Like any other country, the forex CFD market in Australia is dominated by forex brokers. Many brokers are setting up base in the Australian market because of the current forex trading development and huge customer base.
On the other hand, the Australian market is vibrant with new traders looking to make the most of forex trading in the CFD market. Every day, traders search for simple and convenient ways to access the market, trade and make some money. One of the things these clients are after is a reliable broker.
When choosing a broker in Australia, there are several factors you need to consider. This will ensure that you get the best brokers in the market to work for you.
Factors to consider when choosing a forex broker
Licence to work in the Australian market
As a forex trader in Australia, you need to ensure that the broker you want to work with is licenced to work in the Australian market. All brokers authorized to work in Australia are listed with and monitored by ASIC. This is an independent body that ensures that your funds and rights as a trader are respected and protected.
Check to ensure that the trading platform broker is registered under ASIC.
Banking options offered
As a forex trader based in Australia, one of the things you need from a forex broker is banking convenience. You need to choose a broker who will accept deposits in AUD. This offers convenience since you do not need to change currencies to be able to trade.
Also, having a broker who allows you to use the Australian currency makes withdrawing your funds easier and more affordable. Some brokers charge a fee for availing cash in your proffered currency. You can avoid paying these fees by choosing one who avails funds in your preferred currency.
Availed trading platforms
The type of broker you choose determines the kind of trading platform you trade on. Trading platforms can either be available online or as a downloaded version to your computer. Some brokers even avail trading platforms straight on your mobile device.
Every trading platform comes with its unique features, benefits and rules. Ensure you try all the platforms your potential broker offers. This way, you can find the best trading platform for your forex trading needs.
As an AU forex trader, you need a broker who will not relent in offering you training and guidance on forex trading. Forex brokers provide training in videos or free eBooks that are downloadable from their site.
The best forex brokers also offer demo accounts to their new clients. These demo accounts are funded with virtual money. You can use these free funds to test the forex market, test your trading strategy and test the trading platform without risking your real money.
In forex trading, leverage is an essential factor. With leverage, you can enjoy trading a larger market share that the capital you buy in with. The leverage rate you get depends on the forex broker you choose. Remember that the higher the leverage, the higher the risk involved. Therefore, as you select the best leverage rates, know how to use it to your advantage.
Currency pairs available
The best broker will offer a wide array of currency pairs to trade. This ensures that you, as the trader, enjoy higher liquidity, and it also provides more choices to trade.
Accessing the commodity market
While you may have started with forex trading, with time, you may want to diversify your CFD trading. The best broker will offer you a wide range of commodities you can trade, other than forex. Also, a broker should provide you with access to decentralized currencies like bitcoin or other crypto-currencies. These have become very popular trading commodities and are also profitable.
As a trader in the Australian forex market, checking all the factors above will ensure that you only get the best forex brokers in the market. Ensure the broker is well known in the market for their excellent reputation and work ethic like for example Saxo Bank. This is the only way to ensure the safety of your funds.