Australian traders looking for the best CFD broker should compare spreads, range of markets and the CFD trading platform offered by the provider. Our CFD trading platform Australia comparison in September 2023 sorted these criteria to find the best CFD broker.
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Best CFD Trading Platforms In Australia
Our best ASIC regulated CFD broker list for September 2023 is.
| 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 |
|
|
9.00 |
ASIC, SCB FCA,CySEC |
1.0 | 1.0 | 1.2 | 0.06 | 0.73 | 0.27 | $3.50 |
|
|
|
143ms |
$250 (Raw) $500 (Standard) |
40+ | 250+ | 500:1 | 500:1 |
|
|
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 |
|
|
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 |
|
|
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 |
|
|
7.67 |
FCA, FSCA ASIC, FSA-S, CySEC |
1.1 | 1.3 | 1.1 | 0.1 | 0.3 | 0.2 | $3.50 |
|
|
|
161ms | $0 | 46+ | 21+ | 30:1 | 500:1 |
|
|
6.83 | ASIC, MAS, FCA | 0.70 | 1.1 | 2.2 | 0.07 | 0.011 | 0.8 | $2.50 |
|
|
|
95ms | $150 | 84+ | 25+ | 30:1 | 500:1 |
|
We have compared the top 25 CFD brokers based on the trading platforms they use, features they offer and 2023 fees they charge. This data is designed for Australian CFD traders but could be a useful guide if your located in similar jurisdictions.
The Best Australian CFD Trading Platform Overall
Australian based broker, Pepperstone, is a Forex broker with a lot to offer, such as competitive spreads, a great range of trading products and support for third-party platforms, including social or copy trading and algorithmic trading. As such, Pepperstone ticks all the boxes and is our best overall broker on this list.
Major highlights with Pepperstone include:
View Pepperstone ReviewVisit Pepperstone
Pepperstone Account Types
Pepperstone provides CFD traders with a choice between two account types: the Standard account and the Razor.
To pay zero commissions, the Standard account is where to start, with spreads starting at 1.0 pips for EUR/USD. This is competitive for similar account types and suited for beginners, with costs easier to track than the Razor account.
The Razor account, on the other hand, offers tighter spreads but charges additional commission costs. Spreads start at 0 pips with commissions of AUD $7.00 round-turn per 100K traded. This is a more cost-efficient account but suited for more experienced traders.
One thing to note is that cTrader and TradingView is not available with the Standard account.
Pepperstone Products
Pepperstone offers a good, all-round range of tradeable markets. Thousands of CFD products are available across foreign exchange, stocks, indices, commodities (metals, energies and softs) and cryptocurrencies.
These include stock CFDs from major global stock exchanges such as Nasdaq, NYSE in the US, LSE (London Stock Exchange) in the UK and DAX in Germany. You can also choose from a range of 100 ETFs, which are more complex financial instruments to trade.
Pepperstone is one of the highest leverage forex brokers in Australia offering the maximum allowed by ASIC for retail traders. This is 30:1 for Forex currency pairs, 20:1 for indices, 10:1 for commodities, 5:1 for shares and currency indices and 2:1 for cryptos. Trading with high leverage involves high risk, with the potential to lose more than you would on a normal trade. Luckily, Pepperstone doesn’t offer high maximum leverage for retail investor accounts.
Funding Methods
To open an account with Pepperstone, you can use a range of funding methods including bank transfer, debit card or credit card, as well as digital wallets such as Neteller and Skrill. While Pepperstone doesn’t require a minimum deposit, it is recommended you start with at least $200.
Top ECN-like broker
Pepperstone creates an ‘ECN-like’ trading experience by executing trades via straight-through-processing (STP). This provides CFD traders with access to interbank liquidity pools and trades at the same rates as those quoted by liquidity providers.
The no-dealing desk, STP execution system also means no price adjustments, which allows Pepperstone to match the prices offered by true ECN brokers, as highlighted in the module below. Variable spreads of forex, for example, can begin as low as 0.0 pips on major currency pairs, including AUD/USD, EUR/USD and GBP/USD.
|
ECN Broker Spreads
|
|||||
|---|---|---|---|---|---|
|
0.47 | 0.50 | 0.12 | 0.40 | 0.22 |
|
0.14 | 0.25 | 0.02 | 0.27 | 0.17 |
|
0.20 | 0.30 | 0.20 | 0.40 | 0.20 |
|
0.50 | 0.60 | 0.30 | 0.50 | 0.50 |
|
0.30 | N/A | 0.30 | 0.50 | 0.40 |
|
0.20 | 0.83 | 0.44 | 0.40 | 0.42 |
|
0.24 | N/A | 0.17 | 0.54 | 0.30 |
|
0.30 | 0.70 | 0.20 | 0.50 | 0.40 |
|
0.30 | 1.10 | 0.10 | 0.60 | 0.50 |
|
n/a | 0.30 | n/a | 0.60 | 0.50 |
|
0.77 | 1.41 | 0.44 | 1.13 | 1.23 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 01/09/2023
Pepperstone Trading Platforms
Pepperstone offers a great range of trading platforms which all have different benefits. The 5 main platforms available are MetaTrader 4, MetaTrader 5, cTrader, Capitalise.ai and TradingView.
MetaTrader 4 (MT4) is still the most popular forex trading platform out there, but MetaTrader 5 (MT5) is fast catching up. The main difference between platforms is in the amount of trading tools available and the platform capabilities.
MT5 offers more charting tools including 38 technical indicators, 44 graphical objects and 21 time frames. MT4 has been around longer and is a reliable platform that is still widely used for trading forex, while MT5 was designed to trade on centralised markets, such as the major stock exchanges. This is beneficial for trading a bigger range of available CFD products.
cTrader is another alternative to the MetaTrader platforms with a clean and modern interface that is user-friendly. The platform allows fast entry and execution and Depth of Market pricing, which is advantageous for CFD trading. A unique feature not offered by other platforms, is that each chart comes with its own toolbar for easier control to make changes. For those algorithmic traders out there, automation is available through the use of cBots with cAlgo.
Capitalise.ai is an algorithmic and standalone platform in its own right, for those with no coding knowledge or expertise. You can basically create an algorithm without writing your own script.
TradingView is an advanced charting tool that also doubles as a trading platform. The major benefit with TradingView is having over 100 types of charts that you can trade directions within for deep technical analysis.
All platforms are available for desktop, as a web trader or on mobile for both iOS and Android devices.
There are also a range of social trading platforms, courtesy of platform add-ons for both MetaTrader and cTrader. Myfxbook is a copy trading platform with the ability to AutoTrade using a forex automated trading system. DupliTrade, on the other hand, is for copy trading
Our Verdict on Pepperstone
Pepperstone is our choice for the best broker for CFD trading based on a number of factors, including low trading fees, fast execution and a great range of trading platforms. We also ranked Pepperstone as the 2023 best forex broker AU with similar attributes for currency trading. The broker also has a wide range of instruments, particularly share CFDs, and award-winning 24/5 customer service. Suitable for traders at any level of experience.
View Pepperstone ReviewVisit Pepperstone
IC Markets Has The Leading CFD Platform
Having STP pricing and being a no-dealing desk broker, IC Markets offers competitive spreads and no requotes, all important considerations for scalpers and high frequency traders.
IC Markets also offers:
View IC Markets ReviewVisit IC Markets
IC Markets Account Types
The broker provides three key account types with varying fees based on the platform and account. IC Markets’ Standard account is highly competitive, offering spreads as low as 0.6 pips, undercutting the industry standard for zero-commission accounts.
They also offer two Raw Spread accounts for MetaTrader or cTrader users. For the MT4/MT5 option, the round-turn commission is AUD $7. The cTrader account involves a more intricate structure with a USD $3 commission per 100K traded, converted to your selected base currency.
Both Raw accounts boast a minimum 0 pip spread for most currency pairs, marking their competitiveness in commission-based accounts.
There is also a swap-free Islamic account that follows Sharia Law for those traders that cannot earn or pay interest for religious reasons.
Products
IC Markets has a growing range of tradeable markets on offer. This spans multiple different asset classes, including Forex, stocks, cryptos, commodities, treasuries (bonds) and futures.
IC Markets particularly shines when it comes to stocks, offering over 1600 share CFDs. There are also a healthy range of 61 Forex pairs to trade, amongst a smaller range of other financial products.
IC Markets Trading Platforms
IC Markets packs everything a CFD trader might require in terms of trading platforms and supplementary tools.
This Australian firm presents an extensive assortment of third-party platforms, akin to Pepperstone. Their key trading platforms include both MetaTrader options (MT4 and MT5) and cTrader.
With MT4 and MT5, you gain access to an array of advanced trading instruments like AutoChartist and MetaTrader Signals, invaluable for charting and algorithmic tasks. Copy trading platform alternatives like ZuluTrade (social) and MyFxBook (for autotrading) are also available.
The prime feature of the MetaTrader platforms is arguably Advanced Trading Tools. This suite equips traders with a plethora of advanced tools, including indicators, Expert Advisors (EAs), and tools for order customisation.
For cTrader, there is cAlgo automated trading platform and Trader Copy for social copy trading. This, in addition to cTrader being an excellent alternative to the MetaTrader platforms, means the platform holds up on its own with features such as fast execution, a Depth of Market Indicator, measuring the liquidity of the market, and great charting tools.
With the exception of Myfxbook and Autochartist, all trading platforms are available across the full spectrum of desktop, web and mobile devices.
Our Verdict on IC Markets
Overall, IC Markets has some of the lowest commissions, with multiple competitive accounts choose from and a wide range of trading platforms with a great set of trading tools, to obtain a competitive advantage when trading CFDs, including multiple algorithmic and social trading options.
The Broker With The Top Risk Management For CFD Trading
Trading CFDs can entail a high level of risk. Volatile market environments can lead to significant gains – and equally significant losses. As such, conservative traders may feel at ease with Plus500, who offer the best risk management tools to help protect their active positions when trading complex derivatives such as CFDs.
Additionally, Plus500 offers:
View Plus500 ReviewVisit Plus500
Plus500 Account Types
Keeping it simple, Plus500 only offer a Standard account, which reflects their appeal to less experienced traders.
This account has quite competitive trading costs, with zero commissions and spreads starting at 0.6 pips for major currency pairs.
There are no funding costs, although the broker does require different minimum deposits to open an account, depending on your preferred funding method, starting at AUD $100 for BPay and going as high as AUD $500 for bank transfer.
Products
Plus500 offers a great range of CFD products, within a vast array of asset classes. These include 1100 stocks, 71 Forex pairs and 30 indices, amongst a smaller number of commodities and cryptocurrencies.
The broker also offers 98 ETFs and 308 options, for those who prefer trading more complex derivatives.
Plus500 Trading Platforms
Plus500 only offers their own proprietary trading platform, which has more than enough features for any level of trader, particularly beginners.
An intuitive and use-friendly platform, Plus 500’s trading platform is not only functional, it also features charting tools such as 110 indicators and 20 drawing tools.
Where this platform stands out, however, is in its risk management tools, particularly the ability to customise your orders with stop limits, stop losses and trailing stops in order to protect your trades against market volatility. Even better, the platform allows you to use guaranteed stop-loss orders to ensure that you exit positions at the exact price specified in your order with no slippage.
Plus500 also provides negative balance protection. Designed to minimise potential financial losses, negative balance protection prevents CFD traders from incurring losses above the total balance of the trading account. The broker doesn’t profit from the trader’s losing positions.
Lastly, Plus500’s trading platform was also listed on the Automated Trading Platforms table with advanced algo features.
Our Verdict on Plus500
In summary, Plus500 has risk management covered with their order customisations and negative balance protection, perfect for the risky world of CFD trading while also offering an excellent proprietary trading platform to trade a wide range of products on.
View Plus500 ReviewVisit Plus500
*Your capital is at risk ‘72% of retail CFD accounts lose money’
A Great Social Trading CFD Trading Platform
Another broker suited for beginner CFD traders, eToro has positioned itself as a community dedicated to making financial markets and trading accessible to all with easy-to-use platforms for copying the positions of experienced traders. As such, eToro offers the top social trading platform experience on our list.
Reasons to choose eToro include:
eToro Account Types
Another broker that only has one account option, eToro’s Standard account is commission-free with minimum spreads starting at 1 pip, which is in line with the industry average.
You will only need $50 to open this account with no additional funding costs.
Products
eToro gives you a great range of over 3000 tradeable symbols, with the option of trading CFDs or the underlying asset. You can trade stocks (2691), Forex pairs (49), Indices (13), Commodities (32) and ETFs (263).
eToro also offers a decent number of cryptos compared with most brokers, with 41 products to trade.
eToro Trading Platforms
eToro offers only proprietary trading platforms for CFD trading, including its main eToro trading platform, social trading platform CopyTrader and SmartPortfolios, with its emphasis on grouping traders into single funds.
The eToro trading platform combines the ability to do normal trading and copy trading, effortlessly. eToro’s platform also gives you great charting features through ProCharts, which gives you access to 66 indicators and 13 drawing tools.
For further social trading options, eToro’s CopyTrader and Smart Portfolios are great copy trading platforms with different aims in mind. CopyTrader focusses on copying individual trading strategies while SmartPortfolios has a fund manager style approach, funneling expert traders into single funds for more diversified trading.
In keeping with its commitment to social trading and copy trading, eToro provides only web and mobile interfaces for all of its platforms.
Our verdict on eToro
The king of social trading, eToro has a plethora of great trading platforms, CFD products and trading tools that make it stand out above all other brokers.
*Your capital is at risk ‘68% of retail CFD accounts lose money’
The Broker That Has The Best Mobile CFD Trading Platform
ThinkMarkets is a global, multi-regulated broker with the best mobile CFD trading platform, ThinkTrader. This platform has a unique set of powerful features that elevate the tablet or smart phone trading experience.
Overall, the broker offers:
View ThinkMarkets ReviewVisit ThinkMarkets
ThinkMarkets Account Types
ThinkMarkets gives traders two choices of trading account, a commission-free, Standard account or commission-based Think Zero account.
For a zero-commission account, the Standard account has some of the lowest minimum spreads of its type, starting at 0.4 pips for EUR/USD.
The Think Zero account, meanwhile, has competitive Forex spreads, starting at 0 pips for major pairs, albeit with slightly higher commissions at AUD $7 per round turn.
Products
ThinkMarkets may have a smaller offering of Forex, Indices and Commodities, but the broker offers a large number of shares and ETFs. You can trade over 3500 share CFDs over 13 global exchanges and 352 ETFs.
To have access to the full range of products, you must use either ThinkTrader or the MetaTrader 5 platform.
ThinkMarkets Trading Platforms
In addition to MetaTrader 4 and MetaTrader 5, ThinkMarkets also offers CFD traders the option to trade using ThinkTrader, the brokerage’s proprietary platform, accessible to any iOS or Android-based device, as well as on web and desktop.
ThinkTrader is particularly known for its charting, with 100 of the most popular technical indicators, 40 analytical objects and 12 timeframes. These all come with live pricing on the charts plus the ability to close multiple orders with one click and have multiple watchlists. You can also view up to 4 charts on your mobile screen, which gives the platform its mobile-friendly edge.
MT4 and MT5 are also great platforms with plenty of inbuilt features and platform add-ons that make them the most popular third-party platforms out there for Forex and CFD trading.
Of these, one of the major highlights of ThinkMarkets MetaTrader suite is Trading Central which offers a comprehensive market analysis and research tools to enhance your trading experience across the entire range of CFD products available with the broker.
Our verdict on ThinkMarkets
ThinkMarkets offers a comprehensive suite of trading platforms that are particularly suited for mobile trading of the broker’s CFD products with great functionality, features and trading tools to analyse the markets with.
View ThinkMarkets ReviewVisit ThinkMarkets
*Your capital is at risk ‘71.89% of retail CFD accounts lose money’
The Broker With The Top CFD Trading Platforms To Trade Forex
Offering a comprehensive selection of CFD instruments, discounts for high-volume trading and an industry-leading trading platform, IG Markets is our top broker for Forex trading.
The broker offers many highlights including:
View IG Markets ReviewVisit IG
IG Account Types
IG offers two account types for retail traders, a CFD account and a DMA account, but only the CFD account is for retail traders.
An IG CFD Trading account, as the name suggests, provides a trading experience tailored specifically to complex derivatives. While the brokerage does act as a market maker, low commissions keep this account type attractive.
Commissions are basically zero for everything except share CFDs, which only go as high as 0.1%. Spreads are competitive too, for a Standard-type account, with a minimum of 0.6 pips for major Forex pairs.
The broker’s DMA account, meanwhile, is better suited for active traders, which gives you direct market access, a no-dealing desk model and tiered commission rates for FX trading.
Products
IG Markets offers the most comprehensive selection of CFD products of any broker on this list, with over 16,000 financial instruments available. The broker stands out in their 100 Forex pairs and over 13,000 share CFDs, which means you are spoilt for choice.
It’s important to note that if you are trading OTC (using the CFD account) then you will be using contracts, while if you are trading with DMA, you will be using lots.
IG Trading Platforms
From advanced charting capabilities to remarkably comprehensive market research, IG’s proprietary platforms have all the infrastructure a new trader might need and all the power an experienced trader could want.
All in all, IG offers 4 main trading platforms: their excellent proprietary platform, the popular MT4, and specialist trading platforms ProRealTime and L2 Dealer.
IG’s proprietary trading platform is one of the industry’s best, not only as an intuitive, easy-to-use platform but because it has a range of charting features, trading tools and market research.
With 30 technical indicators, 20 drawing tools and 16 timeframes, IG’s charting syncs seamlessly from mobile to the web platform.
In terms of other trading tools, the IG platform has integrated risk management modules and a great standalone educational platform called IG Academy.
IG’s trading platform is available on all devices: web, mobile, tablet and on desktop.
The popular third-party platform, MT4, is best suited for Forex trading, L2 Dealer allows DMA (direct market access) trading on centralised exchanges such as share markets and ProRealTime, a charting and standalone trading platform in its own right, that comes with over 100 indicators.
ProRealTime also offer algorithmic trading in different ways. ProRealTime lets you build your own algorithm, either with in-platform help or code from scratch.
L2 Dealer allows you to trade shares and forex with DMA execution.
Our verdict on IG
To summarise, IG Markets have so much to offer all levels of CFD trader, including a peerless list of products, discounts for high-volume Forex trading and a good range of trading platforms to trade them on.
The Broker That Has The Best Crypto And Forex CFD Trading
Eightcap is a well-established and well-known CFD broker based in Melbourne. With over 250 cryptocurrencies available to trade, it’s safe to say Eightcap is the best CFD broker for cryptocurrency and bitcoin in Australia. The broker even won the award for most cryptos from ForexBrokers.com in 2023.
Indeed, Eightcap has many benefits:
Account Types
Eightcap is a no dealing desk broker meaning their spreads are sourced from liquidity providers when trading.
As is convention in the CFD brokerage industry, the standard account has no commissions but does have wider spreads, averaging between 0.5 and 1.8 pips.
The RAW account has the tightest spreads (at 0-1pips) but has commission costs of AUD $7 round-turn per standard lot, which is in-line with the industry standard for commission-based accounts.
As an experienced trader, you will prefer the RAW account as the most cost-effective and profit opportunity, whereas the simplicity of the standard account will appeal to beginner traders.
Products
Eightcap has a modest offering of Forex, stocks, commodities and indices to trade. All of the biggest and most liquid markets are available, with 400 stocks a highlight from major stock exchanges in Australia, the U.S. and Europe.
When it comes to crypto trading, however, Eightcap really is king, with over 250 crypto products available using the MT5 platform. In addition to trading cryptocurrency against USD, Eightcap also allows traders to cross-pair cryptocurrencies, as well as trade crypto indices.
Trading Platforms
Eightcap provides an extensive selection of trading platforms, encompassing the complete MetaTrader suite, TradingView, Capitalise.ai, and unique platforms like Cryptocrusher and The Amazing Trader.
Opting for MT5 avails a broader spectrum of trading instruments and tools compared to MT4. These advanced tools facilitate in-depth price analysis, algorithmic trading apps (like trading robots, Expert Advisor), and copy trading.
TradingView serves as a potent charting platform with an added social networking feature for trade comparison and advice on trading strategies. It’s worth noting that TradingView is accessible only with a Standard account.
Enhancing its status as the best crypto broker, Eightcap offers a unique platform called Cryptocrusher to give your crypto trading an edge. With this platform, you get crypto trading ideas, market analysis including indicators, trends and sentiment, educational resources and a live, 24-7 chat room.
Lastly, the Amazing Trader is an advanced charting algo platform that covers a range of products from FX, indices, cryptos and metals.
Our Verdict on Eightcap
Eightcap is considered the 2023 Robot Trading Australia and has many advantages, that start with their 250 cryptocurrency offering and include a great range of trading platforms, speciality platforms and trading tools to really supercharge your trading in the risky world of CFDs.
A Broker With A Great CFD Trading Platform For CFD Share Trading
An award-winning broker, winning the 2021 best CFD broker from Online Personal Wealth Awards, City Index has one of the great CFD trading platforms for share trading with a cleanly designed interface and versatile trading tools and features.
Major benefits of City Index include:
View City Index ReviewVisit City Index
City Index Account Types
City Index accounts provides CFD traders with the speedy execution of straight-through processing (STP) or direct market access (DMA)-style trading, together with the straightforward fee structure of a market maker account.
You have the option of either a Standard account, using the City Index trading platform, or a MT4 account using MetaTrader 4. Both are solid options, which will suit different traders based on your trading preferences.
Spreads for the Standard account are as low as 0.5 pips with commissions only for share CFDs, around 0.1% on average and 0% commissions for everything else.
The MT4 account, on the other hand, is primarily for Forex trading, with spreads as low as 0.8 pips for most major pairs. There are no commissions with this account.
Both accounts also give you access to different platform add-ons and trading tools. The Standard account offers powerful charting platform, TradingView while the MT4 account allows you to use a range of EAs (expert advisors) and custom indicators from FX Blue.
Products
You can trade a solid number of financial instruments with City Index, across a broad range of Forex, stocks, cryptos, indices, commodities, bonds and interest rates products.
Of particular note, City Index’s over 4500 share CFDs on offer stands out, with 84 forex pairs, also a highlight. While there are a smaller number of other products, you can also trade options (and knock-out options), which are more complex derivatives. Knock-out options are like barrier options which expire worthless if the underlying asset exceeds or falls below a specified price.
City Index Trading Platforms
City Index offers two powerful and versatile trading platforms in MetaTrader 4 and the broker’s own, proprietary platform. Both are suited for different trading purposes.
The City Index trading platform is recommended for shares trading, with both a wider access to the broker’s full product range and access to a range of additional charting, news features and order customisation tools.
For charting, the City Index platform allows you to utilise up to 80 indicators with powerful charting platform, TradingView, as well as an assortment of drawing tools. Trading Central modules can also be integrated which allows you access to technical analysis tools and complex order types such as trailing stop-losses and OCO (one-cancels-the-other). Then there is SMART signals,
MT4, on the other hand, is a popular Forex trading platform with access to EAs and custom indicators from FX Blue to boost your trading experience.
Both platforms are available via web or mobile app, while only MetaTrader 4 is also available on desktop.
Our verdict on City Index
All in all, City Index offers two powerful trading platforms, with the broker’s proprietary platform a particular highlight for trading their extensive share CFD range. Additionally, trading costs are competitive with many platform features and trading tools to enhance your trading experience.
MetaTrader 5 is the most popular CFD platform based on market share. While more people in Australia use MetaTrader 4, it’s primarily for currency trading while MT5 allows CFD trading on the ASX. You can view our best mt5 brokers.
CFD trading is legal in Australia for retail clients. Under local regulation set by ASIC, retail traders can speculate on a range of financial markets by trading derivatives in the form of CFDs.
To protect traders and ensure trading conditions are fair and transparent, ASIC enforces various CFD trading rules such as leverage caps, negative balance protection, and segregated client funds.
The three largest CFD brokers are Pepperstone, IC Markets, City Index and FP Markets. You can view our list of the top ASIC brokers that compare spreads and platforms of the best providers.
In Australia, online investment activity, including CFD trading and other complex derivatives, falls under the jurisdiction of the Australian Securities and Investment Commission (ASIC). View more on our CFD meaning guide.
Founded in 2001, ASIC acts as the primary regulator for Australia’s financial markets and financial services sector, as well as consumer credit and corporate finance. In practical terms, this means brokerages seeking to operate in Australia must meet specific requirements to obtain a license.
Most of these requirements are intended to ensure that investors, many of whom are hoping to take advantage of high volatility in financial markets in exchange for high levels of risk. To qualify for an Australian Financial Services License (AFSL), brokers must demonstrate that they provide Australian retail investor accounts with the following risk management tools:
In addition to helping CFD traders control their risk and prevent dangerous losses, ASIC controls also help to manage expectations. Mandatory product disclosure statements clearly set out the terms of each trade, as well as reasonable results. ASIC regulations likewise prohibit brokers from offering inducements to trade that might lead investors to take on more risk than advisable.
Note that many of the reputable regulated brokers offering services to Australian traders are also licensed in other countries by agencies such as the UK’s Financial Conduct Authority (FCA) or the Monetary Authority of Singapore (MAS).
Disclaimer
As more and more individuals open retail investor accounts, opportunities for unethical practices by unlicensed online brokers have increased. While financial regulators such as the ASIC, CySEC, MSA, and CFTC have taken steps to protect investors and ensure transparency in the broker-client relationship, these regulations apply only to licensed brokerages operating legally within their jurisdictions.
We advise all Australian CFD traders, whether beginners or experienced investors, to select only regulated CFD and forex brokers fully licensed by the ASIC. Even in one of the most tightly surveilled global markets, fraud can and does occur, and trading through a licensed CFD trading platform can protect you against scams and market manipulation.
Ask an Expert
This article forgot to include Capital.com, which has a much larger range of CFD instruments than most listed here. Also Pepperstone and IC Markets (correct me if I’m wrong) use the cTrader backend? It would be good to include just how many CFD codes can actually be traded per platform in stocks, currencies, commodities, crypto, etc.
Hi J.S. There are many quality (and some not so good) brokers one can choose from. We recommend the brokers we feel worthy of making this list. In time, its possible we will add Capital.com. Pepperstone and IC Markets use MetaTrader backends for MT4 and MT5. Pepperstone also uses MetaTrader backend for Capitalise.ai. Both brokers use cTrader backend for cTrader while Pepperstone also use cTrader backend for TrdingView
Is forex easy money?
No, 60% to 80% of retail traders lose money. Only trade what you can afford to lose.
Is forex trading legal in the UK?
Yes it is. You will need to declare any capital gains taxes as income but you can also claim any losses too.
Is it a good idea to become a full time trader or is it a side hustle job?
That depends on your skills and ability to make money when forex trading and how much income you have saved up and can afford to lose. Everyone is different.
What is more beginner friendly MT4 or 5?
Depends what you call beginner friendly…are you looking for platofrm with risk management tools? then EasyMarkets is a good option, IG, OANDA, City Index custom platform include a guaranteed stop loos. Or maybe you need a broker with good education tools?
What is a pip exactly? And is it the same as spread ?
A pip is the smallest amount a currency can move. When you see the AUD/USD quoted as 0.6410, a pip is a movement of 0.0001 up or down.
The spread is simply the difference between the bid (what you can sell a currency at) and the ask (what you can buy a currency at) that you see on your trading platform.
Is forex better than stocks?
THat really depends on your personal preference, knowledge and skills as a trader