Best Forex Brokers Australia

Only Australian Securities & Investment Commission (ASIC) approved forex brokers are authorized to offer forex trading in Australia.

Forex Brokers offer currency trading as derivative instruments called CFDs. Almost 80% retail traders in Australia lose money with forex/CFD brokers.

Speculating on currency exchange rates is very risky, regardless of the broker you choose. Even if you do have the financial adequacy for forex trading, you must only do so via ASIC licensed forex brokers.

Licensed forex brokers must abide by rules such as: specifying their target market, segregation of client funds, and leverage restrictions placed by ASIC. We will explain our research below.

📸 Broker Trading Name

🛡 Licensed in Australia

✂ AUD/USD minimum spread (Standard Account)

💰Minimum Deposit (AUD)

💻 Website

Pepperstone

Yes, AFSL No. 414530, licensee since 2013

1.0

$200 AUD

www.pepperstone.com/en-au

Fusion Markets

Yes, AFSL No. 385620, licensee since 2011

0.9

None

www.fusionmarkets.com

XM

Yes, AFSL No. 443670, licensee since 2013

1.6

$5

www.xm.com/au

AvaTrade

Yes, AFSL No. 406684, licensee since 2011

1.1

$100 AUD

www.avatrade.com.au

Plus500

Yes, AFSL No. 417727, licensee since 2012

1.2

None

www.plus500.com/en-AU

Eightcap

Yes, AFSL No. 391441, licensee since 2011

1.2

$100 AUD

www.eightcap.com/en

Oanda

Yes, AFSL No. 412981, licensee since 2012

0.7

None

www.oanda.com/au-en/

FP Markets

 Yes, AFSL No. 286354, licensee since 2005

1.3

$100 AUD

www.fpmarkets.com

Best Australian Forex Brokers

These forex brokers abide by ASIC CFD leverage restriction of 1:30 for retail & 1:500 for professional traders. Any leverage above 1:2 is risky so even if 1:30 is allowed always opt for lower leverage to limit any losses.

• Pepperstone – Best Forex Broker Australia

• Fusion Markets – Forex Trading Platform for Scalpers

• XM – Forex Broker with No Commission & spreads only

• AvaTrade – Forex Trading Platform with Fixed Spreads

• Plus500 – Licensed CFD Trading Platform

• Oanda – Low Spread Forex Trading Platform

• EIghtcap – Forex Broker with TradingView

• FP markets – Good MT4 Forex Broker with ECN & Iress Direct Market Access

• Vantage – ASIC Regulated Forex Broker

Important Note for readers: Only ASIC licensed forex brokers should be used if you are a currency speculator. Also, only professional traders who have experience should trade forex.

The ASIC Product Design & Distribution Rules also require that brokers clearly specify their target market, & make sure users understand the risks.

Some offshore brokers don't narrow their target market, & present forex/CFD products as free for all activity which is not so as over 80% of CFD traders end up with losses.

1. Pepperstone – Best Forex Broker Australia

💰 Starting Deposit

AUD $200

💱 Account Base Currency

AUD, USD, EUR, GBP, CAD, CHF, JPY, NZD, SGD, HKD

💰 Trading Costs

Commission, Spread, Swaps

💰 Inactivity fee

$0

🛍 No. of CFD Instruments Offered at Pepperstone

1200+

🚀 Leverage for Professionals

1:500

🚀 Leverage for Retail Traders

1:30

🚀 Pepperstone Leverage as per Instrument for Retail Traders

Forex 1:30, Crypto 1:2, Commodities 1:10, Indices 1:20, Currency Indices 1:10, Shares 1:5

🪂 Guaranteed Stop Loss

No

Pepperstone Group Ltd. has held their ASIC license number 414530 since 2013, they have a physical office in Australia, & their accounts are audited by Ernst & Young.

Their activities are closely watched by the ASIC & they comply with all ASIC rules.

Who is Pepperstone's Target Market for OTC Products?

Pepperstone CFD products are for retail traders who know how leverage works & are aware of the dangers. It is also for those looking to use CFDs to hedge risk.

What is the cost of trading?

Commission, Swaps, & Spread. There are 2 account types: The Standard Account does not take commissions & its spreads don't fall below 1 pip.

The Razor Account only takes commissions when you trade FX CFDs, & spreads are low as you can trade EUR/USD at 0.1 pips sometimes.

Pepperstone commission depends on the trading platform you selected. MT4/5, TradingView, & Pepperstone Mobile App; attract $3.5 per side commissions on every standard lot of FX CFDs traded.

If you are trading via cTrader, you pay a lower commission of $3 per side per standard lot of FX CFDs.

Pepperstone spread is not platform based, instead it depends on your trading account type. EUR/USD average spread of 1.1 pips is to be expected on the Pepperstone Standard Account, and 0.10 pip on Razor Account.

Gold traders (XAU/USD) can expect spreads to begin as low as 0.50 pips and go as high as 2.0 pips on average.

Swaps are also to be expected on Pepperstone, as you earn or pay them when you hold a CFD position till the next day.

What trading platforms can I use on Pepperstone?

Pepperstone provides the MT4, MT5, cTrader, and a Proprietary Mobile App. They also provide The TradingView platform so you can trade from advanced charts, and Capitalise.ai platform so you can write trading programs in simple English language.

Tools such as cTrader automate let you build cBots, Auto chartist scans the charts and interprets patterns, API trading lets you import price info from pepperstone to your trading robot, and other tools.

What can I trade on Pepperstone?

Over 1200 CFDs from 7 Asset Classes- Forex, Commodities, Indices, Currency Indices, Cryptocurrency, Shares, & ETFs.

Pepperstone has 90+ currency pairings including Non-Deliverable Forwards (NDFs). Currency Indices include US Dollar Index, Euro Index, & Japanese Yen Index.

How is Pepperstone's customer support?

Support is on 24/5. You save on cost when you dial Pepperstone toll-free Australian phone number for help. A LiveChat is also available & response is swift.

What are the Pros & Cons of Pepperstone?

✔ Pepperstone Australia Pros

✖ Pepperstone Australia Cons

·       ASIC authorized broker AFSL 414530

·       Starting deposit of AUD 200

·       AUD account currency as well as USD

·       No Guaranteed Stop Loss Orders

·       Responsive live support

·       Pepperstone is a CFD broker, so all the other instruments are also CFDs (which carry high risk)

·       Toll-free AU help lines

·       Pepperstone has a wide range of trading platforms including MT4/5, cTrader, TradingView, & a Proprietary Mobile App

·       Raw spread accounts

·       Pepperstone offers Smart Trader Tools for MT4/5 at no cost

·       Education for beginners is provided for by Pepperstone

·       No inactivity fees

Visit Pepperstone for more information on pricing and account opening

2. Fusion Markets – Forex Trading Platform for Scalpers

Are Fusion Markets safe?

Fusion Markets is a trademark of FMGP Trading Group Pty Ltd who have been in Australia since 2011. They are ASIC regulated (AFSL No 385620), Audited by LNP Audit, & have a Sydney office location.

Who is the Target Market for Fusion Market Products?

• Retail clients that understand the risks of CFD leveraged trading especially during high volatility.
• Clients who intend to use CFDs to hedge risk.

 What does it cost to trade with Fusion Markets?

Commission, Spread, & Swaps. The Zero Account type offers spread from 0 pips plus $2.25 per side commissions.  The Classic Account offers spreads from 0.9 pips and doesn't take commissions.

Overnight swaps are not ruled out, as you pay & receive swaps on overnight CFD positions.

What trading platforms does Fusion Markets offer?

MT4, MT5, & cTrader. They have also partnered with 3^rd party platforms: DupliTrade, & Myfxbook AutoTrade.

What can I trade on Fusion Markets?

CFDs on 6 Asset Classes: Forex (90+ Pairs), Metals, Indices, Commodities, Crypto, & US Shares. You trade US Share CFDs with zero commissions, but you don't own the shares you only speculate on its price movement.

At Fusion Markets you cannot trade Bond & ETF CFDs.

How is Fusion Market customer support?

Telephone help lines are not toll-free, but LiveChat is very responsive. Website is also user-friendly

Visit Fusion Markets for more information on pricing and account opening

3. XM – Forex Broker with Zero Commission

Is XM safe?

XM operates through Trading Point of Financial Instruments Pty Ltd AFSL number: 443670.They are audited by William Buck and have a physical office in Sydney.

Who is the Target Market for XM products?

For retail clients who can show evidence of prior trading experience, those with suitable knowledge such as a finance degree, those looking for short-term market exposure. 

What is the cost of trading on XM?

Mainly spread, & swaps. Zero commission applies to all XM Accounts offered. The Ultra-low Account spreads are the lowest starting at 0.6 pip.

On Standard Accounts, EUR/USD spread starts from 1.6 pips & 0.7 pip on Ultra-low Accounts.

Gold spreads start from 2.5 pips on the Standard Account while on the Ultra-Low account it starts from 1.3pips

What platforms does XM offer?

XM offers a Proprietary XM Trading App, alongside MT4 and MT5. The XM proprietary platform is only a mobile app, and workability is restricted to Android/iOS Phones or Tablets.

What can I trade on XM?

There are CFDs on 50+ Currency pairs: Major, Minor, and Exotic pairs. Other available CFDs are Stocks, Commodities, Equity Indices, Precious Metals, & Energies.

How is XM customer support?

The phone and email customer support work 24/5. Live chat has a long waiting period and is not very responsive even on weekdays. The Phone lines are not toll –free.

What are XM Pros & Cons?

Visit the XM website for more information & to open account with Trading Point of Financial Instruments Ltd

4. AvaTrade – Forex Trading Platform with Fixed Spreads

Is AvaTrade safe?

Ava Capital Markets Ltd AFSL No. 406684 commenced Australian operations in 2011.They are audited by Peter Sheldon & have a physical office in Sydney.

Who is the Target Market for AvaTrade Products?

We couldn't find the Target Market Determination (TMD) Document on AvaTrade AU website.

What is the cost of trading on AvaTrade?

The pricing regime is somewhat rigid. You are restricted to only fixed spreads, for example EUR/USD is 0.9 pips fixed. However, AvaTrade doesn't take commission so major fees are Spread + Swaps.

Accounts left dormant for 3 months & above will be charged $50 monthly.

What platforms does AvaTrade offer?

3 proprietary platforms (AvaTradeGo, Webtrader, & AvaOptions), as well as MT4/5 platforms. 3rd party platforms like ZuluTrade & DupliTrade are also available via partnership for copy trading.

What can I trade on AvaTrade?

CFDs on Forex (55 pairs), Bonds, ETFs, Stocks. You can also trade vanilla options on Forex, but it is very complex and could blow your account quickly.

How is AvaTrade customer support?

It's available 24/5, and the LiveChat is very responsive. There's also whatsapp and email as well as AU phone lines which aren't toll-free.

What are the pros & cons of AvaTrade?

Visit AvaTrade for more information on pricing and account opening

5. Plus500 – Licensed CFD Trading Platform

Is Plus500 safe?

Plus500AU Pty ltd. has been regulated by ASIC since 2012 with AFSL No 417727. They are audited by Price WaterHouse Coopers & have a physical office in Sydney.

Who is the Target Market for Plus500 Products?

• Retail consumers above 18 years, who understand how CFDs work as per Plus500 Assessment.
• Those who can afford to lose their entire balance
• Those with a high-risk appetite & looking to invest in the short-term.

What is the cost of trading on Plus500?

Spreads and overnight Swaps. There's also an inactivity fee & Guaranteed Stop Loss Order Fee.

What platforms do Plus500 offer?

Only their proprietary Plus500 platform. MetaTrader is unavailable.

What can I trade on Plus500?

CFDs on Forex (60+ pairs), Commodities, Indices, Crypto (Bitcoin, Ethereum, Cardano, Polygon), Stocks, Options, & ETFs.

How is Plus500 customer support?

Toll-free lines are open 24/7 but there is no LiveChat. Complaints can also be forwarded via email.

What are Plus500 pros & cons?

Visit Plus500 for more information on pricing and account opening

6. Eightcap – Forex Broker with TradingView

Is Eightcap safe?

Eightcap Pty Ltd. is an ASIC regulated CFD Trading Platform with AFSL 391441 issued in 2011. Audited by Ernst & Young, Eightcap also has a physical office in Melbourne.

Who are Eightcap products targeted at?

• Age 18+ & who have good CFD trading knowledge.
• Those who can afford to lose their entire capital
• those with high-risk appetite & short-term investment horizon

What is the cost of trading on Eightcap?

Commissions, Spreads, & Swaps. The Raw Account takes a $3.5/side commission while allowing you access to spreads as low as 0 pip. Other accounts are without commission, but spreads begin from 1 pip.

Overnight CFD positions will attract a swap which you either pay or receive.

What trading platforms are available?

MT4, MT5, & TradingView.

What can I trade on Eightcap?

CFDs on Forex (40+), Commodities, Indices, Shares, & Crypto.

How is customer support?

LiveChat is very responsive. You can also reach out through email and telephone 24/5.

What are the Eightcap pros & cons?

Visit Eightcap Australia for more information, and account opening

7. FP Markets – Good MT4 Forex Broker with ECN & Iress Direct Market Access Accounts

Are FP markets safe?

FP Markets is registered with the ASIC as First Prudential Markets Pty Ltd with AFSL number 286354.

What is the cost of trading on FP Markets?

FP Markets has 2 account types: Standard and Raw Accounts. The Standard Account has zero commission, while the Raw Account comes with a commission of $3.0 per side.

The spread for the Standard Account starts from 1pip, while the Raw Account spread begins from 0 pip. You also pay and receive swaps for overnight positions.

What trading platforms are available?

MT4, MT5, & cTrader (which they newly introduced).

What can I trade?

Range of products features CFDs on over 70 forex pairs, Shares, Commodities, Indices, Metals, ETFs, Bonds, & Cryptocurrencies.  

How is customer support?

Contact support via email, phone number, social media, LiveChat, etc. 24/7. For the LiveChat, the response time is less than one minute.

What are the pros & cons?

Visit FP Markets Australia for more information, and account opening

 8. Oanda – Low Spread Forex Trading Platform

Is Oanda safe?

Operating in Australia since 2012, Oanda is an ASIC approved CFD Platform with AFSL No. 412981. They are audited by Price Waterhouse Coopers and have a physical office In Sydney.

Who is the Target Market for Oanda Products?

• Retail traders above 18 years who have traded CFDs before or has sufficient knowledge of CFDs
• Those aware of CFD pricing & overnight financing
• Those with a high-risk appetite who can accept losing all their equity yet come up with additional margin when needed.

What does it cost to trade with Oanda?

$3.5/side Commission, Spread, Swaps fees, & $10 AUD inactivity fee.

Oanda has 2 account options: The Core Pricing Account grants you spread as low as 0 pip, but you pay commissions. The Spread-only Account has zero commissions & spreads from 0.6 pip.

What trading platforms does Oanda offer?

Its own Oanda proprietary platform, as well as MT4, & TradingView platforms.

How do I connect Oanda to TradingView?

• logon to TradingView and search for Oanda's profile
• Click on 'Trade'
• It will prompt you to enter your Oanda Login Credentials then you start trading

What can I trade on Oanda?

CFDs on 6 Asset Classes: Forex, Indices, Metals, Crypto, Commodities, & Bonds.

Although Oanda offers over 70 Forex CFDs on their menu, there is an imbalance between the overconcentration on forex, & other asset classes.

For example, you cannot trade Share, & ETF CFDs at Oanda Australia, & Cryptocurrencies are just 3 (Bitcoin, Litecoin, & Ether),

How is Oanda customer support?

Support is 24/5 but there is no LiveChat service. Contact via email, telephone, or filling in a complaint form.

What are the Pros & Cons of Oanda?

How to Choose a Forex Broker in Australia?

We will consider what you should look out for when choosing a forex broker in Australia.

#1. ASIC Regulation: Online retail forex trading is legal in Australia.

The body in-charge of regulating forex trading and other investment activities is the Australian Securities and Investment Commission (ASIC).

As a forex trader, always ensure you trade with a broker that is licensed and regulated by the ASIC, so you are protected by local laws if a dispute ever arises.

Use these steps to confirm if a broker has an active ASIC license:

• Go to your broker's website and check the bottom of the page for the AFSL license number usually issued to them by the ASIC. See image extract below for Pepperstone with AFSL No. 414530

• Go to the ASIC website asic.gov.au/
• Click on 'Search Our Registers'
• Click on 'Check ASIC Connect Professional Registers'

• Enter AFSL number you got from broker's website and in the 'select register' drop down menu, click on Australian Financial Service Licensee' then click search to consummate it.

The outcome of your search will carry details of the forex broker but pay attention to the status of the license which should read: 'Current'.

#2. Account Opening & Trading fees: You can reduce trading fees by choosing account types with less fee compared to others. This is because a forex broker might offer numerous accounts for traders to choose from.

Spreads are a major fee to watch out for because they can widen or tighten, based on market volatility of the instrument you're trading.

Depending on your trading strategy, choose low spread trading instruments or accounts.

To avoid conversion fees, choose brokers that provide AUD account base currency; this prevents the back-and-forth conversion fees.

Also watch out for commissions which are flat rate fees paid twice: when you open & when you close a position.

If you don't intend to trade often, check for monthly inactivity fees as these are levied after a certain period of account inactivity.

#3. General trading conditions:

Trading conditions include Leverage, Trading Platform, Number of Currency Pairs on Offer, Leverage, etc.

The ASIC has restricted leverage brokers can offer in Australia to 1:30 for Retail Traders and 1:500 for Professional Traders. Any broker offering above this is clearly not regulated by the ASIC.

A 1:30 leverage means losses are multiplied by 30 times, so a $10 loss becomes a $300 loss. Forex brokers allow up to 1:30 leverage when you trade forex CFDs because exchange rates change in such small amounts that for you to make a respectable earning, you need to increase leverage.

However, you should not look to make a high profit at once, as it is better to trade using lower leverage like 1:2 and have a higher win rate (your win rate should exceed your loss rate).

For trading platforms, you must ensure the broker's platforms are compatible with the device you intend to use for the trading.

Beyond that it should be a platform that is easy for you to navigate. Also ensure that the broker's currency pairs on offer represent a mix of currencies across major, minor and exotic pairs or the pairs you prefer to trade in.

The broker should also have a healthy mix of tools, educational and research support to guide you in trading, make trading experience seamless and provide knowledge on latest trends shaping the market.

#4. Australian Customer Support: when choosing a forex broker, look out for the ones that have various means of communication respond as fast as possible and available 24/7.

Your forex broker should have a call support with an Australian phone number, email support that replies within few hours, a human Live Chat where you can reach out to customer support etc.

How to Trade forex in Australia?

Although forex trading is legal in Australia, but it is only for traders who have experience. It is not for beginner investors, who don't understand the risks of leverage.

Moreover, any form of CFD or derivative instruments should not be traded by retail investors who don't understand the risks.

These steps below are commonly involved in forex trading.

Step 1– Choose a broker: ensure the forex broker is ASIC approved and don't be carried away by reward programs offered by offshore forex brokers.

Step 2– Learn the basics of forex trading. You can use a demo account to give you a practical understanding of it. Don't trade with real money if you are not profitable on paper trading.

Step 3– Develop a trading strategy- here you draft a plan on the strategies you wish to deploy in the market.

You should factor in risks, trading style, leverage and funds at your disposal. You should always have a stop-loss order in place.

Don't risk more than 2% of your capital on any single trade.

Step 4– Fund Your account- depending on the payment system available, you can fund your account through any of these means: bank transfer, credit cards, e-wallets etc.

Avoid funding your account through unknown links sent to you by friends or people you meet online

Step 5– Place your trade. The best time to trade forex in Australia depends on the currency pairs you are targeting.

• The Asian session is best for pairs containing the Japanese Yen such as USD/JPY and starts as 10PM and closes at 7 AM Australian time (AEST)
• The European session is best for pairs that contain European currencies like GBP/USD, EUR/USD etc. It opens at 4PM and ends at 1AM AEST. This is the busiest and most liquid session!
• The North American session is ideal for pairs like USD/CAD and is open from 9PM to 6AM AEST

Watch out for when North American and European sessions collide, around 1Am to 4AM AEST as liquidity becomes very high, and you get lower spreads on currency pairs.

Is Forex Trading legal in Australia?

Yes, forex trading is legal for retail traders based in Australia. Only the forex brokers who have been licensed under ASIC, and don't have any restrictions by the regulator are legal in Australia.

You should have financial adequacy & experience to trade this instrument. A very high percentage of the retail forex traders in Australia loses their money.

Your forex broker is required by the ASIC to carry out due diligence before onboarding any new trader.

Information on Forex Trading in Australia

Frequently Asked Questions- Best Forex Brokers Australia

Who is the best forex broker in Australia?

There is no best forex broker, only the ones who are licensed are reputed.

The forex brokers who are approved by the ASIC include: XM, Oanda, Pepperstone & others. These brokers may change overtime if there is any change in their regulatory status.

Who is the swap free broker in Australia?

Swap-free trading in Australia is only for Islamic Accounts. Otherwise, you must pay swap fees for overnight trades.

Which forex broker in Australia offer lowest spreads?

On Standard Accounts, Oanda spreads start from 0.7 pips, Fusion Market spread starts at 0.9 pips, & Pepperstone spread starts at 1 pip. These are some of the lowest spread forex brokers Australia has.