Forex Brokers.
Are you looking for a better place to open your trades? Whether you're a beginner or experienced trader, our reviews and broker listings can help you find the best platforms to trade with.
We only list brokers that are trusted, well regulated and offer competitive spreads, bonuses and trading conditions.
The Best Forex Brokers + Trading Platforms.
The leading Social Trading platform with 4.5m traders Follow other traders or be a leader and earn Personal service and VIP perks.
Free forex signals + market research Online education and webinars Fee free withdrawals and deposits.
Trusted, regulated broker with 10 yrs experience Multi award winning company Segregated accounts with leading banks.
+50% Deposit Bonus (ex-EU only)
Free Guaranteed Stop Loss Segregated funds at top tier banks Fixed spreads & negative balance protection.
Choice of four professional trading platforms Trusted & Secure: FCA authorised and regulated Choice of Forex, CFDs, Spread Betting and Binary Options.
+ Cash rebates on trades.
World class trading platform Expert market analysis FCA Regulated and traded on the LSE.
1st month commission bonus.
Low cost trading with tight, fixed spreads Loyalty rewards: Earn cashback as you trade Choose Forex, CFDs or spread betting.
+ Up to £6000 on deposits.
No commissions and low spreads Advanced trading tools Minimal account fees.
+100% on every deposit.
Split second execution No requotes Range of accounts.
+55% Deposit Bonus.
'Asia's top broker' Wide choice of leverage options.
+40% Deposit Bonus.
Generous Cashback Rewards for every trade Leverage the wisdom of the crowds to inform your positions Fast, simple signup.
24 hr Live Support Fully Regulated and Licenced EU Broker User - friendly trading platform.
Instant fund withdrawals - no commissions Tight spreads from 0.1 points Unlimited leverage.
8 Trading Platforms Spreads from 0.1 Pips $0 fees on deposits.
Deposit Bonus + Cashback.
Trusted by 100,000s of traders Fully licensed in the EU by CySec Tight spreads and fast withdrawals.
0.0 pip spread pro accounts Instant deposit.
How to choose a forex broker.
Regulation in the forex market.
In the US, a reputable forex broker will be a member of the National Futures Association and will be registered with the U. S. Commodity Futures Trading Commission as a Futures Commission Merchant and Retail Foreign Exchange Dealer.
A broker that is a member of the National Futures Association and subject to CFTC regulations will state this and its NFA member number on its website, typically in the "about us" section and on each web page.
In the UK, brokers are regulated by the Financial Conduct Authority (FCA). In other countries, there is a specific regulator responsible for forex brokers. Any platform should have a legal indication of being regulated by such an authority, in the interest of protecting your deposit.
The offer of each broker may differ in terms of leverage and margin.
Forex brokers will offer a variety of leverage amounts depending on the broker, such as 50:1 or 200:1. The ability to select the leverage a trader desires enable better control of risk.
Different brokers may also offer different commissions and spreads.
A broker that uses commissions may charge a specified percentage of the spread, the difference between the bid and ask price of the forex pair.
However, most brokers advertise that they charge no commissions, and instead make their money with wider spreads. The wider the spread, then, the more difficult it can be to make a profit.
Popular trading pairs, such as the EUR/USD and GBP/USD will typically have tighter spreads than the more thinly-traded pairs. A trader should compare spreads on the pairs the trader prefers to trade from broker to broker.
Different brokers also offer different terms for deposits and withdrawals.
Each forex broker has specific account withdrawal and funding policies. Brokers may allow account holders to fund accounts online with a credit card, via ACH payment or via PayPal, or with a wire transfer, bank check or business or personal check. Withdrawals can typically be made by check or by wire transfer. The broker may charge a fee for either service.
The offer of currency pairs can also vary from broker to broker. Many brokers offer only the majors, and then a few minor pairs. There are, however, a great deal of less-traded pairs that merit attention, and it may be worth finding a broker who offers a great variety.
Ease of use of the trading platform is another important offer from a broker. The platform should be easy to use, visually pleasing, and have all the tools that the trader likes to use.
The trader should have no difficulty working with the platform so that there are no mistakes when trading.
One other factor that may affect your choice of a broker is customer service.
This can vary wildly from one broker to another. Trading forex is a 24-hour activity, so your broker should certainly offer full-time customer service. There should also be rapid intervention if you have a problem making a withdrawal of funds – one typical problem with forex platforms is that it can awkward trying to get your profits out.
Your platform should have a consistent withdrawal policy and, if something goes wrong, customer service should intervene without delay or any issues.
Similarly, if there is a trading problem – that is, if the trading software malfunctions – your customer service should unwind the trade for you without any questions.
Can you trust user reviews of forex brokers?
We have debated adding a review section to each of our broker pages, but in researching other forex site a trend is clear: many bad experiences of trading with a particular company come down to naivety or inexperience with trading markets. It is easy for people who have been sold a 'make money online' dream to feel scammed if they very quickly lose their capital - but is this the fault of the trader, the broker or the website or mailing list who sold them on the dream to begin with?
Likewise, due to the vast sums moving through the financial markets each day, it is not hard to find suspect reviews, either absurdly positive ratings that suggest they were written by a member of staff from a small time broker, or aggressively negative posts that appear to be an attempt by unscrupulous brokers to smear their competitors.
In short, it's a mess. So what is a trader to do when evaluating a platform?
In our view one of the best steps you can take is to choose a broker that is regulated by a organisation that actually has teeth. While the UK's old regulator, the FSA, used to take a lax approach to regulation, in recent years they have taken a particularly hard line with brokers. This may mean a more laborious sign up process, as they must now meet stringent money laundering requirements - but in turn it means they, and the partners that advertise them, are strictly limited in the claims they can make so you know you're not being oversold. They must also meet much tighter licensing and accounting procedures so you know your money is safe.
Use our broker comparison list and make your own opinions.
To choose between the regulated brokers, we suggest taking a good look at the spreads they offer and the quality of their trading software. Sign up for a demo account or take a no-deposit deal and test the waters - can you see yourself using this platform every day? Is it responsive to your trades, or do you witness slippage in placing or closing your positions?
Compare the pros and cons of each trading platform, and make an informed choice as to whether a better platform is worth paying higher fees for - or indeed, if a simplified interface or features such as social trading are worth paying a premium for. We only list forex brokers we feel meet an exacting criteria, but your priorities may differ - make sure to explore each broker in full rather than opting for the company with the biggest welcome bonus.
Featured Brokers.
Featured Brokers.
TOP FOREX BONUSES.
Risk Warning.
Your capital is at risk. Trading in Forex and Contracts for Difference (CFDs) is highly speculative and involves a significant risk of loss. The information contained in this publication is not intended as an offer or solicitation for the purchase or sale of any financial instrument. This website is provided for informational purposes only and in no way constitutes financial advice. A featured listing does not constitute a recommendation or endorsement.
Forex Brokers.
About ForexTradingpany.
Forex Tradingpany was established to provide global traders a deep and insightful source of information on forex trading, its key strategies and indicators. With guides for everyone from beginner traders in Bangladesh to advanced strategists in Hong Kong we want the world trading community to benefit from our in-depth broker reviews, features, and commentary. We list the world's top regulated and authorised brokers suitable for a global audience.
We aim to think global, act local with our website, so that whether you're in Asia, Europe or Africa you can gain from our content on the world's biggest market.
Forex slippage and why it can be regarded as a positive phenomena.
Slippage, in trading terms, can best be described as having an order filled at a different price to the price initially quoted on the trading platform. However, slippage should be regarded as a positive indication that the market and the trader's chosen market access, is operating in a transparent and efficient manner.
Traders can experience their orders filled in three possible ways; at the exact price quoted, experience negative slippage - whereby their order is filled at a price not in their favour, or experience positive slippage - when the order is filled at a better price than the price originally quoted. The fact that slippage exists should actually be regarded as positive reinforcement that the trader is engaging with a highly efficient, fair and transparent marketplace. Particularly in respect of ECN straight through processing, it would in fact be highly unusual and indeed suspicious, if traders' orders were always filled at the exact price quoted.
In such a marketplace as FX, turning over circa $5 trillion each weekday and executing hundreds of millions trades per day, it is a natural occurrence and reasonable expectation that not all orders can possibly be matched perfectly in such an environment. In a fair and transparent ECN trading environment, the pool of liquidity providers provide the FX quotes, the volatility can change suddenly and dramatically. Therefore, an order is matched instantaneously at the best possible price available, occasionally at the price quoted, or potentially at a better price than expected.
Let's finish by explaining how positive slippage (also known as price improvement) can work in a trader's favour.
For example, a trader places an order to BUY 1 lot of EUR/USD at the market price of 1.35050, the order was sent out through the MetaTrader platform to the liquidity provider and then the confirmation message comes back informing the trader that the order was executed at 1.35045. Through the ECN/STP model the trader has experienced positive slippage, they have been filled at a better price, a price more favourable to their initial order.
Slippage = 1.35050 - 1.35055 = -0.00005 -> -0.5 pip EURUSD = -5 USD.
RISK WARNING: Trading in Forex and Contracts for Difference (CFDs), which are leveraged products, is highly speculative and involves substantial risk of loss. It is possible to lose all the initial capital invested. Therefore, Forex and CFDs may not be suitable for all investors. Only invest with money you can afford to lose. So please ensure that you fully understand the risks involved. Seek independent advice if necessary.
RISK WARNING: Trading in Forex and Contracts for Difference (CFDs), which are leveraged products, is highly speculative and involves substantial risk of loss. It is possible to lose all the initial capital invested. Therefore, Forex and CFDs may not be suitable for all investors. Only invest with money you can afford to lose. So please ensure that you fully understand the risks involved. Seek independent advice if necessary.
FXCC does not provide services for United States residents and/or citizens.
FX Central Clearing Ltd is authorised and regulated by the Cyprus Securities and Exchange Commission (CySEC), under CIF Licence Number 121/10 and operates under the EU Markets in Financial Instruments Directive (MiFID). FX Central Clearing is on the FSA(UK) Register (Reference Number 549790) and EEA Authorised.
Australian Forex Brokers Comparison Table.
Australian forex brokers are an ideal match when trading forex online in Australia as:
Clients’ deposits are held in a segregated bank account Australian broker’s staff must meet training standards Accounts are periodically reviewed by external auditors.
Use the forex trading Australia comparison table below and find the best forex broker.
Founded In Australia? Regulated In Spread Fee - AUD/USD Leverage Bank Client Deposits Held At? Speed of Execution? MetaTrader Supported? Location of Broker's Head Office Compatible Devices Cuts Out A Dealing Desk? Payment Methods Reviews Promotional Bonus?
Australia From 0.1 Pips 500:1 [dsrating show="afb-pepperstone" title="Pepperstone Review"] Qantas Sign up Bonus (10 QFF Points Per $1 Deposited) Visit Website.
Australia From 0.0 Pips 500:1 [dsrating show="afb-ic" title="IC Markets Review"] Visit Website.
Australia From 0.1 Pips 400:1 Not Declared [dsrating show="afb-axitrader" title="AxiTrader Review"] Visit Website.
Australia From 1.5 Pips 300:1 [dsrating show="afb-go" title="Go Markets Review"] 10% Trading Credit On First Deposit Visit Website.
Australia From 0.8 Pips 500:1 [dsrating show="afb-thinkforex" title="Think Forex Review"] Visit Website.
The leading SMS comparison site.
Pepperstone Is The Best Value 2017 Australian Forex Broker.
In November 2017 a comparison Australian forex brokers found that Pepperstone was narrowly superior to IC Markets.
Pepperstone was the best currency broker based on:
The choice of the two most popular forex platforms worldwide The fastest execution rate of any forex broker Australia The best customer service & satisfaction based on 15,000 Australian forex traders Market leading spreads/commissions Solid leverage up to 500:1 for advanced traders The ability to earn Qantas frequent flyer points from trades.
Skip ahead.
Forex Trading Guides.
Brokers By Experience Level.
View our forex broker guide matching forex trader experience levels to suitable forex brokers based on features and fees.
Best Australian Brokers.
View the best Australian based forex broker with an in-depth analysis of Pepperstone's Razor account components.
What makes a great Forex Broker Review?
Learn about the components that combine to separate good forex brokers to the great ones for Australian traders.
What Forex Trading Platforms Does Pepperstone Offer?
Pepperstone offers Australians the choice of the two most popular fx trading platforms globally.
1) MetaTrader.
This forex trading platform platform is the most popular worldwide due to it’s ease of use, charting and the ability to execute trades easily.
Navigator & Market Watch Windows with 85 indicators Unlimited chart configurations and analysis tools The ability for automated trading (Expert Advisor’s)
Used by mainly advanced Australian forex traders, this fx trading platform is commonly used by day-traders and for those using expert strategies.
Detachable next generation charting with level II pricing Automated options through the cTrader dedicated platform The ability to back-test and strategies or programs.
How Does Pepperstone Achieve Superior Forex Trading Australia Execution Speeds?
Pepperstone achieves up to 10x latency reduction and 12x improvements in Australia execution speeds when trading forex online due to:
1) Optic Fibre From Sydney To Wall Street.
One of the key issues for Australian traders is the distance between the country and the trading hubs either in New York or London. Slow internet connections between continents means that latency can be experienced when fx trading leading to ‘slippage’ which is the difference between the order made and the actual order received.
Pepperstone has overcome this issue by adopting infrastructure that offers a direct fibre optic cable from their Sydney data-centre to New York.
This has minimised the latency for Australian forex traders which is why advanced traders who make split second decisions choose their ECN platform. This makes the platform perfect for traders that adopt both technical and fundamental analysis.
2) Edge Technology Including The Leading Servers.
Optic fibre isn’t enough to ensure the fastest trades for an Australian forex trader as the server it connects to is just as important. To maximise server speeds Pepperstone partnered with Equinix which not only has one of the worlds best high-performance data-centre but at also less than 18 kilometres from Wall Street.
Edge technology also has created new tools for existing platforms such as MetaTrader such as ‘one-click-trading’ which ensures that as soon as a trade is made it goes straight to the market with no dealer or other external interference which may delay the trade.
Pepperstone Offers ECN Currency Trading Leading To Market Leading Spreads.
Pepperstone’s popularity is not solely due to their technology but their ECN currency trading environment. This is matched by IC and IG which also offer ecn currency trading environments. The results are razor thin spreads for all these fx brokers.
No Dealer Desk Intervention.
There are two Pepperstone accounts. Their most popular account is the Razor trading forex online account providing direct access to selected deep liquidity pools. This is the true ECN currency trading environment that most experience Australian forex traders opt for. The deep liquidity pools the account has access to are in New York for MetaTrader or London for cTrader. Overall, quotes come from up to 22 major banks and ECNs which allow during liquid periods spreads to be as low as 0.1 pips for USD/EUR.
2) Their Price Improvement Technology (PPI)
PPI technology intelligently routes currency trading orders to detect liquidity hot-spots to ensure optimal pricing for Australian traders. In simple terms, when you place a trade and in the scenario where the market moves in your favour (between placing the trade and it’s execution) the PPI technology detects the movement and when possible, fills the order at the improved level. This does not involve re-quoting but rather the traders just receives the improved price.
There are two types of accounts offered to an Australian forex trader. This includes the standard account which has no commissions or the Razor account which has the lowest spreads but commissions exist. You can learn more about these accounts on the Pepperstone account type page. There is also the option for CFD trading across 13 stock indices. There are no commissions on CFD trading and no dealing desk.
Pepperstone Offers High Leverage When Trading Forex.
Pepperstone offers the maximum leverage level of 500:1 which is the equal highest of the Australian forex brokers.
In simplistic terms, 500:1 means that if you have a $300 deposit you can trade on the market up to $150,000 on the currency markets. Australian currency traders can therefore earn significantly more from their trades when the market moves in their favour or significant losses when it moves in the other. While no currency trading would exist without leverage, it’s important to select a level that matches your risk profile and experience level due to the risks it poses.
A real positive that Pepperstone provides Australian forex traders is negative balance protection . This is a ‘margin stop out’ system to prevent a forex trader from reaching a negative balance with MetaTrader triggering is margin falls below 90%. cTrader has a ‘stop-out’ system that is activated at a 50% percentage (or below).
Below shows Pepperstone’s Aubiz Australian company search details. The Australian public company has an ABN 12147055703. The site also states that they have an Australian Financial Services licence (AFSL) 389931.
Customer Service & Client Satisfaction Of Pepperstone.
Pepperstone is a relatively new Australian forex broker compared to some global players but in Australia has quickly gained a dominant market share. They have a strong customer service team in Australia of individuals who actually trade themselves making them an excellent choice of intermediate to expert traders.
This was acknowledged in when Investment trends survey of 15,000 Australian forex traders ranked Pepperstone number 1 in:
Overall Client Satisfaction Customer Service Spreads Execution Speeds.
The customer service team in our dealings have been professional from the moment we opened an account. Their office is in Melbourne and they can be contacted over the phone, e-mail or live-chat 24 hours during weekdays when the markets are open. As mentioned earlier, their team is highly competent but more towards intermediate and advanced forex trading Australia individuals. Those new to trading forex online in Australia may wish to consider a broker such as Easy Forex (now called Easy Markets).
Earn Up To 10 Qantas Points For Each Dollar On Your First Deposit.
The first deposit placed into a Pepperstone account when trading forex online will lead up to 10,000 Qantas points. To achieve this, link a Qantas frequent flyers membership to the Pepperstone forex trading Australia account and then make the deposit. 10 frequent flyer points are awarded per dollar deposited. This only applies to the first deposit and further conditions apply.
Australian forex traders receive further Qantas frequent flyer points on their ongoing trades. 10 points per lot are available for fx majors, fx minors and fx crosses. At the end of each month a forex traders total volume is calculated and credited as Qantas Points to eligible Qantas frequent flyer members. Up to 10,000 points points can be awarded each month. These amounts can be increase during bonus periods communicated by Pepperstone.
While other Australian forex brokers may offer superior joining offers, the lower spreads of Pepperstone and advanced technology make many conclude that overall they are the best forex broker in the long-term.
Frequently Asked Australian FX Trading Questions.
How does the forex market work?
With over $5 USD trillion traded daily, the forex market is larger than any other financial market. There is no central trading location when currency trading with forex brokers both as market makers or through ECNs (electronic communication networks) buying and selling currency globally.
What is a forex account?
Forex accounts are offered by brokers to buy, sell and hold foreign currencies. The process for trading currency is to open a forex account, make a deposit and then trade currency pairings. With the use of leverage, currency fluctuations will lead to profits or losses.
What is a forex trader?
A forex trader refers to a retail currency trader who can trade most mainstream currency pairings through a forex broker. There are also institutional currency traders who make fewer but larger trades making huge impacts on currency markets.
What is meant by trade?
A trade on the foreign exchange markets is the action of buying or selling a currency pairing. A trade through a broker can include CFDs including commodities, shares, indices and even bitcoin.
What is a signal in forex?
Forex signals is a trigger to trade a currency pairing at a specific price and often time-frame. A signal can bet forex robot or analyst generated leading a trade alert or an automated trade to be generated.
About This Forex Brokers Australia Comparison.
Most prospective forex traders often find it hard to differentiate Australian forex brokers and know which one is the best broker for their circumstances. This is especially true when it comes to safety and regulation with most Australian’s looking for a currency trading broker that locally regulated. This means they trade out of an Australian subsidiary and hold deposits within the country. To help speed up the process of choosing the best forex broker the key players are compared with the ‘top 5’ placed on the table above. To make the figures relevant to Australian foreign exchange market conditions, other third-party sources were also used to collect data such as spreads and fees.
While the forex Australia table above only have Australian regulated foreign exchange brokers, there are a number of other tables that look at online brokers based on key requirements ranging from ‘low fees’ to ‘high leverage’. We also focus on cfd brokers such as Plus500 CFDs and IG Markets for those looking for more then just currency trading. Most of these forex trading platforms are nationally regulated as the authors rated higher brokers that offered Australians the higher level of security. Since this is the case, it’s recommended that individuals view these tables as well to find the best forex broker Australia to suit the foreign exchange market and their trading forex style.
Data Accuracy.
Since the forex broker Australia comparison information on this site was created by real Australians and without assistance from the forex trading brokers the information should only be used as a guide. This is because the information came from reviewing the providers websites and without automation. This means that human error may be present or that elements such as leverage rates or fees may change without warning. If you find any forex Australia elements that require changes please use the contact us form and state where the change(s) need to be made and in most circumstances these will be made promptly. This will ensure the best broker can be found by users of the site.
This review factored in other Australian Forex brokers reviews including:
Trading Forex Glossary.
Forex = A shortened version of the phrase foreign exchange. Spread = A gap between the ask and sell price of a currency pairing (often the brokers margin) Bid Price = The price that a currency trader can sell a currency Margin = The amount required to open a position Margin Call = This is an alert that there isn’t sufficient margin to maintain the position(s) that are open and may require extra liquidity or the position to be closed Base Currency = When viewing a currency pairing such as AUD/EUR the first currency (in this case AUD) is the base currency. Leverage = The ability a forex broker providers to amplify a traders base amount to increase the exposure to the market.
Pepperstone Is The Best Value 2017 Australian Forex Broker.
In November 2017 a comparison Australian forex brokers found that Pepperstone was narrowly superior to IC Markets.
Pepperstone was the best currency broker based on:
The choice of the two most popular forex platforms worldwide The fastest execution rate of any forex broker Australia The best customer service & satisfaction based on 15,000 Australian forex traders Market leading spreads/commissions Solid leverage up to 500:1 for advanced traders The ability to earn Qantas frequent flyer points from trades.
Skip ahead.
Forex Trading Guides.
Brokers By Experience Level.
View our forex broker guide matching forex trader experience levels to suitable forex brokers based on features and fees.
Best Australian Brokers.
View the best Australian based forex broker with an in-depth analysis of Pepperstone's Razor account components.
What makes a great Forex Broker Review?
Learn about the components that combine to separate good forex brokers to the great ones for Australian traders.
What Forex Trading Platforms Does Pepperstone Offer?
Pepperstone offers Australians the choice of the two most popular fx trading platforms globally.
1) MetaTrader.
This forex trading platform platform is the most popular worldwide due to it’s ease of use, charting and the ability to execute trades easily.
Navigator & Market Watch Windows with 85 indicators Unlimited chart configurations and analysis tools The ability for automated trading (Expert Advisor’s)
Used by mainly advanced Australian forex traders, this fx trading platform is commonly used by day-traders and for those using expert strategies.
Detachable next generation charting with level II pricing Automated options through the cTrader dedicated platform The ability to back-test and strategies or programs.
How Does Pepperstone Achieve Superior Forex Trading Australia Execution Speeds?
Pepperstone achieves up to 10x latency reduction and 12x improvements in Australia execution speeds when trading forex online due to:
1) Optic Fibre From Sydney To Wall Street.
One of the key issues for Australian traders is the distance between the country and the trading hubs either in New York or London. Slow internet connections between continents means that latency can be experienced when fx trading leading to ‘slippage’ which is the difference between the order made and the actual order received.
Pepperstone has overcome this issue by adopting infrastructure that offers a direct fibre optic cable from their Sydney data-centre to New York.
This has minimised the latency for Australian forex traders which is why advanced traders who make split second decisions choose their ECN platform. This makes the platform perfect for traders that adopt both technical and fundamental analysis.
2) Edge Technology Including The Leading Servers.
Optic fibre isn’t enough to ensure the fastest trades for an Australian forex trader as the server it connects to is just as important. To maximise server speeds Pepperstone partnered with Equinix which not only has one of the worlds best high-performance data-centre but at also less than 18 kilometres from Wall Street.
Edge technology also has created new tools for existing platforms such as MetaTrader such as ‘one-click-trading’ which ensures that as soon as a trade is made it goes straight to the market with no dealer or other external interference which may delay the trade.
Pepperstone Offers ECN Currency Trading Leading To Market Leading Spreads.
Pepperstone’s popularity is not solely due to their technology but their ECN currency trading environment. This is matched by IC and IG which also offer ecn currency trading environments. The results are razor thin spreads for all these fx brokers.
No Dealer Desk Intervention.
There are two Pepperstone accounts. Their most popular account is the Razor trading forex online account providing direct access to selected deep liquidity pools. This is the true ECN currency trading environment that most experience Australian forex traders opt for. The deep liquidity pools the account has access to are in New York for MetaTrader or London for cTrader. Overall, quotes come from up to 22 major banks and ECNs which allow during liquid periods spreads to be as low as 0.1 pips for USD/EUR.
2) Their Price Improvement Technology (PPI)
PPI technology intelligently routes currency trading orders to detect liquidity hot-spots to ensure optimal pricing for Australian traders. In simple terms, when you place a trade and in the scenario where the market moves in your favour (between placing the trade and it’s execution) the PPI technology detects the movement and when possible, fills the order at the improved level. This does not involve re-quoting but rather the traders just receives the improved price.
There are two types of accounts offered to an Australian forex trader. This includes the standard account which has no commissions or the Razor account which has the lowest spreads but commissions exist. You can learn more about these accounts on the Pepperstone account type page. There is also the option for CFD trading across 13 stock indices. There are no commissions on CFD trading and no dealing desk.
Pepperstone Offers High Leverage When Trading Forex.
Pepperstone offers the maximum leverage level of 500:1 which is the equal highest of the Australian forex brokers.
In simplistic terms, 500:1 means that if you have a $300 deposit you can trade on the market up to $150,000 on the currency markets. Australian currency traders can therefore earn significantly more from their trades when the market moves in their favour or significant losses when it moves in the other. While no currency trading would exist without leverage, it’s important to select a level that matches your risk profile and experience level due to the risks it poses.
A real positive that Pepperstone provides Australian forex traders is negative balance protection . This is a ‘margin stop out’ system to prevent a forex trader from reaching a negative balance with MetaTrader triggering is margin falls below 90%. cTrader has a ‘stop-out’ system that is activated at a 50% percentage (or below).
Below shows Pepperstone’s Aubiz Australian company search details. The Australian public company has an ABN 12147055703. The site also states that they have an Australian Financial Services licence (AFSL) 389931.
Customer Service & Client Satisfaction Of Pepperstone.
Pepperstone is a relatively new Australian forex broker compared to some global players but in Australia has quickly gained a dominant market share. They have a strong customer service team in Australia of individuals who actually trade themselves making them an excellent choice of intermediate to expert traders.
This was acknowledged in when Investment trends survey of 15,000 Australian forex traders ranked Pepperstone number 1 in:
Overall Client Satisfaction Customer Service Spreads Execution Speeds.
The customer service team in our dealings have been professional from the moment we opened an account. Their office is in Melbourne and they can be contacted over the phone, e-mail or live-chat 24 hours during weekdays when the markets are open. As mentioned earlier, their team is highly competent but more towards intermediate and advanced forex trading Australia individuals. Those new to trading forex online in Australia may wish to consider a broker such as Easy Forex (now called Easy Markets).
Earn Up To 10 Qantas Points For Each Dollar On Your First Deposit.
The first deposit placed into a Pepperstone account when trading forex online will lead up to 10,000 Qantas points. To achieve this, link a Qantas frequent flyers membership to the Pepperstone forex trading Australia account and then make the deposit. 10 frequent flyer points are awarded per dollar deposited. This only applies to the first deposit and further conditions apply.
Australian forex traders receive further Qantas frequent flyer points on their ongoing trades. 10 points per lot are available for fx majors, fx minors and fx crosses. At the end of each month a forex traders total volume is calculated and credited as Qantas Points to eligible Qantas frequent flyer members. Up to 10,000 points points can be awarded each month. These amounts can be increase during bonus periods communicated by Pepperstone.
While other Australian forex brokers may offer superior joining offers, the lower spreads of Pepperstone and advanced technology make many conclude that overall they are the best forex broker in the long-term.
Frequently Asked Australian FX Trading Questions.
How does the forex market work?
With over $5 USD trillion traded daily, the forex market is larger than any other financial market. There is no central trading location when currency trading with forex brokers both as market makers or through ECNs (electronic communication networks) buying and selling currency globally.
What is a forex account?
Forex accounts are offered by brokers to buy, sell and hold foreign currencies. The process for trading currency is to open a forex account, make a deposit and then trade currency pairings. With the use of leverage, currency fluctuations will lead to profits or losses.
What is a forex trader?
A forex trader refers to a retail currency trader who can trade most mainstream currency pairings through a forex broker. There are also institutional currency traders who make fewer but larger trades making huge impacts on currency markets.
What is meant by trade?
A trade on the foreign exchange markets is the action of buying or selling a currency pairing. A trade through a broker can include CFDs including commodities, shares, indices and even bitcoin.
What is a signal in forex?
Forex signals is a trigger to trade a currency pairing at a specific price and often time-frame. A signal can bet forex robot or analyst generated leading a trade alert or an automated trade to be generated.
About This Forex Brokers Australia Comparison.
Most prospective forex traders often find it hard to differentiate Australian forex brokers and know which one is the best broker for their circumstances. This is especially true when it comes to safety and regulation with most Australian’s looking for a currency trading broker that locally regulated. This means they trade out of an Australian subsidiary and hold deposits within the country. To help speed up the process of choosing the best forex broker the key players are compared with the ‘top 5’ placed on the table above. To make the figures relevant to Australian foreign exchange market conditions, other third-party sources were also used to collect data such as spreads and fees.
While the forex Australia table above only have Australian regulated foreign exchange brokers, there are a number of other tables that look at online brokers based on key requirements ranging from ‘low fees’ to ‘high leverage’. We also focus on cfd brokers such as Plus500 CFDs and IG Markets for those looking for more then just currency trading. Most of these forex trading platforms are nationally regulated as the authors rated higher brokers that offered Australians the higher level of security. Since this is the case, it’s recommended that individuals view these tables as well to find the best forex broker Australia to suit the foreign exchange market and their trading forex style.
Data Accuracy.
Since the forex broker Australia comparison information on this site was created by real Australians and without assistance from the forex trading brokers the information should only be used as a guide. This is because the information came from reviewing the providers websites and without automation. This means that human error may be present or that elements such as leverage rates or fees may change without warning. If you find any forex Australia elements that require changes please use the contact us form and state where the change(s) need to be made and in most circumstances these will be made promptly. This will ensure the best broker can be found by users of the site.
This review factored in other Australian Forex brokers reviews including:
Trading Forex Glossary.
Forex = A shortened version of the phrase foreign exchange. Spread = A gap between the ask and sell price of a currency pairing (often the brokers margin) Bid Price = The price that a currency trader can sell a currency Margin = The amount required to open a position Margin Call = This is an alert that there isn’t sufficient margin to maintain the position(s) that are open and may require extra liquidity or the position to be closed Base Currency = When viewing a currency pairing such as AUD/EUR the first currency (in this case AUD) is the base currency. Leverage = The ability a forex broker providers to amplify a traders base amount to increase the exposure to the market.
CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
ECN Forex Brokers.
ECN brokers (Electronic Communication Network brokers) are among the fastest emerging brokerages in the Forex world, and there's no question that new ECN brokers are opening their doors regularly. In short, ECN Forex brokers provide a marketplace where traders and market makers can place competing bids against each other. Minimum deposits for ECN accounts are often higher than they are with standard Forex accounts, but there are several significant advantages offered by the best ECN brokers, such as the ability for scalping and lower spreads.
With so many attractive options to choose from, choosing between different ECN trading options can be surprisingly difficult. Compounding the decision is the fact that many traditional brokers offer ECN accounts in addition to their standard trading accounts, which widens your pool of options.
To make your decision easier, we've compared critical aspects of some of the top ECN brokers to give you a starting point in your search for the best ECN Forex broker.
More info about ECN Forex Brokers.
. So what is an ECN Broker?
Recent years have seen many new Forex brokers open their doors as ECN brokers. ECN stands for “electronic communications network” and sometimes brokers of this type are also referred to as “STP brokers” (STP stands for “straight through processing”) or “no dealing desk” (NDD) brokers. All these terms mean approximately the same thing: clients’ trades are executed by matching them with other clients or 3rd party counterparties who wish to take the other sides of the trades. Non-ECN brokers, in contrast, take the other side of the trade themselves, creating a large and obvious conflict of interest with their clients. They are typically referred to as “dealing desk brokers” or “market makers”.
ECN brokers typically charge lower spreads than market makers, which they compensate for at least partially by charging additional commissions on trade entries and exits which is calculated as a fixed percentage of the total value of the trade. Despite these fees, the combination of spread and commission is usually at least a little lower than the spread charged on a similar trade by non-ECN brokers.
It is this combination of lack of conflict of interest plus the typically low cost of trading that makes ECN brokers so attractive to traders, but there are some other factors worth considering before you decide that an ECN broker, or an ECN account (some brokers offer both ECN and dealing desk type accounts) is for you.
Account size – ECN brokers usually require higher minimum deposits. A few insist on minimum trade sizes as high as 1 minilot instead of the 1 microlot (one tenth of a minilot) that has become more standard within the Forex industry.
Execution – ECN brokers typically offer excellent execution speed and sometimes spreads are even non-existent or inverted for a second or two. Note that during periods of very low liquidity execution may be seriously delayed as there is no market maker to take the trade if no client wants it. This can lead to seriously negative slippage events or being stuck in a bad trade a little longer than you would be if trading with a market making broker. These events often tend to occur at major news releases especially when the result differs from the market’s consensus expectation.
Spreads – these are usually an attractive feature, even when commission is considered. However, spreads can widen dramatically and can sometimes be beyond what market maker brokers will be offering at the same time. Spreads will of course vary a lot as they are based more precisely upon market supply and demand. Fixed spreads are only available through market making brokers. They are rarely worth it economically, as it happens, but that is another story.
Choice of Instruments – as ECN brokers need to be sure they are truly plugged into a market’s liquidity before they can credibly offer trading in that market instrument, market making brokers are often better situated to offer a wider choice of instruments, especially in individual stocks and shares, commodities, and various types of indices. Additionally, ECN brokers tend to require higher minimum trade sizes in these kinds of non-Forex instruments. This means that if you want to be very diversified, you might have another reason to consider using a market making broker in addition to or as an alternative to an ECN broker.
Maximum Trade Size – ECN brokers usually offer much higher maximum trade sizes, as they (at least theoretically) do not have to worry about processing any order through a dealing desk. For example, some dealing desk brokers won’t let you buy or sell more than 5 lots at once. ECN brokers, if they specify maximums, tend to place them at much higher levels.
Minimum Trade Size – ECN brokers used to commonly require higher minimum trade sizes of 1 minilot (0.1 full lots), compared to the 1 microlot (0.01 full lots) that was typically required by dealing desk brokers. Although an increasing number of ECB brokers do now allow trading in microlot sizes, a few still do not, so it could be an issue if you prefer to trade in microlots.
Who are the “Real” ECN Forex Brokers?
We’ve seen the reasons above why ECN Forex brokers are increasingly popular. We’ve noted that more and more brokers are advertising themselves as ECN brokers, or at least offering ECN-type accounts. There is a lot of controversy around the question of whether many of these brokers are “real” ECN brokers. So, what is a “real” ECN broker, and how can you tell when one is telling the truth?
A true ECN broker is simply defined as a broker that plugs your orders into a network where it is automatically matched to a matching order from another client or liquidity provider. This is the textbook definition to work from. Most brokers claiming to be ECN brokers are probably telling the truth about this at least, although if you see large spreads, spreads that never seem to really vary, or continuously slow execution, they are almost certainly not.
The more sophisticated problem arises when we ask what qualifies as a “liquidity provider”? If it is just another dealing desk, then how can it be a “true” ECN offering? The network is only as good as its source. To be regarded as a real ECN broker, the liquidity provider should really be a tier 1 bank. We must wonder how often this is really the case, and why many brokers that advertise themselves as ECN brokers are so tight-lipped about which liquidity providers they use!
When the first ECN brokers started appearing, bank traders started to ask how orders for minilots (let alone microlots) could possibly be sent straight through to tier 1 banks for processing. Bank traders will tell you that at this level, trade sizes are usually in minimums of ten or so full lots. This suggests that an ECN broker offering smaller minimum trade sizes must inevitably perform a “bucketing” of orders, and that would require a kind of dealing desk to process and allocate the bucketing.
The final question is, does it really matter? If a broker is at least trying to match orders directly, there is not much of a conflict of interest, potential or otherwise. If you benefit from a low cost of trading and relatively fast execution, then why not be happy with what you have got. Just don’t be under any illusions as to what is probably going on behind the scenes.
How to Choose the Best ECN Forex Broker?
Choosing an ECN broker is not very different from choosing any broker. There are not many special factors to watch out for at ECN brokers that differ from what should be the usual considerations.
When choosing any Forex broker, you should start from how much money you want to deposit, what kind of instruments you want to trade, how often you want to trade, and where you are located. Beginning with these three factors, you should be able to eliminate several brokers from your list of candidates. The good news is that brokers that don’t meet minimum standards of acceptability in one area are usually the same ones that won’t meet required standards in other areas also, so it becomes easier to eliminate them.
Starting with location, you might feel more comfortable with a broker located in your own country (or a nearby country), or is in a country that speaks the same language as your or which has a similar legal system. If you are a U. S. resident, you have special issues to consider as the U. S. is quite restrictive in Forex trading and if you must be onshore you have little choice, but it makes your choice easier. If you live in the United Kingdom, you might want a U. K.-based broker that offers spread betting format for tax reasons so you won’t have to pay any tax on any winnings. This is probably the easiest place to start and helps you narrow down the list considerably right away when choosing a Forex broker.
The next step to consider is regulation and the safety of your deposit. This might not matter so much to you if you only intend to deposit a relatively small amount of money that is not very important to you. If not, though, this is a very big issue. Some countries have a well-developed culture of financial regulation enforcement, which is always reassuring, and are just not places where the big fraudsters can thrive. Another big issue to consider is whether any protection is offered on your deposit. For example, at the time of writing, the United Kingdom government protects everyone’s deposit with any regulated broker up to a maximum amount of GBP 75,000. This means that if you deposit that amount or less with a broker regulated by and based in the United Kingdom, if they steal from you or cheat you or even just go bankrupt, you should eventually receive your deposit back from the government there. This is a significant advantage, and provides a lot of reassurance. If your deposit is a significant sum, you should seriously question whether it is wise to deposit it anywhere that does not offer government-backed deposit protection. You also should be biased towards reputable financial centers and away from tiny islands you never heard of before!
The third factor to think about is the cost of trading. These days, there is no reason why anyone with a significant amount to deposit should put up with a total spread and commission equaling more than 1 pip on the benchmark EUR/USD Forex currency pair. One way to compare spreads is to open demo accounts at each of your candidate brokers to see what their spreads really are. One potential problem with this strategy, however, is that brokers have been known to make conditions in their demo accounts, including spreads, significantly better than those which prevail in their real money accounts. Fortunately, there are a few websites which compare the spreads of real money accounts in real time across a range of different brokers, so looking here is going to be a good idea.
Another serious factor to consider in choosing a broker is your style or intended style of trading i. e. how many trades you usually make. Are you or are you going to be a scalper, day trader, swing trader or position trader? If you are making few trades but leaving your positions open for several days or even over weeks and months, you should consider how competitive are brokers are in terms of their overnight financing rates which are generally charged each day against positions left open at 5pm New York time. For position traders, these rates can make more difference to overall profit and loss than the spreads charged, at least up to a point. However, if you are going to be leaving trades open for only minutes or hours but making many more trades, the spreads become a more influential factor, and overnight financing may not be an issue at all. This means that of two Forex brokers, one might be the most economical choice for you as an intraday trader, but not as a longer-term trader holding positions overnight.
The next thing to consider is the broker’s trading platform. Does it work smoothly, or does it have problems freezing up? It is easy, intuitive and pleasant to use, or not? Does the execution work in a manner that suggests the Forex broker is a true ECN broker or something close to it?
Finally, you can think about the issues that brokers’ advertising likes to focus on, but which are really the lowest of your concerns. Bonuses and other beneficial promotions could be interesting, but check the small print: accepting a bonus, deposit or otherwise, can mean you will be unable to withdraw a certain amount of your deposit until you have made a minimum number of trades.
One good think about choosing ECN brokers is that they tend to aim at a more sophisticated market than market-making brokers, meaning that you probably will not have to worry about misleading terms or hard sells. The most professional brokers of all sometimes have poor advertising and customer service, but they may be offering you the best ECN brokerage deal possible.
Additional Reading.
Thinking of switching from a traditional broker to an ECN Forex broker? Discover the differences between market makers (aka standard Forex brokers) and ECN brokers, and determine which one can meet your current trading needs. Read more.
ECN brokers require higher trade volumes than most other Forex brokers, but they do allow scalping and excellent spreads. Read on to learn if an ECN Forex broker is right for you. Read more.
Looking to enjoy the benefits of ECN Forex trading with the convenience of the MetaTrader 4 platform? This article explores the advantages and disadvantages of the MT4 ECN Forex platform. Read more.
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Risk Disclaimer: DailyForex will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis, trading signals and Forex broker reviews. The data contained in this website is not necessarily real-time nor accurate, and analyses are the opinions of the author and do not represent the recommendations of DailyForex or its employees. Currency trading on margin involves high risk, and is not suitable for all investors. As a leveraged product losses are able to exceed initial deposits and capital is at risk. Before deciding to trade Forex or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite. We work hard to offer you valuable information about all of the brokers that we review. In order to provide you with this free service we receive advertising fees from brokers, including some of those listed within our rankings and on this page. While we do our utmost to ensure that all our data is up-to-date, we encourage you to verify our information with the broker directly.
Risk Disclaimer: DailyForex will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis, trading signals and Forex broker reviews. The data contained in this website is not necessarily real-time nor accurate, and analyses are the opinions of the author and do not represent the recommendations of DailyForex or its employees. Currency trading on margin involves high risk, and is not suitable for all investors. As a leveraged product losses are able to exceed initial deposits and capital is at risk. Before deciding to trade Forex or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite. We work hard to offer you valuable information about all of the brokers that we review. In order to provide you with this free service we receive advertising fees from brokers, including some of those listed within our rankings and on this page. While we do our utmost to ensure that all our data is up-to-date, we encourage you to verify our information with the broker directly.
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