CFD Traders in Australia require an ASIC regulated CFD broker. The best CFD brokers will offer CFD trading platforms such as MT4 and MT5. They’ll also offer low spreads on CFD markets like forex, stocks, EFTs and cryptocurrency.
View the best Australian CFD brokers for 2021 below.
The best brokers for Australian CFD trading are both ASIC regulated and offer a free demo account.
Pepperstone is ASIC regulated and once again rated our best forex and CFD broker. Offering Australian CFD traders the ability to trade on the top three trading platforms, they cater to multiple market types and styles.
Choosing the right trading platform is an important factor for CFD traders, as there is such a wide variety of market types available to trade.
Pepperstone’s trading platform options:
That’s a choice of the three most powerful trading platforms for CFD traders. All available to clients, free of subscription charges on PC, Mac, mobile, and tablet.
The MetaTrader 4 trading platform (commonly referred to as MT4) is the most popular amongst CFD traders. Designed by traders themselves at a company called MetaQuotes, it has all the features required to give you an edge.
Whether you’re a complete beginner or a seasoned professional trader, MT4 is a popular choice. With a user-friendly and highly customisable charting environment, you’re able to set the platform up whichever way you desire.
Indicators and EAs – 85 pre-installed indicators available, with the ability to code custom indicators as you go.
Flexible charting – Multiple chart setups to help you control your positions quickly and efficiently.
Flexible order types – Trade with several markets, limit or stop orders to suit your trading style.
Backtesting capabilities – Ensures your automated trading strategies and EAs are optimised for best trading results.
The MetaTrader 5 trading platform, also known as MT5, is the next generation of CFD trading platform from MetaQuotes. The trading platform builds upon the foundations laid by MT4 and offers a more complete trading experience.
Speed is one of the major evolutions, with MT5 processing times slashed when compared to MT4. If you require advanced trading functions such as the ability to hedge your CFD positions, then MT5 is perfect for you.
Speed – Whether it’s processing speed or order execution speed at Pepperstone’s end, MT5 is designed for speed.
Advanced order types – The ability to use multiple pending orders on the same market. That is the ability to hedge your position.
More in-built indicators – An even greater choice of built-in indicators and EAs to choose from without having to customise.
MQL5 coding language – An advanced, more logical coding language for custom indicators and EAs, more closely resembling C#.
Low commission costs for Razor Accounts – As you are trading ECN-style spreads, you pay a flat rate commission fees starting from $7 round-turn per 100,000 units traded on both MT4 and Mt5.
The cTrader platform is a refreshing alternative to the MetaTrader platforms. An intuitive and simple to use trading platform, it offers several advanced order capabilities and customisations that have otherwise been unavailable to retail traders.
Excellent for both beginner and professional CFD traders, cTrader is worth your consideration even if just for the ability to view market depth.
Advanced order types – cTrader offers advanced risk management and order functionality previously only available on institutional trading platforms.
Scale-out – Rather than setting one SL and TP level, cTrader gives you the ability to add multiple take-profit orders to scale out of positions.
Market depth view – Designed to replicate an institutional trading environment, displaying market depth.
Trade analysis – Detailed trade analysis tools built in to better identify your strengths and weaknesses as a trader.
Low commission fees – Commission is calculated as 0.0035% of the base currency (of the fx pair) being traded. I.e. if you are trading 100,000 units of the AUD/NZD, you will be charged a commission fee of AUD $7 round-turn.
View Pepperstone Review >>Visit Pepperstone >>
The overall rating is based on review by our experts
IC Markets is an Australian forex (based in Sydney) and CFD broker who offer some of the best spreads on the market. By trading with a CFD broker that has tight spreads, you’re keeping your trading costs low. This will help place you in a position to succeed long term as a trader.
Regardless of your chosen leveraged product for trading like forex, indices CFD or commodities CFD trader, then you will be impressed by the spreads on an IC Markets RAW account.
IC Markets market types:
With many market types to choose between, traders who choose IC Markets as their CFD broker of choice have a lot of flexibility.
Open a demo account >>Visit IC Markets >>
IC Markets have some of the tightest forex trading spreads in the Australian CFD broker industry. Here is a snapshot of the most liquid markets on offer:
RAW spreads – Tight spreads from 0.0 pips on the majors, during times of peak liquidity.
Forex markets – 60 different currency pairs to choose from on the trading platform of your choice.
ECN liquidity – Deep liquidity sourced from a multitude of partner tier 1 banks and financial institutions.
Minimum Deposit – To open an account there is an initial deposit of $200 to open an account and start trading
Best For: Experienced traders wanting the tightest spreads available
IC Markets have some of the tightest spreads on Indices and stocks CFD markets, in the Australian broker industry. Here is a snapshot of the most liquid markets on offer:
RAW spreads – Tight spreads from 0.95 pips on the AUS200 when the market is open.
Range of markets – 17 Indices and 120+ stocks from ASX, Nasdaq & NYSE.
Earn dividends – When trading individual share CFDs, you’re still entitled to dividends in the same way that an owner of the share is.
No Commissions – Never pay commissions on indices CFDs, only pay the spread.
IC Markets have some of the tightest spreads on commodity CFDs, such as metals and gas within the Australian broker industry. Here is a snapshot of the most liquid markets on offer:
RAW spreads – Tight spreads from 0.0 pips on Gold, during times of peak liquidity.
Financial instruments – Over 19 commodities to trade. Choose between crypto, precious metals, energy and soft commodity derivatives.
Types of CFDs – Spot and Futures CFDs.
Plus500 is a global CFD broker with an ASIC regulated subsidiary called Plus500 Australia. As a global trading behemoth, the size of which can afford sponsorship like Athletico Madrid, we recommend Plus500 for beginner traders.
As a specialist CFD broker, Plus500 can offer tools that are imperative for new traders wanting to trade in financial markets.
Plus500 features for beginners:
These account features for beginner traders help will help make the journey towards becoming a consistently profitable forex trader, a lot safer. Risk minimisation is the key, and a Plus500 CFD trading account will allow you to achieve this.
Open a demo account >>Visit Plus500 >>
If you’re just beginning your CFD trading career, then you will not want to jump straight in and risk an AUD 50,000 account. You’re going to want to test each Australian CFD broker and decide which has the features that work best for you.
This is where a demo account comes in handy. Demo trading accounts let you test the features of a broker’s trading platform under actual market conditions, without risking any real money.
Zero risk – Using a Plus500 demo account is completely risk-free. The funds are all virtual and can be reset at any time.
Unlimited demo – Most Australian online brokers set their demo accounts to expire after 30 days. Your Plus500 demo account, however, will never expire.
Live market conditions – There is no difference between demo and live market conditions, ensuring the transition to a live account is seamless.
Adding virtual funds automatic – If your demo account balance drops below $200, then your balance will automatically be reset. No need to apply again.
Plus500’s guaranteed stop-loss helps ease some of the stress new traders experience when they first transition from a demo account to live account.
During times of low liquidity, such as the seconds following a major news release, the market can thin out and experience volatility. If there are no orders in the market, then your stop loss may experience what’s called slippage, and be triggered at a much worse price.
Never lose more than you expect – Add an absolute limit on your potential loss and ensure that unexpected price movements never mean you lose more money than you can afford.
Available on all CFD markets – An advantage of being a CFD broker means you’re not sourcing prices from liquidity partners and can guarantee stops on all markets.
All CFD trading platforms – Guaranteed stop losses work on whichever trading platform you trade on.
Spread mark-up – There is a spread markup applied to all markets when you choose to be protected by a guaranteed stop loss.
If you’re looking for an alternative to your traditional Australian CFD brokers listed above, then take a look at eToro. eToro is a CFD broker known for its social trading platform.
eToro gives its clients the ability to copy trade respected professional traders. When they place a trade, the same position is automatically mirrored on your own eToro CFD trading account.
Social trading with eToro:
Take the stress out of making trading decisions yourself and join the eToro social trading community. Follow and socialise with professional traders that you respect. eToro is more than a CFD broker, it’s a community.
Open a demo account >>Visit eToro >>
When you open an account with eToro, you’re joining more than just a CFD broker. You’re joining a social trading community.
The most popular feature at eToro is the social trading platform called CopyTrader. By allowing traders to view professionals in real-time and instantly copy every trade, it adds an extra dimension to forex signals.
Real-time entries and exits – There is no lag between when the trader you’re following enters and you enter the same trade. No text message, just instant copy trading.
Average profits – The average yearly profits of the 50 most copied eToro traders in 2019, was +29.1%. An impressive return when you consider most CFD traders lose money.
No management fees – Other signal services and managed funds require traders to pay a management fee. Social trading is free for eToro CFD account holders.
Community feel – eToro offers retail investors so much more than just a trading platform. They give traders a community to collaborate and learn from professionals.
If you want to allow traders to copy your trades, the application is called the eToro Popular investment Program. When you’re verified and selected for the program, you essentially become an investment manager with the opportunity to build your own online financial business.
Become a portfolio manager – Start your own online business by having a profitable eToro CFD trading account with a proven strategy behind it.
Earn rebates – Earn instant rebates on all trades copied from your Popular Investor Program account.
Earn fees – All eToro Popular Investors earn a 2% annual fee on top of all trades copied from your CFD trading account. This means that if 1000 people copy you with $5 million, you will earn an additional $100,000 per year!
The Axi Education Centre is next-level, when it comes to educational content that a forex and CFD broker offers their clients, then Axi (formally AxiTrader) goes above and beyond.
Whether you’re looking for eBooks, videos, learn to trade classes or tools to bring what you’ve learned all together, then Axi has you covered.
Learn to trade with Axi
If you’re new to the trading space and are looking for an Australian CFD broker that will help you begin using proven strategies and methods, then Axi is worth a look.
Open a demo account >>Visit Axi >>
Axi is a CFD and forex broker that care about the success of their clients. As a result, they’ve invested heavily in the education section of their website.
All of their education pages and courses have been created by traders, specifically for new traders to learn to trade forex. This ensures that the methodology and wording are easily understood and can be applied instantly.
Forex video tutorials – Take advantage of a suite of video tutorials and lessons. Whether it’s learning about the MT4 platform, or specific trading strategies, Axi has a comprehensive video library.
Seminars and Webinars – Within their educational video library, Axi records all webinars presented by their team of market analysts. Making them available on-demand for clients to learn from.
eBooks – Axi has one of the more comprehensive eBook depositories from any of the Australian CFD brokers. Learn trading strategies and get trading tips in a visual, easy to read format.
Online courses – Make your way through Axi’s online trading courses, or check out partnerships with accredited, external education providers such as the Knightsbridge Trading Academy.
Alongside their education centre, Axi has key partnerships with some well-known external providers. Alongside the right CFD broker, start your career with the right tools and customer support.
Whether you’re looking for trading tools to help journal your progress, or trusted education classes to sit in on in-person, Axi has you covered.
PsyQuation – Free for all Axi clients, PsyQuation is the world’s leading AI-powered analytics platform for traders. This tool helps to identify strengths and weaknesses in your trading and delivers powerful performance statistics.
Knightsbridge Trading Academy – Learn from the best at Knightsbridge. All Axi clients receive complimentary access to online courses run by this London Stock Exchange accredited academy.
AutoChartist – The popular MetaTrader 4 plugin is free for live account holders. Use the market scanner to automate your technical analysis and avoid taking low percentage trades.
CMC Markets are an award-winning, Australian broker that offers clients both CFD trading and physical share trading services. The accounts are separate, but it keeps you from dealing with two sets of logins and contacts.
A trusted name in the Australian broker industry, share traders who are looking for a CFD broker to hedge positions, can keep things all in-house at CMC Markets.
Use CMC Markets for both accounts:
By choosing to trade with Australian broker CMC Markets, you’re able to keep all of your CFD and share trading operations under the one broker.
Open a demo account >>Visit CMC Markets >>
CMC Markets offer contracts for difference (CFD) trading on multiple financial products, across multiple asset classes. A trusted name in the Australian share trading scene, CMC Markets offer a plethora of ASX and overseas share market CFDs.
Trade CFDs on forex, indices, commodities, shares and even cryptocurrencies like Bitcoin.
Large range of CFDs – Access to over 9,500 global markets, at competitive spreads and margin rates.
Tight CFD spreads – Trade CFDs on major forex pairs from 0.7 pips and stock indices from 1 point.
Proprietary trading platform – CFD trading on an award-winning trading platform, with native apps and an innovative platform navigation
Risk management – Robust risk management functions including guaranteed stop-loss orders
Earn rebates – If you’re a high volume CFD trader, then you’re able to earn cash rebates. Perfect for share market hedging with large positions at low risk.
Whether you already have a share portfolio or if you’re looking for a physical stockbroking alternative to CFD trading, then you can remain under the CMC Markets umbrella. Choose from a wide range of ASX investment products, including shares and ETF.
One savvy trading strategy is to transfer all of your current share portfolios into a CMC trading account and then hedge positions depending on index movements, via your alternative CFD account.
Low brokerage fees – Pay less in brokerage the more you trade with CMC Markets’ Frequent Trader Program. The program provides the lowest brokerage and offers advanced features for high-volume traders.
Award-winning trading platforms – CMC Markets is known as a specialist stock trading broker and their proprietary trading platforms with mobile apps on Apple and Android, ensure they live up to their reputation.
Trading tools – Trade with a suite of powerful trading tools and advanced charting options that suit your stock trading style.
Manage high-risk positions – Robust risk management functions including free unlimited conditional orders including stops and limits.
We’ve compared the best Australian CFD brokers and found the strengths that each possesses. This guide should help traders choose the best Australian CFD broker for you, rather than come up with a definitive answer.
When choosing an Australian CFD broker, make sure you choose an Australian Securities and Investments Commission (ASIC) regulated broker with an AFSL. Choosing a broker with a local regulator rather than international regulators such as CySEC or FCA will ensure that the broker is compliant with local requirements and most importantly provide an avenue to resolve any issue should a dispute arise.
Justin Grossbard has been investing for the past 20 years and writing for the past 10. He co-founded Compare Forex Brokers in 2014 after working with the foreign exchange trading industry for several years. He also founded a number of FinTech and digital startups including Innovate Online and SMS Comparison. Justin holds a Masters Degree and an Honours in Commerce from Monash University. He and his wife Paula live in Melbourne, Australia with his son and Siberian cat. In his spare time, he watches Australian Rules Football and invests on global markets.