Australian Forex traders should look for brokers offering trading platforms with tight spreads, low fees and a range of analysis tools.
View the best trading platforms offered by Forex brokers below.
By Justin Grossbard / Updated: Monday, May 25th, 2020
Based on the top categories the best forex trading platforms for Australian traders are the following.
To compare the forex brokers offering the best trading platforms, we created a best forex broker platform comparison table.
In this article, firstly we explain the two most popular trading platforms for retail investors in Australia (MetaTrader 4 and MetaTrader 5), then we look at the best Australian brokers and the platforms offered.
Australian forex traders have a selection of online trading platforms to choose from. Below we discuss some of the best trading platform options available to Australian forex traders and the best brokers that offer them.
The two most popular online trading platforms offered to retail investors in Australia are the MetaQuotes platforms MetaTrader 4 and MetaTrader 5. Both trading platforms offer an excellent trading experience, providing a range of technical analysis and risk management tools assist with forex and CFD trading. Both Metaquotes trading platforms offer the popular Expert Advisors (EAs) which allow you to develop algorithms and apply automated trading strategies.
MetaTrader 4 (MT4) is the gold standard used by the majority of retail forex traders in Australia and around the globe. Since its release in 2005, MT4 hosts one of the largest online forex communities, Australians using MetaTrader 4 can access forums and gain answers to nearly any trading queries.
MetaTrader 5 was released in # and was developed to cater to traders’ wanting to trade Shares (as Stock trading is restricted on MT4). Although not as popular as MT4, MT5 will continue to grow in popularity due to its more expansive product range with a greater offering of trading tools such as more timeframes, metrics, charting features and order types.
Melbourne based forex broker Pepperstone offers MetaTrader 4, MetaTrader 5 and cTrader to retail traders. The Australian broker offers two account type options depending on how a trader wants to structure trading fees. The Standard account offers all-inclusive spreads where commission fees are included in the spread, while a Razor Account gives traders access to spreads as low as 0.0 pips while incurring a flat rate commission fee. When trading with Pepperstone, CompareForexBrokers recommends using MetaTrader 4 through a Razor Account type.
The Razor account is compatible with both MetaTrader trading platforms as well as cTrader. One of the benefits with the Razor account is it provides a trading environment similar to an Electronic Clearing Network (ECN) account. ECN-like accounts allow for trades to be routed straight to the markets (STP), bypassing broker dealing desks, meaning that you will never wake up to find one of your orders filled at a price other than what you expected. Another key benefit is the ability for you to determine the amount of leverage you want to employ, which is a great way for traders to manage risk exposure. Additionally, Pepperstone offers excellent award-winning customer support, ensuring Australian clients can receive efficient answers to any queries regarding the MetaTrader platform and Razor account.
Pepperstone clients’ using MetaTrader 4 as their trading platform can enjoy a user-friendly interface with a range of advanced analysis tools. Pepperstone customers can utilise MT4’s Autochartist features to assist with developing complex trading strategies. Autochartist offers a market scanner, risk calculator with backtesting, volatility analysis tools, market reports and a range of technical indicators.
For traders’ wanting to automate trading with algorithmic strategies, Expert Advisors (EAs) can be created and executed using MQL4 (MetaQuotes MT4 Language). If further Expert Advisor tools are required, Pepperstone’s Smart Trader Tools can be downloaded from the broker’s website. The suite of 28 different EAs and indicators allow for sophisticated trading strategies to be developed while managing the high-risk of forex trading.
Traders with Pepperstone will appreciate the security and investor protection provided through ASIC regulation. ASIC, the Australia Securities and Investments Commission, requires brokers to follow stringent regulation to ensure Australian traders’ can access fair and competitive forex markets.
IC Markets an Australian based CFD broker offering ultra-competitive forex spreads while charging low trading and account fees. The regulated broker holds an AFSL (Australian Financial Services License) issued by ASIC (Australian Securities and Investments Commission) and therefore is seen as one of the best brokers for currency trading in Aussie.
The table below shows the minimum and average spreads for different currencies against the Australian Dollar. Few brokers can compete with IC Markets institutional-grade pricing, with clients’ having the ability to trade the fx financial instruments listed below at spreads as low as 0.0 pips in ideal market conditions.
The ECN-style spreads are due to IC Market’s top-tier liquidity providers and No Dealing Desk (NDD) execution. To ensure traders can access the tightest spreads possible, the regulated broker sources prices from 25 different financial institutions including major European, American and Australian banks.
| IC Markets Spreads | Raw Acc. Minimum Spread | Raw Acc. Average Spread |
|---|---|---|
| EUR/USD | 0.0 | 0.1 |
| AUD/USD | 0.0 | 0.2 |
| AUD/NZD | 0.0 | 0.8 |
| EUR/AUD | 0.0 | 0.5 |
| AUD/SGD | 0.0 | 1.1 |
| GBP/AUD | 0.0 | 1.1 |
| AUD/JPY | 0.0 | 0.4 |
Commission fees vary between trading platforms. For traders’ signed up to a Raw Spread Account a commission fee of $3.50 (per lot/per side) will be incurred when using MetaTrader 4, while those trading on cTrader will pay a commission fee of $3.0 per USD 100,000 traded.
As well as tight spreads and low commission fees, clients trading with IC Markets mostly incur no fees when depositing or withdrawing funds. Traders’ face no fees when withdrawing funds via credit/debit card and domestic bank wire, yet a processing fee of AUD $20 is charged for international bank wire transfers. When it comes to depositing funds into trading accounts, IC Markets customers’ have a range of payment methods available as shown below.
| Australian Dollar (AUD) Funding Methods | Processing Time | Accepted Currencies |
|---|---|---|
| Credit and Debit Card | Instant | AUD, USD, JPY, EUR, NZD, SGD, GBP, CAD |
| PayPal | Instant | AUD, USD, JPY, EUR, NZD, SGD, GBP, CAD, HKD, CHF |
| Neteller | Instant | AUD, USD, GBP, EUR, CAD, SGD, JPY |
| Neteller VIP | Instant | AUD, GBP, EUR, CAD, SGB, JPY |
| Skrill | Instant | AUD, USD, JPY, EUR, SGD, GBP |
| POLi | Instant | AUD |
| Wire Transfer | 2-5 Working Days | AUD, USD, JPY, EUR, NZD, SGD, GBP, CAD, CHF |
| Bpay | 24-48 Hours | AUD |
It is easy to start trading with IC Markets, the process of signing up is efficient and a low initial deposit of $200 is required. Once signed up, traders’ can access a range of CFDs in addition to foreign exchange markets, such as Cryptocurrencies, Indices, Commodities, Stocks, Bonds and Futures.
CMC Markets is a London based forex broker, yet the companies Sydney hub caters to the unique requirements of Australia’s retail forex market. The broker is highly regarded for its impressive market access, with traders able to trade over 330 currency pairs among other CFDs. The tight ECN-like spreads CMC offers are not restricted to major currency pairs such as EUR/USD, with the ability to trade more exotic Asian-Pacific fx pairs at competitive spreads as well.
As well as a large selection of forex pairs to trade, CMC clients’ can take CFD positions in an impressive range of financial instruments.
CMC Markets clients’ can execute trades using their proprietary web-based platform, Next Generation, or MetaTrader 4. For traders’ wanting to access CMC Markets full product range, they are required to use Next Generation as MT4 only provides market access to Forex, Indices and Commodities. As well as greater market access, the Next Generation platform has a wider range of inbuilt features such as pattern recognition, watchlists, guaranteed stop-loss orders, Reuters news and an economic calendar.
As mentioned in our CMC Markets Australia review, when executing trades on the brokers proprietary trading platform, users’ can access trading accounts via a webtrader platform or mobile apps compatible with iOS and Android. MT4 is a desktop-based platform and has trading apps available for iOS and Android devices.
EasyMarkets is a well-established Australian forex and CFD provider that holds an AFSL issued by ASIC. For investors’ wanting an easy introduction to forex trading, EasyMarkets is an excellent option due to its user-friendly proprietary trading platform and easy-to-use risk management tools.
The EasyMarkets web trading platform offers a simpler interface than MetaTrader 4, providing an intuitive yet versatile platform for traders’ wanting to gain experience.
When trading forex via EasyMarkets webtrader platform customers’ are given access to a range of fx pairs with a simple pricing structure. Fixed spreads on forex are inclusive of commission charges, while account management costs are low with no deposit or withdrawal fees. Minimum deposit requirements suit those new traders’, as only $100 is needed to open a trading account. Additionally, EasyMarkets prides itself in transparency, with information such as Product Disclosure Statements (PDS) and FAQs displayed clearly on the broker’s website.
Tools available on the web trading platform that are useful for traders new to foreign exchange markets include:
Contract for Difference (CFD) products available to trade through EasyMarkets web trading platform include:
If a trader is wanting to sign up with EasyMarkets yet the brokers’ proprietary platform lacks advanced tools required, MetaTrader 4 can be downloaded as a desktop platform. The EasyMarkets MT4 platform provides access to the same product range as the brokers proprietary platform, with a wider selection of order types and advanced risk management features.
FP Markets is an Australian forex broker regulated by ASIC in Australia and CySEC in Europe. When trading with FP Markets, customers gain access to over 10,000 CFDs derived from Forex, Commodity, Index, Shares and Cryptocurrency asset classes.
When signing up to FP Markets, traders can choose between a no commission Standard account or a Raw, ECN-like account that charges a flat rate commission fee yet offers tighter spreads. Regardless of account type, traders can conduct analysis and place orders using IRESS (the broker’s proprietary platform), MetaTrader 4 or MetaTrader 5, depending on the tools and market access a trader requires.
MT4 and MT5 are available as tablet and mobile trading apps as well as web trader and desktop platforms.
To utilise FP Markets an extensive range of automated trading features customers should use either MT4 and MT5 platforms. Both social-copy and algorithmic trading tools are provided through MetaTrader’s Expert Advisors and Myfxbook AutoTrade’s copy trading service.
Expert Advisors (trading robots) enables MetaTrader users to develop algorithmic trading strategies using the MQL4 or MQL5 programming languages. Expert Advisors (EAs) fully automate CFD and forex trading, allowing traders to save time monitoring as well as entering and exiting financial markets (according to the EAs preset parameters). MT4 and MT5 both offer backtesting facilities to assess and optimise algorithmic trading strategies. When using MT4, only a single currency can be backtested at a time while MT5 offers multi-currency backtesting.
If you are a beginner trader and do not want to write your own Expert Advisors, then there is the option to download EAs and indicators from the MetaTrader marketplace. As MT4 and MT5 are popular trading platforms preferred by many retail investor accounts around the world, MetaTrader users gain access to a huge trading community where trading strategies and ideas can be shared.
Myfxbook AutoTrade
AutoTrade is a third-party provider that allows FP Markets customers to automate their trading strategies via copy-trading services. To find systems to copy, AutoTrade users can seek out systems that suit their trading objectives by assessing experienced traders trading history, results and risk profile. The account mirroring service also connects customers to the Myfxbook community, where traders can discuss ideas and learn from seasoned investors.
To enjoy Myfxbook AutoTrade’s features for free on FP Markets MT4 and MT5 platforms, traders are required to have been signed up to Myfxbook for 3 months, executed a minimum of 100 trades while having at least $1,000 in their trading account.
ThinkMarkets is an ASIC, FCA and FSCA regulated broker offering ThinkTrader, the brokers fully functional proprietary trading app. Available on both iOS and Android devices, the mobile app provides a range of tools to assist traders to conduct analysis and place orders on the go.
Although ThinkMarkets offers an ECN-style account type (ThinkZero) with ultra-tight spreads, customers wanting to trade on the proprietary platform are restricted to a Standard account type. Unlike the commission fees charged to ThinkZero traders, Standard account holders pay no commission fees when trading forex and the broker’s other CFDs. Spreads can be as low as 0.4 pips on major currency pairs while averaging 1.4 pips.
The ThinkTrader mobile and tablet apps offer the following trading tools and features:
When using the ThinkTrader app, customers can trade a selection of asset classes with major and minor fx pairs, commodities, share CFDs, indices and cryptocurrencies.
The trading app is well-reviewed on Apples App Store, with over 15,000 5 star reviews. Users can use ThinkTraders mobile app in conjunction with the online broker’s tablet trading apps or the proprietary desktop trading platform.
Founded in 1974, IG Markets is a well-respected broker offering an extensive range of CFDs. For traders’ wanting a diversified portfolio comprised of different asset classes, IG is an excellent option with 6 Cryptocurrency CFDs, 68 currency pairs, 10,000+ Shares and over 100 Indices.
To start trading with IG Markets, a customer is required to choose either the brokers proprietary platform, MT4, or the Direct Market Access (DMA) platform L2 Dealer.
The brokers proprietary web-based platform is suited to both novice and experienced traders. Investors’ can utilise a range of useful features such as analysis tools, fast execution and automated trading features to assist with the ins and outs of trading.
IG Markets desktop L2 Dealer platform is designed to provide experienced traders’ Direct Market Access to Share and Forex markets. Deep liquidity, market depth and order books allow investors to access competitive prices in a professional trading environment. When trading Forex with DMA, buy and sell prices are sourced directly from major financial institutions rather than brokers’ spreads, while commission is variable depending on the trade size.
Many retail traders are loyal to MetaTrader 4 because of the automated trading features like Autochartist and Expert Advisors (EAs). Similar to Pepperstone’s Smart Trader Tools, IG Markets offers 12 MT4 add-ons such as Sentiment Trader and Market Manager to supplement the platforms in-built charts and indicators.
As well as webtrader and desktop platforms, IG Markets clients’ can place orders via trading apps. Purposefully designed apps are available for iPhone and iPad (iOS), and Android mobiles and tablets.
For traders wanting a pure social trading platform, eToro is a popular option. With over 13 million traders, the broker hosts the largest social trading network worldwide. As well as oversight from the Australian Securities and Investments Commission (ASIC) in Australia, eToro is regulated by US and European financial authorities, eToro is seen as a trusted broker by many forex traders.
eToro customers can use the brokers proprietary social trading platform to copy the trading strategies of experienced traders, known as Popular Investors. The account mirroring service allows you to search for Popular Investors to copy, based on their past performance, location and risk profile.
The eToro social trading platform is incredibly user-friendly and provides market access to multiple asset classes. Over 2,000 forex and CFD products are available to trade, including shares and cryptocurrency. Other eToro platform features include:
As well as copying Popular Investors trading strategies that involve a single financial instrument, eToro offers a portfolio management service called CopyPortfolios. This allows traders to invest in a bundle of instruments and asset classes or alternatively a portfolio of the broker’s top-performing investors.
Trading forex in Australia has unique but not insurmountable challenges. The best trading platform for Australian forex brokers making a living in the southern hemisphere, far removed from the big financial centres of London and New York, no more difficult than any other aspect of daily life. In an increasingly connected 24/7 world, you can trade forex on a level playing ground in real time with anyone in the world.
One of the factors Australian traders seeking to capture profits from online trading currencies in foreign exchange currency markets (forex) is that the times of peak currency market activity are out of sync with Australian time zones. Whilst it is entirely true that the Forex market trades 24 hours per day for 5-1/2 days per week, there are many hours when price activity is quiet due to a lack of trader participation.
There are four predominant forex sessions during a trading day, that is based on the time in major cities with large financial market operations. Those sessions are based on Sydney, Tokyo, London and New York. The different sessions overlap to a certain degree. By far, the most critical session in which to participate in is the tail end of the London Market and the beginning of the New York market. The four-hour period when those two sessions overlap is when the vast majority of trading activity, even activity related to the Australian and New Zealand dollars, takes place in terms of currency pair price movements.
For someone living in the Australian Eastern Standard Time (AEST) zone, those prime hours when the London and New York Forex sessions overlap are 11:00 PM to 3 AM. Given that you would prefer to be sleeping during those hours, choosing the best trading platform for Australian traders requires various order types and algorithmic trading functions because very little of the trading being done will be actively managed.
No, you do not have to forego sleep in order to participate in the forex markets. Rather, you can use special order types to set up your trades in advance, go to bed, get yourself a good night’s sleep, and then have a look in the morning when you get up to see how your online trading strategies panned out. Strange as it may sound, trading in this fashion is less stressful, because price analysis, trade entries, exits and maximum acceptable risk can be made outside times of peak price activity without your emotions getting the better of you.
Using “Limit” and “Stop” orders on your forex trading platform, you can efficiently plan your trades. You will be much more objective without watching trades go in your favour or against you, tick by excruciating tick, and you will be able to determine logical entry and exit points, as well as control your exposure to risk. To new traders, this discovery is a welcome revelation. To those with some degree of experience, it is a solid reality. A good trading platform for Australian traders will take the effect of time zones into account and offer tools to compensate for this.
The best trading platform Australia option should also factor in brokerage fees. Generally, there are two main brokerage fees:
The spread is more applicable to forex trading with the difference between the buy and sell (bid/ask) price being the compensation to forex brokers facilitating trading. A round trip, flat rate commission is often associated with share trding or ECN-like forex trading accounts. Here a set commission is set per trade or more often, by the quantity traded. Commissions are more straightforward than spreads to calculate brokerage fees, hence why experienced traders often opt for these online trading accounts.
For Australian investors requiring an online share trading platform, IG Markets and easyMarkets offer both forex and share trading on their primary trading platforms. Another firm that offers a forex/share trading hybrid is CMC Markets. Alternatively, forex brokers such as Pepperstone, offer CFD share trading on MetaTrader 5.
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Pepperstone’s ECN-Style Razor Account
