There are many Forex brokers in Australia and choosing the right one can be confusing. You need to make sure that you choose a broker who provides the best services possible and is regulated by ASIC.

The Australian Securities and Investments Commission (ASIC) regulates Forex Trading in Australia. Any Forex broker that you choose must be licensed with ASIC, as trading with an unregulated broker puts your funds at risk.

Risk Disclaimer: Forex and CFD trading is risky, and about 70-80% of retail traders lose money while trading CFDs. You should not risk any money you cannot afford to lose, use leverage wisely, and only trade with ASIC-regulated forex brokers.

When choosing a broker, it’s important to consider other factors asides from regulation. Fees, range of CFD instruments, having AUD as account currency, negative balance protection and other risk management tools, deposit/withdrawal time and customer support are some factors worth considering.

Here, we have made a list of the best Australian forex brokers and their main features which you should consider before you start trading with them.

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Comparison Table of Best Australian Forex Brokers 2022

Broker Regulation(s) AUD/USD Spread (Pips) Min. Deposit Visit
ASIC, FCA, CySEC
0.24 pips (Razor Account)
No minimum deposit
Visit Broker
ASIC, CySEC
0.17 pips (Raw Spread Account)
US$200
Visit Broker
ASIC, CySEC, FCA
1 pips
$50
Visit Broker

XM

ASIC, FCA, CySEC, IFSC
1.8 pips (Standard Account)
$5
Visit Broker
ASIC, FCA
0.7 pips
$0
Visit Broker
ASIC, FCA
1.01 pips
A$450
Visit Broker

Best Forex Brokers in Australia

Below is the comparison of Australian Forex Brokers as per our analysis and reviews:

  1. Pepperstone – Overall Best Forex Broker in Australia with ECN Accounts
  2. IC Markets– Regulated Australian Forex Broker with Low Fees
  3. eToro – Popular Forex Broker with Social Trading
  4. XM – Forex Trading Broker with Zero Commission
  5. CMC Markets – Australian Forex Broker with wide range of CFD Instruments
  6. IG Markets – Reputed Broker with Good Platforms
  7. FP Markets – Australian Forex Broker with Low Fees
  8. Plus500 – Good Forex Trading Platform with Risk Management Tools

In this review, we looked through the websites of different Australian forex brokers to see how they fare relative to these factors. We also tested their customer support to see how quickly they respond to our questions & requests.

#1 Pepperstone – Overall Best Forex Broker in Australia with ECN Accounts

AUD/USD Benchmark:
0.24 pips + $7 round-turn commission (Raw spread account)

Trading Platforms:
MT4, MT5, cTrader

Account Minimum:
No minimum deposit

On Pepperstone’s cTrader trading platform, the round-turn commission is $6 (US dollars). Overnight charges (Swap) for AUD/USD is on their trading platforms.

Regulation: Pepperstone is licensed with ASIC as Pepperstone Group Limited. Their AFSL number is 414530. Pepperstone is considered a low-risk forex broker for Australian traders.

Benchmark fees for AUD/USD: Pepperstone’s typical spread for AUDUSD is 0.24pips (Raw spread account) and 0.84pips (Standard Account) as per data on their website. The round turn commission for trading AUD/USD is AUD 7 per standard lot on their Metatrader platforms.

Inactivity fees: Pepperstone does not charge inactivity fees.

Trading Conditions:

AUD base currency account: Pepperstone offers an AUD base currency account.

Number of CFD Instruments: The financial instruments offered by Pepperstone are 62 currency pairs, 23 indices CFDs, 900+ shares CFDs, 100+ ETF CFDs, 32 commodities CFDs (oil, metals, agriculture), 23 cryptocurrencies, 48 ETFs, and 3 currency indices CFDs.

Leverage: These are Pepperstone’s leverage per instrument for retail traders.

Instruments Leverage
Forex Majors 30:1
Minor currency pairs, Gold, and Major Indices 20:1
Commodities and Minor Indices 10:1
Cryptocurrencies 2:1
Shares 5:1
Currency Indices 5:1

Negative balance protection: Negative balance protection is available for retail traders. But it does not apply to professional traders.

Deposit/Withdrawal time: Deposits via bank transfers (domestic) are credited in 1-2 business days, and your first deposit through PayPal is credited in 1-2 days, while subsequent deposits via PayPal is credited to your account instantly. Deposits via cards are credited instantly.

Withdrawals via bank transfers can take 3-5 business days for you to receive the funds.

Support: Pepperstone offers customer support 24/5 Monday to Friday via live chat, email and phone number. You get immediate replies via their live chat. They also respond to emails within 25 minutes. If you prefer mobile phone communication, an AU toll-free number is available on their website.

Pepperstone Pros

  • Regulated in Australia
  • Low spreads on their Razor Account
  • Fast execution
  • No inactivity fees
  • Wide range of instruments
  • No deposit and withdrawal charges
  • Social trading is available

Pepperstone Cons

  • Recommended minimum deposit is high
  • No guaranteed stop loss
  • Commissions are charged on Razor Account
  • Customer support is not available 24/7

#2 IC Markets- Regulated Australian Forex Broker with Low Fees

AUD/USD Benchmark:
0.17 pips+$3 round-turn commission on cTrader

Trading Platforms:
cTrader, MT4, MT5

Account Minimum:
US$200

IC Markets charge AUD 7 as a round-turn commission for every Standard lot trading on their MT4 Raw Spread Account. Overnight charges are AUD 2.57 for long positions and AUD 2.02 for short positions.

Regulation: IC Markets are regulated with ASIC as International Capital Markets (Pty) Limited. Their AFSL number is 335692. They are considered low-risk for Australia-based traders.

Benchmark fees for AUD/USD: For their Raw Spread Account, the average spread for AUD/USD is 0.17 pips. On the Standard Account, it is 0.77 pips.

Inactivity fees: No Inactivity fees are charged by IC Markets

Trading Conditions:

AUD base currency account: You can open an AUD base currency account.

The number of CFD Instruments: IC Markets offers a good range of CFD Instruments on their platforms.They offer 61 currency pairs and CFDs on 15 commodities (metals, agriculture, oil), 23 Indices, 9 Bonds, 15 digital currencies, 730+ Stocks, and 4 global futures.

Leverage: Here is IC Markets leverage per instrument

Instruments Leverage
Forex Majors 30:1
Minor currency pairs, Gold, and Major Indices 20:1
Commodities and Minor Indices 10:1
Stocks 5:1
Bonds 5:1
Cryptocurrencies 2:1
Futures 10:1

Negative balance protection: IC Markets offer negative balance protection to their retail clients. But it is not available if you are a Pro Account Holder.

Deposit/withdrawal time: Bank wire transfer deposits are processed between 2-5 business days while cards and e-wallets (PayPal/Neteller/Skrill) are credited instantly.

All withdrawals are processed within 1 business day, and it takes about 3-5 business days for funds to reach your cards, 1 business day for bank transfers and instant for e-wallets.

Support: Overall customer support is good. You can reach IC Markets customer support 24/7 via email and live chat. Live chat responses are almost immediate. Email response can take up to five minutes. Two local numbers are also available.

IC Markets Pros

  • Regulated in Australia
  • Low spreads on their Raw Spread Account
  • Fast execution with little slippage
  • Automated trading is available
  • Wide range of instruments
  • Multiple and convenient funding method
  • Offers 24/7 customer support
  • Does not charge dormant account fees

IC Markets Cons

  • Minimum deposit is high
  • Limited currency pairs
  • Commissions are charged on Raw Spread Account

#3 eToro – Popular Forex Broker with Social Trading

AUD/USD Benchmark:
1 pip

Trading Platforms:
eToro Platform

Account Minimum:
$50

eToro does not charge any extra trading commission for currency CFDs except their spread & Swap Fees.

Regulation: eToro are regulated with ASIC under the company name eToro AUS Capital Limited. Their AFSL number is 491139. eToro is considered low-risk because of their tier-1 regulation.

Benchmark fees for AUD/USD: AUD/USD spread is as low as 1 pip. Overnight charges are low at $0.00001983 for a short position and $0.00002453 for a buy position.

Inactivity fees: eToro charges $10 per month after 12months with no login activity.

Trading Conditions:

AUD base currency: AUD base currency account is available.

Exact number of instruments: eToro offers 49 currency pairs, 3,000 stocks CFDs, 33 commodity CFDs, 16 indices CFDs, 78 cryptocurrencies and 264 ETFs CFDs.

Leverage:

Instruments Leverage
Major currency pairs 30:1
Minor currency pairs, Gold, and Indices 20:1
Commodities and Minor Indices 10:1
CFD (STOCKS AND ETFS) 5:1
CFD Cryptocurrencies 2:1

Negative balance protection: eToro offer negative balance protection.

Deposit/withdrawal time: Deposits on eToro via cards and e-wallets (Skrill, Neteller, PayPal, Payoneer eToro Money and others are instant while bank transfer deposits take 4-7 business days for the funds to be credited to your account.

Withdrawals to eToro Money are instant, Paynoeer takes 3 days, while other e-wallets takes 2 days, cards and bank transfers can take up to 10 days for you to receive funds.

Support: You can reach eToro 24/5 Monday to Friday through live chat and email. They also have a detailed FAQ section. You can reach them by email via LaunchLink. Also, you can open a query with their customer service.

eToro Pros

  • Regulated in Australia
  • Zero commission on CFDs
  • No deposit fees
  • Copy trading is available without extra cost
  • Negative balance protection
  • Wide range of tradable instruments

eToro Cons

  • Spreads are high compared to to other brokers
  • Withdrawal fees are charged
  • Charges dormant account fees
  • There is a minimum withdrawal of $30
  • No MT4, MT5 or any third-party platform
  • Customer support not available 24/7

#4 XM – Forex Trading Broker with Zero Commission

AUD/USD Benchmark:
1.8 pips

Trading Platforms:
MT4, MT5, XM Mobile App

Account Minimum:
$5

XM do not charge commissions for forex trading.

Regulation: XM Trading is regulated with ASIC as Trading Point of Financial Instruments (Pty) Limited. Their AFSL number is 443670. XM is considered low-risk to trade with.

AUD/USD Benchmark fees: Spread is 1.8 pips. Overnight charges are AUD $2.13 for buy positions and AUD$1.83 for short positions. XM does not charge commissions for forex trading.

Inactivity fee: XM charges an inactivity Fee. You pay $5 monthly if your account is inactive after 90 days.

Trading Conditions:

AUD/USD base currency: XM offers an AUD base currency account.

The exact number of instruments: You can trade 6 asset classes with XM. They include 55 Currency Pairs, CFDs on 1,261 stocks, 8 agriculture commodities, 2 precious metals (gold and silver), 5 energies (oil), and 14 equity indices.

Leverage:

Instruments Leverage
Forex Majors 30:1
Minor currency pairs, Gold, and Major Equity Indices 20:1
Stock 5:1
Commodities, Silver and Minor Equity Indices 10:1
Energies 10:1

Negative balance protection: XM offers negative balance protection.

Deposit/withdrawals: Deposits via cards and e-wallets are credited instantly while bank transfers credited in 2-5 business days. All withdrawal requests are processed within 24 hours, while e-wallets receive funds within 24 hours, it takes about 2-5 it business days for funds to reach cards and bank accounts.

Support: XM can be contacted 24/5 through Email, Live Chat, and Local Phone Number in Australia. Live chat responses were immediate during our tests. We got an email response within an hour.

XM Pros

  • Regulated in Australia
  • Zero commission except for shares CFDs
  • You can deposit in any currency
  • You can begin trading with a minimum of $5
  • Negative balance protection

XM Cons

  • Limited number of CFDs
  • Inactivity fees are charged
  • Currency conversion fees
  • Customer support is not available 24/7
  • Charges dormant account fees

#5 CMC Markets – Australian Forex Broker with wide range of CFD Instruments

AUD/USD Benchmark:
0.7 pips

Trading Platforms:
Next Generation trading platform, Share trading platform (Standard and Pro), MT4

Account Minimum:
$0

CMC Markets offers zero commissons for trading all instruments except shares, which attract a fee of 0.09% with a minimum of AU$7 per trade.

Regulation: CMC Markets are regulated with ASIC as CMC Markets Asia Pacific (Pty) Limited. Their AFSL number is 238054. They are considered a low-risk trading platform

Benchmark Fees for AUD/USD: Spread for AUD/USD is 0.7 pips. CMC Markets charges 0.0038% swap on buy positions and 0.0030% for sell positions.

Inactivity fee: CMC Markets charge A$15 monthly after 12 months of inactivity on your trading account.

Trading Conditions:

AUD base currency: CMC Markets offer an AUD Base Currency account.

Exact number of instruments: CMC Markets offers a wide range of CFD Instruments. You can trade 338 currency pairs, CFDs on 82 Indices, 19 Cryptocurrencies, 124 commodities, and 11,265 Shares & ETFs, 55 Treasuries (bonds).

Leverage:

Instruments Leverage
Forex 30:1
Indices 20:1
Crypto CFDs 2:1
Commodities 10:1
Shares and ETFs 5:1
Treasuries 5:1
Cryptocurrencies 2:1

Negative balance protection: There is negative balance protection.

Deposit/withdrawal time: Deposits via cards and e-wallets (POLi, PayPal) on CMC Markets are credited instantly or in a few hours but bank transfers deposits can take 2-3 business days for funds to reflect in your account.

Card withdrawals take 3-5 business days while withdrawals to bank accounts take 1 business day.

Support: CMC Markets offers 24/5 customer support via email. We got a response from them after an hour. You can also reach the broker through a local mobile number.

CMC Markets Pros

  • Regulated in Australia
  • Zero commission except for shares CFDs
  • No deposit/withdrawal fees
  • No minimum deposit
  • Guranteed stop loss orders are available
  • Negative balance protection

CMC Markets Cons

  • Charges for guaranteed stop loss
  • Charges nactivity fees
  • No copy trading
  • Customer support not available 24/7 and no live chat

#6 IG Markets – Reputed Forex Broker with Good Platforms

AUD/USD Benchmark:
1.01 pips

Trading Platforms:
MT4, IG Mobile App, IG Web Platform

Account Minimum:
A$450 or A$10 (BPAY)

IG Markets offers commission-free trading for all instruments except shares which attract commission fees starting from $7 per trade for Australian listed shares. IG has a low deposit with BPAY at AUD 10. However, other deposit methods are much higher than that.

Regulation: IC Markets are regulated with ASIC as IG Australia Pty. Ltd with AFSL number 515106. We consider IG Markets a low-risk forex broker for Aussie traders.

Benchmark Fees for AUD/USD: Spread for AUD/USD is 1.01 pips. Swaps are calculated based on the next tom rate, and trade size.

Inactivity fee: Inactive accounts are charged A$18 on the first of every month after two years of no dealing activity. This fee is charged only if there is money in your account.

Trading Conditions:

AUD base currency: IG Markets offer an AUD Base Currency account.

Exact number of instruments: IG Markets offers up to 18,000 markets. 80 currency pairs, 13,000 stock CFDs, 6000, ETFs, 80 indices, 13 cryptocurrencies, 35 commodities, 12 bonds, and 6 interest rates are available.

Leverage:

Instruments Leverage
Forex 30:1
Indices 20:1
Crypto CFDs 2:1
Commodities 10:1
Shares and ETFs 5:1
Cryptocurrencies 2:1

Negative balance protection: IG Markets has negative balance protection.

Deposit/withdrawal time: Deposits via PayPal and cards are credited instantly while BPAY (bank transfers) takes 2 business days. Card withdrawal takes between 3-5 business days while bank withdrawal takes up to 3 business days.

Support: IG Markets offers customer support 24 hours everyday except 7AM – 5PM on Saturdays via live chat and email. There is also a mobile number that potential clients can call to open a new account.

IG Markets Pros

  • Regulated by ASIC
  • No deposit/withdrawal charges
  • Relatively high minimum deposits
  • Guranteed stop loss orders are offered
  • Negative balance protection
  • Guranteed stop loss orders are offered
  • Offers commission-free trading for all instruments except shares
  • Up to 10 free plug-ins for MT4

IG Markets Cons

  • Charges inactive fees (AUD 18)
  • No copy trading
  • Relatively high minimum deposits

How We Selected the Best Forex Broker in Australia

1) Is the Forex Broker Licensed by ASIC?

You must only trade with a forex broker that is licensed by ASIC. Trading with a regulated broker guarantees the safety of your funds.

To check if a broker is truly licensed by ASIC, you can follow these steps:

Step 1) Go to the Forex Broker’s website and check their regulation statement. It is usually at the bottom of the website.

For this example, we visit Pepperstone’s website, which is an ASIC-regulated forex broker. Here is an example of Pepperstone.

Pepperstone Asic Regulated Forex Broker

The screenshot shows their registered name as Pepperstone Group Limited with AFSL number 415530.

Step 2) The next step is to confirm the regulation details found on the broker’s website.

If the company name and AFSL number match, the broker’s regulations are valid. To confirm these details, You can Go to the ASIC website.

Enter the broker’s registered name into the search box as shown below. In the within space, select organization and business names.

Search ASIC Regieters

Click on the go icon. A list of companies will show up. Mark Pepperstone Group Limited as shown in the picture.

ASIC List of Comapnies

Click the view details icon. The next page will show you the broker’s regulation details as displayed below.

Pepperstone ASIC Regulation

Do you see how the details on the ASIC and the broker’s website match?

The details show that Pepperstone Group Limited is regulated with ASIC. It mentioned their registration date of 27/10/2010 and the status of registration. It is important to check all these details and make sure that you don’t miss anything.

2) What are the Trading and Non-Trading Charges?

Trading charges include spread, swap, and commissions. Non-trading charges can include deposit/withdrawal fees and inactivity fees.

You need to check your broker’s overall charges to know if they are high or low. High trading fees affect your profit or loss so you should check them.

You can always get these details on the broker’s website.

Here is an example of trading charges using IC Markets’ fees.

We are buying a Standard lot of AUD/USD at 0.7211. Two days later, the currency pair rose in value from 0.7211 to 0.7241 (30pips) and you closed the trade. You just made AUD 300 (10x30pips). According to IC Markets, the round turn commission for trading AUD/USD is AUD 7. There is also a swap of AUD 2.57 for overnight charges. The total trading charges here is:

Commissions + 2-day swap which is AUD 7 + AUD 5.14 = AUD 12.14. Your final profit is therefore AUD 287.86 (AUD 300 – AUD 12.14).

The picture below shows IC Markets’ swap rates for some currency pairs.

IC Markets Swap Rates of currency pairs

You can use the search box to find any instruments (currency pairs, indices, commodities, etc.) and their swap rates.

3) Trading Conditions

A good trading condition is a combination of different factors. You want to be sure your broker has a good range of CFD markets (currencies, stock, indices, commodities, etc.). These instruments must be available at low prices.

You also want to check the broker’s order execution policy. Is it instant or market execution? Do they have a dealing desk? It is important to ask all these questions & any other questions that you have in your mind.
You should also confirm if your broker offers negative balance protection.

You can check for these in the broker’s FAQs section or directly talk to the broker’s support if you cannot find this information.

4) Is the Customer Service Good?

Good customer service should include at least a local Australian phone number on the broker’s website & it should be reachable. An email address and live chat should be available too.

These different means of support should be accessible and not hidden deep somewhere where you cannot easily find them. Responses should be as quick as possible.

Here is IC Market’s Customer Service page as an example. Here we could easily find their contact information, emails, and access live chat Support.

IC Markets About Us

5) Account Base Curreny

Another factor to consider is the Base Currency of your Trading account.

Most of the Local regulated forex brokers, like IC Markets & Pepperstone for example, have AUD base currency options. This is important if you are depositing in the Australian Dollar, as there will be no currency conversion fees.

Let’s look at the example of eToro. All the deposits & withdrawals at eToro are in USD, and if you are depositing or withdrawing in another currency, like AUD for example, there are extra conversion charges.

Look at the screenshot below from eToro’s website.

Example of Currency Conversion Fees at Forex Brokers

So, it is really important to verify if your broker charges extra fees for conversion. And if they support the base currency account which is the same as your deposit & withdrawal currency.

If you are depositing in AUD & withdrawals are also in the same currency, then it should be preferred to have AUD as your base currency instead of USD.

6. Other Trading Conditions

a. Order types: Varying order types help give you options in the market. Limit and stop orders can come in handy in entering the market at the right time and price. Your chosen broker must have these orders available on their platform.

Guaranteed stop-loss orders close your trades at specified prices. This order is executed regardless of market conditions. It is important your broker has this service in place because it is key for risk management. In addition, GSLOs are not free. So check with your broker to know if they have it, and much they charge for it.

b. Negative balance protection: Without negative balance protection, you can lose more than the funds in your trading account. This is why ASIC required, in their publication on CFD rules, that brokers protect traders from experiencing this.

If your chosen broker is regulated with ASIC, you can be sure that they offer negative balance protection. Can you see why trading with a regulated broker is important?

How to Open Account with a Forex Broker?

Opening an account with a forex broker should be easy and not take too long. Here is how to go about it with Pepperstone:

1) On your browser, go to pepperstone.com/en-au and click on join now

Opening a Trading Account

2) Enter your email on the following page

Registering a Trading Account

3) The next step is to enter your password and click on register.

Registering with Password

4) The next page is your secure client area. Here, you are to fill in your personal details. Make sure they are correct because they will be verified.

Entering Personal Details

5) Now we are getting to the end. For this step, you will be choosing your preferred account type and trading platform.

Entering Trading Details

On the same page, you will need to fill in your employment details and agree to terms and conditions. You will also need to submit your KYC documents to verify your ID.

Forec Broker Verification

Once you complete this final step, you can fund your account and begin your trading journey.

FAQs on Best Forex Brokers Australia

Is forex trading legal in Australia?

Forex trading is legal in Australia & it is regulated by Australia Securities and Investments Commission (ASIC). You should only trade with ASIC regulated Forex Brokers for the safety of your funds & ensuring grievance redressal in case of any dispute with a broker.

Which forex brokers are good in Australia?

This depends on many factors such as regulation, trading fees, non-trading fees, and customer support. A low-risk forex broker for Australian traders will be the one that performs well on all these factors. But an important fact is that you must never trade with an unregulated broker.

Some forex brokers that are considered low-risk for trading CFDs are Pepperstone, IC Markets, and CMC Markets.

How to check if a forex broker is licensed?

Forex Broker in Australia must be licensed with ASIC. You must not trade with any unlicensed forex broker, otherwise, there is a high risk that your funds will be unsafe.

To check whether a forex broker is regulated you must verify its license no. on ASIC Connect’s Professional register. Refer to the steps in our regulated forex brokers guide on how you can check if a broker is regulated or not.

What does a forex broker do?

Forex Broker offer their platform to retail & professional traders to allow them to trade currencies & CFDs on various instruments. By using a forex broker, you can buy or sell currencies like AUD/USD as a CFD instrument to speculate on their price.

How much do forex brokers charge?

Total fees vary with forex brokers. Some brokers charge a commission while some do not. Some charge inactivity fees and some do not. Fees can be high or low depending on the broker.

We use overall fees as a metric in our comparison of Australian Forex Brokers along with many other factors.

PepperStone is ASIC Regulated Forex Broker with Competitive Trading FeesVisit