Are you new to trading or stock investments? Or maybe you already have experience and want to explore more. No matter your level, you'll need the best stock brokers in Australia to help you trade.
But with so many choices, picking the right one can be confusing. In this article, we review the top options in Australia. Each review is transparent and honest and aims to help you find the best choice.
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%.
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.
Pepperstone
Best Australian-based broker for competitive rates (no minimum deposit, withdrawal, or deposit fees) with over 2300 tradable symbols and 60+ forex pairs.
9 Brokers for Aussie Traders and Investors
Remember, the choice of a broker can significantly affect your trading journey. Our incisive, detailed reviews of each forex broker can help you make an informed, well-thought-out decision.
1. IG Markets
Best Overall Broker
Std Bank Transfer: Free
Tradable Instruments: 16,000+
Avg AUD/USD Spread: 0.7%
Use IG If:
You want many market options, robust trading platforms, and great learning resources. IG is best for traders with experience who want to learn more and have more trading choices.
Don't Use IG If:
You are a beginner looking for easy social or copy trading features or if you don’t want to deal with high minimum deposits. Also, if you mainly trade on your phone and rely on chart indicators, IG’s mobile app may not be the best choice since it doesn’t sync these indicators.
Founded in 1974, IG Markets offers access to 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 with features, including integrated research tools and trading signals.
IG Markets stands out for its fast trades and reasonable prices for active traders. The pricing depends on how much you traded the previous month. It offers a Direct Market Access (DMA) account for experienced traders and a well-organised learning centre with helpful resources for beginners.
IG Markets lacks 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 plan to use your mobile to trade on IG, the minor inconvenience is that the mobile app doesn't sync chart indicators with 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
2. Saxo Bank
Best Web-Based Trading Platform
Std Bank Transfer Fee: Free
Tradable Instruments: 72,000+
Avg AUD/USD Spread: 0.6 Classic; 0.5 Platinum; 05 VIP
Use Saxo Bank If:
You're an active trader seeking a trusted, regulated platform with a broad range of instruments, high-quality research, and an exceptional web-based platform experience. Saxo Bank is ideal for advanced traders seeking complex order types and professional-grade platforms.
Don't Use Saxo Bank If:
You're a beginner looking for low minimum deposit requirements or if you're interested in trading physical cryptocurrencies. Saxo Bank's higher-tier accounts might not be suitable if you seek more competitive pricing on a smaller trading volume.
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. Its platform's user interfaces are consistent and incredibly user-friendly.
SaxoTraderGO offers advanced charting capabilities with many 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. It supports up to six monitors and algorithmic orders.
The SaxoTraderGO mobile app mirrors the web-based platform experience and is designed to provide easy access to information. It includes videos, articles, news headlines, market research, and trading signals, providing a comprehensive trading experience.
Regarding pricing, Saxo Bank’s VIP and Platinum accounts have very competitive rates, while the Classic account has average prices for pairs like AUD/USD. It doesn’t charge commissions, except for a small fee on low-volume trades. The minimum deposit is €2,000 for the Classic account, but it jumps 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
3. CMC Markets
Best Platform Technology
Forex Pairs: 150+
Tradable Instruments: 12,000+
Min AUD/USD Spread: 0.7 (5% margin rate)
Use CMC Markets If:
You value a platform offering competitive pricing, a diverse range of investment offerings, and innovative technology. CMC Markets is particularly well-suited for traders interested in a low-cost, highly functional trading environment with access to a broad spectrum of trading instruments.
Don't Use CMC Markets If:
You rely heavily on educational content, especially videos, and appreciate features like progress tracking for learning. Also, if you prioritize seamless sync between web and mobile versions for indicators, the limitations of CMC Markets in this regard might be a deterrent.
CMC Markets is well-regulated and publicly traded, making it a trustworthy choice. The platform has valuable features and is easy to use. Its mobile app offers research tools, charts, and ready-made watchlists. However, indicators on the web version do not sync automatically with the mobile app.
The broker offers over 12,000 CFDs, many forex pairs, and access to international equity markets for investment offerings. They also quote 158 currency pairs both ways, doubling the total number of available pairs. Though cryptocurrency trading is only available through CFDs, it adds another dimension to their diverse offerings.
CMC Markets is a leader in low trading costs. Its active trader program, Price Plus Scheme, offers discounts on trading costs based on the markets you trade and your overall monthly volumes. You also get comprehensive market research, advanced tools, and educational content. However, it does not have a progress tracker or 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
4. City Index
Outstanding All-Round Offering
Std Bank Transfer: Free
Forex Pairs: 84
Margin Rate: 3.33% (Most Forex Pairs)
Use City Index If:
You're looking for a well-rounded trading experience across multiple markets, with robust educational resources, comprehensive customer support, and competitive pricing. City Index is especially well-suited to beginners and intermediate-level traders due to its wide variety of trading tools and educational content.
Don't Use City Index If:
You're not comfortable with the risks associated with CFD trading or are looking for direct shares or currency trading options. While City Index provides a diverse range of market offerings, its primary focus is on CFDs, which carry a higher level of risk.
City Index is part of the NASDAQ-listed StoneX group and offers trading in crypto, CFDs, indices, 84 forex pairs, and over 25 global commodities. It has low trading costs, no minimum deposit, free withdrawals, and a user-friendly platform. The minimum spread for major currencies is 0.5 - 1.22 pips.
City Index offers the well-known MetaTrader 4 platform, along with its own ‘At Pro’ platform and ‘Advantage Web’ for browser-based trading. It is regulated by ASIC in Australia and provides fast deposits and withdrawals through local banks, giving traders extra peace of mind.
New traders on City Index can access free video tutorials, trading examples, and market news updates from expert analysts. They can also use Recognia, a tool that provides market analysis and trade recommendations, or practice with a demo account before trading with real money.
Pros
- Wide array of securities
- Zero commission on forex trading
- Comprehensive customer support options
- Robust educational resources
- Regulated by ASIC in Australia
- Competitive spreads
Cons
- CFD trading is inherently risky
- No direct shares or currency trading, only CFDs
5. AvaTrade
Best for Novice Traders and Copy-Trading
CFDs: Over 1200
Forex Pairs: 50+
Avg AUD/USD Spread: 0.9 Pips
Use AvaTrade If:
You're a novice trader seeking a regulated, secure platform with a range of trading options and platforms, including copy trading. AvaTrade's various educational resources and innovative risk management tools, like AvaProtect, also make it suitable for traders who wish to develop their knowledge and skills.
Don't Use AvaTrade If:
You prefer a highly competitive pricing model or need a more sophisticated desktop platform than the current AvaOptions offering. If you seek mobile trading apps on par with those offered by industry leaders such as Saxo Bank or CMC Markets, you may want to explore other options.
Established in 2006, AvaTrade adheres to strict regulatory standards, 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.
Regarding 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
6. FXCM
Good Trading Platforms and Tools
Tradable Symbols: 400+
Forex Pairs: 40+
Avg AUD/USD Spread: 1.9
Use FXCM If:
You are interested in algorithmic trading and value a range of robust platforms and tools. FXCM is also suitable if you appreciate transparency and strong regulatory oversight.
Don't Use FXCM If:
You desire a wide selection of CFDs, plan to trade with MetaTrader 5 (MT5), or are looking for more competitive spreads for Forex and CFD trading. You might need to explore other platforms if you're interested in trading the underlying assets of cryptocurrencies.
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 offers cryptocurrency trading 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.
FXCM offers good research and educational content but has fewer options than IG and Saxo Bank. Its selection of CFDs is limited, and the recent removal of exchange-traded securities was a downside. The trading costs, including spreads and commissions, are slightly higher than the industry average. Additionally, MetaTrader 5 (MT5) is not available on its platform.
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)
7. Plus500
Best User-Friendly CFD Platform
Financial Instruments: 2800+
Forex Pairs: 65+
Withdrawal/Deposit Fee: No
Use Plus500 If:
You are a beginner seeking a user-friendly platform with a strong focus on CFD trading or an experienced trader who values competitive spreads and a broad range of tradable symbols.
Don't Use Plus500 If:
You are keen on extensive educational content, desire to trade with MetaTrader, or are interested in algorithmic and social copy trading. Also, consider looking elsewhere if you require advanced mobile trading tools.
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 seamlessly integrated mobile app and WebTrader platform. The app's design and functionality are user-friendly and resemble the WebTrader browser platform, making it easy for beginners to switch between the two. However, the mobile app lacks some advanced tools and features. It also does not support MetaTrader, algorithmic trading, or social copy trading for Australians.
While Plus500 lacks 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 and the advanced sentiment features from Trading Central and FactSet add 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
8. Pepperstone
Best for Competitive Rates
Tradable Symbols: 2300+
Forex Pairs: 60+
Withdrawal/Deposit Fee: No
Use Pepperstone If:
You are an active trader seeking competitive rates or someone keen on diverse platform options like MetaTrader and cTrader with a wide range of add-ons. You will also benefit from the broker if you appreciate comprehensive research resources.
Don't Use Pepperstone If:
You prefer a broker with a proprietary mobile trading app or desire more structured and comprehensive educational content, including interactive courses and progress tracking.
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 offers competitive pricing on the Razor account when paired with the Active Trader program. Although the Standard account features higher spreads, it is more cost-effective than the Razor account's all-in cost. The Active Trader program also offers incentives, with its rebate system tied to trading volumes.
Pepperstone provides access to third-party platforms in mobile trading apps, 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
9. Interactive Brokers Australia
Best for Global Market Access
Std Brokerage Fee (Australian Instruments): $6 or 0.08%, whichever is higher
Number of Tradable Currency Pairs: 100+ on 24 Currencies
Avg AUD/USD Spread: 0.3 Pips
Use Interactive Brokers If:
You are a professional or experienced trader looking for extensive global market access, competitive pricing, and comprehensive research resources. Also, if you appreciate the sophisticated Trader Workstation platform and an advanced mobile app.
Don't Use Interactive Brokers If:
You are a beginner who might be overwhelmed by the complex trading tools or someone who prefers trading in smaller volumes and finds the minimum commission structure costly. Additionally, if you prefer the MetaTrader platform, this may not be the broker for you.
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 about Environmental Social Governance (ESG) factors.
IBKR excels in market research and offers a wide range of third-party research. It provides 220 services from 86 news and research providers. However, its forex-focused study and educational resources are limited, 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
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 being intuitive enough for traders at all levels.
#3. Forex Pairs and Other Trading Opportunities
The variety of currency pairs and other trading instruments 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 each broker's fee structure, commissions, and hidden costs. A favourable fee structure can mean more profit for you.
#5. Customer Service
Even the most experienced traders may occasionally need assistance. We've assessed the quality of customer service each broker provides, 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. To help you stay ahead of the curve, we've explored each broker's educational resources and tools, including webinars, eBooks, articles, and training courses.
#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 balance 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 market's integrity, 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) is prominent in the global currency arena. It has been a free-floating currency since 1983 and now ranks among the top five most frequently exchanged currencies worldwide. Given Australia's abundant natural resource reserves, the AUD's fluctuating value is closely tied to volatile commodity prices.
The global currency market is a vast and liquid environment, always teeming with buyers and sellers. However, a cautionary note for those new to this domain is that Forex trading involves complex and risky financial products. These complexities and risks may not suit every investor, and potential losses can equal the total amount invested.
Be thoroughly educated and prepared before entering the highly liquid and volatile world of Forex trading. The key is approaching 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 proactive measures and due diligence, you can significantly 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 Australia's regulatory authority for Forex and CFD trading. 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 are complex and not suitable for everyone. Please educate yourself about these markets, their operations, and their risks. A sound understanding of the market will help you identify unrealistic claims and offers that seem 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. 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, fully understand the broker's terms and conditions. Consider withdrawal policies, fees, and any clauses the platform can use 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 to familiarise yourself with the trading platform and its features. If a broker doesn't offer a demo account, this could be a red flag.
Frequently Asked Questions (FAQs)
Here are some frequently asked questions on Forex trading in Australia:
Is Forex trading taxable in Australia?
Yes, Forex trading is subject to tax in Australia. Any income derived from Forex trading is considered part of your assessable income and should be reported on your annual tax return.
The specifics of how Forex gains are taxed can be complex, and it's influenced by factors such as whether you're trading as a hobby or a business. It's always a good idea to consult with a tax professional or the Australian Taxation Office (ATO) for personalised advice.
What currency pairs are most commonly traded in Australia?
While Forex traders in Australia can trade a wide variety of currency pairs, the most commonly traded pair is arguably the AUD/USD due to its relative local familiarity. Other major currency pairs, such as EUR/USD, USD/JPY, and GBP/USD, are popular among Australian traders. The 'right' currency pair for you will depend on your specific trading strategy, risk tolerance, and market knowledge.
How can I start Forex trading in Australia?
Starting Forex trading in Australia involves several steps. First, educate yourself about the Forex market, including the factors that influence currency prices, trading strategies, and the risks involved. Next, choose a reputable, ASIC-regulated broker that aligns with your trading needs.
Then, open a trading account with this broker, deposit your trading capital, and familiarise yourself with the trading platform using a demo account if available. Once you're comfortable, you can begin trading on the live market. Remember to continually review your trading strategy and stay updated on market news.
Can I lose more money than I deposit in Forex trading in Australia?
With the most reputable, ASIC-regulated brokers, you won't lose more money than you've deposited in your account. This is due to a policy known as negative balance protection, which automatically closes out your positions once your account balance approaches zero.
However, it's important to remember that Forex trading is risky, and you should only trade with money you can afford to lose. Always check whether your chosen broker offers negative balance protection before you start trading.
Is leverage in Forex trading a good idea for Australian traders?
Leverage in Forex trading can be a double-edged sword and must be used wisely. On the other hand, it allows Australian traders to open larger positions than their initial investment would allow, potentially leading to bigger profits.
However, the risk is equally magnified – if the market moves against your position, you can end up losing more than your initial investment. It's crucial to understand the implications of leverage and use risk management strategies to limit potential losses. Always remember that while the prospect of higher profits is attractive, the risks with leverage are high.
Forex trading carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade Forex, you should carefully consider your investment objectives, level of experience, and risk appetite.
Remember, it is possible to sustain a loss of some or all of your initial investment, which means that you should not invest money that you cannot afford to lose. If you have any doubts, it's advisable to seek advice from an independent financial advisor.
Be aware and understand the risks associated with Forex trading and seek educational resources to equip yourself for the Forex market better. Always use risk management strategies and mindful decision-making to safeguard your investments.
Wrapping Up
Navigating the Forex trading landscape can be daunting.
The brokers we have highlighted stand out for their reliability, platform functionality, and diversity of trading options. Choose which resonates with your trading style and financial goals.
At ExpertEasy, we believe knowledge is power, particularly in the fast-paced Forex trading environment. Remember, strategic decisions backed by comprehensive knowledge and research are the cornerstone of successful Forex trading. Keep learning and trade wisely.
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