If you are from Australia or you want to trade with an Australian broker, there is good news for you. There are several good brokers in Australia, and we found the Best Australian Based Forex Broker after doing extensive research. In this article, we will let you know what you should consider before choosing a Forex broker and what the Best forex broker in Australia offers.
There are many well-known and regulated forex brokers in the world, and we will guide you to find the best Australia based forex broker. As we know, the Forex market is the world's biggest financial market with daily transactions of over 5.3 trillion US dollars. However, the price movement in the forex market happens due to the interventions of institutional traders.
Therefore, the involvement of retail traders is very little in the Forex market. The main way to trade in the forex market by retail traders is the trade through a retail Forex broker. There are several ASIC regulated brokers in Australia. Before we go through on broker list, we like to give you a small idea about ASIC and how it regulates forex broker.
Australian Securities and Investments Commission Definition
Australian Securities and Investments Commission is a distinct government association. ASIC is liable for laws in regions identified with investments, life and general assurance, banking and finance. Besides, the Commission is Australia's corporate controller, with obligations to implement laws for organizations and financial administrations. Including banks, credit associations and home loan and finance brokers. However, their objective has to lessen extortion and unreasonable practices to help and secure consumers. Also, assure organizations are performing accurately. So, The Commission has liabilities to the following parties:
- Financial professionals
Organizations that associate with ASIC or visit their site will discover data relating to renewing or enrolling a business name. Also, launching and running a company and understanding shares and yearly proclamations. Moreover, financial professionals can look for tips to applying for auditor enrollment, data about acquiring a credit permit and steps toward winning an AFS permit. That has required when maintaining a financial administration business.
Australian Securities and Investments Commission Roles
Underneath the financial administration's laws, the ASIC has facilitative, administrative and implementation powers, which incorporate the ability to:
- Australian Securities and Investments Commission roles to make rules planned for guaranteeing the honesty of financial markets.
- Explore associated penetrates with the law and in this manner, expect individuals to deliver books or answer inquiries at an assessment.
- Australian Securities and Investments Commission roles to issue encroachment circulars in corresponding to accused breaches of certain laws.
- Restrict individuals from taking part in credit activities or offering financial services.
- Australian Securities and Investments Commission roles to look for common punishments from the courts, and
- Commence prosecutions.
Australian Securities and Investments Commission roles to enhance investor and financial consumer faith and certainty by instructing them and the general population on investor liability. Therefore, ASIC considers gateman to account. Besides, it examines consumer conduct and how investors and consumers decide. Apart from this, ASIC likewise guarantees reasonable and straightforward markets by assuming a role in market management and corporate administration.
Ideal Forex Broker Characteristics
Forex market is the world’s biggest trading market with daily transactions over $5.3 trillion US Dollar. The main market mover in the forex market is Central Banks, Financial institutes, and other institutional traders. However, the impact of retail traders is very less in the Forex market. Therefore, somehow the forex market is very risky for retail traders. By identifying good broker traders can mitigate some of the risks.
In addition, a bad forex broker can make the trading experience worse for retail traders. There are some possibilities that the Forex brokers can manipulate the price by creating false moves or false spikes to eat clients’ stop-loss orders. Therefore, a forex broker with proper regulation is compulsory to make retail traders successful.
Moreover, if you want to make and investment in the forex market through a forex broker, you should follow the checklists before choosing the right forex broker -
Most of the well-known and loyal forex brokers regulated by an authority that has enormous trustable positions among traders. A regulation ensures forex traders that their investments are secured in the forex broker. Most of the well-known regulations cover insurance of investments. Therefore, a trader has a chance to get his investment back in case of loss that occurred by the broker.
However, regulated brokers maintain a standard of service that helps the trader to perform their trading activity without any hassle. Examples of the Forex brokers’ regulations are- ASIC, CySEC, FCA, etc.
2. Safety of Funds
A regulated forex broker ensures the safety of funds compared to unregulated brokers. However, the question arises when the Forex broker mixes your investment with their day to day activities.
A good and regulated forex broker never mixes clients’ investments with their daily activities. Some brokers use segregated accounts with tier 2 securities for the client’s investment to keep their funds secure and separate from the broker’s own funds.
3. Trade Execution
Based on the execution of trade Forex brokers are differentiated in several ways.
- ECN Broker - Electronic Communications Networks (ECNs) gives traders access to other participants in the Forex market.
- STP Broker - Straight Through Processing (STP) brokers receive a client’s order and pass on the orders directly to their liquidity provider without any intervention.
- Market Maker Broker - Market Maker brokers do not have any liquidity providers. Therefore, it acts as a liquidity provider.
4. Availability of Liquidity
As we know, the Market maker broker does not have any liquidity provider as it works as a liquidity provider itself. Therefore, the question arises if the broker has enough liquidity to fill-up clients’ orders or not. Same to the ECN or STP broker, it is possible that the linked liquidity provider does not have enough liquidity to fill-up your order. Therefore, before choosing a broker, it important to ensure that the broker has linked to a liquidity provider that has enough liquidity to fill trading orders.
5. Customer Support
A good Forex broker should have good customer support. Most of the regulated forex brokers have a live chat, phone or email support for their clients. Some brokers recruit customer service managers to look after trading accounts in a zone or area.
Best Australian Based Forex Broker
Trading forex markets in Australia is popular among citizens and international. Therefore, many traders seek Australian Forex brokers. Before performing business as a Forex broker, the company must become authorized by the Australian Securities & Investment Commission (ASIC). ASIC is the ultimate financial markets regulator in Australia.
Australian Securities Commission dissolved and established ASIC in 1998 as a national regulatory authority. This authority reports to the treasurer and administers legislation under the Insurance Act of 1984, the National Consumer Credit Protection Act of 2009, and the Corporations Act of 2001. There are many well-known brokers, as mentioned below, are performing their business in Australia and giving extensive services to traders from Australia.
- Moneta Markets
- FP Markets
Note that the list of the best Forex broker in Australia is randomized and not ranked, it could have been in any order.
TMGM is multi licensed broker, which is based in Australia, the broker was founded in 2013 and holds over the ASIC, FMA and VFSC licenses. TMGM was formally known as TradeMax Global Markets. This broker should be considered as a sound option, because it offers a True ECN experience for traders. This means that you trade without a middlemen.
TMGM offers you to trade more than 12,000 financial products on the MT4, MT5 and IRESS platforms. You can trade Forex, Indices, Shares, Commodities and Cryptocurrencies, all with competitive spreads. Furthermore, the deposit funds of clients are kept in segregated accounts, which means more safety for you.
2. Moneta Markets
Moneta Markets is a subsidiary of Vantage International Group Limited (VIG) with over 10-years of experience as a financial trading service provider. It was established in 2009 and is licensed in 3 jurisdictions, with a trading volume of over $100 billion monthly.
Moneta Markets simplified the trading experience having a single account type. Traders can perform all trading activities through a single trading account. Other features of the Moneta Markets Live account is mentioned below:
- Easy Account Opening
- Fast Deposits & Withdrawals
- Up to 500:1 leverage
- Trading Cost is very low.
- 24/5 Account related support.
3. FP Markets
FP Markets is an ASIC regulated broker, and it offers tightest spreads on various forex pairs. Also, they offer straight market entry estimating in blend with standard CFD market makers. FP Markets offers one of the fastest execution speed in the market for its traders.
With more than 60 significant, minor and exotic currency pairs to look over, traders can create complex trading methodologies including a range of forex instruments.
Plus500 is an ASIC regulated CFD provider that permits traders to use broad hazard management tools. Just as different order types and isolated customer funds. Besides, Plus500 guarantees trader's misfortunes are constrained by giving negative balance protection a component offered by a couple of Australian suppliers.
eToro has a special trading platform with default social trading instruments. Besides, with more than 300 million trades done on eToro. However, there is an enormous network that connects to social organization. This permits traders to talk about strategies, thoughts and choices on their social feed. The social trading usefulness exists on the computer and mobile platform.
Above mentioned brokers are the top forex broker from Australia. They are reliable, and they have the fastest order execution, fastest deposit/ withdrawal facilities with the lowest transaction fee, lowest spread, lowest commission, and many more other facilities. Retail traders involvement in the forex market has been increasing day by day. However, making money from the forex market is not an easy task. Besides, you need to practice a lot in a demo account before proceeding to real money investment. However, if you are eager to trade with the best forex broker in Australia, you are recommended to open a demo trading account and test the trading environment before making any investment.
Think we missed something? Let us know in the comment section below!