Trading CFDs (Contracts For Difference) in Australia using brokerage firms also known as CFD trading platforms is a common and regulated activity.
CFD trading is completely legal and regulated by the Australian Securities and Investments Commission (ASIC). For a CFD broker to operate in Australia, an ASIC license is mandatory. If a broker doesn’t follow rules, they can face serious penalties.
In this article we have compiled our top 9 of the best CFD brokers in Australia.
To compile it, we have kept the following key points in mind:
- availability of CFDs
- costs and commissions
- applicable leverage
- trading platforms
- general quality of service
What are the best Australia CFD broker and platforms?
Below our curated list of the best CFD brokers and platforms in Australia, with details of features and characteristics
Pepperstone
best for day trading
Pepperstone offers over 1,000 CFDs in Australia with ECN/STP access. Pepperstone features tight spreads from 0.0 pips and provides leverage up to 30:1 for retail clients and 500:1 for professionals.
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About Pepperstone
Pepperstone is a global forex and CFD broker founded in 2010 in Melbourne, Australia. Pepperstone offers trading on currencies, commodities, indices, stocks, and cryptocurrencies through MetaTrader and cTrader platforms. Pepperstone is regulated by multiple authorities including ASIC, FCA, and CySEC. Pepperstone is known for competitive spreads, fast execution, and extensive educational resources. Pepperstone serves clients in over 160 countries worldwide. The Pepperstone CEO is Tamas Szabo.
Pepperstone Features
The features of Pepperstone are listed below.
- Pepperstone is a top Australian forex broker with more than 1,000 CFDs to trade among forex, indices, commodities, cryptocurrencies, shares, and currency indices.
- CFDs traders with Pepperstone can benefit from some of the best ECN and/or STP access with tight spreads from 0.0 pips.
- Pepperstone also offers an active trader program to further reduce trading costs on CFDs.
- Leverage is up to 30:1 for CFDs retail in Australia while professional traders with Pepperstone have a 500:1 leverage.
- CFDs trading with Pepperstone is facilitated through MT4, MT5, and cTrader.
Pepperstone Pros and Cons
Advantages of Pepperstone
The advantages of Pepperstone are listed below.
- Stable raw spreads (0,09 pips on EUR/USD on average)
- Caters for algorithmic trading
- Has won over 30 Forex industry awards
Disadvantages of Pepperstone
The disadvantages of Pepperstone are listed below.
- The demo account is not unlimited
FP Markets
best for overall trading experience
FP Markets provides Australian traders access to over 10,000 CFD assets. FP Markets features DMA access with competitive spreads from 0.0 pips and offers leverage up to 30:1 or 500:1 for professionals.
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About FP Markets
FP Markets is an Australian-based global forex and CFD broker founded in 2005. FP Markets offers trading on over 10,000 instruments including forex, stocks, indices, commodities, and cryptocurrencies. FP Markets provides MetaTrader 4, MetaTrader 5, and proprietary platforms. FP Markets is regulated by multiple authorities including ASIC, CySEC, and FSA. FP Markets is known for tight spreads, fast execution, and extensive educational resources. The FP Markets CEO is Craig Allison.
FP Markets Features
The features of FP Markets are listed below.
- FP Markets is an Australian broker providing access to over 10,000 CFD assets in a range of markets: forex, shares, indices, commodities, bonds, and metals.
- A CFD stock broking service is provided through the IRESS platform with FP Markets.
- FP Markets also has fantastic ECN access as well, striving to provide traders with DMA access with low spreads starting 0.0 pips.
- CFDs trading can avail of a leverage up to 30:1 or 500:1 if you qualify as a Wholesale Investors or Sophisticated Clients with FP Markets.
- FP Markets offers MT4, MT5, and IRESS trading platforms.
FP Markets Pros and Cons
Advantages of FP Markets
The advantages of FP Markets are listed below.
- Broad Instrument Offering
- Competitive Spreads
- Multiple Trading Platforms
Disadvantages of FP Markets
The disadvantages of FP Markets are listed below.
- High Fees for International Withdrawals
- Outdated Platform Design
IC Markets
best for algo traders
IC Markets offers over 2,000 CFDs in Australia, supporting ECN execution. IC Markets provides spreads from 0.0 pips and gives leverage up to 30:1 for retail clients and 500:1 for professional traders.
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Avg. EUR/USD Spread:
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About IC Markets
IC Markets is a global forex and CFD broker founded in 2007 and based in Sydney, Australia. IC Markets offers trading on over 2,250 instruments including currencies, commodities, indices, stocks, and cryptocurrencies. IC Markets provides MetaTrader 4, MetaTrader 5, and cTrader platforms. IC Markets is regulated by multiple authorities including ASIC and CySEC. IC Markets is known for its ECN execution model and low spreads. The IC Markets CEO is Andrew Budzinski.
IC Markets Features
The features of IC Markets are listed below.
- IC Markets is an Australian broker offering over 2,000 CFDs which include forex, indices, commodities, stocks, bonds, crypto, and futures.
- You can find a spread from 0.0 pips with IC Markets, thanks to ECN execution.
- Trading CFDs you can use leverage of 30:1 or 500:1 if you are a professional trader with IC Markets.
- IC Markets allows CFDs trading through MT4 MT5, and cTrader.
IC Markets Pros and Cons
Advantages of IC Markets
The advantages of IC Markets are listed below.
- Low-latency trading environment
- Institutional level liquidity
- MT4, MT5, cTrader platforms are all available
Disadvantages of IC Markets
The disadvantages of IC Markets are listed below.
- Small amount of educational tools for new traders
- Small range of tradable assets compared to other CFD/Forex brokers
AvaTrade
best for fixed spreads
AvaTrade supplies over 1,250 CFDs in Australia with fixed spreads. AvaTrade delivers leverage up to 30:1 for retail clients and 400:1 for professionals.
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About AvaTrade
AvaTrade is a global forex and CFD broker founded in 2006 and headquartered in Dublin, Ireland. AvaTrade offers trading on currencies, commodities, indices, stocks, bonds, ETFs, and cryptocurrencies. AvaTrade provides proprietary platforms alongside MetaTrader 4 and 5. AvaTrade is regulated by multiple authorities including CySEC, ASIC, and FSA. AvaTrade serves over 300,000 clients worldwide. AvaTrade is known for competitive spreads and extensive educational resources. The AvaTrade CEO is David Dryzin since 2016.
AvaTrade Features
The features of AvaTrade are listed below.
- AvaTrade is able to provide its services in Australia with over 1,250 CFD assets including forex, stocks, commodities, cryptocurrencies, indices, ETFs, and bonds.
- CFDs trading with AvaTrade come with fixed spreads
- Leverage on CFDs is limited to 30:1 in Australia even though professional traders with AvaTrade can boast 400:1 leverage and further reduced spreads.
- Trading with AvaTrade is facilitated by MT4, MT5, and a number of proprietary platforms such as AvaTradeGO, AvaOptions, and AvaSocial.
AvaTrade Pros and Cons
Advantages of AvaTrade
The advantages of AvaTrade are listed below.
- Tight fixed spreads from 0.6 pips (0.9 pips for retail traders)
- The mobile apps are well designed
- Can be connected to ZuluTrade and Duplitrade
Disadvantages of AvaTrade
The disadvantages of AvaTrade are listed below.
- High inactivity fees
- The demo account is limited to 30 days
Axi
best for fast execution of the orders
Axi offers more than 130 CFDs in Australia with access to high-quality ECN. Axi provides spreads from 0.0 pips and allows leverage up to 30:1 for retail and 400:1 for professional clients.
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Avg. EUR/USD Spread:
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About Axi
Axi, formerly known as AxiTrader, is a global forex and CFD broker founded in 2007 and headquartered in Sydney, Australia. Axi offers trading on currencies, commodities, indices, cryptocurrencies, and stocks through MetaTrader 4 and proprietary platforms. Axi is regulated by multiple authorities including ASIC, FCA, and DFSA. Axi is known for competitive spreads, fast execution, and extensive educational resources. Axi serves clients in over 100 countries worldwide. The Axi CEO is Rajesh Yohannan.
Axi Features
The features of Axi are listed below.
- Axi is a forex broker founded in Australia which provides more than 130 products to trade as CFDs.
- Axi has a high-quality ECN access able to provide a spread from 0.0 pips on CFDs.
- The maximum leverage available is 400:1 available to Professional clients only while retail clients with Axi have limited leverage up to 30:1.
- You can trade CFDs on Axi with MT4 and exclusive tools.
Axi Pros and Cons
Advantages of Axi
The advantages of Axi are listed below.
- Low Forex Fees
- No Deposit/Withdrawal Fees
- Regulatory Assurance
Disadvantages of Axi
The disadvantages of Axi are listed below.
- Limited Platform Options
- Lack of Advanced Educational Resources
IG Markets
best for asset range
IG Markets supplies access to over 17,000 CFDs in Australia. IG Markets features spreads from 0.6 pips and provides leverage up to 30:1 for retail clients and 222:1 for professionals.
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About IG Markets
IG Markets is a global online trading provider founded in 1974, offering access to over 17,000 financial markets including forex, stocks, indices, commodities, and cryptocurrencies. IG Markets provides proprietary trading platforms alongside MetaTrader 4 and ProRealTime. IG Markets is regulated by multiple top-tier authorities worldwide, including the FCA and ASIC. IG Markets is known for competitive spreads, extensive educational resources, and innovative features like weekend trading. The IG Markets’ parent company “IG Group” CEO is Breon Corcoran.
IG Markets Features
The features of IG Markets are listed below.
- IG Markets is able to operate in Australia as well with more than 17,000 CFDs available to trade on forex, indices, shares, commodities, cryptocurrencies, options, digital 100s, ETFs, bonds and interest rates.
- Trade spreads with IG Markets start from 0.6 pips on major CFDs forex pairs.
- Leverage on CFDs is limited to 30:1 for retail clients but if you qualify as a professional service with IG Markets then the leverage is up to 222:1.
- There are many trading platforms that IG Markets provides to trade CFDs including MT4, and proprietary solutions such as ProRealTime, L2 Dealer, WebTrader, and mobile App.
IG Markets Pros and Cons
Advantages of IG Markets
The advantages of IG Markets are listed below.
- Low spreads from 0.6 pips on Forex
- Wide range of financial instruments
- 40 years of experience in the Forex industry
Disadvantages of IG Markets
The disadvantages of IG Markets are listed below.
- No copy trading features
- No social trading features
GO Markets
best for VPS service
GO Markets provides Australians with more than 600 CFDs and supports low spreads from 0.0 pips. GO Markets offers leverage up to 30:1 for retail traders and 500:1 for professionals.
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About GO Markets
GO Markets is an online broker offering CFD trading in different markets such as forex, commodities, indices and shares. GO Markets was founded in 2006 and is regulated by multiple authorities, including ASIC, CySEC, FSC, and FSA. GO Markets provides various trading platforms including MetaTrader 4, MetaTrader 5, cTrader, and their proprietary GO WebTrader. GO Markets emphasizes fast execution, tight spreads, and educational resources for traders.
GO Markets Features
The features of GO Markets are listed below.
- GO Markets provides access to more than 600 CFDs across a number of asset classes including forex, shares, indices, metals, commodities, and cryptocurrencies.
- GO Markets offers low spreads on CFDs starting from 0.0 pips.
- Leverage is capped at 30:1 on CFDs for retail clients while it can go up to 500:1 if you qualify as a professional trader with Go Markets.
- CFDs trading is provided by GO Markets on MT4, MT5 and the proprietary GO WebTrader.
GO Markets Pros and Cons
Advantages of GO Markets
The advantages of GO Markets are listed below.
- Fast Account Opening
- Excellent Educational Resources
- Competitive Spreads
Disadvantages of GO Markets
The disadvantages of GO Markets are listed below.
- Limited Product Portfolio
- No Investor Protection for Non-EU Clients
- High Minimum Deposit Requirement
EasyMarkets
best for commodities
EasyMarkets provides over 200 CFDs in Australia with options for fixed or floating spreads. EasyMarkets offers leverage up to 30:1 for retail and 500:1 for professional traders.
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About EasyMarkets
EasyMarkets is a global forex and CFD broker founded in 2001, offering trading on currencies, commodities, indices, cryptocurrencies, and stocks. EasyMarkets provides proprietary web and mobile platforms alongside MetaTrader 4 and 5. EasyMarkets is regulated by multiple authorities including CySEC and ASIC. EasyMarkets is known for innovative features like dealCancellation and fixed spreads. EasyMarkets serves clients worldwide and has received numerous industry awards. The EasyMarkets CEO is Nikos Antoniades.
EasyMarkets Features
The features of EasyMarkets are listed below.
- easyMarkets is a European forex broker providing over 200 CFDs to Australian traders throughout forex, metals, commodities, indices, cryptocurrencies and shares markets.
- easyMarkets also offers unique features to trade CFDs such as dealCancellation and Freeze Rate.
- Trading CFDs comes with spreads and easyMarkets allows you to choose either fixed spreads from 0.7 pips or floating spreads from 0.3 pips.
- Leverage on CFDs is capped to 30:1 due to Australian regulators but if you qualify as a professional trader you can avail of a 500:1 leverage.
- To trade CFDs, easyMarkets provides access to MT4, MT5 along its proprietary platforms.
EasyMarkets Pros and Cons
Advantages of EasyMarkets
The advantages of EasyMarkets are listed below.
- Innovative Risk Management Tools
- User-Friendly Platform
- Regulatory Trust
Disadvantages of EasyMarkets
The disadvantages of EasyMarkets are listed below.
- Limited Tradeable Symbols
- Higher Spreads on Some Accounts
- Outdated User Experience
Capital.com
best for beginners
Capital.com supplies over 6,000 CFDs to Australian traders with floating spreads starting at 0.6 pips. Capital.com provides leverage up to 30:1 for retail clients and 500:1 for professionals.
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Avg. EUR/USD Spread:
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About Capital.com
Capital.com is a global online broker founded in 2016, offering trading on forex, stocks, indices, commodities, and cryptocurrencies through CFDs. Capital.com provides proprietary web and mobile platforms alongside MetaTrader 4 and 5. Capital.com is regulated by multiple authorities including FCA, ASIC, CySEC, and SCB. Capital.com is known for its AI-powered trading insights and extensive educational resources. The Capital.com Group CEO is Kypros Zoumidou.
Capital.com Features
The features of Capital.com are listed below.
- Capital.com is regulated in Australia to offer CFD trading on over 6,000 assets in different markets including shares, indices, cryptocurrencies, commodities, and forex.
- Trading CFDs with Capital.com comes with a floating spread starting 0.6 pips.
- Leverage on CFDs is capped at 30:1 for Capital.com retail clients while professional traders can avail of a leverage up to 500:1.
- Capital.com provides CFDs trading via MT4, and the proprietary WebTrader.
Capital.com Pros and Cons
Advantages of Capital.com
The advantages of Capital.com are listed below.
- Advanced Technology
- Low Trading Costs
- Regulated and Secure
Disadvantages of Capital.com
The disadvantages of Capital.com are listed below.
- Limited Protection for Professional Clients
- Charges Inactive Fees
- Not user-friendly
Is CFD trading legal in Australia?
Contract for Differences (CFD) trading is perfectly legal in Australia and is a popular form of derivative trading. It is regulated by the Australian Securities and Investments Commission (ASIC), as with many other forms of financial trading.
ASIC is the financial services regulator in Australia responsible for ensuring that financial markets are fair and transparent. Its role includes licensing finance industries, overseeing compliance with the law, and promoting financial literacy.
Every CFD broker that operates in Australia is required to obtain a license from ASIC. This ensures the protection of traders, as it involves a rigorous vetting process and ongoing audits to ensure compliance with regulatory guidelines.
If an Australian CFD broker commits fraud or operates without a license, the penalties can be severe. They could have their website obscured, get heavily fined, or even see the heads of the CFD brokerage firm incarcerated. The stringent regulation by ASIC is intended to provide a safe and transparent environment for traders.
Are there CFD trading limitations in Australia?
In Australia, there are certain limitations on CFD trading with regards to leverage. The maximum leverage allowed for retail traders is 1:30, while professional traders can use leverage up to 1:500.
Aside from leverage limitations, there are no other significant restrictions on CFD trading in Australia. This means that traders can trade on any global market that is available on their CFD trading platform, provided it complies with the regulations set out by ASIC.
Is CFD trading taxable in Australia?
In Australia, any profit you make from CFD trading is considered income and therefore is subject to income tax. This differentiates from some other forms of investing, where earnings may be subjected to Capital Gains Tax. The specific rate of taxation will depend on the trader’s income bracket.
Traders can also offset their CFD trading losses against their income. However, it’s important to keep detailed records of your trades, as you will need these for your tax return. We recommend consulting with a tax professional to ensure your tax obligations are correctly met.