Our comparison in December 2023 of the 39 ASIC-regulated platforms found Pepperstone to be the best forex broker in Australia. We opened several accounts, ran tests and cross-checked with published data to determine this finding.
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The top 10 Australian forex trading platform finalists are:
| Broker | Our Rating | Regulation | Standard EUR/USD Spread |
Standard GBP/USD Spread |
Standard AUD/USD Spread |
Raw EUR/USD Spread |
Raw GBP/USD Spread |
Raw AUD/USD Spread |
Commissions (USD Base) |
MetaTrader 4 | MetaTrader 5 | cTrader | Execution Speed | Minimum Deposit | Currency Pairs | Crypto CFDs | Retail Leverage | Prof. Leverage | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
9.33 |
ASIC, FCA CySEC, DFSA |
1.12 | 1.69 | 1.22 | 0.10 | 0.60 | 0.30 | $3.50 |
|
|
|
77ms | $0 | 62+ | 12+ | 30:1 | 500:1 |
|
|
8.50 |
ASIC, FSA-S CySEC |
0.62 | 0.83 | 0.77 | 0.02 | 0.23 | 0.17 | $3.50 |
|
|
|
134ms | $0 | 61+ | 18+ | 30:1 | 500:1 |
|
|
7.17 |
ASIC, CySEC, MFSA FCA, FSA, FINRA GFSC |
1.0 | 2.0 | 1.0 | - | - | - | - |
|
|
|
130ms | $200 (Australia), $50-$100 (EU) | 49+ | 46+ | 30:1 | 400:1 |
|
|
5.83 |
ASIC, CySEC, MAS FCA, FMA, DFSA EFSA, FSA, FSCA |
1.70 | 2.3 | 1.4 | - | - | - | - |
|
|
|
140ms | $100 | 71+ | 15+ | 30:1 | 300:1 |
|
|
6.67 |
ASIC, FCA, BaFin FINMA, NFA/CFTC, MAS CySEC, DFSA, FMA JFSA, BMA, FSCA |
1.13 | 1.66 | 1.01 | 0.16 | 0.59 | 0.29 | $6.00 |
|
|
|
174ms | $450 | 100+ | 12+ | 30:1 | 200:1 |
|
|
8.33 |
ASIC, FSCA CBI, KNF, CIRO ADGM, FSC-BVI |
- | - | - | - | - | - | - |
|
|
|
160ms | $100 | 55+ | 15+ | 30:1 | 400:1 |
|
|
8.17 |
ASIC,CySEC FSCA,FSA-S,FSC-M |
1.1 | 1.3 | 1.3 | 0.10 | 0.20 | 0.20 | $3.00 |
|
|
|
225ms | $100 | 70+ | 10+ | 30:1 | 500:1 |
|
|
7.93 |
ASIC, FSCA FCA, CIRO BaFin, ISA, CySEC |
1.3 | 1.4 | 1.7 | 0.30 | 0.90 | 0.40 | $3.00 |
|
|
|
150ms | $300 | 42+ | 7+ | 30:1 | 500:1 |
|
|
7.17 |
ASIC, MAS, FCA CIRO, FMA, BaFin |
1.12 | 1.30 | 1.64 | 0.5 | 0.9 | 0.6 | $2.50 |
|
|
|
138ms | $0 | 338+ | 19+ | 30:1 | 500:1 |
|
|
8.50 | FMA, FSA | 1.20 | 1.4 | 1.7 | 0.23 | 0.72 | 0.65 | $3.00 |
|
|
|
72ms | $0 | 64+ | 11+ | 500:1 | 500:1 |
|
Pepperstone Was The Winner With A Score Of 95/100
While Pepperstone isn’t one of the ‘big 3’ in the forex broker space, the provider continues to be one of the fastest growing in Australia. Despite only being founded in 2010, in 2023, they boast an average trading volume of USD $9.2 billion with 300,000 clients worldwide. What matters for Australian traders is they are Melbourne-based and have a local customer service team.
Why We Named Pepperstone The Winner
Our Review Of PepperstoneVisit Pepperstone
| Overall Score |
Trading Costs 2.5x |
Environment & Speed 2x |
Reputation & Trust 2x |
Trading Platform 1.5x |
Customer Service 1x |
Tradable Instruments 0.5x |
Education & Training 0.5x |
Ease Of Funding 0.5x |
|---|---|---|---|---|---|---|---|---|
| 95/100 | 7.2/10 | 7.6/10 | 7.7/10 | 8.5/10 | 8.0/10 | 8.5/10 | 8.0/10 | 9.0/10 |
Why We Named Pepperstone The Winner
Ross Collins created a series of tests using EAs to measure the speed of each broker truly. His testing determined that Pepperstone and Fusion Markets were the fastest of the ASIC-regulated brokers. Below are the results of his Limit Order Speed testing[2]Execution Speed Testing Results, with Pepperstone’s 77ms average speed placing it at the first position.
This year, the team opened live accounts with Pepperstone and found the onboarding process one of the best, with a dedicated account manager calling us the next day. There were no issues when it came to depositing and then later withdrawing funds. There was also a good choice of accounts to suit each of our styles (I chose the RAZOR account).
| Overall Score (100) |
Limit Order Testing Speed (15) |
Market Order Testing Speed (15) |
Ease Of Opening (15) |
Ease Of Withdrawl (10) |
Professional Leverage (10) |
Standard Account (10) |
Raw / ECN Account (10) |
Fixed Spread Account (5) |
Islamic Account (5) |
Account Manager (5) |
|
|---|---|---|---|---|---|---|---|---|---|---|---|
| 90 | 14 | 11 | 15 | 10 | 10 | 10 | 10 | 0 | 5 | 5 |
We Also Found The Broker Had Superior Forex Trading Platforms
Our team believes that options are key when it comes to trading software. Pepperstone offers Australian forex traders the choice of the four most popular trading platforms:
Right now, there is a shift in popularity to TradingView, which I personally use and is only offered by a handful of brokers.
We liked that our demo accounts had no fees or expiry associated with them. This was across all of the trading software they offered. Finally, the broker has many enhancements when it comes to their platforms, such as Capitalise.ai, Myfxbook and DupliTrade. This led them to a trading software score of 85/100, which is the highest of any ASIC-regulated broker we tested.
| Overall Score (100) |
MetaTrader 4 (15) |
MetaTrader 5 (15) |
cTrader (15) |
TradingView (10) |
Free Demo Account (10) |
Demo Account Expiry (10) |
Social/Copy Trading (10) |
Automation / Scalping (5) |
Proprietary Platform (5) |
Mobile Trading App (5) |
|
|---|---|---|---|---|---|---|---|---|---|---|---|
| 85 | 15 | 15 | 15 | 10 | 10 | 10 | 10 | 5 | 0 | 5 |
Their Fees And Account Types Were Compared to Other Brokers
Each month, our team sources and then compares the published average speeds of the most popular Australian forex brokers. The December 2023 data below (updated monthly) shows that Pepperstone has competitive average spreads for its Razor account.
|
RAW Account Spread Comparison
|
|||||
|---|---|---|---|---|---|
|
0.10 | 0.20 | 0.60 | 0.40 | 1.00 |
|
0.17 | 0.30 | N/A | 0.54 | 0.68 |
|
0.30 | 0.50 | 0.60 | 0.50 | 0.50 |
|
0.30 | 0.40 | N/A | 0.50 | 0.50 |
|
0.44 | 0.42 | 0.50 | 0.40 | 0.30 |
|
0.20 | 0.40 | 0.60 | 0.50 | 0.70 |
|
0.10 | 0.50 | 1.10 | 0.60 | 0.80 |
|
n/a | 0.50 | 0.70 | 0.60 | 0.40 |
|
0.30 | 0.50 | 1.50 | 0.50 | 1.10 |
|
0.20 | 0.30 | 0.50 | 0.60 | 0.50 |
|
0.52 | 0.80 | 1.41 | 0.86 | 1.11 |
|
0.44 | 1.23 | 1.17 | 1.13 | 1.23 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 01/12/2023
The provider also offers a standard that is more suited for traders who are more new to traders and, like most broker fees, incorporated into the spread.
David Levy created a guide for traders who are unsure if the Standard or Razor account is right for their trading needs. We also developed a Forex calculator (below) to work out the trading Razor account trading costs and compare them to other traders.
Calculate Your Trading Costs Below
Total Fees
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Spread Costs
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Total Fees
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Spread Costs
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Total Fees
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It should also be noted that high-volume traders can receive a discount through the Active Trader program. Perfect for high-volume traders. If you trade at least 100 standard lots each month (or an average of 300 lots over 3 months), you can apply for an Active Trader account and earn cash rebates, thereby reducing your trader fees.
We Loved Their Customer Service
Over the past 3 months, Ross and I independently scored customer service levels, and both gave the same high score. This may be biased as we are both Australian-based and the broker is based in Melbourne, but the customer service team is always responsive, knows their product range, and has a good understanding of trading. David Levy has similar thoughts when he requires factual information on the broker and technical elements.
It’s not just our team that thinks of Pepperstone highly; they won the Investment awards for:
These were based on 15,000 traders surveyed in Australia. From our perspective, this is the most reputable source for this award type.
Final Verdict On Why Traders Should Use Pepperstone
Pepperstone won 3 of the 8 categories we judged, including trading experience, trading platforms, and customer service, making it clearly the best forex broker in Australia.
The broker didn’t score maximum points due to their smaller size (vs CMC and IG), lack of secondary products such as share trading, and that they were not the cheapest.
We recommend their standard account for those new to forex trading, while their Razor account with TradingView is my personal recommendation for more advanced traders looking for lower brokerage.
Pepperstone ReviewVisit Pepperstone
IC Markets Scored 85/100 For Trading Fees.
IC Markets is three years older than Pepperstone (Founded in 2007) and based in Sydney. The broker is larger globally and has leveraged their trading volume to source 25 liquidity providers globally. This translates into lower trading costs based on our testing discussed further down.
Key Strengths
Review Of IC MarketsVisit IC Markets
IC Markets Has The Lowest Published Average Spreads
For the past four years, we have compared the published standard account spreads by visiting each broker’s website and adding and updating their results on our spreadsheet. The summary of this spreadsheet can be seen below. Since last year, we have noticed that IC Markets has consistently had the lowest non-commission spreads.
|
Standard Account Spreads
|
|||||
|---|---|---|---|---|---|
|
0.62 | 0.77 | 1.27 | 0.83 | 0.74 |
|
|
1.10 | 1.20 | 1.40 | 1.40 | 1.40 |
|
|
1.13 | 1.01 | 1.71 | 1.66 | 1.12 |
|
|
0.90 | 1.30 | 1.40 | 1.40 | 1.40 |
|
0.70 | 2.20 | 1.10 | 1.10 | 0.60 |
|
1.20 | 0.90 | 1.50 | 1.80 | 1.80 |
|
1.20 | 1.40 | 1.50 | 1.60 | 1.50 |
|
1.10 | 1.20 | 1.40 | 1.50 | 1.20 |
|
1.10 | 1.20 | 1.30 | 1.30 | 1.30 |
|
|
1.20 | 1.30 | 1.20 | 1.30 | 1.10 |
|
1.70 | 1.60 | 1.70 | 2.00 | 1.60 |
|
1.20 | 1.80 | 1.90 | 1.90 | 1.60 |
|
|
1.30 | 1.70 | 2.10 | 1.40 | 1.50 |
|
1.12 | 1.64 | 0.86 | 1.30 | 1.38 |
|
|
1.32 | 1.95 | 1.37 | 1.70 | 1.40 |
|
1.20 | 1.30 | 1.50 | 1.30 | 1.20 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 01/12/2023
Ross Confirmed They Have The Lowest Spreads
In early 2023, we challenged Ross Collins to verify the average spreads published by each broker. He set up two independent tests over a 24-hour period using Expert Advisors. His spread testing findings confirmed that IC Markets did indeed have the lowest spreads, as shown below.
| Broker | Average Spread | Average Spread Cost (USD) |
|---|---|---|
| IC Markets | 1.03 | $9.63 |
| CMC Markets | 1.11 | $10.10 |
| Fusion Markets | 1.19 | $11.07 |
| TMGM | 1.21 | $11.18 |
| Admiral Markets | 1.31 | $11.96 |
| FXCM | 1.47 | $13.49 |
| Pepperstone | 1.46 | $13.52 |
| FP Markets | 1.47 | $13.60 |
| Go Markets | 1.49 | $13.87 |
| EightCap | 1.51 | $13.97 |
| OANDA | 1.54 | $14.23 |
| Axi | 1.71 | $15.99 |
| City Index | 1.79 | $16.52 |
| Blackbull Markets | 1.82 | $16.95 |
| FXPro | 2.22 | $20.83 |
Their Other Fees Are Also Low
We compared their other fees to see if IC Markets compensates for their lowest spreads, but the short answer is they don’t. Here are the main facts when it comes to other trading fees:
If you’re considering IC Markets based on their low fees, you need to decide which account type best suits you. We made an IC Markets standard account vs raw spread guide if you are unsure which option is best for you.
Final Verdict On IC Markets
If you’re looking for the cheapest forex broker based on its standard account, then it’s clearly IC Markets. The broker’s published spreads are consistent with our test, showing they have the lowest spread and verifying they are the best priced in the market. If you’re looking to open a RAW account, make sure your base currency is the Aussie dollar, as the commission will be $3.50AUD. Those who select the US dollar have to pay $3.50 USD per side.
IC Markets ReviewVisit IC Markets
| Overall Trading Fee Score (100) |
Standard Account Average Spreads (20) |
Standard Account Tested Spreads (15) |
RAW Account Average Spreads (15) |
RAW Account Tested Spreads (10) |
Commission Rates (10) |
Fixed Spread Account? (5) |
Inactivity Fees (5) |
Active Trader Discounts (5) |
Withdrawal Fees (5) |
Other Fees (5) |
|
|---|---|---|---|---|---|---|---|---|---|---|---|
| 85 | 20 | 15 | 15 | 10 | 10 | 0 | 5 | 5 | 0 |
5 |
IG Offers an Impressive Range of Financial Instruments For Trading.
Global online brokerage juggernaut IG has had over 30 years to refine each and every aspect of its offering, from trading tools to asset classes to educational tools to infrastructure. The broker is particularly well known for being trustworthy.
Key Strengths
IG Account Types And Software
When it comes to account types, it can feel a bit as IG goes from zero to sixty without much in the middle. Traders can choose from a CFD account with a dealing desk model or upgrade – significantly – to a DMA account with no dealing desk and direct market access. Just note that to use the DMA account, only Forex and shares are available, and you need to be using the iOS IG trading software or L2 dealer.
IG also has retail investor accounts that allow share trading. These are separate from the trading accounts we discuss and require a separate application.
To start trading with IG, account holders will need to make a minimum deposit of AUD $450 if funding the account with a credit or debit card, as well as PayPal. Further deposits will incur a 1% funding cost if paying by Visa or PayPal and 0.5% if paying by Mastercard Credit. Fortunately, IG also supports account funding via bank transfer and BPay for Australian customers.
On a more positive note, IG supports account types in ten base currencies, including the Australian Dollar (AUD), US Dollar (USD), Japanese Yen (JPY), Pound Sterling (GBP), Euros (EUR), Canadian Dollar (CAD), Swiss Franc (CHF), New Zealand Dollar (NZD), Singapore Dollar (SGD), and Hong Kong Dollar (HKD).
This top online forex broker distinguishes itself for largely eschewing popular forex platforms like MetaTrader 5 and cTrader in favour of IG’s own painstakingly developed trading tools for desktop, mobile, and web. Australian account holders do have the option to trade via MetaTrader 4 but without many of the integrations and add-ons provided by other brokers. Automated traders might still prefer MT4 for access to the platform’s Expert Advisors (EAs).
That said, most users who trade via IG’s proprietary software report a VIP experience, with easily customisable views, watchlists, and a range of order types to limit risk. Of particular note to newer and more cautious traders, IG offers both stop-loss and trailing stop-order types to Australian account holders.
Direct Markets Access (DMA) – also known as Level 2 trading – allows users to trade currencies or shares directly through exchange order books. This is an excellent option for professional traders looking for the most favourable execution environment. IC account holders trading via the desktop app or iOS mobile app can trade shares via DMA, while those focused on forex will need to download the L2 Dealer specialist platform.
Finally, for traders seeking a web platform with extensive charting options, IG also offers ProRealTime. With over 100 indicators, ProRealTime has all the charts a beginner or experienced trader needs, with the added bonus of automation if desired.
IG Trading Products
As befits an internationally-known and recognised retail brokerage, IG boasts a truly comprehensive range of financial products suitable for forex trading, CFD trading, and almost every other type of trading.
Starting with forex, IG offers over 100 currency pairs at the maximum allowable leverage: 30:1 for major pairs and 20:1 for minor pairs. Professional investors have the option to push further, trading major or minor forex pairs at margins of 100:1 and 250:1.
IG also offers an impressive selection of stocks and options: over 13,000 types of each. Its commodities selection tops 130, with 35 hard, soft, and energy-related commodities available. Interests, treasuries, and ETFs round out the broker’s truly comprehensive selection of financial instruments.
Our Verdict On IG
When we compared brokers, IG came out the most trusted with a score of 95/100, ahead of well-known companies such as CMC, Saxo Bank, and OANDA. While trust is one benefit, we didn’t like the fact that to get decent spreads and features; you have to commit to IG’s propriety platform, locking a trader into the broker. Therefore, we recommend considering this broker if you’re also planning to use their share trading platform as well. Just keep in mind that you will need to use two different platforms for each type of trading.
Saxo Markets, the trading arm of Saxo Bank, stands out in the financial services industry with its extensive range of CFDs and forex pairs. Catering to traders globally, including Australia, Saxo Markets offers a sophisticated platform with a rich selection of trading instruments.
Extensive Trading Instruments
With Saxo Markets, traders have access to a vast array of instruments, ensuring they can diversify their portfolios and find opportunities across various markets:
Award-Winning Share Trading Services
Saxo Markets has been recognised for its exceptional share trading services, offering a comprehensive platform for trading Australian, US, UK, Singaporean, and Chinese stocks. With accolades such as “Outstanding Value International Share Trading” in 2017 and 2018, Saxo Markets demonstrates its commitment to providing value and quality in its offerings.
Competitive Forex Trading Environment
Saxo Markets excels in forex trading services, providing traders with the ability to trade across a broad spectrum of forex spot pairs, forwards, and options. The platform’s strengths in forex trading are underpinned by:
CFD Trading with Leverage
Saxo Markets offers leveraged CFD trading on more than 9,000 instruments. The platform provides competitive commissions and leverage options, catering to various trading strategies and risk appetites.
Account Types Tailored to Trader Needs
Saxo Markets offers three main account types, each designed to cater to different levels of traders:
Verdict
Saxo Markets provides a powerful trading environment with a wide range of markets, competitive spreads, and a selection of account types to suit various traders. While the platform is ideal for those seeking a comprehensive trading solution, it may not be the best fit for those looking for high leverage or low minimum deposit requirements.
CMC Markets Has A Competitive Stockbroker Offering.
Founded in 1989, this UK-based forex broker enjoys a loyal customer base in Australia thanks to its unparalleled product offering share trading – CFDs and high-performance proprietary trading tools.
Key Strengths
CMC Markets Accounts
A top-notch CFD broker with a truly impressive forex offering, CMC Markets follows the lead of Plus 500 (reviewed above) and sticks to a simple pricing structure. The CFD account provides market maker security and charges no commissions. However, variable spreads start at 0.7 pips.
While CMC doesn’t require a minimum deposit, the broker does charge funding fees to add money: 1% for credit cards and 0.6% for debit cards. It should be noted that the CMC Markets’ retail investor accounts (e.g. share trading) are separate from CFD trading and require different trading software and a separate application.
CMC Markets Software
CMC Market account holders have the option to trade CFDs, including forex, using the popular MetaTrader 4 platform, but the real draw is the broker’s own web and mobile applications. Dubbed “Next Generation” or “NGEN” by CMC, this proprietary platform aims to provide a feature-rich alternative to third-party platforms.
In addition to an extensive array of charting tools and indicators – 115 technical indicators and 70 chart patterns – CMC Markets’ Next Generation also includes some unique innovations. The pattern recognition scanner automatically reviews over 120 popular instruments at 15-minute intervals and notifies traders of developing chart patterns. The client sentiment tracker continuously monitors and reports on trends across the CMC trading community.
The NGEN platform also allows traders to take advantage of several advanced order types, including market orders, boundary orders, partial closures, and guaranteed or trailing stop losses.
Algorithmic traders should take note, however: NGEN does not support automation or backtesting. Proponents of EAs will need to trade via MetaTrader 4.
Our Verdict On CMC Markets
The broker’s proprietary trading platform packs an impressive punch when it comes to technical indicators, advanced charting, and drawing tools, but the lack of support for automated trading may pose challenges for those attached to EAs and other bots.
Eightcap stands out as a MetaTrader platform specialist, renowned for its ECN pricing and a diverse selection of 40 forex currency pairs. It has earned accolades for its exceptional customer service and the benefit of free withdrawals. The broker is noted for its competitive fee structure and intuitive interface, making it an appealing option for traders seeking a range of trading tools.
Account Types
Eightcap offers two principal account types: the Standard and the Raw account. The Standard account is ideal for novices with its simple cost structure, no commission fees, and marginally wider spreads. Conversely, the Raw account caters to more seasoned traders, offering narrower spreads and a commission of $3.5 per lot traded.
Spreads and Brokerage
Eightcap boasts competitive spreads, especially with the Raw account, where traders can experience spreads starting from 0.0 pips on major forex pairs under specific conditions. The broker secures these low spreads by aggregating prices from a multitude of top-tier liquidity providers.
Leverage and Risk Management
In Australia, Eightcap provides leverage up to 30:1 for major currency pairs, adhering to ASIC regulations. Internationally, traders may access higher leverage options up to 500:1. Eightcap also offers negative balance protection, safeguarding traders from losing more than their account balance.
Trading Platforms
Clients have the option to trade using MetaTrader 4 (MT4) or MetaTrader 5 (MT5), both platforms equipped with advanced trading features and analytical tools. MetaTrader 5 includes additional capabilities and permits access to a broader range of markets beyond forex.
CFD Products
In addition to forex, Eightcap offers an assortment of CFD products, encompassing indices, commodities, shares, and a comprehensive selection of over 250 cryptocurrencies.
Customer Support and Service
Eightcap is committed to providing responsive customer support, accessible via live chat, telephone, and email. The broker’s client services team is on hand to offer assistance 24 hours a day throughout the trading week.
Educational and Research Tools
Although Eightcap offers educational resources and trading strategy guides, it is observed that these materials are relatively basic when compared to those provided by some of its competitors.
Regulation
Eightcap is regulated by the Australian Securities and Investments Commission (ASIC) and the Securities Commission of The Bahamas (SCB), ensuring a degree of trustworthiness and adherence to financial regulations.
Verdict
With its emphasis on low spreads, absence of withdrawal fees, and an accessible platform, Eightcap distinguishes itself as a formidable choice for traders, particularly those with an interest in cryptocurrency trading. Despite the potential for enhancing its educational offerings, the broker’s services render it a platform worthy of consideration for both novice and experienced traders alike.
AvaTrade Offers A Good Risk Management Platform For Forex Traders.
Our team awarded Pepperstone the best Australian currency broker for beginner traders, but AvaTrade offers something different. The broker offers a unique trading platform (AvaTraderGO) and fixed-spread trading, which is ideal for risk-averse novice traders.
Key Strengths
Why We Like AvaProtect
Only AvaTrade and easyMarkets offer advantage risk management features, and AvaProtect™ is the better of the two. The feature gives a trader between 1 and 2 days of protection. So, if a trade goes south, the individual can cancel the trade. AvaProtect™ must be activated when executing the trade, leading to increased fees, which are not refunded whether the protection is needed or not. In summary, this is great for beginners who receive some protection from losses but at much higher fees.
AvaProtect™ is only offered on the AvaTradeGO platform. While AvaTrade offers MT4 and MT5, we don’t see the point of selecting either, as other forex trading brokers offer superior features and fees on AvaProtect. Risk-averse beginner traders should stick only with the AvaProtect platform.
Our Insight Into Their Fixed Spread Accounts
Another reason we like AvaTrade for beginner Australian clients is their fixed spread pricing. This means a trader always knows the fees of a trade with the rates locked in, which, for beginners, can be handy. That said, when we compared these spreads to other fx brokers, the fees were a lot higher.
| Currency Paid | Leverage | Fixed Spread |
|---|---|---|
| AUD/USD | 20:1 | 1.1 |
| EUR/USD | 30:1 | 0.9 |
| GBP/USD | 30:1 | 1.5 |
| AUD/JPY | 20:1 | 2.1 |
It’s worth noting that these higher fees are also due to AvaTrader using a dealing desk, unlike most other brokers on this page. This means the forex trading broker takes the opposite position of customer trades. Also, the provider wasn’t listed on our high Australian leverage broker page as they don’t always offer 30:1 leverage for Australian clients, and professional leverage is only up to 400:1.
Verdict On AvaTrade
AvaTrade is only suited for beginner traders with minimal risk appetite. The fx broker does have some unique features, including the ability to cancel losing trades (AvaProtect) and transparent pricing (fixed spreads). That said, they charge a premium for these features, which is why most beginner traders are better off selecting the best Australia forex broker – Pepperstone.
FP Markets Offers Low Trading Costs And A Wide Range Of Trading Tools.
Ultra-tight spreads and overall low trading costs make this Australian broker a logical choice for traders looking for a no-frills, streamlined trading experience without some of the bells and whistles.
Key Strengths
Review Of FP MarketsVisit FP Markets
Account Types And Platforms
FP Markets offers Australian forex traders two account types from which to choose:
Prospective customers can test out the FP trading experience by opening a free demo account. This is an excellent way to gauge their trading environment, including their low spreads. Converting to a live account is a straightforward exercise with a minimum deposit of AUD 100 to begin trading.
Where does FP Markets distinguish itself from other top ASIC-regulated brokers? Trading software. Simply put, no other top brokerage provides Australian traders with quite the same range of tools.
Share traders located in Australia looking for an alternative to MT5 have access to the IRESS suite of trading software, including IRESS Trader and IRESS Mobile. The platform gives users access to over 10,000 stocks – a more extensive range than what is available with MetaTrader 5. It also offers Direct Market Access (DMA) execution, which means you can see the orders in the exchange itself.
FP Markets account holders anywhere in the world have the option to trade forex using the MetaTrader 4 or MetaTrader 5 software with integrations like Advanced Trade Assistant and AutoChartist. FP also offers Myfxbook integrations for MetaTrader for traders using a social or copy trading strategy.
Moreover, all account holders enjoy access to value-added services designed to maximise FP’s trading experience, such as a multi-account manager, VPS hosting, and API trading.
FP Markets’ Trading Products
FP Markets’ clients can trade over 60 currency pairs, including major pairs like EUR/USD, AUD/USD, USD/GBP, and USD/CHF, and minors.
Other financial products available for trade include 19 global indices and 814 shares. The broker has a selection of commodities that is somewhat limited, with just five cryptos available.
Australian traders also have the option of trading CFDs and other derivatives with FP. While bond CFDs and ETF CFDs aren’t available, this broker has a reputation for its extensive stock CFD offering.
Our Verdict On FP Markets
FP Markets earns a top spot in our reviews owing to its dedication to Australian account holders, in particular. While it may not have the flash of some of the larger, more globally-oriented retail brokerages in Australia, FP stands out for honing in on Australian traders and their needs, not to mention its impressive forex offering.
TMGM, also known as TradeMax Global Markets, is a well-established forex broker that is particularly strong in the Australian and New Zealand markets. The broker is known for its low spreads and ECN pricing, offering access to over 12,000 trading instruments across various platforms including MetaTrader 4, MetaTrader 5, IRESS, and their proprietary HUBx for fund managers and copy trading.
Key offerings of TMGM include:
TMGM provides two main types of accounts:
Both accounts offer ECN execution, leverage up to 1:500 (outside Australia), and allow hedging and scalping strategies. TMGM also offers a Swap-Free account for those who cannot pay or receive interest due to religious beliefs and demo accounts for practice trading with virtual funds.
TMGM’s leverage options vary depending on the regulatory region, with a maximum of 1:30 for major forex pairs in Australia, 1:200 for forex in New Zealand, and up to 1:500 for clients outside these countries.
The broker also offers a range of CFD products, including forex, indices, shares, precious metals, energies, and cryptocurrencies, catering to a wide spectrum of trading preferences and strategies.
For customer support, TMGM provides a comprehensive service and education system to assist traders in their journey, ensuring a robust trading experience for both new and seasoned traders.
Verdict
TMGM is a commendable choice for traders prioritising low minimum deposits and a wide array of trading instruments. With its competitive ECN pricing, diverse account options, and robust regulatory standing, it caters well to both new and experienced traders.
The broker’s range of platforms, including MT4, MT5, and proprietary tools, alongside the absence of withdrawal fees and comprehensive educational support, positions TMGM as a user-friendly and reliable trading partner in the competitive forex market.
BlackBull Markets Offers 500:1 Leverage And Is FMA Regulated.
One of the newer CFD brokers, BlackBull Markets, was founded in 2014 and is based in Auckland, NZ. It’s critical to state that the provider is not ASIC-regulated but is regulated by the Financial Markets Authority (FMA) in New Zealand, which has different trading conditions.
Key Strengths
BlackBull Markets ReviewVisit BlackBull
High Leverage Accounts Offered By BlackBull Markets
When we completed our 2023 broker awards, BlackBull was comparative to Pepperstone in terms of trading platforms (MT4, MT5 and TradingView) and the range of markets offered. BlackBull also had the edge over Pepperstone when it came to our Limit Order Execution speed testing. As the broker is only FMA-regulated in NZ (not ASIC-regulated), it can offer all traders up to 500:1 leverage, as shown below on their two main trading accounts.
It should be noted that Pepperstone does have the overall edge, though, in terms of broker fees, customer service levels, and research facilities. Additionally, Pepperstone doesn’t have a minimum deposit, while Blackbull Markets requires $2,000 USD to open their ECN account.
Verdict On BlackBull Markets
Our high-leverage broker comparison found that BlackBull is the broker with the fastest execution speed, low spreads, and up to 500:1 leverage. It’s recommended only for experienced traders who require a fast trading environment with higher leverage to execute their trading strategy. We strongly recommend inexperienced and/or traders with a low-risk appetite avoid high leverage.
We tested 600 factors that matter for Australian forex traders and found Pepperstone, with a score of 95/100, was the clear winner. Here is a summary of how we graded Pepperstone by section:
| Criteria | Score (Out Of 100) |
|---|---|
| Customer Service | 92 |
| Funding | 90 |
| Trading Platforms | 88 |
| Range Of Markets | 86 |
| Spreads & Fees | 83 |
| Trading Experience | 82 |
| Trust | 72 |
| Education | 67 |
We think Pepperstone has one of the best RAW Spread trading accounts and recommend you select TradingView or MetaTrader 5 platforms for the most advanced and low-cost trading solution Pepperstone offers. Beginner traders, on the other hand, are better suited to the Standard account with MetaTrader 4.
Review Of PepperstoneVisit Pepperstone
With over 100,000 active forex traders in Australia[1]Finance Magnates Australia CFD Popularity Study, there are a plethora of local forex brokers. These are regulated by the Australian Securities & Investment Commission (ASIC) and you can check the regulation status on any firm through the information broker lookup. ASIC was founded in 1991 and ensures that regulated forex brokers in Australia meet standards, segregate client funds and restrict retail leverage levels. The regulator’s twitter is @ASIC Media.
Plus500 stands out as the best broker for beginners. It offers an intuitive platform that simplifies the trading process for newcomers. Plus500 provides a user-friendly interface, comprehensive educational resources, and a demo account that allows beginners to practice without risk. This broker is particularly suitable for those who are just starting out in forex trading and need a supportive learning environment.
IG boasts the best mobile app for forex trading. The app is well-designed, offering a seamless trading experience on the go. IG’s mobile platform is robust, featuring advanced charting tools and live price alerts. It’s an excellent choice for traders who prefer to manage their investments from their smartphones and value a combination of convenience and functionality.
Any Australian broker trading CFDs needs to hold an Australian Financial Services Licence with the local regulator (ASIC). The same broker can hold a license with another regulator (or several), but by ensuring you trade with the ASIC-regulated entity, you will get benefits and protections, such as:
One thing to keep in mind is that this page assumes you are not just an Australian citizen but also permanently residing in Australia. Many forex brokers are regulated in multiple jurisdictions, and this does not mean you receive regulatory protection from all of them.
Pepperstone, for example, has entities in
You will only receive regulatory protection from the broker’s entity you sign up with. If you sign up with Pepperstone from within Australia (or using your VPN set to Australia), then by default, you will be directed to the broker’s Australian arm. So, if you are a resident in the UK, you will need to navigate to the compare forex brokers homepage and navigate to the UK section, which showcases the Pepperstones UK branch. This means the broker must comply with the guidelines set by the FCA, not ASIC. Any regulatory protection you receive is driven by the FCA. The fact that the broker is also a subsidiary in Australia with ASIC protection is irrelevant as far as regulatory protection for you is concerned.
Aussie traders should always check that the broker is regulated to avoid scams that are normally associated with unregulated brokers. Two years ago, ASIC announced forex trading changes, including reduced leverage last year to avoid large losses if the exchange rate moves against a novice retail trader. You can check the ASIC connect register or see below a comprehensive list of regulated forex brokers in Australia.
| Australian Forex Broker | Office Location | Forex Platform(s) | Regulation |
|---|---|---|---|
| ACY Securities | Melbourne | MT4, Social Trader | AFSL 403863 |
| Admirals | Sydney | MT4, MT5 | AFSL 410681 |
| Advanced Markets FX | N/A | MT4 MT5 | AFSL 444649 |
| AETOS | North Sydney | MT4, Multi-Account Management | AFSL 313016 |
| AVATrade | Sydney | MT4, AvaTradeGO | AFSL 406684 |
| Axi | North Sydney | MT4 | AFSL 318232 |
| Axion Trade | Sydney | Axion Trader | AFSL 001293799 |
| BlueBerry Markets | Sydney | MT4 MT5 Webtrader | AFSL 391441 |
| City Index | Sydney | MT4, AT Pro | AFSL 345646 |
| CLSA Premium | Sydney | MT4 MT5 | AFSL 226602 |
| CMC Markets | Sydney | CMC Next Generation | AFSL No. 238054 |
| Decode Capital | Sydney | MT4 | AFSL 246796 |
| easyMarkets | Sydney | MT4, easyMarkets | AFSL 246566 |
| EightCap | Melbourne | MT4 | AFSL 391441 |
| eToro | Sydney | eToro social trading platform | AFSL 491139 |
| FairMarkets Trading | Sydney | MT4, MT5 | AFSL 424122 |
| FBS Australia | Sydney | MT4, MT5 | AFSL 426359 |
| Fxedeal | Sydney | MT4 | |
| Focus Markets | Melbourne | MT4 MT5 | AFSL 514425 |
| FP Markets | Sydney | MT4, IRESS Suite | AFSL 286354 |
| Fusion Markets | Melbourne | MT4 | AFSL 226199 |
| FXCM | Sydney | MT4, NinjaTrader, Trading Station | AFSL 309763 |
| FXOpen | Sydney | MT4 | AFSL 412871 |
| FX Trading.com | Melbourne | MT4, Rubix Prime | AFSL 337985 |
| FXTRADING | Sydney | MT4 MT5 IRESS | AFSL 337985 |
| GALAFX | Queensland | MT4 MT5 | AFSL 286354 |
| Global Prime | Sydney | MT4, FIX API, MAM/PAMM | AFSL 385620 |
| GO Markets | Melbourne | MT4 | AFSL 254963 |
| Hantec Markets Australia | Sydney | MT4, Interbank Direct | AFSL 326907 |
| IC Markets | Sydney | MT4, MT5, cTrader | AFSL 335692 |
| Icon FX | Sydney | MT4, Icon Trader cTrader | AFSL 438402 |
| IG | Melbourne | MT4, L2 Dealer, ProRealTime | AFSL 220440 |
| Ingot Brokers | Sydney | MT4 MT5 | AFSL 428015 |
| Invast | Sydney | MT4, IRESSTrader, MaxxTrader | AFSL 438283 |
| JDR Securities | Sydney | MT4 PAMM | AFSL 421246 |
| MiTrade | Melbourne | MiTrade Trading Platform | AFSL 398528 |
| Moga FX | Sydney | MT4, MT5, MOGA Trade Plus | AFSL 501156 |
| OANDA | Sydney | OANDA, MT4 | AFSL 412981 |
| Ox Securities | Sydney | MT4. MT5 | AFSL 438402 |
| Pepperstone | Melbourne | MT4, MT5, cTrader, TradingView | AFSL 414530 |
| Plus500 | Sydney | CFD Trading Platform Only | AFSL 417727 |
| Saxo Capital Market | Sydney | Saxo Trader | AFSL 280372 |
| Kwakol Markets | Melbourne | MT4, MT5, Autochartist | AFSL 435746 |
| Prospero Markets | Melbourne | MT4 | AFSL 423034 |
| Rakuten | Sydney | MT4 | AFSL 418036 |
| Sky All Markets | N/a | MT4. PAMM | AFSL 292464 |
| Switch Markets | Sydney | MT4 Webtrader | AFSL 420268 |
| TradeDirect365 | Sydney | MT4 | AFSL 422661 |
| ThinkMarkets | Melbourne | MT4, Trade Interceptor | AFSL 424700 |
| TMGM | Sydney | MT4, MT5, IRESS | AFSL 436416 |
| Xtrade | Sydney | Webtrader | AFSL 343628 |
| Vantage FX | Sydney | MT4, MT5, MarketTrader | AFSL 428901 |
| Velocity Trade | Sydney | AFSL 329813 | |
| VT Markets | Sydney | MT4 Webtrader | AFSL 428901 |
| Zero Markets | Sydney | MT4, MT5 | AFSL 286354 |
| XM | Sydney | MT4, MT5 | AFSL 443670 |
| 4xHub | Sydney | MT4 | AFSL 429711 |
| Interactive Brokers | Sydney | IBKR GlobalTrader | AFSL 453554 |
ASIC ensures that Australian traders are dealing with firms that are held to high standards of operation. The regulatory body enforces strict compliance with financial guidelines to protect traders from fraudulent activities. Brokers under ASIC are required to have transparent trading practices and provide accurate information to their clients.
Brokers regulated by ASIC must adhere to leverage limits that protect traders from excessive risk. These limits are designed to prevent significant losses that could exceed a trader’s initial investments. By imposing these restrictions, ASIC helps to maintain a fair trading environment.
ASIC-regulated brokers offer negative balance protection, ensuring that traders cannot lose more money than they have in their trading accounts. This protection is crucial during volatile market conditions where rapid price shifts can occur.
Traders can verify a broker’s ASIC authorisation, which confirms that the broker is legitimately regulated and operates under the oversight of ASIC. This verification process adds an additional layer of security for traders, giving them peace of mind.
Trading forex and trading CFDs, whether with your own funding or on margin, is an inherently high-risk activity that may lead to significant losses. Always consider your exposure and take full advantage of the risk management and educational tools provided by your brokerage to ensure that your positions align with your goals and overall risk appetite.
As forex trading and other retail investment activities continue to increase in popularity, it becomes ever more important to work with financial institutions you can trust. That means trading with a broker licensed and regulated by a Tier 1 authority, such as ASIC, the UK’s Financial Conduct Authority (FCA), or the Cyprus Securities and Exchange Commission (CySEC) in Europe.
Remember: only institutions holding an Australian Financial Services License (AFSL) are qualified to offer investment advice, such as the trading strategy to use or which assets or trading products to purchase. We strongly advise that you develop your trading strategy independently or under the guidance of an AFSL-approved broker only.
To learn more about the risks of forex trading, you can view the Australian government’s MoneySmart trading guide.
The best forex trading platform by market share is MetaTrader 4 with Pepperstone the best MT4 broker based on execution speeds and customer service. For CFD trading MetaTrader 5 is the most popular with IC Markets the best is the best MT5 broker based on standard account spreads and their range of tradeable instruments.
Australian forex traders find the best forex brokers for their needs by asking themselves:
Our ASIC forex broker page helps find the best broker for each category.
Forex trading is legal in Australia and is regulated by the Australian Securities and Investments Commission (ASIC). Australian traders are required to trade with a brokerage firm that holds an Australian Financial Services Licence (AFSL) to ensure the legitimacy and security of their investment.
Forex trading is taxable in Australia. Profits from forex trading are considered part of a trader’s assessable income and are subject to taxation, as per the guidelines provided by the Australian Taxation Office. Traders are encouraged to maintain accurate records of their transactions and may seek guidance on their tax obligations through resources such as best CFD brokers, which also offer insights into the financial implications of trading.
We have created 7000 criteria to compare brokers. If you’re looking to compare them yourself we recommend starting by focusing on brokerage. Costs will differ based on the forex market, forex pair, and account type chosen. Then look at the experience available when trading forex including liquidity and execution speeds. Finally, focus on the range of markets you may wish to trade (which may include share trading). This will also determine the platform you choose. Don’t forget to ensure they are ASIC regulated with a strong reputation within Australasia. Some firms will also post the percentage of traders that lose money on their retail investor accounts.
Newer traders should also take into account whether a foreign exchange broker will grow along with them as they develop new skills and become more comfortable with trading. What happens, for example, once a trader no longer needs the support of a market-making Standard type account and instead wants to focus on tight spreads and execution speeds?
Finally, be aware that signing up with a particular broker for the sake of its proprietary platforms – no matter how highly reviewed – may pose challenges if you ever decide to switch brokers. Focusing on brokers partnered with MetaTrader or cTrader, on the other hand, may provide greater flexibility.
Finance Magnets Australia CFD popularity analysis.
Pepperstone: Execution Speed Analysis
Ask an Expert
Is forex legal in Australia?
Hi Josh.
Forex trading is very legal in Australia. The most important thing is to choose a broker that i regulated by the Australia Securities and Investment Commission, also known as ASIC.
Using an ASIC regulated broker means the broker complies with the requirements of companies in Australia that manage financial services.
Good brokers ASIC regulated brokers include Pepperstone, IC Markets, FP Markets, Markets.com, IG Markets, Eightcap, BlueBerry Markets,
Should I choose MetaTrader 4 or MetaTrader 5 when opening a demo account?
It is best to demo the platform you plan to use when trading. There are and cons of both trading platforms but generally, MetaTrader 5 has all the features MT4 has and more.
The main reason to choose MT4 is if you have a low powered computer since MT5 uses higher processing power, you want access to the largest possible range of expert advisors since MT4 has a larger marketplace, a larger trading community since more people use MT4 and if you plan to use Myfxbook or Duplitrade which integrates with MT4 but not MT5. If you plan to trade stocks then you must use MT5 since MT4 is not built for this.
I’m looking for a high margin Australian broker but they all seem to have the same leverage. Why is this and how do I get more?
Brokers in Australia must be licenced and regulated by the Australia Securities Investment Commission (ASIC), as a condition of their licence they cannot offer leverage higher than 30:1 for major forex pairs and 20:1 for minor forex pairs. If you want higher leverage, some brokers do offer up 500:1 provided you meet the qualification criteria as a professional trader. To do this you must pass the brokers Sophisticated Investor Test or Wealth test.
I would like to know about decfx, I know they are an Australian broker but I want to know how good they are
Can a broker in Australia with an ASIC license expand their business reach
Yes as long as you abide by ASIC regulatory conditions
What happens with my money sitting in brokers account? Do I get interest?
Your broker will arrange for your funds to be kept in a segregated bank account. This allows you to access the funds for trading quickly and easily without the broker ever being able to access these funds. Since the funds are kept in a bank account, your funds will earn your interest how much this is will depend on the type of account and interest the bank is offering.
When trading you can also earn interests through swaps or overnight fees. If you have an open position and hold this over closing hours (new york time in the case of forex) then you will either pay or earn swaps fees. You can also earn through commissions if you are trading shares.
I’m looking to open a share trading account and a forex account. If I join IG or CMC can I have a centralised account or would it mean opening up two different ones?