Best Forex Brokerage Account Comparison
There is no universal best forex broker Australia comparison table as traders have different requirements including the need for:
- High Leverage & Fast Trading Execution Speeds
- Low Fees (Spreads) & Risk Management Tools
- Advanced Trading Platforms & Automation Options
The 2019 Australian forex brokerage account comparison tables for each class of trader are shown below. The detailed list of brokers can be found by navigating from the main menu above.
1) The Best Australia Forex Broker For Fast, High Leverage FX Trading
Intermediate and advanced forex traders require two key components:
- Fast execution speeds to minimise ‘slippage’ helping ensure they get the price quoted
- High leverage to maximise the exposure the trader has within currency markets.
Based on the two factors above, the best forex broker Australia comparison 2019 table was devised (which is clickable) with more details provided below.
Execution Speed Of IC Markets
A major concern of advanced Australia forex traders is slippage. This is when latency in trading is experienced leading to delays on a trade getting executed. When the markets moved in an unfavourable direction this can lead to a price worse than what was originally quoted. Significant events such as rate decision announcements are key periods where large volatility may exist leading to slippage.
A key way to overcome slippage is through server speed & location. IC Markets has partnered with Equinix which has a data centre in New York (NY4) close to dark pool liquidity and 50 banks. MetaTrader 4 traders trade through this NY4 server though dedicated lines minimising latency to reduce slippage.
Execution speeds are based for Australian trading conditions to achieve the best price quoted through MetaTrader 4. This is further boosted by the provision of ECN trading conditions with no dealer desk which can further lead to latency.
A similar arrangement with Equinix exists for those who use the cTrader platform with servers utilised within London (LD5). This data centre like MT4 is near the leading currency pools to make fast trading speeds with other traders.
The LD5 when combined with IC Markets ECN trading account is also ideal for automated trading across Europe.
Leverage Of IC Markets
Australia is the ‘lucky country’ when it comes to leverage with the ability for fx brokers to offer high leverage for Australian traders without strict regulation. In some other markets leverage is limited by governments based on the risk it can produce for traders.
IC markets offer 500:1 leverage the highest of the best forex broker Australia 2019 providers compared.
It’s critical to fully understand leverage prior to trading with one of these accounts. An example is a trader who deposits $100 and opens an Australian forex broker account that offers 500:1. This forex traders can now trade the equivalent of $100 multiplied by 500 which equals $50,000. This is critical because unlike the stock-market or other financial products, currency only moves my small percentages.
As an example, if the order was placed on the AUD/USD correctly and the currency moved 0.1% the total amount made would be $50,000 multiplied by 0.1% leading to a $50 profit. In real terms this would be a 50% profit. What’s critical to note though to consider is that if the currency moved in the other direction the Australian forex trader would lose $50 or if the currency moved by 0.2% the total deposit would be lost.
2) The Best Forex Broker Australia Low Fee & Risk Management Providers
The best forex broker Australia firm for beginner traders needs to factor in:
- The spreads (also know as brokerage)
- Risk management tools to help control exposure to markets
The two factors were combined to make the best forex broker Australia 2019 table below:
Spreads (And Fees) Of Easy Markets (Formally Easy Forex)
Due to the unique requirements of forex trading of leverage requirements combined with advanced software it’s no surprise that brokerage is often higher than other financial products. New forex traders therefore need to consider what the spreads are which are the difference between the ‘buy’ and ‘sell’ price. This is the same as when you visit an airport and see an exchange branch offer one price to buy your currency but a worse price to sell it to you.
Most Australian forex brokers charge variable spreads which may combine with a commission based on trading volume. Easy Markets is unique with a fixed spread based on the currency pairing (eg AUD/USD). This provides certainty to those new to forex trading of the fees they will encounter for their trade.
The other charge to consider that Easy Markets charge is a rolling fee. This is fee charged when you hold a position over time. As these brokers provide leverage (which essentially a loan) the longer you hold a position the longer you have a loan from them accruing interest hence why they charge this fee. the final is ‘withdrawal fees’ which are less common for locally (Australian) regulated fx brokers.
Risk Management Tools Easy Markets
Forex trading has inherit risks due to leverage as discussed above. There are tools to manage the level of risk, some of which are unique to Easy Markets.
a) Deal Cancellation
This is a relatively new tool which allows traders to undo a forex trade within 60 minutes. Loses are then returned on a losing trade (just make sure the tick appears when making the initial trade).
b) Guaranteed Stop Loss Orders
All trades are automatically based by the guaranteed stop loss feature. This means that you can set the maximum you are willing to lose on a trade which is then guaranteed by the forex broker, even in extreme volatility when slippage may occur. This is also offered by Plus500
c) Negative Balance Protection
Easy Markets guarantees traders will not lose more than their deposit. There are periods over the past few years such as the Swiss Shock, Brexit and President Trumps election that saw unforeseen currency movements. These have led investors to lose losses far greater than deposits. Easy Markets will write off any negative balance providing traders with peace of mind.
Trading foreign exchange carries risk. Foreign currency markets offer forex traders the ability to make money speculating on the price movements of a wide range of currency pairs. However, it is very important you’re aware of and understand the risks associated with currency trading. Don’t trade blind. Most seasoned traders spend endless hours researching the right forex and cfd instruments to trade. Not only do they utilise things like technical analysis but also use demo accounts to try and offset the high risk associated with trading leveraged products.
Australian Forex Brokers Offering The Best Trading Platforms & Speeds
Finding the best forex trading platform is one of the most critical factors to successful forex trading. This is because the platforms a broker provides determines the graphing, automation and order execution details. Naturally, over time traders become loyal towards the platform they use so it’s critical to make sure not only you choose the right platform first but that this platform is popular and evolves with forex trading Australia in general.
The other factor to consider is speed. Using a broker that has a fast server and allows direct access to the currency trading markets ensures Australian fx traders can make their trades first helping to minimise slippage when fast currency fluctuations occur (such as during rate announcements). As the best forex broker Australia comparison below highlights, Pepperstone has the fastest server for Australian traders and uses the newest MetaTrader 5 for traders.
Best Forex Broker Australia 2019 Offers
The final element that Australian forex traders consider when making a Australian forex broker comparison is the bonus offers provided. These fluctuate month to month but can provide some strong incentive to at least trial their platform and system. As discussed earlier, forex traders generally become loyal to a particular broker and platform so it makes sense to provide some incentive to at least trial them.
It’s critical to note these bonus offers only provide benefits when you first join and trade. That said, it can be worth trialing a few brokers before you trade forex and choosing your final broker. It might even be worth having a few forex brokerage accounts for different trades.
Final Thought On Finding The Best Forex Brokerage Account
The authors at compare forex brokers have focused on making Australian forex broker comparisons based on the factors that matter for forex traders. Leverage, Fees, Trading Platforms and Bonus Offers are the key factors for determining the best forex broker. Other elements could also be considered that are included our compare forex broker tables including payment methods, demo accounts and ‘ease of use’ and account types. Use our forex broker comparison tables to help make your decision and remember your not locked in to use one broker so it pays to shop around!