5 Best Australian Forex Brokers in 2021

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Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

Australia has become a top destination for international Forex/CFD brokers, and remains popular among domestic Australian Forex traders. See below our most valued Australian brokers:

1
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
ECN-style trading
Daily market research and Autochartist access
2
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
High level regulation in multiple jurisdictions
Impressive range of tradeable assets including vanilla options and gold options
3
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Solid broker for scalping and hedging
Institutional-style trading opportunities for retail traders
4
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Best ECN execution on the MT4 platform
Excellent implementation of cTrader and Smart Trader Tools
CFD service 72% lose money
5
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Best platform for new Forex traders
Trailing stop losses
Get Started
CFD service 72% lose money

FP Markets, ECN trading with leverage up to 1:500.
AvaTrade, Highly regulated, choice of fixed or floating spreads.
BlackBull Markets, Competitive ECN trading environment with scalping and hedging available.
Pepperstone, Great ECN execution on MT4 platform.
Plus500, Wide range of CFDs + trailing stop losses.

FP Markets

5.0/5 in this category
In Summary
ECN trading with leverage up to 1:500

FP Markets is one of the primary contenders for Best Forex Broker Australia as it offers an excellent selection of over 10,000 assets across three trading platforms plus an outstanding technology infrastructure. Regulation by the Australian Securities and Investments Commission (ASIC) ensures domestic and international traders have a secure trading environment to manage their portfolios. Besides the market leading MT4 trading platform, the MT5 platform is also available. FP Markets is also home to the best online trading platform in Australia with its Iress proprietary solution.

Pros

  • Choice of trading platforms and auxiliary trading tools

  • Very competitive cost structure and excellent asset selection

  • Low minimum deposit requirement and leverage of up to 1:500

  • Well-regulated and trustworthy

Cons

  • Availability of Iress geographically restricted

 

AvaTrade

4.5/5 in this category
In Summary
Highly regulated, choice of fixed or floating spreads

Aussie Forex online traders who desire trading platform choices from an ASIC-regulated entity will find a good match in AvaTrade. While the MT4/MT5 trading platforms remain the most demanded ones, this broker features its proprietary WebTrader for manual traders, AvaOptions is an options trading alternative, and AvaTraderGO caters to those in favor of trading from their mobile devices. DupliTrade supports social trading. The regulatory environment is excellent, and AVA Trade offers an outstanding asset selection across seven categories, granting cross-asset diversification.

Pros

  • High-quality educational offering via SharpTrader

  • Excellent choice of trading platforms catering to various trading needs

  • Broad asset selection and cross-asset diversification opportunities

  • Well-regulated and trusted broker with oversight from a central bank

Cons

  • Trading costs competitive but nothing special

 

BlackBull Markets

4.5/5 in this category
In Summary
Competitive ECN trading environment with scalping and hedging available

BlackBull Markets is a rare New Zealand broker, regulated by New Zealand Financial Market Authority (FMA) which is smaller than ASIC but equally valuable. In 2019, this broker was among one of the fastest-growing companies. The commission-free account features a minimum spread as low as 0.8 pips, while the commission-based alternative commences from 0.1 pips for a cost of $6 per round lot. BlackBull Markets additionally maintains a 0 pips institutional account with a negotiable cost structure.

Pros

  • ECN/NDD execution model with deep liquidity

  • Institution-grade pricing for retail traders via proprietary price aggregation

  • ZuluTrade and Myfxbook for social trading

  • Leverage of up to 1:500

Cons

  • Cryptocurrencies and equity trading not available

  • No MT4/MT5 plug-ins offered

 

Pepperstone

4.5/5 in this category
In Summary
Great ECN execution on MT4 platform

Pepperstone, regulated by ASIC, is one of the largest MT4 brokers globally. Besides MT4 and MT5, it maintains cTrader, giving Australian Forex traders access to a trading platform developed for the electronic communications network (ECN). With execution speeds of 30 milliseconds, automated traders and high-frequency operations will benefit enormously from the technological infrastructure. VPS hosting adds another essential tool for automated trading solutions. Pepperstone has no minimum deposit and grants maximum leverage of 1:500, but it does recommend a $500 portfolio.

Pros

  • Excellent choice of trading platforms consisting of MT4/MT5, and cTrader

  • Market-leading MT4/MT5 upgrade package, Autochartist, and API trading

  • Social trading support via Myfxbook, MetaTrader Signals, and DupliTrade

  • Leverage of up to 1:400 and superb trade execution

Cons

  • Minimum deposit slightly higher than industry average

 

Plus500

4.5/5 in this category
In Summary
Wide range of CFDs + trailing stop losses

Plus500 was founded in 2008 and has its main offices located in Sydney, Australia. The sophisticated Plus500 trading platform is considered to be one of the best platforms for new forex traders to cut their teeth on. New traders can also enjoy useful features such as trailing stop losses, which help to closely control potential losses on falling trades, along with a free demo account, which gives you all of the features and tools of a live account, without the associated risks. Plsu500 traders can enjoy instant access to over 2000 instruments, which includes trade on movements in the price of forex, indices, shares, commodities, ETFs cryptocurrencies, and options. 

Pros

  • Well-regulated globally

  • Broad asset selection in equities and options

  • Guaranteed stop-loss order

Cons

  • Low leverage for retail traders

  • Sub-standard trading platform without support for automated or social trading

  • No research and limited, below-average educational content

  • Lack of trading tools

 

Is Forex Legal in Australia?

Forex trading is 100% legal in Australia. The Australian Securities and Investments Commission (ASIC) regulates FX trading in Australia. All domestic brokers must obtain an Australian Financial Services License (AFSL) license, while Aussie Forex traders may also trade with international brokers. The Corporations Act 2001 outlines rules and regulations for Australian financial firms, including Forex brokers in Australia, to remain compliant with the law. It is also paramount for Australian Forex traders to report profits to the Australian Taxation Office (ATO), regardless of whether their portfolios are in Australia or offshore.

Here are some core trading aspects traders should seek from their Australian Forex broker:

  • Regulation - It will ensure that your capital is protected, and you sleep well at night. ASIC-regulated brokers are among the most trustworthy and transparent. All our Top  Australian Forex Brokers offer are well-regulated.

  • Cost Structure - Make sure that you have access to competitive pricing. Active Forex traders should look for an ECN account with raw spreads and a competitive commission. 0 pips and a charge of up to $7 per round lot is acceptable. FP Markets, FXTM, Pepperstone, and BlackBull Markets fulfill this category.

  • Asset Selection - Diversification remains a core aspect of risk management. Make sure you have broad choices across multiple categories. FP Markets and AvaTrade grant excellent choices.

  • Trading Platforms - Most Forex brokers offer MT4, but make sure your broker grants add-ons or an excellent proprietary alternative. FP Markets and Pepperstone lead in this category, chased very closely by AVA Trade and FXTM.

Tips for Forex Trading in Australia

While many new Aussie Forex online enthusiasts focus on trading strategies and profits, compare Forex brokers, and try to find the Best Trading Platform Australia, they miss some of the most critical aspects for successful Forex trading. Below are a few tips for Forex trading in Australia to make sure that you have the proper non-broker trading conditions.

  • Trading Space - You must have a distinct trading space, even if you trade from home, as all retail traders do. Ensure it is quiet so that you can focus on trading, which is one of the most challenging mental activities you will encounter.

  • Avoid Distractions - Since Forex trading takes place online, there are countless distractions, primarily from social media. Avoid them when you trade. Learn to dedicate specific time slots per day for trading, and during those periods, invest your energy on nothing but trading. Otherwise, your results will reflect your distractions.

  • Breaks - One of the most ignored aspects of this time-consuming profession, even for retail trades, is the necessity to take breaks. Starring at screens will place your brain on autopilot, and you will be prone to miss alerts and trading signals.

  • Exercise and Diet - It may sound far-fetched, but exercise improves your mental strength, which you need when you trade Forex. A healthy diet adds to your overall well-being, can encourage you to exercise, and ultimately give you another edge.

  • Analyze and Visualize - Always analyze your trades, profits, and losses. There is constant room for improvement, even if you only squeeze out a few pips per trade. They add up and will make a significant difference. Visualize your trading strategy, your upcoming trading day, and how you will aim to become a better Forex trader.

Understanding the Australian Forex Market

 Founded in July 1998, it is one of the most capable and trusted regulators globally, second only to the UK Financial Conduct Authority (FCA). Therefore, Australian regulated Forex brokers have emerged as some of the most sought-after brokers, offering the most competitive and secure trading environment available today.

The Forex market remains the most liquid financial market globally, and thousands of new traders open accounts daily. Over 1,500 Forex / CFD brokers globally are catering to the growing demand, with new ones setting up shop every month. Following regulatory changes in the E.U., affecting former broker hotspot Cyprus, Australia took the top spot due to its business-friendly environment allowing Forex brokers to expand their business while offering traders security. ASIC established itself as a trustworthy and proactive regulator, giving traders a peace of mind when trading with any of the regulated brokers. All ASIC-regulated brokers operate under the protection of the Act of Grace mechanism under section 65 of the Public Governance, Performance, and Accountability Act 2013, while traders enjoy the protection under the Scheme for Compensation for Detriment caused by Defective Administration (CDDA Scheme).

With many new traders entering the world of Forex daily, and popularity among Australian ones rising, we have examined the best Australian Forex brokers and created a Top  list. Among them are the best Australian Forex brokers for beginners, where excellent educational tools await those traders with a sincere interest in becoming an Aussie Forex online master.

The Australian Forex market experienced a growth burst driven by regulatory changes enforced in the European Union in 2018. These changes rendered the E.U. uncompetitive, harming former safe-haven Cyprus. The transition is ongoing, but Australia is one benefactor of the slow exodus out of the EU by Forex brokers and traders alike. While Australia will soon receive competition from the U.K. following Brexit and a return to more market-friendly policies free of E.U. regulation, ASIC maintains a competitive environment for finance. Domestic trends show a continuous increase in demand, partially driven by the secure trading environment, low capital requirements, and high leverage.

FP Markets and Pepperstone remain two of the most trusted and recognized brokers globally, confirmation of the outstanding effort by the Australian regulator in promoting a platform for growth. Over the next decade, the Australian Forex market is forecast to capture a more substantial market share, with its close relationship and economic dependence on China, the largest Forex market globally, providing an invaluable catalyst. Forex trading Australia remains a high-growth sector to monitor, with exciting opportunities from its emerging FinTech industry transforming the market. The best Australian Forex brokers invest heavily in their technology infrastructure, providing a significant competitive edge to traders, eliminating slippage and requotes.

Australian Forex Market Regulation

Australian Forex market regulation remains the responsibility of the Australian Securities and Investments Commission (ASIC). It maintains one of the most competitive trading environments globally and is the sole Tier 1 regulator, where brokers offer a maximum leverage of 1:500 to all traders. Most regulators lowered it to 1:30 for retail traders, in an erroneous assumption that it would reduce trading losses. The absence of risk management is to blame for that, a concept which regulators tend to misunderstand. Therefore, ASIC-regulated brokers are well-positioned to take market share, particularly from E.U. counterparts, where CySEC-regulated entities operate with the distinct disadvantage of the European Securities and Markets Authority (ESMA).

While the size of the Australian Forex market is smaller than many of its counterparts, and the geographical location is distant from most regulatory jurisdictions, technology remains one of its most significant advantages. Australia adopts advancement swifter than other countries. Many Australian regulated Forex brokers deploy superior technology, FinTech advancements, and high-speed fiber-optic connections. Blockchain technology is also finding a home in Australia, which continues to attract global talent. The combination of all aspects drives domestic demand, while ASIC offers Australian brokers the right platform for international expansion.

ASIC Regulation

Technology is one of the most significant advantages of Australian Forex brokers, closely followed by ASIC regulation. The primary role of ASIC is the regulation of the financial market and the protection of Australian consumers, investors, and creditors. All domestic brokers must obtain a license, and capital requirements must be maintained, together with the segregation of client funds from corporate ones. While ASIC continues to face criticism for inefficiencies to protect consumers from complex financial institutions, it has done an excellent job with Forex brokers.

How Does a Regulated Market Benefit You?

Trading with a regulated Forex broker in a regulated market protects traders from malpractice, pricing manipulation, and other fraudulent activities. It also ensures the segregation of deposits from corporate accounts and that the broker does not use them for internal trading activities or other financial transactions. In case of inappropriate behavior by a broker, ASIC has the capabilities to enforce the law, impose fines, and revoke licenses. While scams still exist, trading in Australia, or as an international trader with an Australia Forex broker, offers one of the most secure trading environments available.

How to Verify Your Broker is ASIC Regulated?

Verification is a simple two-step process. First, locate the Australian Financial Services License (AFSL) license number, usually noted at the bottom of the homepage of each regulated Australian Forex broker. Next, compare the six-digit AFSL license number with the ASIC database to confirm you are dealing with a regulated entity.

How to Choose a Forex Broker (as an Aussie Trader)

With demand for Forex trading on the rise across Australia, it can be a daunting task to identify the Best Online Broker Australia. While there is not one that suits all traders, all competitive ones have several aspects in common. Below is a list of what an Aussie trader should look for to compare Forex brokers effectively before committing to one.

  • Spreads and Commissions - Any contender for Best Forex Broker Australia will maintain a low-cost trading environment. A commission-free account should keep the minimum spread below 1 pip, like BlackBull Markets and AvaTrade, and a commission-based version must offer raw ones between 0 and 0.1 pips with a cost of no more than $7 per round lot. FP Markets, FXTM, Pepperstone, and BlackBull Markets satisfy this requirement.

  • Trading Platforms - Traders should either seek the MT4/MT5 trading platform with upgrades, as provided by FP Markets, FXTM, and Pepperstone, or opt for a competitive proprietary alternative, where FP Markets is home to the Best Online Trading Platform Australia. An excellent charting package, in-depth analytic tools, a user-friendly interface, and no slippage or requotes must exist. Trading platforms may either come as a desktop client, a webtrader, or a mobile version.

  • International Offering - Many new to FX trading in Australia may want to focus on domestic assets like Australian Dollar quoted currency pairs and crosses or Australian equities listed on the ASX. It is essential to have a wide range of assets globally, to diversify portfolios, and reduce risk. FP Markets and AvaTrade excel in this category.

  • Spreads, Commissions, and Leverage - Leverage is one of the most beneficial tools for Forex traders if deployed accordingly and in conjunction with risk management. Forex brokers in Australia offer 1:500, which allows brokers and traders to operate with a significant competitive edge.

  • Account Types - A growing number of brokers offer only one account type with equal access to trading services, while others either implement superior services for more substantial deposits or different trading strategies. Traders should avoid brokers that discriminate by portfolio size. The sole acceptable distinction is between a commission-free and a commission-based account. All five on brokers on our list of Best Online Broker Australia provide equal access to the core trading environment.

  • Minimum Deposit - A low minimum deposit ensures accessibility to all traders, without the pressure for a significant capital commitment. It also allows traders to adequately build a portfolio through monthly deposits, a vital aspect for successful Forex traders. Pepperstone has no requirement, FXTM commences from just $10, and FP Markets and AVA Trade ask for $100. BlackBull Markets raises it to $200.

  • Trading Apps - Many focus only on a mobile app, where FXTM and AVA Trade offer a proprietary solution. Traders should look for trading apps that will benefit their trading, like Autochartist for manual trades, TipRanks for equity traders, or excellent upgrades to the MT4 trading platform delivered by Pepperstone and FP Markets. The quality of trading apps is relevant, not marketing or quantity.

  • Customer Service - Traders at well-managed Forex brokers will hardly require customer service, but it must be accessible in case of emergencies. Live chat is the most convenient format to receive support, with e-mail and phone available at all Forex brokers in Australia. 24/5 customer support is preferable, matching the operating hours of the Forex market.

  • Day Trading - Day trading is popular among the growing Aussie Forex Australia crowd. Fast execution speed, superior technology, and a commission-based account with raw spreads and low commissions will enhance the profitability of any day trading strategy. They are available at Pepperstone, FP Markets, FXTM, and BlackBull Markets.

  • Additional Services - With demand for Forex Trading Australia expanding, many Forex brokers offer auxiliary services to increase their market share. They may include free VPS hosting, trading signals, market commentary, loyalty programs, invitations to VIP events, bonuses, interest on free margin, and one-on-one trading consultations.

Tax on Forex Trading Australia

The Australian Tax Office (ATO) does not provide much clarity on the applicable tax, which differs on numerous criteria. An overly complicated tax code makes it challenging for any retail traders to understand the payable tax to the government, and it is best to consult a certified accountant. The primary distinction is between investors, buying and selling infrequently and not motivated by short-term profits, and traders, who aim to generate daily, weekly, and monthly income. There is a tax-free allowance, while the maximum applicable tax may reach as high as 45%. Crippling financial penalties exist for the wrong type of payment or absence of any. There are also tax discounts of up to 50% for investors, and traders can offset losses immediately while investors have to carry them forward. The complexity of the Australian tax code makes the use of a certified accountant the most efficient option. Software exists for those who prefer to attempt to navigate the unnecessarily complicated tax issue on their own.

Forex Trading in Melbourne

Melbourne is home to a well-diversified economy where finance, technology, and research play a dominant role. Five of the ten largest companies in Australia remain headquartered there, and Forex trading among Melburnians increases in popularity annually. The conditions for it, ranging from technology, through characteristics to interest, make Melbourne one of the hotspots for Australian Forex traders. Pepperstone operates out of Melbourne and deploys one of the most advanced technological infrastructures available today.

Forex Trading in Sydney

Sydney is the most populous city in Australia and Oceania. The location of the primary equity exchange ASX. Sydney ranks continuously among the Top 15 cities, highly integrated into the global economy. 48% of the Top 500 companies in Australia call Sydney their home, making it a perfect location for Forex traders. FP Markets, the operator of the Best Trading Platform Australia, has its global headquarters in Sydney, which offers the complete infrastructure for retail traders and professionals alike, comparable to what London or Tokyo has to offer.

Best Time to Trade Forex in Australia

This is a widely debated topic and ultimately depends on the trader and strategy. Many Australian Forex traders may prefer to trade during their daytime, making the Australian dollar, the New Zealand dollar, the Japanese yen, and the Chinese yuan the most desired currencies. The London open injects volatility and is considered by some as the most profitable time for short-term strategies. The New York start offers a smaller repetition of it. While debates over the best time to trade Forex in Australia are ongoing, on an individual basis, the best time is when a trader decides to execute their strategy, and not by what a consensus determines.

Methodology

We reviewed over 100 brokers based on eleven criteria. Each research consists of over 2,000 words and lasted more than ten hours. Over 100 brokers were reviewed in-depth and from a traders’ perspective, ignoring the marketing tactics deployed by some to confuse retail traders. Therefore, we sourced the list of our Top  Australian Forex Brokers from more than 200,000 words of dedicated research compiled over 1,000 hours, ensuring the most comprehensive approach to identify the best Australian Forex brokers.

The eleven criteria used in our research consist of:

  • Regulation and Security

  • Trading Costs

  • Asset Selection

  • Account Types

  • Trading Platforms

  • Unique Features

  • Research and Education

  • Customer Support

  • Bonuses and Promotions

  • Account Opening Process

  • Deposits & Withdrawals

FAQs

What is the best Forex broker in Australia?

Depending on the preferences of Forex traders, FP Markets, FXTM, AVA Trade, Pepperstone, and BlackBull Markets rank among the best Australian Forex brokers.

Is Forex trading legal in Australia?

Yes, Forex trading is 100% legal in Australia and is regulated by the Australian Securities and Investments Commission (ASIC).

What is the best Forex broker for Australian beginner traders?

FXTM offers an excellent educational division for Australian beginner traders to consider. Pepperstone and FXTM have $0 and $10 minimum deposit requirements, respectively, making them ideal for portfolio building and training purposes in live accounts.

How to become a Forex trader in Australia?

All you need to do is settle for one Forex broker, with the five outlined in this article an excellent starting point, make a deposit, and you are ready to trade. New traders need to invest a considerable amount in education and learning how to trade in a live account with a small deposit before making a more significant commitment.

Is Forex trading taxable in Australia?

Yes, Forex trading is taxable in Australia. Regrettably, the Australian Taxation Office (ATO) provides little clarity, the tax code is very complicated, and the assistance of a certified accountant remains the most efficient solution for complying with Australian taxation.

Huzefa Hamid

I’m a trader and manage my own capital. I trade the major Forex pairs, some Futures contracts, and I rely entirely on Technical Analysis to place my trades. Today, I am also a Senior Analyst for DailyForex.com. I began trading the markets in the early 1990s, at the age of sixteen. I had a few hundred British pounds saved up (I grew up in England), with which I was able to open a small account with some help from my Dad. I started my trading journey by buying UK equities that I had read about in the business sections of newspapers. The 1990s were a bull market, so naturally, I made money. I was fortunate enough in my early twenties to have a friend that recommended a Technical Analysis course run by a British trader who emphasized raw chart analysis without indicators. Having this first-principles approach to charts influences how I trade to this day.