Best Forex Brokers In Australia

By Jack Morgan

June 11, 2020


For any forex trader, a good broker is an essential tool. The tools that forex brokers provide to you will determine the experience that you have as a trader. For traders based in Australia, there are a number of good options and plenty of reputable brokers that you can trust.

We have compiled details on three of the best forex brokers in Australia and provided a beginner’s guide to what the forex market is and how it works.

​Broker

Accepting Aus Residents

​ASIC Regulated

Rating

​#1. Fusion Markets

​#2. ATFX

​#3. City Index

#1 Forex Broker in Australia: Fusion Markets - Known for low trading fees

Fusion Markets has been operating since 2010 when the business was founded in Australia. Fusion Markets are registered with all the relevant local authorities. In addition to being regulated by the Australian Securities and Investments Commission, they are also subject to regulation by the Vanuatu Financial Services Commission, depending on the residency of the user.

Fusion Markets trading fees

Header

#1. ​Fusion Markets

#2. ATFX

#3. City Index

​EURUSD benchmark fee

$12.8

$10.5

$12.8

​EURGBP benchmark fee

$7.0

$7.7

$11.8

In terms of fees, Fusion Markets is one of the best options out there. Comparing fees directly doesn’t really work when it comes to the forex market. However, by using figures for the average trade fee across the board, it is possible to build an objective metric that we can use to compare brokers. Using this metric, Fusion Markets offers relatively low fees.

Fusion Markets non-trading fees

Header

#1. ​Fusion Markets

#2. ATFX

#3. City Index

​Account fee

No

No

No

Inactivity fee

No

No

​Yes

​Withdrawal fee

$0

$0

$0

Fusion Markets currency pairs

Fusion Markets - Additional Products

Header

#1. ​Fusion Markets

#2. ATFX

#3. City Index

​Stocks

​ETF

CFD

​Crypto

As well as great value, Fusion Markets has an intuitive user interface and comprehensive charting capabilities. This is a platform that new traders and experienced traders alike can enjoy.

Fusion Markets - ​Account setup

Header

#1. ​Fusion Markets

#2. ATFX

#3. City Index

​Minimum deposit

$0

$​500

$0

​Time to open account

1 day

1 day

1 day

Fusion Markets - Deposit & Withdrawing

​Fusion Markets do not charge fees for deposits a​nd the majority of withdrawal ​methods. You can use a bank transfer, credit/debit cards, and electronic wallets for transferring money but the withdrawal ​can be slow.

Fusion Markets - Withdrawl fees and options

Header

#1. ​Fusion Markets

#2. ATFX

#3. City Index

​Bank Transfer

​Credit/Debit card

​Electronic wallets

​Withdrawal fee

$0

$0

$0

​Overall I recommend Fusion Markets to anyone, it's an Australian based broker, regulated by the ASIC and has the lowest fees around, the downside is they lack in-depth research tools and have a slow withdrawal period. I small price to pay for trust, regulation and low fees.

​74-89% of retail CFD accounts lose money​

#2 Best Forex Broker in Australia - ATFX

One of the big benefits of ATFX is that it is regulated by numerous global financial authorities that are considered to be unimpeachable. The FCA is one of, if not the most, respected financial watchdog in the world, and they have jurisdiction over ATFX as the broker is based in the UK.

ATFX trading fees

​We compared ATFX fees by comparing the top two currency pairs. As you can see below, they have extremely low trading fees compared to the industry, beaten only be fusion markets.

Header

#1. ​Fusion Markets

#2. ATFX

#3. City Index

​EURUSD benchmark fee

$12.8

$10.5

$12.8

​EURGBP benchmark fee

$7.0

$7.7

$11.8

ATFX non - trading fees

Header

#1. ​Fusion Markets

#2. ATFX

#3. City Index

​Account fee

No

No

No

Inactivity fee

No

No

​Yes

​Withdrawal fee

$0

$0

$0

ATFX also offers low forex and CFD fees and also allows cryptocurrency trading. Getting up and running with a new account is a quick and painless process. Once you are ready to start trading, ATFX has a range of payment options you can use to make deposits and withdrawals.

ATFX currency pairs

Header

#1. ​Fusion Markets

#2. ATFX

#3. City Index

​# Currency Pairs

86

44

​84

ATFX additional products

Header

#1. ​Fusion Markets

#2. ATFX

#3. City Index

​Stocks

​ETF

CFD

​Crypto

There are a couple of drawbacks to the platform. While crypto support is nice to see, the product range as a whole is a limited one. ATFX has also garnered a reputation for its pushy sales staff. And, if you’re like us, the lack of available data is frustrating.

ATFX account setup

Header

#1. ​Fusion Markets

#2. ATFX

#3. City Index

​Minimum deposit

$0

$​500

$0

​Time to open account

1 day

1 day

1 day

ATFX - Withdrawal fees and options

Header

#1. ​Fusion Markets

#2. ATFX

#3. City Index

​Bank Transfer

​Credit/Debit card

​Electronic wallets

​Withdrawal fee

$0

$0

$0

​AFTX comes in in second place, ​it is the forex/CFD brokerage arm of global financial group AT Group. It is regulated by several financial authorities globally, such as the UK FCA or CySEC of Cyprus. 

​67.76% of retail CFD accounts lose money

#3 Reviewed Australian Forex Broker - City Index

City Index is a global forex broker and has been in the game since the early 80s. Because they operate across the globe, City Index is regulated by a number of different financial authorities. These include the FCA, ASIC, and the Monetary Authority of Singapore. All in all, the low fees make it worth trying. Thanks to their long track record of providing a reliable service, City Index is generally regarded as one of the safest brokers out there.

City Index trading fees

Header

#1. ​Fusion Markets

#2. ATFX

#3. City Index

​EURUSD benchmark fee

$12.8

$10.5

$12.8

​EURGBP benchmark fee

$7.0

$7.7

$11.8

City Index non-trading fees

Header

#1. ​Fusion Markets

#2. ATFX

#3. City Index

​Account fee

No

No

No

Inactivity fee

No

No

​Yes

​Withdrawal fee

$0

$0

$0

City Index ​currency pairs

Header

#1. ​Fusion Markets

#2. ATFX

#3. City Index

​# Currency Pairs

86

44

​84

​City Index additional products

Header

#1. ​Fusion Markets

#2. ATFX

#3. City Index

​Stocks

​ETF

CFD

​Crypto

A smooth opening process and low fees make this an attractive option for people who are new to the game. The presence of some extremely high-quality research tools will appeal to some users. There is no minimum balance and no withdrawal fees. Inactivity fees will be incurred after a year, however.

​City Index account setup

Header

#1. ​Fusion Markets

#2. ATFX

#3. City Index

​Minimum deposit

$0

$​500

$0

​Time to open account

1 day

1 day

1 day

​City Index - Withdrawal fees and options

Header

#1. ​Fusion Markets

#2. ATFX

#3. City Index

​Bank Transfer

​Credit/Debit card

​Electronic wallets

​Withdrawal fee

$0

$0

$0

Unfortunately, City Index only has a limited range of product options to choose from. The desktop platform is also difficult to get to grips with. But overall City Index still makes it into the top three, a highly recommended CFD and forex broke that is regulated by many financial authorities including the top-tier UK FCA. Its parent company, GAIN Capital is listed on the New York Stock Exchange.

​71% of retail CFD accounts lose money​

Understanding The Forex Market

Today, forex trading can be undertaken in a number of different ways. In addition to the conventional currency exchanges that function like stock markets, there are also currency exchange booths available in stores. Of course, traders today also have the option of using a smartphone and or laptop to trade currencies on the forex market.

The key to the forex trading experience is the forex broker. The broker provides the platform through which you exchange currencies with other traders. It is essential that you trust the broker that you use, although this isn’t an issue with any of the major providers. The more important metric for most people is going to be the user interface, which determines how easy it is to make trades. However, there are a number of things that you need to consider when making your decision.

Most currency transactions occur on what is known as ‘over the counter’ markets. OTC markets are unregulated, meaning that it is down to you to decide how trustworthy the other people you trade with are. Of course, going to a bank or business to exchange your currency is safer than exchanging currency with someone on the street.

Using a forex broker significantly reduces your risk when you are trading currencies. There is little to no risk in taking your currency to a bank or a currency exchange on the street if you want to simply exchange one currency for another for when you go on vacation. However, if you want to trade currencies regularly, it makes much more sense to use a broker.

Why is forex trading popular in Australia?

There are several reasons that forex trading has proven to be popular, especially among more inexperienced traders.

Anyone can understand the forces behind currency fluctuations, whereas the movement of stocks and shares requires in-depth knowledge.

Leverage trading makes it possible for traders to trade with more money than they actually have on hand. Although, this also multiplies their potential for losses.

The forex market is open 24 hours a day for 5 days a week, enabling traders to choose their own schedules.

Currencies are very important to our daily lives and in times of extreme turmoil, holding currencies of different denominations can be hugely advantageous.

While forex trading is generally easier to understand and execute than trading in stocks and shares, it is still a challenging undertaking. As with any investment market, if you are unprepared then you can end up in serious financial trouble. It is important that you understand exactly what you are getting into before you start trading.

Currency conversion vs forex trading

Currency conversion and forex trading are two different processes. Currency conversion accounts for the OTC exchanges that we mentioned earlier. This is where you simply exchange one currency for another. Crucially, you actually possess both currencies.

With forex trading, you aren’t actually converting currencies. The broker will hold currency reserves and will store information about who has what in their account as users make trades with one another. If you execute a trade that converts your USD into GBP, then your account will be updated to reflect that you have less USD but more GBP. The assets that backup the trade are still held by the broker, they don’t move.

Basic Lingo

Here’s the lingo that you need to know when you get started with forex trading. Don’t worry, it’ll all become second nature before long.

Long position: A bet that the price of a currency will go up.

Short position: A bet that the price of a currency will go down.

The bid and ask: In a GBP/USD pair, the bid is the price that you can sell each currency at. You can open a trade at the bid price and, if the value of the currency drops below this price, you can make a profit on the sale. The ask is the same but in the other direction. If you want to bet on the price increasing, then open a bet at the asking price.

The spread: the difference between the bid and the ask.

The pip: The smallest amount of a currency pair that you can buy or trade on the forex market.

Leverage trading: Trading that borrows funds from the broker to enable traders to bet more than they have in their accounts. Losses are amplified accordingly.

A lot: The standard number of units of base currency that are in a forex contract.

Rollover: When a position is rolled over it means that the broker has closed your previous position and opened a new one for you. There is a fee associated with this process.

Forward forex contract: A contract traded on the OTC market to be executed at a future date but using the currency prices at the time the contract was signed.

Futures forex contract: An agreement on the regulated forex market to execute a trade at a future date according to terms outlined in the agreement.

What drives market prices?

There is a wide range of factors that determine the strength of a currency. The relative values of currencies are heavily influenced by global economics and geopolitics. Because of this, currency markets are wildly unpredictable. As the Covid-19 outbreak has shown, there are plenty of unpredictable events that can dramatically impact currency markets.

Despite this apparent chaos, there is some order to forex markets and there are economic calendars that serve as reasonably accurate predictors. Nevertheless, the factors affecting currency markets are myriad and complex.

​Broker

Accepting Aus Residents

​ASIC Regulated

Rating

​#1. Fusion Markets

​#2. ATFX

​#3. City Index

About the author

Jack Morgan is the senior broker tester at Financeeo. Bringing more than 20 years experience from the online broker industry. Jack has spent many hours rigorously testing brokers.

​Jack Morgan

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