What is a forex broker?
If you have been through our forex trading for beginners page, you can skip this section to get down to the details of our reviews for forex trading Australia. Or you can keep reading to recap exactly what a forex broker is and how they manage to offer their services.
A broker serves as an intermediary between an individual and a securities exchange. In the case of forex trading, the broker will usually offer over-the-counter trades of foreign currencies depending on the exchange rate between the relevant currency pair. This entire process has been made considerably easier due to all the technological progress that has been made over the past few decades.
The forex markets are incredibly active as there are currency exchanges for just about any currency in the world. This allows traders from anywhere to be able to exchange their local currency for a foreign currency at any time. The exchange rate between the two currencies will vary according to each country’s economic performance and daily happenings.
There is a certain amount of volatility associated with each currency pair and it is recommended that all readers browse through our forex trading tips page before they begin to invest large amounts of money within the forex markets.
Forex trading differs from the large number of trading options available online in that it is completed with a spot market trading mechanism. This allows the customer to have actual ownership of the real asset as opposed to a contract for difference.
It is fairly common for cryptocurrencies to be traded online by using CFDs instead of actually buying the cryptocurrency itself. If you would like to take a look at all the details surrounding the crypto markets, head to our crypto trading platform Australia page.
How we conduct our forex trading reviews
Our team of experts here at Wetten Broker have put together a comprehensive review structure in order to conduct our forex trading reviews. This allows each online operator to be compared to the next by maintaining the structure. With plenty of years of experience within the trading industry, we have managed to identify all the crucial aspects of a service and rank each online broker according to what is available on the market. To get an idea of all the trading instruments that are available out there, head to our futures trading Australia page.
Forex trading Australia has picked up some serious momentum over the past couple of decades and there are more active traders than ever before. As a result, there is also plenty of competition among the online brokers within the industry, this allows for their services to differ dramatically and requires more research to be put in by customers to make sure they are getting a great offer. Our reviews begin with a general introduction to each broker and the pros and cons relevant to their service.
Our team then takes a close look at what cryptocurrencies are available to be traded with the online broker. The majority of forex trading brokers will also have cryptocurrencies available as the crypto market has experienced tremendous growth lately and as a result, plenty of customers are looking to add crypto to their investment portfolio.
There are plenty of trading instruments available and if you would like an overview of something different to forex, be sure to read through our options trading broker page. Our reviews will then detail exactly what other trading instruments are available with the specific online operator. The best means of minimising risk is to diversify investments.
This section of the review details each of the instruments and ranks the trading service according to competitor offers. We then take a look at the jurisdiction and limits that apply to the broker service to ensure that they are legally able to offer their service in Australia and what limits will be in place for your account.
As with any online service, you will also be required to pay certain fees while you have an account with the broker. These are usually in the form of commission, standard account fees, deposit and withdrawal fees and inactivity fees. Then our team takes a look at the web page itself. Most of your trading career will be centered around the website and the trading platform that is put on offer.
We look at the security of the site, as well as its usability, look and feel. This ensures that your data is protected while you are browsing and that you can do so with ease. To ensure that you are able to transact with the available operators, we also detail exactly what payment methods are available with each of them, including the processing times, applicable fees and limits set.
Whenever you are using real money online, it is also important to know that the online operator has some sort of support for customers to make use of. A forex broker in Australia needs to ensure that their customer service team is world-class in order to be considered among the best. We look at the contact methods available, the competence of the team and the response times with each method. Then our reviews consider the licenses that the broker has managed to obtain with the security measures in place to protect customer’s funds.
Finally, our reviews detail exactly how you can trade with the operator, from the account registration to the deposit page. Our team describes exactly what you will need to get going. A brief look is also taken at the broker’s reputation within the industry and any customer feedback that can be found specific to their service. All this information will give readers a clear image of what they can expect to receive from the online broker. To find more information on the spreads on offer from each operator, head to our low spread broker forex page.
Finding your forex trading brokers
With a clear understanding of what goes into each of our forex trading brokers reviews, it is time to start researching which of their services are most applicable to your needs. This will always be specific to the individual and it is recommended that each reader compile a checklist detailing what you are looking for within an online broker service.
Each category of our review should be included within your checklist to know exactly what you are after within each department. Forex trading Australia is quite a competitive market and it is very likely that your perfect service offer is out there.
Once you have put together your checklist, you will have to make use of our forex broker comparison tool to narrow down the operators specific to your needs. You can then browse through our reviews of each of the operators for a close look at their service offers. To get a feel of the operators, you should also be able to open a forex demo account with each of them.
This will allow any interested customer the opportunity to use the service as if you had a real account and also, potentially, make some trades with a certain amount of fake money. Demo accounts are perfect for beginners to get a feel for the markets and great for experienced traders looking to test out a service. Most forex trading brokers will have demo account options that allow access to some, or all of their features.
Broker fees and spreads
A brokerage would not be able to function without the income that is generated from their customers. Each broker will try and offer the lowest fees in the industry but there will always be some payment that is applicable to the service. Brokers also try to vary their cost methods to advertise their services. You will come across plenty of services with no commission fees attached but they usually always include account fees for the service.
While the fees are kept to a minimum, it is recommended that readers ensure they have taken a close look at the terms and conditions of their broker to ensure that they are not losing unnecessary funds to hidden costs within the service.
It is also important to consider the spreads that are applicable with your chosen online broker. Spreads have been detailed in our forex for beginners page but just to recap, it is the difference between the bid price and the asking price for the specific foreign currency.
With each of the online forex trading brokers having a different customer base and therefore, different bids, it is likely that you will encounter very different spreads within the online forex industry. By choosing one of the more popular options, you ensure that the spread is kept relatively low but there are plenty of options available to all readers to minimise the spread among forex trades.
Available forex currency pairs
Once you have found a broker service that is in line with your expectations, you will have to begin looking at the available markets within the service. The currency pairs are usually based around your local currency and you should find all the industry favourites with most of the forex trading brokers. That being said, there is plenty of opportunity among the smaller markets as well and our reviews take into account the variety of currency pairs that are made available to customers.
This is not too important if you are simply looking to trade AUD/USD or AUD/GBP, but it is important for any readers out there looking to trade within more niche markets. Be sure to double-check whether or not your preferred currency pair is available with the online broker or not. To get an idea of exactly how you should be completing trades, head to our forex strategies page.
Stick to your area of interest
Within all of our forex trading reviews, you will find a common phrase, stick to your area of interest. As with any financial investment, you will ideally have a lot of knowledge surrounding the market you are investing in.
With forex, this requires following the news that is applicable to both sides of the currency pair, not only will you have to keep an eye on Australian economic performance, but you will also have to take into account the foreign country’s performance as well. Exchange rates can vary significantly with some markets and this could result in large losses if you make some bad trades.
In order to minimise your risk, it is highly recommended that you stay within your area of interest and try to complete as much research as possible before making any large investments. It is also important to consider the current price set on the currency you are looking to trade, it may be that the market is at a precipice.
Doing research ensures that you have a solid understanding of the exchange and helps in making your own predictions to how the market will perform in the time to come. Our forex trading reviews offer insights towards the service experience but a good service offer does not guarantee gains on investments.
How to trade forex
Trading forex is fairly similar to the other trading instruments that are available on the market. The first step will always be to open an account with your preferred online broker. This can be done by simply clicking the sign up or join now button that will be displayed on the broker’s homepage. You will then submit all your personal details and receive a confirmation email sent to the address you submitted.
Follow the link included in this email to verify your account details. You will then have to verify your identity by submitting a copy of your passport or ID card. This will also include a certain period of processing before your account is validated. To find more information about the numerous trading strategies out there, head to our forex scalping page.
With a verified and validated account, you can begin considering forex trading Australia. The most important consideration would be the currency pair you are looking to trade. Consider which country you know the most about or perhaps the one that you would be able to research the most and follow the market performance to get an idea of what you can expect when trading. You will then have to deposit some of your real money in order to transact within the online service. This can be done using one of the payment methods mentioned in our forex trading reviews.
Determine an amount that you would like to deposit, without putting yourself under any financial strain, and complete the payment procedure. There may be a processing time applicable but this will depend on your chosen payment method.
Finally, you will now be able to buy a set amount of foreign currency using the funds that are credited to your account. With your foreign currency in hand, you will either have to wait for the ideal time to sell or simply wait if it is a long-term investment.
Always be sure to keep an eye on the news surrounding each of the currencies to determine if any potential price spikes are on their way. Forex trading brokers may also make a news platform and/or market research portal available for customers to use.
With any investment, having the most knowledge at your fingertips can only be beneficial towards your career. There will also be tools that can be used within the trading platform for customers to use and analyse the various markets and investment opportunities.
Conclusion – Forex Trading in Australia
By now, you should have a complete understanding of exactly what a forex broker is and the service that they provide to interested customers looking to trade foreign currencies. There are plenty of service offers out there and it is no surprise that plenty of competition has been generated within the online trading industry.
The service offers differ significantly and our team of experts have compiled a review structure based off of their years of experience within the industry to bring all readers the necessary details to make an informed decision when choosing between the host of online forex trading brokers.
Our forex trading reviews take a close look at their service to ensure that it is legitimate and quality. Knowing exactly how the review is conducted gives all readers a head start within the industry by knowing what to look for when it comes to an online broker.
Forex trading Australia has never been easier and if you manage to use all the information that is made available to you, you will be able to trade foreign currencies in no time. Be sure to compile your specific needs from the service and use our reviews to cross-reference each offer.
Also, keep in mind the applicable fees and spreads that are associated with the online broker you are interested in. Finally, use our how to trade guides to ensure you have no hiccups along the way. If you are interested in another trading instrument, head to our CFD trading page.
Forex Trading Australia FAQ
🧪 Where can I find forex trading reviews?
If you are looking to join an online broker and begin trading foreign currencies, you will need to be on the lookout for a great service provider. There are so many online operators that it can be difficult to know when you’ve found the best. Our broker reviews put all the details on display, be sure to take a look before signing up.
💼 Is forex trading legal in Australia?
It is always important to make sure you are on the right side of the law when you are making use of a financial service online. Depending on the operator you have chosen, there will be specific licenses that they would need to have obtained to have the jurisdiction to operate in Australia. Read through our online broker reviews to find out more.
💳 How do I deposit with forex trading brokers?
Once you have been through our comprehensive broker reviews, you will likely be itching to sign up with your preferred online operator and begin your online trading career. If you have managed to meet all the terms and conditions and gone through the verification procedures, you will have to deposit some real money to start trading.
💱 What currency exchanges are available with online forex trading Australia?
With forex, you will be exchanging foreign currencies and investing in their value. Knowing exactly what exchanges are available will be the defining factor when it comes to choosing your preferred online broker. Be sure to take a look through our reviews to find out exactly what is on offer with each of the operators on the market.
🥇 Who is the best broker for forex trading Australia?
Our reviews have been compiled in such a way that our team of experts are able to evaluate each online broker within relevant sections of their service. This allows us to put together a detailed online broker comparison which is available to all readers. You will simply have to browse through the details of each of their service offers to see which is the most applicable to your needs.