The best FX brokers are going to be those offering competitive fees, advanced trading tools and wide range of tradeable markets.
To find the best forex brokers in Australia, Finder uses a proprietary algorithm that incorporates fees, security, trading features and available products.
The following platforms were awarded the best scores in the most recent Finder Forex Broker Awards:
We compared 31 forex brokers across 61 metrics to find the best in Australia. The metrics we studied fell into 5 categories; Security and trust, Cost and fees, Trading features, Beginner-friendly features and Markets offered. Within these categories we considered the following features:
When comparing each award, we gave each category different weightings to match the needs of the user. For example, the best forex broker for beginners had a stronger weighting for beginner-friendly features compared with more advanced trading tools.
While Finder has commercial arrangements with some forex brokers, this did not impact the final selection of the forex brokers shown below. Our algorithm based the forex brokers on their merits regardless of our partnership deals.
| Commission | US$0.04 per $1k traded (varies by platform) |
|---|---|
| AU/USD avg. raw spread | 0.2 |
| Inactivity fee | $0 |
| Minimum deposit | $0 |
The best forex trading platform in Australia is FP Markets according to Finder's latest analysis, thanks to its impressive range of currency pairs, competitive pricing, tight spreads and fast execution.
| Commission | $0 |
|---|---|
| AU/USD avg. raw spread | N/A |
| Inactivity fee | N/A |
| Minimum deposit | 100 |
| Commission | $0 |
|---|---|
| AU/USD avg. raw spread | N/A |
| Inactivity fee | N/A |
| Minimum deposit | $0 |
| Commission | $0 |
|---|---|
| AU/USD avg. raw spread | 0.1 |
| Inactivity fee | $0 |
| Minimum deposit | $0 |
| Commission | AU$3.50 per 100k traded |
|---|---|
| AU/USD avg. raw spread | 0.17 |
| Inactivity fee | $0 |
| Minimum deposit | US$200 |
| Commission | $0 |
|---|---|
| AU/USD avg. raw spread | N/A |
| Inactivity fee | N/A |
| Minimum deposit | $0 |
This will depend on your level of experience and approach to trading but when you're looking for forex brokers, there are a few things to look out for, including:
"The spread is the ‘cut’ your broker will take from your trading. It’s how they make their money. You don’t want to use a broker with very high spreads. At the same time, you get what you pay for, so cut-price spreads will most likely come from brokers that don’t offer as many features or as good a service. It's important to compare spreads and ensure you’re not being taken for a ride. But also include a comparison of features to make sure you aren’t compromising your performance by going after low spreads only."
Use our table below to compare the forex brokers in Australia by fees, available trading platforms and spreads.
We currently don't have that product, but here are others to consider:
How we picked theseTrading CFDs and forex on leverage is high-risk and you could lose more than your initial investment. It may not be suitable for every investor. Refer to the provider’s PDS and consider the risks before trading.
Trading CFDs and forex on leverage is high-risk and you could lose more than your initial investment. It may not be suitable for every investor. Refer to the provider’s PDS and consider the risks before trading.
Most forex trading platforms will allow you to apply for an account within minutes online. While the application process varies between providers, you'll usually have to fill out an online application and then wait for a response from the provider to learn whether your application has been approved.
You'll usually have to supply the following:
In Australia, FX brokers predominantly offer CFDs, which are considered more advanced trading instruments. In order to sign up to a CFD platform, you'll normally need to successfully complete a short quiz that tests you on your knowledge of trading and the risks involved.
In a globalised world, international currencies are important because they need to be traded in order for business to be conducted. Every day, foreign currencies go up and down relative to one another and traders can profit from these movements.
Trading decisions are based on which way traders think forex prices will fluctuate in the future.
Unlike your traditional investing assets that run on an exchange, forex trading is done via 2 parties in an over-the-counter market. There's a variety of ways to trade forex, but in essence, they all work the same way – by trading currency pairs.
But to trade forex directly in Australia, you need a large amount of money and to be classified as a "sophisticated" investor. For this reason, direct forex trading is usually carried out by wholesalers or institutional investors.
Retail investors more commonly trade forex through derivatives contracts, such as futures contracts or CFDs (contracts for difference). In fact most forex brokers that you'll come across in Australia are actually CFD brokers.
It's important to know that CFDs are complex and risky derivatives products that are best suited to experienced traders.
On the global forex market, all currencies are quoted in pairs, and this is how CFD forex trading works as well. For example, AUD/EUR, GBP/EUR and AUD/USD are just a few common pairs.
Rather than buying and selling foreign currency, a trader enters into an arrangement with a broker to profit from any change in the exchange rate between 2 currencies. Of course, if the exchange rate between the 2 currencies doesn't move in their favour, the trader stands to lose money as well.
When a trader initiates a forex trade (or "opens a position"), it's as though they are buying one currency and selling another at the same time. If the value of one of the currencies moves against the other, the trader "closes out" their position, selling the other currency and buying back the original currency they sold.
It's important to remember that at no stage during the above transaction do you actually own or take delivery of the currencies involved in the trade. That's why forex traded in this way is considered a derivative instrument, because its value is based on an underlying asset, without that asset ever being physically exchanged between the parties.
| Response | 75+ yrs | 65-74 yrs | 55-64 yrs | 45-54 yrs | 35-44 yrs | 25-34 yrs | 18-24 yrs |
|---|---|---|---|---|---|---|---|
| Through an ETF or managed fund | 1.49% | 0.8% | 1.84% | 1.05% | |||
| Other | 0.57% | ||||||
| With a forex broker (non-CFD) | 0.57% | 1.23% | 2.78% | 2.81% | 0.46% | 2.11% | |
| With a money transfer service | 0.57% | 0.56% | 0.8% | 2.76% | 3.16% | ||
| Through a CFD platform | 0.62% | 0.56% | 3.61% | 4.61% | 2.11% | ||
| Full-service (advice) broker or portfolio manager | 0.92% | 1.05% |
You should check to see if the broker is regulated by the Australian Securities and Investment Commission (ASIC). From a compliance standpoint, this means you're protected under Australian law. You can also feel secure knowing they are not peddling a scam platform.
That being said, trading forex itself can be risky. Forex markets are incredibly fast-moving, with only a fractional change in position potentially having a large impact on your returns. Trading CFDs can also involve leverage, which can add more risk.
Some of the other potential risks of FX platforms include:
Forex trades are typically leveraged, meaning you only contribute a small stake towards the total value of the trade.
That's because currency exchange rates only fluctuate by small amounts, usually by tenths or hundredths of a cent. So, to realise any significant profit or loss, you need to trade at high volumes.
Leveraged trading (or trading on margin) allows you to take out a small stake in a much larger trade, with your broker typically making up the shortfall. If the exchange rate moves in your favour, you stand to profit from the full amount that was traded, not just your small stake.
Of course, it works in the opposite way as well, so if the exchange rate moves against you, you are liable for the losses incurred on the full value of the trade.
That's why forex trading is typically suited to more experienced and less risk-averse traders.
Say you're trading the euro vs the Australian dollar, with the hope the euro will strengthen.
You could enter a position at a price of say $1.3147.
You could buy $100,000 for the trade but would face a margin of something like 3%, meaning an initial outlay $3,000. In this example, your leverage would be 30:1, the highest allowed in Australia.
The lower the margin, the greater amount of leverage needed for each trade.
If the 100,000 is being traded at 1.3147 and it goes up to $1.3167 then the price is up 20 pips, meaning the trader has made $200 ($100,000 x 0.020).
The reverse is also true. If the currency fell to $1.3127 from 1.3147 then the trader would lose $200 ($100,000 x 0.020)
These gains and losses would be amplified by leverage.
There are a few fees to think about when selecting a forex broker.
For instance, some providers charge a commission fee on every trade you make. These fees will generally be quite low, such as a few cents per thousand dollars traded. Others wont charge any commissions but instead make money on the spread.
The spread is the difference between the buy and sell prices for each currency pair. This is where most brokers will collect their trade fee. Look for a trading platform that offers tight spreads to minimise the costs involved.
While not really a fee, you should also think about the margin you'll be required to meet in order to make a trade. This could be 0.5%, 1% or some other figure, and it will affect the amount of money you'll have to spend to open a forex position. For example, if your account has a margin of 1%, a trade worth $100,000 will require you to spend $1,000.
Other fees may apply to credit and debit card payments.
Just like any other type of investing, forex trading comes with a level of risk attached. It's important to be aware that foreign exchange trading is highly risky, so you need to be aware of all the dangers involved with this sort of trading. These include:
Forex trading is complicated and features a high level of risk, so consider your options carefully before deciding whether it's the right option for you.
Forex trading is a riskier asset class that tends to favour more experienced investors.
This doesn't mean a regular investor can never learn the ropes, it just means they will need to do their homework prior to entering the market.
Before making your first trade, you'll need to understand that the market is incredibly volatile, that leverage can turn small movements in price into massive gains or losses, and why one currency is moving compared to another.
But, despite the risks and complexities, forex investing amongst retail investors is on the rise, and so too are the educational resources available to new investors.
Before deciding on the right trading platform for you, make sure to compare the fees and benefits of several providers.
A currency pair is always structured in the same way, following a universally accepted ranking order and always showing the value of a base currency (the first) being traded against a quote (the second) currency.
There are 3 types of currency pairs that you need to be aware of: majors, minors and exotics.
The major currency pairs are considered any market that features the US dollar. The majors are the most frequently traded currency pairs and are therefore the most liquid forex markets to trade.
As a forex trader, this liquidity means that the majors feature relatively stable prices and the lowest spreads, or brokerage costs, when taking a position in any of these currency pairs.
| Major currency pairs | |
|---|---|
| EUR/USD | Euro/US dollar |
| USD/JPY | US dollar/Japanese yen |
| GBP/USD | British pound/US dollar |
| USD/CHF | US dollar/Swiss franc |
| USD/CAD | US dollar/Canadian dollar |
| AUD/USD | Australian dollar/US dollar |
| NZD/USD | New Zealand dollar/US dollar |
The US dollar is the world’s leading reserve currency and is involved in about 88% of currency trades globally. The EUR/USD currency pair is the most heavily traded and therefore the most liquid currency pair in the world.
If you’re going to open a forex trading account, EUR/USD can be a good place to start.
If a currency pair doesn’t feature the US dollar, it's considered to be a minor currency pair. The minors are sometimes called currency crosses because the market means you’re no longer required to first go through US dollars, as was once the case.
The minors aren’t as liquid as the majors, meaning they move more erratically and have wider spreads displayed on your forex trading account.
| Minor currency pairs | |
|---|---|
| EUR/GBP | Euro/British pound |
| EUR/AUD | Euro/Australian dollar |
| AUD/NZD | Australian dollar/New Zealand dollar |
| GBP/JPY | British pound/Japanese yen |
| CHF/JPY | Swiss franc/Japanese yen |
| NZD/JPY | New Zealand dollar/Japanese yen |
| GBP/CAD | British pound/Canadian dollar |
The most widely traded minor currency pairs consist of pairs in which the individual currencies are also majors. Some of the more popular minors are EUR/GBP, GBP/JPY and AUD/NZD.
The final type of currency pair is known as an exotic. The exotics are essentially minors that feature currencies of emerging market economies.
The nature of emerging markets is that they’re less stable and much more illiquid as a result. This means that when it comes to trading exotic currency pairs, you’ll experience wild price swings and much wider spreads.
| Exotic currency pairs | |
|---|---|
| EUR/TRY | Euro/Turkish lira |
| USD/HKD | US dollar/Hong Kong dollar |
| JPY/NOK | Japanese yen/Norwegian krone |
| NZD/SGD | New Zealand dollar/Singapore dollar |
| GBP/ZAR | British pound/South African rand |
| AUD/MXN | Australian dollar/Mexican peso |
Keep in mind that the wide spreads mean you may not see your trade executed at the price you expect. When you’re trading exotics, you need to make sure you know what you’re doing and manage your risk accordingly.
Picking the right currency pairs to trade on your account depends on your experience as a forex trader. If you’re new to the game, it’s best to stick with the major and minor pairs. This is because these markets are more stable and you’ll get lower spreads.
Exotic pairs are more difficult to work with because they are more erratic and their low liquidity means you’ll see higher spreads.
Whichever currency pairs you decide to trade, make sure you’re managing your risk. It’s imperative to understand that while the opportunity for moves may be larger in the exotics, this also means that your risks are amplified if the market moves against you.
Disclaimer: Trading CFDs and forex on leverage is high risk and losses could exceed your deposits.
There's no best broker in forex trading, but there are some that are more suited to your individual needs and circumstances. If you're newer to trading, you might prefer a broker that favours education or if you're more experienced you might choose one that has advanced features.
Regardless of who you choose, all forex trading comes with risk. In fact, depending on who you ask, somewhere between 60% and 80% of traders lose money. As such, this should only be taken on by more experienced investors.
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Is it legal for an Australian to trade forex through an international broker that is not ASIC regulated?
Hi Angus,
It’s not illegal to trade forex with a broker that is not regulated by ASIC but it’s certainly not advised. ASIC regulations ensure you’re protected under Australian laws and have rights as a trader – including the security of your funds and data. They also ensure brokers are held accountable for their actions.
While overseas regulators may do the same, the situation becomes much more complex across borders and you may not be afforded the same protections as local residents. Meanwhile, forex trading platforms that are entirely unregulated are a red flag and should be avoided.
I’m based in England, but my money is in an Australian bank, can I do forex deals from England (online) through an Australian broker? Any gains or losses would go into and out of my Australian account. I currently have no Australian address, but can provide a friends address if necessary. I’m British but hold Australian residency status.
Hi Martin,
Thanks for your inquiry.
When engaging to the international trading in Australia, the general eligibility requirements for personal applicants will include:
– Be over the age of 18
– Have an Australian residential address
– Have a valid contact number
If you’ve already chosen a platform, I would suggest that you contact the provider directly so they can advise about your eligibility based on your circumstance.
Cheers,
May
Sir/Madam,
hello my name is mar and i am from india i’m learning about forex trading for 3 years and thus want to move to australia to do forex trading only. It is possible to migrate to australia to do forex trading only thank you
Hey Mar,
Thank you for reaching out to us.
You may find useful information on our page on Australian Immigration Guide.
As finder is a financial comparison website providing general information, it would be best to seek professional advice on your concern.
You may opt to seek help from a Migration Agent to advise you on the type of visa you can apply for and guide you through the process of your application.
I hope this helps.
Cheers!
Maria