Best Forex Brokers in Australia for 2023
Pepperstonevisit Pepperstone74-89% of retail investor accounts lose money when trading CFDs
In order to create the best forex brokers in Australia top ten, here’s what we have taken into consideration:
- If the broker was ASIC regulated
- The minimum deposit of the broker for Australian traders
- The base currencies of the broker for Australian traders
- The spreads of the broker for Australian traders
- The leverage of the broker for Australian traders
- If promotions, account types or rebates were in place for Australian traders
Overview of the Best Forex Brokers in Australia for 2023
|Broker||ASIC Regulated||Min. Deposit (AUD)||Base Currencies||Spreads (from)||Leverage (Retail/Professional)||Promotions/Account Types/Rebates|
|Pepperstone||Yes (n.414530)||No minimum||AUD, USD, JPY, GBP, EUR, CAD, CHF, NZD, SGD, HKD||0 pips||30:1 / 500:1||Active Trader program|
|IC Markets||Yes (n.335692)||No minimum||AUD, NZD, EUR, USD, GBP, JPY, CAD||0 pips||30:1 / 500:1||None|
|AvaTrade||Yes (n.406684)||A$100||AUD, GBP, USD, EUR||0.9 pips||30:1 / 400:1||None|
|FP Markets||Yes (n.286354)||A$100||AUD, USD, GBP, EUR, CAD, CHF, HKD, SGD, NZD, JPY||0 pips||30:1 / 500:1||None|
|eToro||Yes (n.491139)||A$50||USD (conversion fees apply)||1 pip||30:1||Copy trading|
|Vantage||Yes (n.428901)||A$200||AUD, USD||0 pips||30:1 / 500:1||None|
|FXCM||Yes (n.309763)||A$50||USD (POLi payments accept AUD)||0.9 pips||30:1 / 400:1||Rebate program|
|City Index||Yes (n.345646)||A$150||AUD, USD, EUR, GBP||0.5 pips||30:1 / 300:1||Monthly cash rebates|
|EasyMarkets||Yes (n.246566)||A$200||AUD, USD, GBP, EUR, CAD, NZD||1.8 pips||30:1||None|
|ThinkMarkets||Yes (n.424700)||None / A$500||AUD, EUR, CHF, GBP, USD||0 pips||30:1 / 500:1||None|
Australian Forex Brokers Review
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Pepperstone : best for day trading
- Pepperstone is an Australian broker ASIC regulated (n.414530), with a registered office in Melbourne.
- Australian clients won’t be required to make a Pepperstone minimum deposit.
- Pepperstone base currencies available for Australian traders are AUD, USD, JPY, GBP, EUR, CAD, CHF, NZD, SGD, and HKD.
- Pepperstone spreads for Australian traders start from 0 pips on 60+ forex currency pairs.
- The max leverage on forex is up to 30:1 (Pepperstone Australian Retail) and up to 500:1 (Pepperstone Australian Professional).
- Australian high-volume clients are able to apply for one of the 3 tiers of the Active Trader program. These are, as a member, you can earn discounts based on how many lots you trade per month.
IC Markets : best for algo traders
- IC Markets is an Australian broker ASIC regulated (n. 335692), with a registered office in Sydney.
- Australian clients won’t be required to make an IC Markets minimum deposit.
- IC Markets provides several base currencies for Australian traders, including AUD, NZD, EUR, USD, GBP, JPY, and CAD.
- IC Markets spreads for Australian traders start from 0 pips on 60+ currency pairs.
- The max IC Markets leverage on forex is up to 30:1 for Australian retail traders and up to 500:1 for Australian professional traders.
AvaTrade : best for fixed spreads
- AvaTrade in Australia is regulated by ASIC (n. 406684).
- AvaTrade Australian clients find a minimum deposit of 100 AUD.
- Australian clients of AvaTrade can use AUD, GBP, USD, and EUR as base currencies.
- AvaTrade charges fixed spreads from 0.9 pips for their Australian clients on 60+ forex pairs.
- The AvaTrade maximum leverage on forex for Australian clients is up to 30:1 (retail) and up to 400:1 (professional).
FP Markets : best for overall trading experience
- FP Markets is an Australian broker ASIC regulated (n. 286354), with a registered office in Sydney.
- Australian FP Markets clients have to make a minimum deposit of 100 AUD.
- The base currencies available for Australian traders of FP Markets are AUD, USD, GBP, EUR, CAD, CHF, HKD, SGD, NZD, and JPY.
- Australian clients of FP Markets also have access to the IRESS accounts and platform, with a minimum deposit of 1,000 AUD, where they can trade 10,000+ shares with a commission of 0.08% per lot and a minimum cost of 0 AUD.
- FP Markets spreads for Australian traders start from 0 pips on 70+ currency pairs.
- The max. FP Markets leverage on forex is up to 30:1 for Australian retail traders and up to 500:1 for Australian professional traders.
eToro : best for copy trading
- eToro is a fully regulated broker in Australia with an ASIC license n° 491139 and a registered office in Sydney.
- The minimum deposit to open an eToro account in Australia is 50 AUD.
- Though you can deposit in AUD as an Australian trader, eToro supports only USD as the base currency so you may be charged a conversion fee.
- eToro spreads for Australian traders start from 1 pip on 45+ forex pairs.
- The leverage available in Australia with eToro on forex is up to 30:1 for retail traders.
- With eToro you can also copy other forex traders in Australia.
Vantage : best for scalpers
- Vantage is an Australian broker ASIC regulated (n.428901), with a registered office in Sydney.
- The Vantage minimum deposit is $200 for Australian clients.
- Australian clients of Vantage find that AUD and USD are the account base currencies
- Australian traders find Vantage spreads from 0 pips on 40+ forex pairs.
- The Vantage leverage available on forex is up to 30:1 (retail) and up to 500:1 (professional).
FXCM : best for transparency and global presence
- FXCM is regulated by ASIC (n. 309763), with a registered office in Sydney.
- Australian clients of FXCM will have to make a minimum deposit of $50.
- The FXCM base currency for Australian traders available is USD, but payments via POLi accept AUD base currency.
- FXCM spreads for Australian clients start from 0.9 pips on 39 currency pairs.
- Australian retail leverage on forex is up to 30:1 while the Australian professional leverage available is up to 400:1.
- Australian Professional traders have access to the FXCM Rebate Program, where you’re paid a cash rebate depending on how much you trade on every asset. The minimum notional volume requirement is USD 10 Million per month.
City Index : best for service quality
- City Index is regulated by ASIC (n. 345646) with a registered office in Sydney.
- Australian clients need to make a minimum deposit of 150 AUD.
- The base currencies available for Australian clients are AUD, USD, EUR, and GBP.
- Australian traders are charged spreads starting from 0.5 pips on 55+ forex pairs by City Index.
- The maximum leverage for Australian traders with City Index is up to 30:1 for retail clients and up to 300:1 for professional clients.
- Australian professional clients have access to monthly cash rebates on forex. There are 3 tiers. The first one requires a minimum traded volume of $50m with a forex rebate of $4.50, and the last one requires a minimum traded volume of $300m with a forex rebate of $14.50.
EasyMarkets : best for day best for commodities
- easyMarkets is regulated by ASIC (n. 246566), with a registered office in Sydney.
- The easyMarkets minimum deposit is 200 AUD for Australian clients.
- Australian traders can choose among several easyMarkets base currencies, including AUD, USD, GBP, EUR, CAD, and NZD.
- Australian traders find fixed spreads from 1.8 pips with an easyMarkets Standard account on 60+ currency pairs.
Thinkmarkets : best for VPS service
- ThinkMarkets is regulated by ASIC (n. 424700) with a registered office in Melbourne.
- Australian traders find no minimum deposit to open a Thinkmarkets standard account ($500 for a ThinkZero account).
- ThinkMarkets Australian traders find these base currencies are: AUD, EUR, CHF, GBP, and USD.
- Australian clients of ThinkMarkets have access to spreads from 0 pips on 40+ forex pairs.
- The maximum leverage is up to 30:1 for Australian retail clients and up to 500:1 for Australian professional clients.
Is forex trading legal in Australia?
Forex trading is completely legal in Australia.
In fact, Australia is home to what is considered one of the most respected regulatory bodies in the industry, ASIC (Australian Securities & Investments Commission). ASIC is responsible for overseeing the market in Australia and any broker wishing to offer their services in Australia must be registered.
ASIC has been around since 1991 and provides some of the most comprehensive, yet fair regulations in forex trading around the world.
How to trade forex in Australia
Typically, trading forex from within Australia is not too different from doing so in other countries. The documents that you will need to sign up remain the same and these include:
- Proof of identity (A passport is usually the best).
- Proof of residence (A utility bill or bank statement with your current address is usually best).
Once you have submitted these documents to your chosen broker through a convenient online system, your account should be quickly verified and you will be able to deposit and start trading.
Due to their close relations, if you are a trader in New Zealand, you may be allowed to register with Australian brokers instead of brokers regulated in New Zealand.
What Australian traders should look for in a forex broker
Now that you have had a look at the top forex brokers on offer, here are a few key points when it comes to trading in Australia.
Unlike other countries that allow forex trading, in Australia, a number of other products including binary options, spread betting, cryptocurrency trading, and CFDs are all legal, so you don’t have to worry about your trading strategies being legal. In the past, leverage in Australia was very flexible, being up to 500:1. However, since March 29th, 2021, ASIC restricted this amount to 30:1 just like many best forex brokers regulated in Europe, UK and other areas are doing. Negative balance protection is also mandatory in Australia, and your funds are typically kept in top-tier segregated bank accounts.
With that in mind, here are a few more key tips in helping make sure you choose the best forex broker for you:
1. Look for forex brokers regulated in Australia
Trust is always vital. This comes in no better form in the world of forex trading than from ASIC. They are one of the top regulatory bodies in the world and it is highly recommended to choose an ASIC-regulated broker if you are making a move as a forex trader.
2. Try to look for brokers that offer AUD currency
It will usually be the case that your broker will accept AUD deposits or base currency since they must be regulated by ASIC to offer services in the country. Choosing this kind of broker will save you money on possible currency conversion or other banking-related fees and charges from your own bank and the broker.
3. First time trading? Look for negative balance protection
Negative balance protection does exactly as it says. It stops your balance from going below zero if the market turns against you. It is still highly recommended that you pursue a broker offering this protection. While it may rarely, if ever, happen, it is positive to know that your balance will be protected in this way.
How to verify if a forex broker is regulated in Australia
Verifying your forex broker regulation in Australia could not be easier. Simply, head over to the ASIC official website. Once you are there, find the ASIC Register and search for the company name of the broker. This company name is often to be found at the bottom of your forex brokers homepage.
Is forex trading taxable in Australia?
You do have to pay tax on any profits. Typically in Australia, the capital gains tax to be paid is 23%. This is calculated on a varying percentage of the income between 15% and 60%. Generally, for day trading, this figure stands at 40%.
We are not professional tax advisors, thus we strongly suggest contacting local authorities if you don’t know how to manage this aspect.
Key Takeaways: The Best Forex Brokers, Australia
The most crucial takeaway you should remember from our review of the best forex brokers in Australia is the fact that your trading goals and personal preferences are one of the most important things when selecting the right platform. There is no one-size-fits-all solution, and you should base your decision on factors such as the assets you want to trade in, your budgetary limitations, among many others.
Aside from that, you should always make sure that the broker you’re taking into consideration is regulated by ASIC. Steer clear of platforms with offers that sound too good to be true and claims that cannot be verified by an official financial regulatory body.
Finally, it’s always a good idea to choose a broker that offers a wide range of educational materials and a demo account, especially if you’re just starting out. That way, you’ll be able to learn the ins and outs of forex trading and make educated investment decisions.
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