IC MarketsVisit IC Markets74-89% of retail CFD accounts lose money
PepperstoneVisit Pepperstone74-89% of retail investor accounts lose money when trading CFDs
FP MarketsVisit FP Markets74-89% of retail CFD accounts lose money
AvaTradeVisit AvaTrade79% of retail investor accounts lose money
AxiVisit Axi69.6% of retail investor accounts lose money
IG MarketsVisit IG Markets70% of retail CFD accounts lose money
eToroVisit eToro77% of retail investor accounts lose money
GO MarketsVisit GO Markets62% of retail CFD accounts lose money
EasyMarketsVisit EasyMarkets75% of retail investor accounts lose money
Capital.comVisit Capital.com84% of retail CFD accounts lose money
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 10 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
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.
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