Author:
Mark Lewis
Last Updated:
11/06/2022
Experiences:
Contributing Tennis, Golf, and Soccer Editor
Experiences:
Contributing Tennis, Golf, and Soccer Editor
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How to trade Forex in Australia: the best forex trading guide in 2022
Welcome to Wetten Australia’s comprehensive guide on how to trade forex in Australia. The online trading industry has picked up some major momentum over the past few years and there are more interested customers than ever before.
Throughout this page, we will be taking a look at the forex trading instrument that is made available by many online brokers and break it down into a forex trading for dummies format. Our expert team here at Wetten Australia have a wealth of experience with online trading and have been put to the task to complete this online information resource.
Why you should use a forex trading tutorial
If you have stumbled upon the world of online forex trading, either by word of mouth through some friends or by just doing some research on how you can invest your money online, you will most likely be on the lookout for more information surrounding the trading instrument. We have plenty of guides and articles available here at Wetten Australia that is aimed to guide you through just about what you will need to know regarding forex trading how to. From the very basics to expert strategies, our pages have all the information that you have been looking for.
You might be wondering why you need to use a tutorial to get started with online forex trading. The reason is quite simple, if you are considering trading forex, you will be using your money to complete trades and there is a very real chance that you could lose some of your hard-earned cash. There is also an equal chance that you could be making some gains on your investment and this is what we will try to focus on. With any form of online trading, you will always need to try and inform yourself by doing research about the specific trading market and instrument that you are looking to use. If you have stumbled upon this page and have no idea what online trading is, head to our homepage of online brokers Australia to get started.
A forex tutorial should provide you with the perfect starting point to get going within the online trading industry. You will find out exactly how you can complete forex trades, exactly what services you are signing up for, how these services make money and some tips to furthering your online forex trades. It is important to cover all your bases before you decide to commit your funds to an online broker, so be sure to use this page alongside some of our other articles to make sure that you are signing up for a legitimate, quality service.
Our favourite Forex trade platforms:
xm.com Review
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Markets.com Review
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What is forex brokerage?
With forex trading, you will be buying one side of a foreign currency pair. Say for example we are investing in the AUD/USD exchange, we will essentially be buying a number of American dollars and relying on their economy to perform in such a way that the demand for American dollars becomes higher, causing the amount of AUD per USD to become higher as well. We then have the opportunity to trade back our American dollars for a higher amount of Australian dollars than what we had initially invested. This is a basic understanding of forex trades. If you are looking for a comprehensive page regarding this, head to our forex trading basics page.
To do this, you might think that you would need friends all over the world to exchange currencies with, this is where a forex brokerage comes in. They offer their service in as many countries as possible, where they can receive the necessary jurisdiction to operate. Plenty of online customers then sign up for their service and begin to offer trades with their local currency. You will then be able to purchase some of this foreign currency by using your Australian dollars. It is important to understand exactly what method of trading you are using here, as some of them are simply contractual agreements to pay out the difference in price. Head to our CFD trading explained page to find out more about this.
Our best brokers for CFD trading:
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Markets.com Review
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Capital.com Review
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How forex brokers work
You might be wondering, just how do forex brokers do this? In the ideal set up, they would seemingly be the middleman between two interested parties from opposing countries of the currency pair. If they were to charge no fees, it would be a simple transaction between you and the other customer. You will most likely find that each forex broker will have their own fees that are applicable to their service. One may charge you for having an account with them on a yearly or monthly basis, while another will charge you transaction fees relative to the amount of forex you are trading.
It is important to understand exactly how your forex broker operates to ensure that you are not going to be unnecessarily losing some of your funds. You will also need to ensure that your forex broker has the necessary licensing and security methods to keep your funds both safe and legal. It can be quite overwhelming determining all of this information and our experts have done their best to scour just about all of the brokers out there. You can find all of this information in our in-depth reviews and we have also focussed some of the review topics on our forex trading reviews page. Make sure to browse through some of these before signing up for an online offer.
3 forex trading tips
In order to get your online trading career underway, our Editor and experts have put together these 3 forex trading tips to try and guide you through the initial phase of your career. Make sure to keep them in mind when you are looking to complete some of your forex trades.
Identify your currency pairs
The first tip would be to take the time in identifying your currency pairs. This is an important consideration to make as you will need to keep up to date with the currency you have invested in to make informed trading decisions.
Do your research
You will need to do your research when identifying these currency pairs. There is plenty of information available about foreign currencies and it is up to you to identify the most suitable pair to your investment portfolio, so be sure to conduct your research. Head to our forex broker in Australia page to find out more about the offers within the industry.
Follow the news
The third of the forex trading tips would be to follow the news of the specific currency you have invested in. There are plenty of online news resources that you can use now and you may find that major developments are usually correlated to the price performance of the foreign currency. Try to keep up to date with all the latest happenings.
Our best picks for trading options:
Our forex trading guide
With these forex trading tips in mind, you might be wondering what makes our forex trading guide so special. For starters, we have an expert team here at Wetten with a wealth of experience within the online trading industry. This allows us to give first-hand advice on how to handle each of the trading instruments and what to avoid when you are transacting online. Most of us have signed up with a terrible online broker at some point and this has given us the chance to identify below average services before you sign up for them. The best way to test out service would be to use their demo account option, head to our forex demo account page to see which online operators offer this opportunity.
That being said, we have all had our fair share of making some gains on the forex market as well. This gives us the necessary insight to offer advice on how to trade forex in Australia. The best students always learn from the mistakes of their teachers and we have decided to identify all the mistakes we have made so that you don’t have to. By using our forex trading guide, you are gaining a necessary head start within the industry by having a solid understanding of the basics before you have even signed up with an online broker.
Expanding your portfolio
It is important to keep in mind that you will need to diversify your investment portfolio if you are looking to minimise your risk. Our forex trading how to section will get you started with one trading instrument which will have a variety of markets, but there are also other instruments and other markets that you can consider. It is recommended that you first master the one before looking to use the other, so be sure to head to our forex scalping page for a look at another technique that can be used with forex trades.
Once you feel comfortable with how to trade forex in Australia, it might be time to consider some other investment opportunities. There are plenty of them available and we have covered just about all of them within our online information resource. Head to our how to buy ETFs in Australia page to understand exactly what we are talking about. As always, research your instruments and markets before you look at investing in them.
Getting started
To get started with online forex trading, you will need to find out exactly what currency pairs you are looking to trade and then begin to browse through some of our reviews to determine exactly which online brokers offer the chance to trade these currency pairs. You will then need to sign up with the specific online broker and get your account verified before you can transact. This entire process will be included within our reviews. Come back to our forex trading guide to brush up on the information you have learnt and to make any final considerations before transacting.
Our forex trading tips should come in handy when you are browsing through your investment opportunities, so be sure to keep them open alongside your research. With a verified account open at a reputable online broker, the time has come to be your forex trading career. Doing this will differ depending on what service you have signed up for. When you have put your money into the foreign currency, you will then need to keep up to date with any news surrounding the currency to gain an insight into how the price of that currency may perform in the near future.
Looking to trade stocks? Check out our favourite platforms here:
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Conclusion
You should now have a solid understanding of how to trade forex in Australia. The industry has plenty of potential for interested customers and by making use of this forex trading guide, you are minimising the chance of making any crucial mistakes when you are getting started within the industry. Keep all of our information in mind about forex brokers to ensure that you find the best deal out there. To find the forex broker with the lowest spread is important to ensure that you find the best offer on the market to further boost your investment gains. Make sure to keep the risk of your investment in mind when you are transacting, it is always recommended that you consider diversifying your investment portfolio to do this. Finally, use our getting started guide to help you make your first online forex trade.
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