats, but with some proactive measures and due diligence, you can greatly reduce the risk of falling victim to Forex and CFD scams. Let's explore some key strategies to help you stay safe.

#1. Use ASIC-regulated Brokers

The Australian Securities and Investments Commission (ASIC) is the regulatory authority for Forex and CFD trading in Australia. By choosing an ASIC-regulated broker, you can ensure that your broker is licensed and operates under strict regulatory oversight. Always check the broker's ASIC registration number and verify it on the ASIC's official website.

#2. Understanding the Market

Forex and CFD trading is complex and not suited for everyone. Make sure to invest time in educating yourself about these markets, their operations, and their risks. A sound understanding of the market will help you identify unrealistic claims and offers that are too good to be true.

#3. Be Wary of High Returns with Low Risk

No investment can guarantee high returns with low risk. If a broker or trading platform promises you surefire profits with minimal risk, it's likely a scam. Remember, in Forex and CFD trading, high returns typically come with high risks.

#4. Check Reviews and Reputation

Do thorough research on your prospective broker. Check online reviews and forum discussions to gauge other users' experiences. Keep in mind that while no broker will be without some negative feedback, a pattern of complaints regarding withdrawals, customer service, or platform stability should raise red flags.

#5. Be Sceptical of Pressure Tactics

Scammers often use high-pressure sales tactics to push you to invest. They may claim that a particular investment opportunity is scarce or time-limited to rush you into making a decision. Legitimate brokers will never pressure you into trading before you're ready.

#6. Understand the Terms and Conditions

Before signing up, make sure you fully understand the broker's terms and conditions. Consider withdrawal policies, fees, and any clauses that could be used against you.

#7. Practice on a Demo Account

Most reputable brokers offer demo accounts where you can practice trading without risking real money. Use this as an opportunity to familiarise yourself with the trading platform and its features. If a broker doesn't offer a demo account, this could potentially be a red flag.

Frequently Asked Questions (FAQs)

Here are some frequently asked questions on Forex trading in Australia:

Wrapping Up

Navigating the Forex trading landscape can be daunting, especially when it comes to choosing the right broker. The brokers we have highlighted stand out for their reliability, platform functionality, and diversity of trading options. However, it is crucial to select one that resonates with your specific trading style and financial goals.

At ExpertEasy, we believe knowledge is power, particularly in Forex trading's fast-paced environment. With this comprehensive review, we aim to equip you with the necessary information to make an informed decision on the broker that will best suit your trading aspirations. Remember, strategic decisions backed by comprehensive knowledge are the cornerstone of successful Forex trading. Keep learning and trade wisely.