Although technological progress means we are no longer limited to borders, financial markets, including Forex, still have a lot of country-specific rules and regulations. Yes, you perhaps can use an international broker to trade on different currencies. But the cost of managing such accounts may not be that worthwhile. You may also miss out on the financial protections, otherwise available via the local monetary regulatory bodies.
Anyhow, if you are based in Australia and looking to get your hands on Forex trading, you have quite a few brokers to try out. All you have to know is to find the characteristics that work for you the best. So, why not learn about them from below!
Table of Contents
Authorisation of the Australian regulatory bodies
When it comes to money matters, you don’t want to put it in questionable hands. Therefore, before anything else, you must check whether the applicable bodies in the country regulate the broker. For example, in Australia, ASIC or the Australian Securities and Investments Commission regulates the brokers. So, you must look for their certification or other relevant documents. Even better if you can find a broker regulated by different international agencies, such as CySEC for the European Union or FCA for the UK markets.
Clarity about different fees and price mark-ups
Some brokers re-quote the market price for their gain, and then others quote the live market prices. In accordance with what is quoted by en.meteofinanza.com, the latter is known as ECN (Electronic Communication Network) brokers. As the ECN brokers don’t intervene in the market or the prices with some shady explanations, you should look for it before starting to trade. At the same time, you should also look for the trading and non-trading fees of the platform to protect your earnings. So that you know, the best Australian Forex trading platforms usually offer free accounts with tight spreads.
Speed, liquidity, and reliability of the platform
As you may know, most online brokers come with a platform to conduct trading and manage your portfolio. Of course, the best platform is the one that offers cutting-edge technologies to make your trading experience smooth, reliable, and fast; it must be quick if you are a short-term trader or plan to scalp when the markets are volatile. The platform should also have enough liquidity to manage the demands of the users effectively and right on time. So, it would help you test the software with a demo account before depositing real money.
Academic resources and learning materials
It’s been common for online Forex trading platforms to offer resources like trading glossaries to educate and assist traders. It is particularly important if you are a first-time trader. Some platforms also include video lessons and step-by-step guides to using their features. The best ones go even further to update the users with the latest news and information to help them make sound investment decisions. If your chosen broker offers the same, you’ve got a good one!