Best Forex Brokers in Australia for 2022

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

Round-up

1. Pepperstone: best for day trading
2. IC Markets: best for algo traders
3. AvaTrade: best for fixed spreads
4. FP Markets: best for overall trading experience
5. Vantage: best for scalpers
6. FXCM: best for transparency and global presence
7. City Index: best for service quality
8. easyMarkets: best for commodities
9. Thinkmarkets: best for VPS service
10. CMC Markets: best for CFD stocking

WARNING

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

Top 10 forex brokers in Australia: 2022 review

1. Pepperstone

• 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.

2. IC Markets

• 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.

3. AvaTrade

• 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).

4. FP Markets

• 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 50+ 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.

5. Vantage

• 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).

6. FXCM

• 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.

7. City Index

• 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.

8. EasyMarkets

• 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.

9. Thinkmarkets

• 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.

10. CMC Markets

• CMC in Australia has an ASIC regulation (n. 238504), with a registered office in Sydney.
• Australian clients of CMC aren’t required to make a minimum deposit.
• AUD is supported as a base currency for Australian clients, as well as USD, EUR, NZD, CAD, NOK, and JPY.
• CMC spreads start from 0.3 pips for Australian clients on 330+ forex pairs.
• CMC Australian clients find leverage on forex up to 30:1 (retail) and up to 500:1 (professional).
• Monthly CFD rebates are available for high-volume Australian traders. The total monthly CFD trade value for forex to qualify for the rebate program is $25M. Once this level is reached, a rebate of 5%, 10%, 15%, or 20%, depending on the tier you achieve, is available.

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.