Getting started right is very important for achieving success in forex trading. With this in mind, we have compiled a few aspects which you must keep in mind when choosing the best online CFD brokers in Australia regulated by the Australia Securities and Investments Commission (ASIC). The five key points that you should look into before signing up with a broker are:
#1: Is it easy to use the broker’s platform software?
Nothing can be worse than you trying to find your way around on the website of the broker. Therefore, it is a good idea to open a free demo account and check out as to how easy or difficult it is to open a chart, place trades, amend orders and view news updates. You do not have to waste a lot of time in understanding the software. You can ask the CFD broker you are planning to work with if they provide some basic tutorials on how to use the software.
Most CFD brokers provide both the MetaTrader 4 and cTrader platforms. MetaTrader 4 (MT4) is the most popular and most widely used platform. cTrader, provided by Spotware, is also very good and comes with many built-in features. Initially, cTrader was used as a forex trading platform. However, some brokers have started providing CFDs on indices and other instruments on this platform.
Top Australian CFD Trading Brokers Regulated by ASIC
| Broker | Info | Bonus | Open Account |
|---|---|---|---|
 | Min Deposit: $5 Spread: From 0 Pips Leverage: 888:1 “*This leverage does not apply to all the entities of XM group.” Regulation: ASIC, CySEC, IFSC Belize | “50% +20% deposit bonus up to $5,000, Loyalty Program Bonus “*Clients registered under the EU regulated entity of the Group are not eligible for the bonus and the Loyalty Program” | Visit Broker |
 | Min Deposit: $0 Spread: Starting 0 Pips Leverage: 500:1 Regulation: ASIC, FCA, DFSA, The Financial Commission | Visit Broker | |
 | Min Deposit: $200 Spread: Starting 0 Pips Leverage: 500:1 Regulation: ASIC Australia, FCA UK | Visit Broker | |
  | Min Deposit: $100 Spread: Starting 0 Pips Leverage: up to 400:1 Regulation: FCA UK, NFA, CFTC, ASIC, IIROC, FSA, CIMA | Visit Broker | |
 | Min Deposit: no minimum deposit Spread: 1.2 pips Leverage: 50:1 Regulation: CFTC, NFA, FCA, MAS, ASIC, IIROC | Visit Broker | |
 | Min Deposit: $100 Spread: Starting 0 Pips Leverage: up to 500:1 Regulation: FCA UK, ASIC Australia, MAS Singapore | Visit Broker | |
 | Min Deposit: $250 Spread: as low as 0.1 pips Leverage: up to 400:1 Regulation: ASIC Australia and FCA UK | Visit Broker | |
 | Min Deposit: €100 Spread: The Spread can be as low as 0.01%” (0.01% = spread for EUR/USD) Leverage: 1:294 Regulation: ASIC, CySEC, FCA (UK) | Visit Broker | |
 | Min Deposit: $100 Spread: Starting From 0.9 pips Leverage: 400:1 Regulation: MIFID, FSB & ASIC | Visit Broker |
#2: What features are available on the broker’s trading platform?
Depending on your needs:
- Check whether advanced charting features available; if you are just looking for a broker to place orders quickly, this feature may not be essential.
- Look for a broker that enables advanced order placement feature; if you are looking to place only standard orders, then look out for one that offers competitive pricing
- Find out whether the broker will provide you with the daily market analysis prepared by a team of experts
- Ask the broker if they would provide you with notifications when certain price levels are reached either through email or SMS
- Find out if the broker will provide a free Android and iPhone app so that you can trade on the go
#3: What commissions does the broker charge?
When evaluating the best online CFD trading brokers in Australia regulated by ASIC, you need to keep in mind the fact that the commissions are not the end of everything. The fixed cost that all brokers charge is brokerage. It is not a good idea to pay too much on brokerage. Therefore, you must check out the CFD brokerage rates of brokers under consideration.
When it comes to forex, index and commodity trades, you must make sure that the spreads they offer are tight. Further, you must find out if any other costs are involved. When evaluating CFD brokers, you must ask about the following charges:
Commission charges
CFD financing rates
Software fees (IRESS or other platform fees)
Accessing relevant exchanges (for example, ASX data)
#4: What range of markets does the broker offer?
This is a very important consideration. Market Makers offer nearly all of the world markets from the one account. They include forex, indices, commodities and shares. On the other hand, Direct Market Access (DMA) brokers generally focus on the local exchange. Therefore, the costs involved in trading international markets may be quite high.
#5: How reputed is the broker and what security features do they offer?
Reputation and security are key factors to be taken into account when evaluating the best online CFD brokers in Australia. Some of the questions to be asked are:
Is the brokerage a publicly listed company?
How long has the brokerage been in business?
What do other traders say about the broker on online review websites?
Choose to work with only those that have a good reputation and are financially sound.
In conclusion, choosing trusted CFDs trading broker involves testing their trading platforms and ensuring that you feel comfortable working with them.
Having discussed as to how you can choose the best online CFD broker in Australia regulated by ASIC, here are a few recommended by us for further investigation at your end:
#1: Pepperstone
Pepperstone, an execution-only forex as well as CFD broker, provides trading solutions that cater to both veteran and novice traders. Founded in 2010, the company has its headquarters located in Melbourne, Australia. The company has offices in Shanghai, China and Dallas, USA. Pepperstone offers CFDs on Indices.
Broker Type – Electronic Communication Network/Straight Through Processing and Direct Market Access/Straight Through Processing
Regulation – Australian Securities and Investments Commission (ASIC)
Platforms – MetaTrader4, cTrader
Minimum Deposit – $200
Deposit Options – Bank Wire, Debit Card, Credit Card, WebMoney, Neteller, FasaPay, Skrill, BPAY, POLi, QIWI, PayPal, UnionPay(China), etc.
Maximum Leverage – 400:1
Minimum Lot Size – 0.01
Spreads – Variable
Lowest Spreads for EUR/USD – more than 0.5 pips for Mini and Standard; more than 0.1 pips for ECN
#2: XM
XM.com, a trade name of Trading Point Holdings Ltd, is owned as well as operated by Trading Point of Financial Instruments Ltd, which is regulated by CySEC. It is also European Union-registered forex broker. XM has its headquarters in Limassol, Cyprus. On XM’s platform, you can trade CFDs on Indices, Commodities, Stocks, Metals and Energies. XM has applied for FSB license (Application #47346). XM is considered to be a leader as far as trade execution is concerned. The broker follows No Requotes/Rejection Policy and executes 99.35 percent of the trades in less than one second.
Broker Type – DMA/STP, MM
Regulatiion – Cyprus Securities and Exchange Commission (CySEC), Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC)
Minimum Deposit – $5
Deposit Options – Bank Wire, Neteller, Skrill, WebMoney, Credit Card, WesternUnion, MoneyGram, SOFORT, UnionPay (China), etc.
Maximum Leverage – 888:1
Minimum Lot Size – 0.01
Spreads – Variable
Lowest Spreads for EUR/USD – more than 1
#3: AvaTrade
AvaTrade, a pioneer in the field of online forex trading from 2006 onwards, was created for the purpose of providing great online trading experience to retail traders. Within a short time, AvaTrade had more than 20,000 registered customers executing over 2,000,000 trades in a month around the globe. The total value of trades surpasses $60 billion in a month. AvaTrade offers even Bitcoin CFDs.
Broker Type – Market Maker
Regulation – Australian Securities and Investments Commission (ASIC); Central Bank of Ireland; Financial Futures Association, Japan; Financial Services Board (FSB), South Africa and Israel Securities Authority (ISA)
Platforms – MetaTrader 4, AvaTrader
Minimum Deposit – $100
Deposit Options – Bank Wire, PayPal, WebMoney, Skrill, Credit Card, Neteller, Prepaid Master Card, etc.
Maximum Leverage – 400
Minimum Lot Size – 0.05
Spreads – Fixed
Lowest Spreads for EUR/USD – 3
#4: Plus500
Plus500 forex trading platform is provided by Plus500CY Ltd., which is a company based in Cyprus and with headquarters in Limassol. This broker is authorized as well as regulated by the Cyprus Securities and Exchange Commission. You can trade shares, forex, commodities and indices CFDs on the Plus500 platform.
Broker Type – Market Maker
Regulation – Cyprus Securities and Exchange Commission (CySEC), Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC)
Platforms – Windows Trader, WebTrader
Minimum Deposit – $100
Deposit Options – Bank Wire, PayPal, Credit Card, Skrill, etc.
Maximum Leverage – 50:1
Minimum Lot Size – 0.01
Spreads – Fixed
Lowest Spreads for EUR/USD – 2