Australia is quite new to forex trading, but that has not stopped many companies from setting up full-fledged brokerage services in several parts of the country. The regulatory environment in Australia is very stringent and investors receive a great deal of protection. The best MetaTrader ECN brokers in Australia that are regulated by the Australian Securities and Investments Commission (ASIC) offer not only excellent features but also functionalities. This enables traders and investors to enjoy consistent results and stay away from scam companies that involve in financial malpractices.
ASIC is one of the oldest and the most well established regulatory authorities and has been regulating the operation of the financial firms in the country since 1989. The Agency regulates all of the forex brokers operating in Australia as well. The regulatory framework established by ASIC is highly efficient and investor friendly. It prevents companies from exploiting their customers through fraudulent means.
Further, the ASIC insists on all forex brokers operating in Australia to comply with a specific set of guidelines in order to ensure that the trading conditions remain uniform and the integrity of the financial markets is maintained. Additionally, the ASIC requires brokers to hold a minimum of A$1 million in operating capital. This is to ensure that the forex brokers are in a position to withstand market volatility without compromising the positions of traders.
True ECN Broker Australia using Metatrader Platform
| Broker | Info | Bonus | Open Account |
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Min Deposit: $200 Spread: Starting 0 Pips Leverage: 500:1 Regulation: ASIC Australia, FCA UK |
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Min Deposit: $250 Spread: as low as 0.1 pips Leverage: up to 400:1 Regulation: ASIC Australia and FCA UK |
Visit Broker |
In Australia, it is mandatory that forex brokers are regulated by the ASIC if they want to service the country’s traders. It is actually illegal if the citizens of the country open a trading account with any of the overseas brokers. Though the regulatory framework is stringent, the country does provide several incentives and benefits to brokerages that set up business in Australia. They enjoy tax benefits, better trading conditions and there are no restrictions on investors.
Further, the ASIC keeps track of the activities regulated forex brokers by regular obtaining third-party audit reports, supervising the code of conduct and seeking financial statements.
The forex brokers operating in Australia are increasingly becoming popular among retail traders from around the world because of the excellent trading conditions offered and the highly regulated trading environment in the country. Australian brokers are also popular because they offer ECN accounts for the lowest capital investment. Further, many Australian forex brokers use the cTrader platform as it provides an ECN environment with incredibly fast trade executions and tight spreads. Moreover, traders enjoy higher leverage on their trading accounts without the need to make any compromises on the trading conditions.
ASIC’s commitment to the welfare of the investors evident through the multiple investor-friendly programs that has been implemented. These include the MoneySmart program, which educates investors about the risks and potential pitfalls of the financial markets. Further, the ASIC has taken upon themselves the responsibility of imparting education to individual investors as regards the importance of investing through proactive research.
Additionally, the ASIC monitors the brokers’ conduct and awards harsh penalties and temporary or permanent bans if companies do not comply with the regulatory guidelines. The ASIC does not involve themselves directly in the disputes between brokers and their clients, but the agency does encourage the two parties to resolve their problems either through arbitration or with the help of the court of law.
Finally, the ASIC provides all essential information related to the forex brokers regulated by them. You are encouraged to visit their website and ascertain as to whether the Australian forex broker you are planning to work with is regulated by the ASIC or not before signing up.
Having discussed a few things about the Australian forex trading environment, here are a few of the best MetaTrader ECN brokers in Australia Regulated by ASIC:
#1: Pepperstone
Pepperstone, an execution-only forex as well as CFD broker Australia, 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.
Broker Type – Electronic Communication Network/Straight Through Processing and Direct Market Access/Straight Through Processing
Regulation – Australian Securities and Investments Commission (ASIC) and Financial Conduct Authority (FCA), UK
Platforms – MetaTrader 4, 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: 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.
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
#3: XM.com
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.
Broker Type – DMA/STP, MM
Regulation – Cyprus Securities and Exchanges Commission (CySEC), Cyprus and Australian Securities and Investments Commission (ASIC), Australia
Platforms – MetaTrader 4, MetaTrader 4 Mobile, MetaTrader 4 Android, MetaTrader iOS, Webtrader, MultiTerminal
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
#4: FxOpen UK
In 2013, FXOpen launched its online trading platform. FXOpen UK, based in London, is regulated by the Financial Conduct Authority in the UK.
Broker Type – ECN/STP
Regulation – Australian Securities and Investments Commission (ASIC), Financial Conduct Authority (FCA), UK
Platforms – Three versions of MT4
Minimum Deposit – $300
Deposit Options – Bank Wire Transfer, Credit/Debit Cards, WebMoney, Neteller, Skrill, Payza
Maximum Leverage – 500:1
Minimum Lot Size – 0.01
Spreads – Variable
Lowest Spreads for EUR/USD – Starts from 0 pips