Are you a forex trader based in Australia and searching for your first, or next top forex broker? if so, then you have arrived at the right place. Here we have collected all of the key information you need to make the best choice as an Australian forex trader.
This means that not only can you choose from the very best top forex brokers on the Australian market, but you can also answer some important questions on how to trade forex in Australia. Let’s get started.
Table of contents
Is Forex Trading legal in Australia?
This question is an easy one to answer. Yes, 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) are responsible for overseeing the market here and any broker wishing to offer their services in Australia must register. They have been around since 1991 and provide some of the most comprehensive, yet fair regulation 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 or residence (A utility bill or bank statement with 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.
Top 10 Best Forex Brokers in Australia
Here are 10 of what we consider to be your best choices for trading forex in Australia:
Australian trader? Here’s what to look for in a forex broker
Now that you have had a look at the top brokers on offer, here are a few key points when it comes to trading in Australia.
Unlike some countries where you may trade forex, in Australia, a number of other products including binary options, spread betting, cryptocurrency trading and CFDs are all legal. This means you do not need to have any fear when choosing a broker and you should be able to trade everything you need here. At the moment, leverage in Australia is also very flexible and as much as 500:1 leverage is available depending on your choice. There is talk of changing this to as low as 20:1, less than what CySEC currently offers from forex brokers in Europe, though nothing is official yet. Negative balance protection is also not mandatory in Australia, though funds are typically kept in top-tier, segregated 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. Although it is not mandatory under ASIC regulations, 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?
The simple answer on forex trading tax in Australia, is yes. 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 you contacting local authorities if you don’t know how to manage this aspect