Best Forex Brokers Australia 2022

Forex trading in Australia is interesting both for international traders and Australian citizens. Australian FX brokers are authorized by the Australian Securities and Investment Commission (ASIC). ASIC regulated brokers are those that have passed a set of standards set by the institution. Operating in Australia means that ASIC monitors its activities. Traders conduct transactions by using forex trading platforms. ASIC is the financial markets regulator. ASIC has to authorize every forex broker. They get the Australian Financial Services Licence (AFS). ASIC’s website is asic.gov.au, and their Twitter account is @ASIC_Connect. As a trader wishing to trade forex in Australia, you should pick the right forex broker. This list will help you choose the right one.

Best Forex Trading Platforms in Australia

We compiled a list of the best forex brokers in Australia and ranked them. This is our list of the top Forex brokers for Australians:

  1. Pepperstone – Best Forex Broker Australia Overall
  2. Plus500 – CFD Forex Broker Australia
  3. eToro – Best Australian Copy Trading Forex Broker
  4. AvaTrade – Low Fees Forex Broker Australia
  5. CMC Markets – Best for High Net-worth Forex Traders
  6. Saxo Bank – Best Premium FX Broker Australia
  7. City Index – Best Research Tools Forex Broker Australia
  8. FXCM – Great Education for Forex Traders in Australia
  9. IG – Best Advanced Features

Why should you read this guide?

There are dozens of brokers in Australia. There are hundreds of trading platforms and forex brokers around the world. While it is great to have many options available, it is overwhelming to find the best among many. The following list of the best forex brokers is for traders living in Australia. It should help you in narrowing down your alternatives. We base this list on a set of variables essential to making the right choice.

Compare Forex Brokers Australia In Detail

BrokerAvailable To AustraliansASIC ApprovedAverage Spread EUR/USDMinimum DepositOur ScoreOfficial Website
PepperstoneYESYES (license #414530)
Minimum from 0.0 and 0.17 average spread (Razor Account)
Minimum from 0.6 and 0.77 average spread (Standard Account)
$2004.2/5Visit Website
eToroYESYES (license #491139)0.750$504.9/5Visit Website
AFSL 491139. High risk to capital.
AvaTradeYESYES (license #406684)0.700$1004.9/5Visit Website
Plus500YESYES (license #417727)Varies$1004.8/5Visit Website
77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
CMC MarketsYESYES (license #238054 )0.810$04.7/5Visit Website
IGYESYES (license #220440)Varies$3004.6/5Visit Website
Saxo BankYESYES (license #280372)0.600$10,0004.5/5Visit Website
City IndexYESYES (license #345646)1.500£1004.4/5Visit Website
FXCMYESYES (license #309763)1.300£3004.3/5Visit Website

Pepperstone – Best Online Forex Broker Australia Overall

Pepperstone Logo
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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.9% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Pepperstone offers a limited number of products to trade, but it excels in its competitive spreads, customer support, and varied copy trading alternatives. This broker has more than ten years in the industry. Regulated by ASIC (Australia) and the Financial Conduct Authority (FCA) of the United Kingdom.

Pepperstone focuses on serving sophisticated traders by providing MetaTrader and cTrader platforms along with other premium features.

It offers 59 currency pairs and 86 different CFDs. Cryptocurrencies, on the other hand, can be traded through CFDs.

Fees & Commissions

The cost of trading through Pepperstone varies depending on the type of account the trader selects, yet its pricing is competitive compared to other forex brokers in Australia.

The Razor account is commission-based, while the standard account incorporates commissions within the spreads. Fees vary between each of these accounts.

For Razor accounts, the cost of trading EUR/USD is 0.11 pips on average, including a 0.753 flat commission, while the standard account does not charge a commission, though the spread is higher – 1.19 pips on average.

The minimum initial deposit to open an account with Pepperstone is $200.

Pros Cons
It supports nearly every trading platform, including MetaTrader, cTrader, and cAlgo It does not have a proprietary trading platform
This broker allows for social copy trading
It offers two types of accounts (Razor and Standard) that cater to different needs
High-quality customer service
Low Spreads

AvaTrade – Low Fee Forex Broker Australia

AvaTrade Logo
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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Founded in 2006 and regulated by top tier-1 and tier-2 authorities. AvaTrade is adhering to 8 financial regulatory authorities in 6 jurisdictions. AvaTrade is a safe broker for both CFD and foreign exchange trading. Traders can protect themselves for up to one million dollars. Avaprotect is their balance protection (fees apply).

AvaTrade developed its proprietary web trading platform. They offer MetaTrader 4 and MetaTrader 5, ZuluTrade, and DupliTrade (great for social trading). Various forex trading platforms make AvaTrade one of the best in this aspect. AvaTrade is expanding its range of investment products. They develop new trading tools and several licenses. Traders can open a demo account and learn more about their trading platform.

Avatrade licenses:

  • Australian Securities Investment Commission (ASIC)
  • Investment Industry Regulatory Organization of Canada (IIROC)
  • Japanese Financial Services Authority (JFSA)
  • British Virgin Islands Financial Services Commission (B.V.I)
  • South African Financial Sector Conduct Authority (FSCA)
  • Financial Services Regulatory Authority (FSRA)
  • Central Bank Of Ireland (CBI)
  • Polish Financial Supervision Authority (PFSA)

Fees & Commissions

In November 2019, AvaTrade reduced its spreads by up to 50%, making it a competitive broker. Their spreads are over market. Their fees and trading conditions are excellent.

Avatrade trading fees are low, which is suitable for traders that trade multiple times per week.

Pros Cons
Compliant with a wide variety of tier-1 and tier-2 authorities Offers only forex and CFDs, Cryptos
Competitive fees & commissions
Great array of trading platforms
Great research tools
Fast trading account opening

eToro – Best Copy Trading Forex Broker Australia

etoro logo
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eToro AUS Capital Ltd ACN 612 791 803 AFSL 491139. OTC Derivatives are speculative and
leveraged. Capital is at risk. See PDS

Founded in Israel in 2007, eToro is a popular broker. Two tier-1 financial regulators in the UK and Australia regulate eToro. eToro is safe and reliable. It is excellent for beginners allowing them to copy successful traders.

eToro has popularized the concept of social trading. They introduced a social media-like trading platform. It allows users to interact with each other and copy their portfolios. This feature is attractive to traders in Australia who want to learn from others. It allows you to gain experience before trading on your own.

The simplicity of its trading platform makes eToro appealing to entry-level traders. Traders can enjoy a user-friendly interface and a collaborative environment.

eToro offers 47 currency pairs to trade. They offer over 2,000 CFDs covering commodities, cryptocurrencies, and other assets.

Fees & Commissions

eToro’s fees and spreads are above the average for forex spot trading and CFDs. This broker charges a fixed rate of 3 pips for EUR/USD trades.

The platform offers a five-level PRO membership. It requires minimum balances ranging from $5,000 to $25,000. These accounts entitle the holder to an account manager and lower withdrawal and deposit fees, along with other VIP benefits.

The minimum deposit for standard trading accounts is $200, in line for an Australian forex broker.

Pros Cons
User-friendly trading platform for entry-level investors Educational materials are limited to platform-related tutorials.
Best In Class for Copy Trading
Great mobile trading app
Great research tools

Plus500 – Good CFD Forex Broker

Plus500 Comparison
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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Founded in 2008, Plus500 is a company and broker traded on the stock exchange. Three tier-1 regulatory agencies regulate Plus500. These include regulators in the UK, Cyprus, and Singapore. Plus500 is a reliable alternative for traders in Australia.

Among other Australian forex CFD brokers, this trading platform offers competitive spreads. It is our top pick for advanced CFD forex traders. Its trading platform is user-friendly. The company provides a traders guide to help traders in Australia understand the platform.

The platform lacks the diversity of currency pairs it offers. 50 forex pairs are available through CFDs for traders in Australia. Plus500 offers a large selection of CFDs, more than 2,000.

Fees & Commissions

The spreads charged per trade by Plus500 are dynamic and depend on market conditions. You can view the spreads on the platform.

The minimum deposit for new accounts is €100.

Pros Cons
Publicly-traded company with more than 12 years in operation Fixed Leverage
Trading Platform Not the best choice for active traders as it lacks some features

CMC Markets – Great for High Net-Worth Traders

CMC Markets is a popular forex broker in Australia. Regulated by ASIC and three other tier-1 authorities. CMC Markets is a stock exchange traded company with over 30 years of experience. This makes it a low-risk choice for traders in Australia.

This broker specializes in providing low-cost trades for both amateur and professional traders. CMC Market offers 180 spot forex currency pairs and 10,000 different CFDs. These cover a wide range of financial instruments and assets. The cost of trading forex pairs with CMC Markets is in line compared to other brokers. CMC Markets provides excellent research tools for traders. These include news feeds, market insights, and third-party content from Reuters and Morningstar. Its mobile app features a wide range of tools. 29 out of 81 technical analysis indicators are featured on its desktop app. These trading tools are not available on other platforms.

The quality of its customer support ranked at the top.

Fees & Commissions

Trading EUR/USD through this broker costs 0.7 pips. This is a competitive rate, while the average spread for other pairs is 0.71 pips. VIP accounts are available for clients in Australia who have spent over $3,000 in commissions or have an account balance of over $2.5 million. This platform offers a great feature known as Guaranteed Stop-Loss. It reduces execution risks for active investors, though it comes at $8 per 100,000 units of EUR/USD. Make sure you check out our guide on the brokers with the lowest spreads.

No minimum deposit is required to open an account with this broker.

Pros Cons
Trading Fees Limited educational materials
VIP accounts for high-net-worth traders Cryptocurrencies can only be traded through CFDs.
Advanced tools and software are available for professional traders through its Next Generation trading platform
No minimum deposit is required to open an account
Guaranteed stop-loss orders are available
Research

IG – Best for Forex Research Australia

Founded in 1978 and regulated in six tier-1 jurisdictions. IG is a reliable forex trading platform regulated by ASIC.

This broker offers more than 17,000 financial instruments for traders. It specializes in currency trading and CFDs. IG offers traders 93 different forex pairs and the option of engaging in forex spot trading. The platform offers CFDs for its forex pairs and cryptocurrencies.

Fees & Commissions

The latest information on IG indicates that the average spread for forex trades is around 0.73 pips (they vary depending on the pair). The minimum spread for a EUR/USD pair is 0.6 pips. This applies to mini and standard size contracts. A minimum initial deposit of £250 is required to open an account with IG. For active traders and professionals who qualify, IG offers discounts. These include their standard spreads but require a minimum deposit of £1,000.

Pros Cons
User-friendly web-based trading platform that features advanced charts and realtime prices Advanced research is not available for users with low deposits
Research content for users with deposits of over $500 (Real Vision TV) and $5,000 (Real Vision Research) Cryptocurrencies can only be traded through CFDs
Automated trading signal recognition software that provides trade ideas
Mobile trading app

SaxoBank – Best Premium Forex Broker

Regulated by ASIC and five other tier-1 jurisdictions, SaxoBank is an excellent choice. It has the support of its banking unit to strengthen its credibility. This Danish bank was founded in 1982. SaxoMarkets offers investors the possibility of trading more than 40,000 different instruments. These include 182 forex currency pairs and 35,000 CFDs.

That said, SaxoBank is not a platform designed for entry-level traders as its minimum initial deposit is above the average compared to other regulated brokers in this article. Its trading software is one of the best in the industry, featuring all the tools experienced investors need to conduct their analyses.

Fees & Commissions

SaxoBank fees start at 0.4 pips, including a fixed rate of 0.6 pips for EUR/USD trades. High-volume trades offer an attractive rate of 0.5 pips.

For clients in Australia, the bank’s Classic account demands a minimum deposit of USD 10,000, while other premium alternatives require more than USD 200,000.

Pros Cons
Proprietary trading platforms (SaxTraderGO and SaxoTradePRO) are one of the best in the industry Above-average minimum deposit
Research materials feature both in-house and third-party investment analyses, both of which are available within the platform Requires a minimum deposit of $20,000 to use MetaTrader along with a minimum requirement of $2,000 spent per month
High-quality mobile app
Excellent customer support

City Index – Good Research Tools

Backed by one of the world’s largest retail brokers, GAIN Capital, City Index is a good choice. Investors in Australia seeking competitive spreads and premium research tools can trust City Index. It is a leading force in the trading industry.

Regulated by three tier-1 financial authorities in the UK, Australia (ASIC), and Singapore, City Index is considered safe. It offers investors the possibility of trading 84 currency pairs and 4,500 different CFDs, including cryptocurrency CFDs. Among other Australian forex brokers, City Index stands out due to its low-cost approach, which is enticing for traders on a tight budget.

Fees & Commissions

At 0.8 pips, the spread charged on EUR/USD is higher compared to other brokers. Its average spreads for all other forex pairs are low if compared to premium alternatives. The spreads are higher for professional traders using MT4 platforms.

The minimum deposit required to open an account with City Index in Australia is £50.00.

Pros Cons
Low minimum deposit Spreads are considerably higher for professional traders compared to other brokers
Low average spreads
Great mobile app and web-based trading software
AT pro (the platform’s pro trading software) features more than 139 indicators and 25 drawing tools
Research tools include an economic calendar, news feed, and market research reports
Positive reviews on its customer service

FXCM – Great Forex Education

FXCM is a subsidiary of New York-based Jefferies Financial Group, an American-traded company founded in 1968 with a market capitalization of $4bn. The company possesses a license from three tier-1 jurisdictions – Australia, Canada, and the United Kingdom – and its main advantage compared to other brokers is that it caters to a wide range of traders going from day traders to algorithmic traders and quant funds.

This broker offers 39 currency pairs and 32 CFD contracts, a limited number of instruments, but its advanced features make it attractive to sophisticated players.

Research tools provided by FXCM are decent and should be suitable for the audience it serves. They include premium content from Trading Central and a news feed from Investing.com.

Traders new to the sophisticated trading strategies supported by FXCM can gain from its educational materials on algorithmic trading and quant trading.

Fees & Commissions

For standard accounts, the cost of trading some popular pairs, such as EUR/USD, is 1.3 pips. Which is twice what other platforms charge to entry-level users.

On the other hand, PRO users can benefit from lower spreads starting at 0.45 pips.

The minimum deposit for standard accounts is £300, while pro users must deposit £25,000 to enjoy the lower spreads.

Pros Cons
Top-notch trading platforms available for PRO users Higher than average spreads for standard accounts
An excellent alternative for sophisticated traders Best suited to serve active traders than casual ones
Premium research content and news grid A limited number of currency pairs and CFDs
Customer service
Decent mobile trading app

What should you look for in a forex broker?

The best forex brokers assist traders in conducting their operations at an affordable cost while providing top-notch trading platforms, outstanding customer service, and a wide range of financial products to choose from. This will allow you to focus on your trading strategy and trading.

The best forex brokers are compliant with Australian regulations, based on the guidelines and rules established by the Australian Securities and Investments Commission (ASIC).

A great forex broker provides educational materials, training programs, tutorials, and tons of information to help you at forex trading.

As we explained, it is possible that you will lose money by forex trading, but the proper educational and research tools may help you move up along the learning curve so you can become a successful forex trader.

What's the Australian Securities and Investments Commission (ASIC)?

It is a known fact that a high percentage of forex accounts lose money. There are many regulatory agencies around the world in the countries where forex trading is popular, that seek to prevent frauds and scams from forex brokers.

In Australia, the institution overseeing forex brokers and other financial and investment organizations is known as the Australian Securities and Investments Commission (ASIC).

The role of this organization is to ensure the adequate functioning of financial providers, including forex brokers in Australia, by enforcing a set of rules and guidelines that seek to maintain an optimal level of transparency within the financial markets.

To put it in plain words, their job is to protect investors by preventing unlawful practices that may harm their interests.

ASIC-regulated brokers have passed a set of standards set by the institution. Approved to operate in Australia means that ASIC monitors its activities. Investors can trade using their brokers’ trading platforms and knowing that there’s a government agency that has their backs.

More information about ASIC can be found on their website, and ASIC-regulated forex brokers have to display their license number on their websites to inform investors that they have been approved to operate in Australia.

Certain trading platforms offer their services to forex traders in Australia, though they may not be regulated by ASIC. In this case, it is essential to ensure that your forex broker is licensed and regulated by a peer agency in the country they have been registered.

This is a quick list of regulatory bodies for brokers:

  • Canada – Investment Industry Regulatory Organization of Canada (IIROC)
  • United States – Securities & Exchange Commission (SEC)
  • Singapore – Monetary Authority of Singapore (MAS)
  • European Union – European Securities and Markets Authority (ESMA)
  • Cyprus – Cyprus Securities and Exchange Commission (CSEC)
  • Switzerland – Swiss Financial Market Supervisory Authority (SFMSA)
  • United Kingdom – Financial Conduct Authority (FCA)
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Ziga Breznik

Author

About the author

Ziga Breznik is the owner and head of research at PublicFinanceInternational.org – he is an active investor in the forex, crypto and stock markets – he has seen trading platforms disappear along with his investments – especially during the “crypto boom”. Ziga learned the hard way that finding a reputable and trustworthy online brokerage is key to long-term success in the financial markets. He founded PublicFinanceInternational.org as a platform where he shares his research with one goal in mind: to provide unbiased and trustworthy online brokers reviews.