| Updated: January 11, 2025The Australian Forex market is one of the most regulated and secure in the world, offering a wide range of trading opportunities to traders. With a strong economy and a stable financial system, Australia has become a hub for Forex trading, attracting both local and international brokers. The country’s regulatory framework is designed to protect investors and ensure fair trading practices, making it an attractive destination for those looking to trade currencies.
Below you can find a list with Forex brokers regulated in Australia:
Top 8 Forex Brokers in Australia
-
Fusion Markets
- Australia regulated broker
- MT4, MT5, TradingView, Ctrader
- Leverage up to 500
-
FP Markets
- Australia & CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading Instruments- Forex CFDs
- Shares CFDs
- Metals CFDs
- Commodities CFDs
- Indices CFDs
- Crypto CFDs
- ETF CFDs
-
Axi
- Raw spreads start from 0.0 pips
- Offers order execution faster than standard ECN model
- Axi Select Funded Trader Program offers funding up to $1 million
Trading Instruments- Forex
- Stocks
- IPOs
- Indices
- Commodities
- Cryptocurrencies
-
Pepperstone
- Australia & CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading Instruments- Forex
- Indices
- Commodities
- Cryptocurrencies
- Share CFDs
- ETFs
-
Plus500
- Multi-Level Regulated Broker
- Proprietary trading platforms
- Easy to use mobile app
Trading Instruments- CFDs on: Forex
- Crypto
- Indices
- Commodities
- Stocks
- Options
- ETFs
-
Global Prime
- Australia regulated broker
- Advanced MT4
- $0 Minimum Account Size
-
BlackBull Markets
- Broker boasting lightning-fast execution speed
- ECN brokers with tight spreads from 0.0 pips
- $0 minimum deposit requirement
Trading Instruments- Forex
- Commodities
- Futures
- Indices
- Stocks
- Cryptocurrencies
-
IC Markets
- Offers 2,200+ tradable markets, including 61 currency pairs
- Leverage of up to 1:1000 in select jurisdictions
- EUR/USD spreads from 0.8 pips for standard accounts
Trading Instruments- CFDs on Forex
- Commodities
- Index
- Bond
- Cryptocurrencies
- Stock
- Futures
Brokers Compared by Spread
| Brand | Commission per lot | |
|---|---|---|
| Fusion Markets | 0.93 avg (Classic) | $0 Classic Account, $4.50 round turn on Zero Account |
| FP Markets | 1.1 | $0 Standard Account; $6 round turn on Pro Account |
| Axi | 1.2 | $0 on Standard Account; $7 round trip on Pro Account |
| Pepperstone | 1.00 (min) | $0 (Standard Account), $7 round-turn (Razor Account) |
| Plus500 | 1.2 | $0 |
| Global Prime | 0.96 avg (Standard) | $0 Standard Accounts; $7 round turn on Raw Accounts |
| BlackBull Markets | 0.1 | $0 Standard; $6 per lot Prime; $4 per lot Institutional |
| IC Markets | 0.8 | $0 Standard MT; $6 round turn on Raw cTrader; $7 round turn on Raw MT |
FX Brokers Deposit Method Comparison
| Brand | Minimum deposit | |
|---|---|---|
| Fusion Markets |  |
$0 |
| FP Markets | |
$50 (AU$100) |
| Axi |  |
$0 |
| Pepperstone | |
$0 |
| Plus500 | |
$100 |
| Global Prime | |
$0 |
| BlackBull Markets | |
$0 (Standard)$2,000 (Prime)$20,000 (Institutional) |
| IC Markets | |
$200 |
Forex Brokers by Regulator
| Brand | Maximum leverage | |
|---|---|---|
| Fusion Markets | |
1:30 (1:500 for forex and metals via VFSC) |
| FP Markets | |
1:30 |
| Axi | |
1:30 |
| Pepperstone | |
1:30 |
| Plus500 | |
1:30 |
| Global Prime | |
1:500 (1:30 for ASIC entity) |
| BlackBull Markets | |
1:500 |
| IC Markets | |
1:30 |
Forex Brokers Platform Availability
| Brand | FX pairs to trade | |
|---|---|---|
| Fusion Markets | |
80+ |
| FP Markets | |
70+ |
| Axi | |
80 |
| Pepperstone | |
90+ |
| Plus500 | |
60+ |
| Global Prime | |
56 |
| BlackBull Markets | |
70+ |
| IC Markets | |
61 |
Comprehensive Comparison of the Best Australian Forex Brokers
| Brand | Min. Deposit | Trading Platforms | Spread | Regulation | Trustpilot |
|---|---|---|---|---|---|
 |
$0 |
|
0.93 avg (Classic) |
|
|
 |
$50 (AU$100) |
|
1.1 |
|
|
 |
$0 |
|
1.2 |
|
|
 |
$0 |
|
1.00 (min) |
|
|
 |
$100 |
|
1.2 | ||
 |
$0 |
|
0.96 avg (Standard) |
|
|
 |
$0 (Standard)$2,000 (Prime)$20,000 (Institutional) |
|
0.1 |
|
|
 |
$200 |
|
0.8 |
|
In this article, we will explore the legal forms of Forex trading in Australia, restrictions on currency trading, regulatory requirements for Forex brokers, and how to identify reliable brokers accepting Australian clients. We will also discuss taxes on profits from Forex trading in Australia and provide an overview of the current state of the market.
Legal Forms of Forex Trading in Australia
In Australia, Forex trading is allowed in various forms, including spot trading, futures, options, and forwards. Spot trading allows you to buy or sell forex on the spot, at the current market rate. Meanwhile, futures, options, and forwards are special kinds of contracts that allow traders to buy or sell forex pairs at a future price. Each of these three trade options has its specifics that you can further explore if you intend on trading forex with futures, options or forward contracts.
Despite the variations discussed above, Contract for Difference (CFD) trading is the most popular way to trade forex pairs in Australia. CFDs allow traders to speculate on the price movement of different currency pairs without actually gaining ownership over the underlying assets.
Additionally, Australian Forex brokers offer leveraged trading, which enables traders to control larger positions with a smaller amount of capital. However, it’s essential to note that spread betting on currency pairs is not allowed in Australia, as it is considered a form of gambling and is regulated by a different set of laws. It is the Australian Securities and Investments Commission (ASIC) that oversees the Forex market down under, ensuring that brokers comply with the relevant regulations.
Restrictions on Currency Trading in Australia
While Australia has a relatively liberal approach to Forex trading, there are some restrictions in place to protect investors. For example, brokers are not allowed to offer trading in certain exotic currency pairs or instruments that are deemed too risky for retail investors.
Additionally, ASIC has implemented rules to limit the amount of leverage that brokers can offer to retail traders, capping it at 1:30 for major currency pairs and 1:20 for minor and exotic pairs. This is designed to reduce the risk of significant losses and protect investors from excessive leverage. Furthermore, Australian Forex brokers are required to provide clear risk warnings and disclaimers to traders, highlighting the potential risks and consequences of Forex trading. Some brokers may also offer additional risk management tools, such as stop-loss orders and take-profit orders, to help traders manage their exposure.
Who Regulates Forex Trading in Australia?
The Australian Securities and Investments Commission (ASIC) is the primary regulator of the Forex market in Australia. ASIC is responsible for overseeing the activities of Forex brokers, ensuring that they comply with the relevant laws and regulations, and protecting investors from unfair trading practices. ASIC also maintains a register of licensed Forex brokers, which can be checked by investors to verify the legitimacy of a broker.
Additionally, ASIC provides guidance and resources to help investors make informed decisions and avoid scams. The regulator also works closely with other international regulatory bodies to ensure that Australian Forex brokers comply with global standards and best practices.
ASIC’s role in regulating Forex brokers includes:
- Licensing: ASIC issues licenses to Forex brokers that meet the necessary requirements, including having adequate capital, complying with regulatory requirements, and demonstrating a commitment to fair trading practices.
- Regulatory Compliance: ASIC monitors Forex brokers to ensure that they comply with regulatory requirements, including those related to risk management, client money handling, and disclosure.
- Investor Protection: ASIC provides investor protection by ensuring that Forex brokers have adequate risk management systems in place, including negative balance protection, leverage limits, and fund segregation.
- Market Surveillance: ASIC monitors the Forex market to detect and prevent market manipulation, insider trading, and other forms of unfair trading practices.
- Enforcement: ASIC has the power to take enforcement action against Forex brokers that breach regulatory requirements, including issuing fines, suspending or canceling licenses, and seeking court orders.
Requirements for Forex Brokers in Australia
To operate in Australia, Forex brokers must meet certain regulatory requirements, including obtaining a license from ASIC. Brokers must also comply with strict rules regarding investor protection, including negative balance protection, leverage limits, and fund segregation. Negative balance protection ensures that traders cannot lose more than their initial deposit, while leverage limits reduce the risk of significant losses.
Fund segregation requires brokers to keep client funds separate from their own, ensuring that traders’ money is safe in the event of a broker’s insolvency. Furthermore, Australian Forex brokers are required to provide clear and transparent pricing, including spreads, commissions, and other fees. They must also implement automatic margin closeouts to prevent traders from accumulating excessive losses. Some brokers may also offer additional investor protection tools, such as guaranteed stop-loss orders and trader compensation schemes.
The list of regulatory requirements that Forex brokers must meet in order to operat in Australia includes:
- AFS License: Forex brokers must hold an Australian Financial Services (AFS) license, which is issued by ASIC.
- Capital Adequacy: Forex brokers must have adequate capital to cover their liabilities and ensure that they can meet their obligations to clients.
- Risk Management: Forex brokers must have adequate risk management systems in place, including negative balance protection, leverage limits, and fund segregation.
- Client Money Handling: Forex brokers must have adequate systems in place for handling client money, including segregating client funds from their own funds.
- Disclosure: Forex brokers must provide clear and concise disclosure to clients, including information about their services, fees, and risks associated with trading.
In addition to the above requirements, Forex brokers in Australia must also comply with other regulatory requirements, including:
- Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF): Forex brokers must have adequate systems in place to prevent money laundering and terrorism financing.
- Know Your Client (KYC): Forex brokers must have adequate systems in place to verify the identity of their clients and ensure that they are not dealing with suspicious or high-risk individuals.
- Financial Reporting: Forex brokers must provide regular financial reports to ASIC, including information about their financial position, trading activity, and client money handling.
How to Identify Reliable Forex Brokers Accepting Australian Clients
To identify reliable Forex brokers accepting Australian clients, investors should first check the ASIC register to verify that the broker is licensed and regulated. They should also look for brokers that offer price transparency, including clear and concise information about spreads, commissions, and other fees.
Additionally, investors should check for negative balance protection, leverage limits, and fund segregation, as these are essential for protecting their investments. It’s also important to read reviews and check the broker’s reputation online, as well as to test their customer support and trading platforms. Some of the top-rated Forex brokers operating in Australia offer a range of trading instruments and platforms to suit different investor needs.
Are There Taxes on Profits from Forex Trading in Australia?
Before engaging in Forex trading, traders are advised to check the tax system within their jurisdictions. The Australian Taxation Office (ATO) considers Forex trading to be a form of investment, and profits generated are subject to capital gains tax (CGT). However, the tax treatment of Forex trading can be complex, and investors should consult with a tax professional to ensure that they are meeting their tax obligations.
In general, CGT applies to the sale of assets, including currency pairs, and the tax rate depends on the investor’s tax bracket and the length of time they have held the asset. Additionally, investors may be able to claim deductions for trading expenses, such as platform fees and internet costs.
Forex Brokers in Australia FAQ
What type of license do Forex brokers need to operate in Australia?
Forex brokers need to hold an Australian Financial Services (AFS) license, which is issued by ASIC, to operate in Australia and provide financial services to clients.
Are Forex brokers in Australia required to provide negative balance protection to clients?
Yes, Forex brokers in Australia are required to provide negative balance protection to clients, which means that clients cannot lose more than their initial deposit, even if the market moves against them.
Can Australian residents trade with offshore Forex brokers?
Yes, Australian residents can trade with offshore Forex brokers, but they should be aware that these brokers may not be regulated by ASIC and may not provide the same level of protection as Australian-licensed brokers.
How can I check if a Forex broker is licensed and regulated by ASIC?
You can check if a Forex broker is licensed and regulated by ASIC by visiting the ASIC website and searching for the broker’s name in the Professional Registers, or by checking the broker’s website for their ASIC license number and verifying it with ASIC.
What are some of the key factors to consider when choosing a Forex broker in Australia?
When choosing a Forex broker in Australia, some key factors to consider include the broker’s ASIC license, trading platform, fees and commissions, leverage and margin requirements, customer support, and regulatory compliance, as well as their reputation, security, and transparency.
Conclusion
In conclusion, the Australian Forex market is a highly regulated and secure environment for investors, offering a wide range of trading opportunities and protections. By understanding the legal forms of Forex trading, restrictions on currency trading, and regulatory requirements for Forex brokers, investors can make informed decisions and avoid scams. Additionally, by identifying reliable Forex brokers that offer price transparency, negative balance protection, and leverage limits, investors can protect their investments and achieve their trading goals. While taxes on profits from Forex trading in Australia can be complex, investors can minimize their tax liabilities by consulting with a tax professional and claiming deductions for trading expenses. Overall, Australia is an attractive destination for Forex traders, offering a stable and secure environment for investing in the global currency markets.
Why Should You Trust RationalFX
When it comes to making informed decisions about forex brokers, it’s essential to rely on trustworthy sources. RationalFX, a company with over 17 years of experience since its founding in 2005, has established itself as a credible authority in the industry. With an impressive collection of over 2500 reviews on Trustpilot, boasting a score of 4.2, it’s clear that Rational FX has built a reputation for providing reliable and unbiased information.
What sets Rational FX apart is its rigorous evaluation process, which considers over 30 different criteria when selecting forex brokers. This comprehensive approach ensures that every aspect of a broker’s service is taken in consideration, including regulation, forex spreads, trading platforms, deposit methods, and reputation. With its wealth of experience, transparent review process, and outstanding customer feedback, Rational FX is a trusted source for anyone seeking reliable information on forex brokers. You can reach us via e-mail at [email protected] or contact us through our social media accounts here: Facebook, YouTube, or leave a feedback here.