IC Markets
Visit IC Markets
74-89% of retail CFD accounts lose money
Best CFD Brokers in Australia for 2023
Top Picks
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Pepperstone
Visit Pepperstone74-89% of retail investor accounts lose money when trading CFDs -
FP Markets
Visit FP Markets74-89% of retail CFD accounts lose money -
AvaTrade
Visit AvaTrade79% of retail investor accounts lose money -
Axi
Visit Axi69.6% of retail investor accounts lose money -
IG Markets
Visit IG Markets70% of retail CFD accounts lose money -
eToro
Visit eToro77% of retail investor accounts lose money -
GO Markets
Visit GO Markets62% of retail CFD accounts lose money -
EasyMarkets
Visit EasyMarkets75% of retail investor accounts lose money -
Capital.com
Visit 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
Table of Content
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
IC Markets : best for algo traders
- 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.
Pepperstone : best for day trading
- 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.
74-89% of retail investor accounts lose money when trading CFDs
FP Markets : best for overall trading experience
- 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.
AvaTrade : best for fixed spreads
- 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.
Axi : best for fast execution of the orders
- 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.
IG Markets : best for asset range
- 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.
eToro : best for social trading
- eToro is an international forex broker providing CFD services in Australia as well with over 3,000 tradable assets among forex, commodity, stocks, ETFs, indices and crypto markets.
- Spreads at eToro start from 1 pip on major currency CFD forex pairs.
- Retail clients with eToro have a limited leverage up to 30:1 while professional clients can trade CFDs with a higher leverage up to 400:1.
- eToro only offers its proprietary trading platform for CFDs which is currently known for its excellent social trading features.
GO Markets : best for VPS service
- 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.
EasyMarkets : best for commodities
- 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.
Capital.com : best for beginners
- 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.
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.
About The Author
Filippo Ucchino
Co-Founder - CEO - Broker Expert
Filippo is the co-founder and CEO of InvestinGoal.com. He has 15 years of experience in the financial sector and forex in particular. He started his career as a forex trader in 2005 and then became interested in the whole fintech and crypto sector.
Over this time, he has developed an almost scientific approach to the analysis of brokers, their services, and offerings. In addition, he is an expert in Compliance and Security Policies for consumers protection in this sector.
With InvestinGoal, Filippo’s goal is to bring as much clarity as possible to help users navigate the world of online trading, forex, and cryptocurrencies.
Best CFD Brokers in Australia for 2023
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