What is a forex broker?
The forex market is an exchange where global currencies are traded. Currencies serve as the basis for financial transactions all over the world and depending on where you are, your currency may be worth something different to a trader on the other side of the world.
With the globalisation trend picking up momentum after the arrival of the internet, it is no wonder that currencies have begun to be exchanged at a much larger volume than ever before. This has led to the formation of the forex markets and allows customers to trade their Australian dollars for any other currency pairing that they are interested in investing in.
An online forex broker serves as the intermediary for two interested traders to exchange their currencies. This is usually done by using a figure relatively close to what the current exchange rate would be. This transaction also takes place over-the-counter between the two interested parties and is completed via a series of computer networks.
Due to the global scale of the forex market, traders have the ability to complete trades at any time of the day as there is constant activity within the markets who are open around the world.
Forex online brokers make use of the spot market trading mechanism which allows customers to transact with the real asset as opposed to a futures contract. A forex broker Australia will generally offer a similar service to competitors on the market but tend to have slight variations in order to attract more customers than the competition.
Our review structure takes a close look at the fundamental aspects of any broker service and ranks them accordingly to give our team a concise rating of the broker. To take a look at another common trading instrument, head to our CFD broker Australia page.
Deciding between the best online forex brokers
If you are interested in investing within the forex markets you will need to have signed up with a forex broker in Australia to offer you the service. Actual exchanging of currencies will usually incur very high fees and it is highly unlikely that readers will be able to make as much of a profit using this means to trade foreign currencies. Any forex broker Australia will offer a more streamlined, cost-effective approach, but the differences in their service could have customers paying higher fees than they need to or just not receiving the quality of service that they should.
For this reason, our forex trading reviews take a look at all the specifics and rank them accordingly to put together this forex broker comparison. To take a look at another trading instrument option, head to our social trading Australia page.
Our forex broker reviews first take a look at a bit of history surrounding the online service to determine how much experience the broker has. Our team then takes a look at the cryptocurrency markets that are available with the broker, the crypto markets have gained massive momentum over the past few years and it is an important consideration for any trader to diversify their investment portfolio.
In this section, we detail exactly what cryptocurrencies are available and the level of the trading service offered. The other trading instruments and exactly how a customer can begin to trade are also detailed within each review. Each trading option is evaluated within the trading platform offered and ranked accordingly. The best forex broker Australia should have a variety of trading instruments available for their customers.
A broker in forex would definitely not be recommended if they have not managed to obtain the relevant licenses and put the best security measures forward. Our online forex broker reviews include all the details surrounding their jurisdiction in Australia alongside their licenses that they have obtained and what security measures are in place to protect customer data. The web page itself is then evaluated in terms of usability, look and feel.
Most of your trading will be done on the site and it can become quite tiresome if the page is outdated and cluttered. The payment methods available are also evaluated alongside the fees that will be applicable with each account option. Our team looks at the processing time of payments as well as any fees associated with the service.
Finally, the forex broker Australia reviews are completed by taking a look at the customer service team that is on offer with the broker’s online reputation and customer feedback. The customer service team will serve as your safety net when you do come across any troubles within the service.
Knowing exactly how the broker has performed for others also gives a clear indication of the levels of service you can expect from the online forex broker. If you are interested in other trading instruments, be sure to check out our ETF online broker page.
Try out a demo account
Before you commit to signing up with any of the available online forex brokers, it is recommended that you first research and familiarise yourself with their service on offer. The majority of large brokers within the industry will offer interested customers the chance to open a demo account within their service before having to deposit any real funds. This allows customers to get a feel of the markets and how they behave before investing in a specific option.
If the forex broker in Australia does offer this service, they will include a number of fictitious funds that can be used on the forex markets and these fake funds will then follow the behaviour of real-time markets allowing customers to see if they are actually able to make some earnings. To get the full lowdown, head to our forex demo account page.
Demo accounts are always on offer with the best forex online brokers and will also provide an invaluable insight into the trading platform that is on offer with the online operator. This platform should have a number of analysis tools to use on the forex markets and give you some much-needed information to decide when to buy or not.
The usability and functionality of the platform itself can also be determined for your specific needs with the demo account. To take a look at a different trading instrument, head to our futures broker comparison page.
Do your market research
Whether you are trading in stocks or cryptocurrencies, every investment will demand a certain level of research to be completed in order to make informed trading decisions. Some markets can be incredibly volatile and result in big losses if you don’t manage to keep up to date with the news surrounding your specific investments. Trading forex is a bit broader than a cryptocurrency or stock and is correlated to the country’s economic performance and applicable news. This makes it important to keep up to date with global news resources and online news platforms to try to gain some information on their specific currency price behaviour.
Researching the markets will also provide traders with a much-needed perspective on the correct time to purchase a specific foreign currency. The upward trend of one specific currency pair may be on its way to a large swing and if you do purchase at a price spike, you may lose a large amount of your initial funds. Be sure to read as many different opinion pieces as possible and gain a wide spectrum of information before making your decision to purchase a specific foreign currency option. One of the most notoriously volatile markets within the trading industry is the crypto market. If you would like to get involved with the masses who are joining the momentum that it has recently been experiencing, head to our cryptocurrency broker Australia page.
Check our the broker fees
Even if you manage to sign up with the best forex broker Australia, you will still have to pay some fees to be able to use the service. This might come in the form of a fixed fee or a percentage commission. Fortunately, our team of experts take this into careful consideration when compiling our reviews and compare the fee setup to that of the industry to give a clear indication of how generous an online broker is. If you are looking to trade frequently, head to our day trading brokers Australia page to get all the information you will need.
It is important to browse through the full list of terms and conditions to get a complete idea of how fees will apply when you are trading. Diversifying your investment portfolio may have you paying more fees with certain brokers than others. This is an important consideration to make if you are interested in other trading instruments provided by your broker. There may also be an account fee that is payable at some point in the year whereas some operators offer the usage of their service for free. To get all the details surrounding another common trading instrument, head to our best options broker Australia page.
Available forex currency pairs
If it is your first time hearing about forex currency pairs, it would be highly recommended that you head to our forex trading for beginners page to get started. For the more experienced traders, knowing your currency pairs of interest is crucial if you are hoping to make your trading career a success. Investing in a currency pair that you know very little about will lead to uncertainty in your investments. Throughout our forex broker comparison we have taken a look at the availability of forex pairs within the online operator’s service. These pairs can differ significantly with each of the online forex brokers. The most popular options, AUD/USD and AUD/GBP should be on offer with just about any of the online brokers out there.
It is also worth noting that having a large variety of forex pairs also opens up many opportunities for less active forex currency pairs to be looked at. While the majority of trading will be done on the most popular markets, there are also opportunities for investment with some of the lesser known currency pairs. For this reason, our review includes an evaluation of the variety of forex currency pairs. Be sure to make use of our forex trading tips whenever you are looking to invest.
Sticking to your specific markets
Whenever you are investing your money within any of the trading instruments that are used, it is always advised that you stick to the markets you are familiar with. Trading forex currency pairs that you know nothing about will essentially be gambling and hoping for your investment to pay off. It is always worthwhile to stay close to home with the forex pairs and use pairings of your local currency as opposed to two foreign currencies. This will allow you to gauge how the price of your local currency may be affected over time by following local news and information sources.
It is also worthwhile to do some research regarding the currency you are looking to invest in. This will require doing some reading with news channels abroad and reading up on the predictions related to the foreign currency. Be sure to check our forex strategies page for more tips to try and make your career a success.
How to trade forex – Our top tips
When you are ready to get going with a forex broker in Australia, you will have to complete a certain amount of admin to complete before you are able to make transactions. The first step will always be to sign up with the online forex broker of your choosing. Read through a forex broker review Australia to get an idea of exactly how our reviews are conducted and then you can also develop a personal checklist of points that you are on the lookout for within an online service. This will allow you to cross-reference your requirements to the information within our forex broker comparison.
After you have submitted your personal details and created an account, you will likely have to verify your email address by following a link included in the verification email sent to you. Then you will have to verify your identity before you can transact within the service. This will require sending a photo/document of your ID or passport. Some brokers may have a processing time for this but the majority of the best are relatively quick. Be sure to look out for a low spread broker forex when you are the market for an online operator.
With a verified account, you will now have to make use of one of the payment methods mentioned in our reviews to deposit some funds into your account with the specific broker. These methods may be subject to some fees but these will also be clearly displayed when transacting with the broker. There may also be a processing time with some of the payment methods and this will depend on both the forex broker and the specific payment method that you prefer. Always try to use a payment method with the minimum processing time if you have the option to do so.
Finally, you will have to do some research and wait for the ideal opportunity to purchase some foreign currency. You can never have enough information when looking to trade and knowing when to buy the currency will give you an edge to be a step above the competition. Read as much as you surrounding the currency pair and use all of our tips mentioned here.
Conclusion – Time to get trading!
By now, you should have a complete understanding of foreign exchange and understand what a forex broker does. Simply exchanging your money for a foreign currency may be beneficial but the applicable fees to a physical cash exchange are usually very high. Forex brokers allow foreign currency exchange to any customers that are interested. It is then up to you to read through our broker reviews and put together some research in order to choose the online forex broker that is most suited to your trading needs.
Understanding how our reviews are conducted is crucial if the information presented is going to be used. Be sure to try out the demo account options that are available before opening a real account and always do your research before buying some foreign currency. It is also crucial to know what fees you will be liable to pay while using the service and these are also discussed within our broker reviews. Finally, know what currency pairs you are looking to trade and stick to those that you are the most familiar with. Also use our how to trade guide if you are relatively new to the scene. Find all the information regarding forex scalping right here at Wetten Broker.
Forex Broker Online FAQ
💰 Who are the best online forex brokers Australia?
If you are interested in trading on the various forex markets that are available within the trading industry, you will likely be on the lookout for the best online forex brokers in Australia. Having a reputable, quality broker will save you any unnecessary fees and hassles throughout your trading career. Our broker reviews here at Wetten Broker Australia detail all the necessary information to help make your decision.
📑 What do I need to sign up with an online forex broker?
To sign up for any online service, you will need to provide all the necessary details that the online service provider requires to allow you to transact within their platform. These are usually personal details and/or verification documents that are specific to each online broker. Be sure to read through our reviews to find out exactly what you will need to sign up with one of the many online forex brokers.
💱 How do I deposit with forex brokers Australia?
If you would like to trade any sort of financial instrument, such as forex trading, you are going to need to deposit some real funds before you are able to transact within the service. Nowadays, online operators have a large variety of payment methods available and you can find all the details of each of them right here at Wetten AU.
🚀 What currency exchanges are available with a forex broker Australia?
Depending on your specific investment interests, you will likely be looking for a currency exchange pair that suits your interests. Each online forex broker offers a variety of different currency exchanges and you will need to confirm that your ideal exchange is available with the broker you are interested in. Read through our broker reviews to see exactly what is on offer.
🧳 What fees will I need to pay with one of the forex online brokers?
Each online broker will have their own applicable fees for their service. This is standard within the online trading industry and you can only try to minimise the fees that you will have to pay throughout your trading career. Our online stock broker reviews evaluate the fees applicable with each operator and rank them according to the industry standard. Be sure to read through some of the pages here at Wetten Broker Australia.