How did we choose our best forex brokers in Australia?
The most important factor for the Trading Brokers team to consider when choosing the best Australian forex brokers was that the brokers are regulated in Australia by the Australian Securities and Investments Commission (ASIC). Once the brokers regulation had been confirmed, we then researched and analysed the brokers forex trading service in great detail and assigned them with an unbiased broker rating based on our own findings. During this research, we gave great consideration to what we deem to be amongst the most important factors to consider when choosing an online forex trading broker, including:
- Regulation: A forex broker in Australia should be regulated by ASIC.
- Forex Trading Platforms: The forex broker should offer a range of the best trading platforms that are user friendly, intuitive and compatible across multiple desktop, web and mobile devices.
- Forex Trading Instruments: They should have a large selection of minor, major and exotic currency pairs for trading.
- Spreads: The forex brokers spreads on currency pairs should be competitive and as low as possible.
- Commission: The commission charged for trading forex currencies should be competitive, the lower the better.
- Fees: Any additional fees such as accounting, inactivity, etc, should be made clear to traders from the get go.
- Execution Speeds: The forex broker should have reliable trade execution speeds with minimal slippage.
- Liquidity Providers: Ideally, the forex broker will have a vast pool of liquidity providers (LPs) in order to deliver consistent execution speeds and tight spreads.
- Forex Trading Tools: The forex broker should provide a vast array of trading tools for analysing charts, planning and managing trades, trading signals, social trading, etc.
- Forex Educational Resources: Most new traders will need a selection of educational materials on different trading topics to help them improve their trading skills and knowledge. The best forex brokers should provide training tools that can include video tutorials, trading guides, webinars, etc.
- Forex Account Types: There should be flexible account options to suit different trading styles and budgets.
- Forex Account Funding Options: The forex broker should offer a choice of convenient account deposit and withdrawal methods.
- Customer Support: The forex brokerage should have a prompt, polite and knowledgeable customer support team on hand to answer traders general and technical questions.
Australian forex broker regulation
Forex trading is the speculating on the price of one currency against another currency, commonly known within the trading community as a currency pair. Online forex trading has increased in popularity over the years with many online brokerages opening which has given traders a vast choice of brokers who are all competing for their business. This can make it difficult to choose the best forex brokers in Australia.
We believe that it is of upmost importance that a forex broker providing services to traders in Australia is authorised and regulated by the Australian Securities and Investments Commission (ASIC). Using a regulated broker helps to give traders peace of mind that they are using a brokerage firm which is subject to strict rules and regulations put in place to help protect investors. It is worth mentioning that there are some non-Australian forex brokers that still solicit clients located within Australia. There are also Australian forex brokers who offer online forex trading services to clients located in some countries outside of the Australia. In this instance, it would be a considered a sensible idea to ensure that the broker in question has the relevant regulation within the jurisdiction that they operate from.
Australian Securities and Investments Commission (ASIC)
The Australian Securities and Investments Commission is an independent Australian government body that acts as Australia’s corporate regulator. Established in 1998, ASIC’s role is to enforce and regulate company and financial services laws to protect Australian consumers, investors and creditors. ASIC reports to the treasurer and administers legislation for the Insurance Act of 1984, the Corporations Act of 2001, and the National Consumer Credit Protection Act of 2009.
Verifying the regulation of forex brokers in Australia
If a forex broker has been licensed by ASIC, they should be provided with a registration number as proof that they are registered. This number is usually located on the brokers website, near the footer where they state who they are regulated by. You should check on the ASIC website to validate the current status of the broker registration to ensure that it is valid and up to date. It has been known for some scam brokers to fake regulation, some even going as far to clone another brokers website. When you are looking up the registration number, you should find details of the brokerage firm including their website, contact details and if they have any cases brought against them.