Our Comparison of Day Trading Platforms in Australia
Day trading in Australia is an exciting and potentially lucrative way of investing in various financial markets. You’ll find online forex brokers, CFD brokers, and cryptocurrency brokers in Australia and they can all fall under the remit of day trading, depending on how you use them.
The popularity of high-frequency trading means there’s no shortage of day trading brokers in Australia. Choosing the right day trading brokerage for you will, however, depend on a variety of factors, not least which assets you are interested in dealing with.
To make your decision that little bit easier, here at Wetten we have put together our comprehensive online broker comparison. Here you’ll find a list of the top day trading platforms in Australia weighed against each other. In addition to this, you’ll also find our experts have conducted in-depth broker reviews, to give you a complete picture of what each platform has to offer.
What is Day Trading?
Many people find themselves intrigued by the prospect of becoming a day trader in Australia, but only a small number actually understand what’s really involved. More often than not, when people think of day trading brokers they think of the typical boiler room environment – but this couldn’t be further from the truth.
Day Trading Explained
Day trading, as the name suggests, involves buying and selling a financial asset within a single trading day. This can be done within any market but in practice, most day trading platforms in Australia focus on forex, stocks, cryptocurrencies. Technically though, day trading can be done with any asset and online futures and ETF trading in Australia are also popular.
Day traders look to capitalise on fluctuations in financial markets. Volatility is a trader’s best friend and it is for this reason that cryptocurrency and forex are particularly popular on online day trading platforms. This kind of trading usually involves high volume, with traders aiming to profit from relatively small price movements. A typical day trading broker Australia will offer leveraged trading for day traders, which is effectively what makes the technique worthwhile.
Leverage allows a trader to borrow money from their broker and gain much more market exposure. For example, if a trader believes the value of COMPANY A will rise, they can place an order to buy. If they buy $100 worth and COMPANY A’s stock goes up 5%, then the trader has made $5. If, on the other hand, they use 1:10 leverage, then the trader has made a profit of $50 with the same $100 outlay.
Any reputable day trading platform in Australia will offer leverage, but novice traders should be advised that whilst it can amplify profits, it can do the same for losses. We therefore strongly advise that you learn the ropes before using leverage. If you’re new to trading in general, then it might be a good idea to check out our guide on the best online brokers for beginners.
Day Trading vs Investing
Many new traders are unaware of exactly what’s involved with day trading and how it differs from traditional investing. There are one or two important distinctions to be made here and any aspiring day trader in Australia needs to be aware of exactly what they are getting into.
Firstly, investing in a traditional sense is done over a longer period of time – often several years. In fact, the average day trading broker in Australia will not actually offer traditional investment as a service. Day trading, as we have already mentioned, is done day-to-day, with all transactions being done and dusted before the close of trading.
Another important difference is that, in most cases, day traders rarely own any underlying asset. With stocks, cryptocurrency or even fiat currency, it is possible to buy a certain amount of the asset and hope that it appreciates over time. Day trading is more often done via derivatives like CFDs or forex/cryptocurrency pairs.
The advantage of derivative trading is that it allows savvy day traders to speculate on an asset and potentially profit whether the price goes up or down – something that isn’t usually possible with traditional stock market investing.
Finding a Day Trading Broker in Australia
Finding the best broker for day trading in Australia will come down to several factors. Of course, you need a platform that can give you access to the markets you require and offer a trading platform suitable to your level of trading knowledge, but you also need to find a day trading broker in Australia that is a good fit with your personal trading habits and objectives.
With this in mind, there are a few questions you can ask yourself before getting started.
What do you find important in a trading platform?
You need your day trading platform in Australia to provide access to the market you wish to trade in – this is a prerequisite. But what other qualities are important to you when looking for a provider? Do you prefer a bright, colourful interface with access to plenty of learning material, or do you prefer something simple without any unnecessary clutter?
What currencies do you plan to fund your account with?
A day trading broker in Australia will, of course, accept Australian dollars, but international traders might also be looking to trade in US dollars, Japanese Yen or the Euro. If you plan on funding your account with other currencies, you’ll need to find a day trading platform in Australia that can offer this as a service.
What markets do you want to trade in?
Novice traders should ideally focus on a single market, to begin with, but you’ll need to make a shortlist of day trading platforms in Australia that offer trading in your chosen markets, whether they be forex, crypto or stocks. You might also want to explore other avenues, perhaps checking out online stocks brokers or options online brokers.
How much do you already know about trading?
Day trading is highly accessible but can get very complicated very quickly. The best day trading broker in Australia is one that you can understand and get to grips within a reasonable amount of time. There’s little point in choosing the most advanced day trading online broker if you’re a novice trader that can’t understand the more complex metrics.
Will you be trading on the go?
If you are planning to trade when out and about, then the best day trading broker in Australia for you will be one that offers a reliable mobile trading platform. Day trading online can be done from any internet-enabled device, but some platforms have a better mobile service than others. Fortunately, our list of online brokers in Australia takes an in-depth look at each one’s portability.
Do you have your own trading strategy?
Trading is a game of numbers and one of the ways in which top-level traders maintain their position is by careful use of strategy. However, strategy is often complicated and the idea of it can put some would-be traders off. Fortunately, social trading in Australia has taken off in recent years and gives you access to the thinking processes of some of the world’s top day traders – even offering the option to literally copy their trades as they happen.
The best CFD platform in Australia
By this stage, you’re probably already building an idea of how to choose a day trading brokerage that can meet your goals and this is the most important consideration – the best broker for day trading in Australia will differ from person to person.
The intention behind our day trading broker comparison is to let you know how the most popular platforms compare to one and another and furnish you with all the information you need to make an appropriate choice.
Each platform will have its own quirks and unique approaches and it’s important to read each review carefully, checking off the features against your search criteria. If you’re serious about making it as a day trader in Australia, then it’s worth investing some time learning about day trading and the best broker attributes to be aware of.
How We Test Day Trading Online Brokers
Here at Wetten, we want to give you an accurate and impartial view of the top day trading brokers in Australia. To achieve this, our team of experts conduct a thorough review of each platform, assessing each of them according to set criteria, based on what we believe to be the most important aspects that make for the best day trading broker in Australia. A few of the things we look out for include:
As we have already discussed, day trading can be done across various financial markets. Whilst it is best to stick to one particular asset in the beginning, most day traders will want to branch out at some point, or at least have the option of doing so later down the line. Day trading brokers in Australia that offer trading in multiple assets are generally in higher demand.
Some platforms will offer different kinds of accounts. These might be an introductory account, aimed at those new to the markets, or a dedicated business account for professional traders. Often these accounts will offer different levels of leverage and have different fee structures. The best broker for day trading in Australia should also offer a demo account, so new traders can try the platform before committing funds.
Costs and Fees
Day trading brokers will all charge fees in one way or another. The two most common means are either by charging a fixed commission per trade, usually based on a percentage of the value, or by offering commission-free trading but with a much higher spread. In addition to trading fees, you may also be charged a withdrawal fee or be charged for leaving your account inactive over a given time.
To start day trading, you need to fund your account. The top platforms will offer plenty of choice on this front. Whilst Visa/Mastercard are industry standards, most platforms will also let you use popular e-payment methods, such as PayPal, Sofort or suchlike. Our review team lists all payment options as standard, so you can check that your chosen means is supported.
Usability, Look and Feel
Whilst it may seem less important than functionality, it’s important that a trading platform feels good to use. After all, if you’re going to spend a lot of time at the console, then the more appealings its visuals are, the better. Also, the best broker for day trading in Australia should be able to deliver functionality via an easy to use, intuitive interface.
There are different levels of day trader and, as we have previously noted, brokers will often cater to a specific clientele. This is usually reflected in the online day trading software used – i.e the trading platform itself. The top brokers will offer a choice here, often with a proprietary system for novice traders and an additional platform with more complex tools suitable to professional traders.
As we have discussed, day trading can be complex and there is a lot to learn. The last thing you want is to get bogged down with operational issues or website problems. As such, a platform’s customer service provision forms an important part of our reviews. We look at what channels of communication are available and how effective the help is.
Licence and Regulation
Licence and regulation is an important consideration for any would-be day trader. A legitimate trading broker will have all the necessary credentials, which we list as part of our review. Most trading in Australia will be governed by the Australian Securities and Investment Commission and you need to check that any platform fits with the current guidelines – especially as some less-trustworthy brokers are not forthcoming with where they are actually based.
Trading Tips for Beginners
As an aspiring day trader, you should be prepared to do plenty of research and approach the markets with an open mind. This includes taking the time to choose the right brokerage service. However, once you are satisfied that you have chosen a good platform, then its time to start getting to grips with the financial markets themselves.
Day trading – as with any investment – carries a degree of risk. The most successful traders make it because they ensure the key fundamentals are in place and take the time to develop their strategy. To help you get the best start, we have put together the following tips for novice traders. By adhering to these, you’ll build good habits from the outset and hopefully give yourself a better chance of success in the long run.
Use a demo account
This is probably the best piece of advice for the novice trader. Using a demo account lets you start playing the market without risking any capital. You’ll be able to get to grips with your chosen trading platform, practice trades and get a feel for how the markets move. This is the ideal place to make those early mistakes – you get taught a much harder lesson if you make them when trading with real money.
As we noted earlier, social trading has become increasingly popular in recent years. This is a great way of communicating with other traders and getting tips and info directly from top-level professionals. Day trading has a steep learning curve and social trading is one of the best ways to hit the ground running.
Plan your trading strategy
Strategy is hugely important in day trading. We aren’t just talking about technical analysis here either. It’s important to have a budget, a schedule and an area of expertise to work on. Once these are in place, then you can start to look at more advanced techniques, like scalping, fading or momentum trading.
Stick to what you know
Day trading is something of an umbrella term and can be applied to numerous markets. Each will have its own market forces that you must learn if you want to master the art of trading. With this in mind, it should be obvious that focusing on a particular market, say forex, is better than trying to learn everything at once.
Never stop learning
Day trading is an evolving science. Even the most successful traders continue their education – especially as emerging technologies can have such a huge impact on the financial markets. We suggest finding a reliable source of information and several educational resources and make sure that when you aren’t trading, you’re learning.
Conclusion – Finding Day Trading Brokers in Australia
Day trading is a lot more mainstream than it used to be. The abundance of online brokers means that anyone can start playing the markets from the comfort of their own home. At the very least, day trading can provide an additional income stream and many traders find it a very fulfilling pursuit in itself.
However, you should never forget that trading involved risking funds. As much as it is possible to profit, it’s also possible to lose money and in order to give yourself the best chance of success, you need to ensure you are building the right foundation from the outset. Choosing a reliable broker is the first step.
Things may seem confusing at first, but once you’re up and running with the markets, hopefully, you’ll start to get a much clearer idea of how things work. Remember, here at Wetten we have guides on all aspects of training, so if you are unsure about things, you know where to find the answers.
CFD Brokers Australia – FAQ
💲 Which are the best day trading brokers in Australia?
There are numerous day trading brokers on the market and choosing the best one will depend on your personal circumstances. The best way to find out which platform can meet your needs is by checking out our broker comparison, which will let you know about the top operators currently on the market.
❓How do I start day trading?
Day trading is highly accessible and you’ll find plenty of brokers online that offer access to the markets. However, before you dive into the world of day trading, it’s important to conduct plenty of research and make sure you know exactly what’s involved. Reading through our guide on the best trading brokers for beginners is a great way to find out more about day trading and financial markets in general.
🤔 is day trading legal in Australia?
Day trading can involve several different financial markets, so it’s important to make yourself aware of if and how each market is regulated in Australia. Our online broker reviews cover licensing and regulation as standard, providing you with an easy reference point to ensure your chosen platform is operating within the confines of the law.
🤓 Is day trading expensive?
Trading in itself will incur fees. However, these will vary from broker to broker and according to other factors, such as the volume of trades you make and the value of transactions. You can also expect to see fees charged for account administration, such as making a withdrawal or an inactivity fee if your account remains unused. For information on fees charged by the top brokers in Australia, feel free to have a read through our broker reviews.