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Australian Forex Trading – What Should You Know?

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Australia is one of the most prominent countries today that has made a significant contribution to Forex trading. Despite not having a very large population, the volume of transactions carried out daily by Australian traders today can never be neglected. According to the existing records on the number of forex traders in Australia as of 2021, it was found that over 100,000 of its adult population have been exposed to Forex CFD trading. The number keeps increasing every day. The reason for the boom in Forex trading in Australia owes largely to the fact that it is a hub for economic investments. Virtually, everyone in Australia today is eager to engage in one form of business and to make investments. Many forex brokers have been attracted to Australia, leading to competition amongst brokers on whom to dominate the market.

This work has therefore exposed all the important things you need to know about forex trading in Australia today. You will also find in this work the important factors to consider while choosing a broker to trade forex in Australia today, to avoid falling prey to scam brokers. 

What is forex trading?

Forex trading is an investment that allows traders to exchange various currencies in the market in the hope of benefiting from their price fluctuations. This is usually made possible through a broker, otherwise, the trader will need to go to the bank or exchange market to do so. The term forex stands for ‘foreign exchange’ and covers a wide range of financial assets that could be traded at the market today. 

How to trade forex in Australia today

Trading forex in Australia requires a forex broker to do so. Thus, to trade forex, the trader needs to choose a regulated forex broker registered with the major regulatory bodies. Once a broker has been selected, the trader would need to proceed with creating an account with the broker and fund his account for trading once the registration and identity verification processes have been completed. 

Do forex traders pay tax in Australia today? 

Forex trading is a legal business in Australia today. All profits made from forex trading are considered capital income and subject to taxations. Traders in Australia are expected to report their total profits from forex to the relevant authority and to pay tax too. 

List of Best Forex Brokers to trade forex in Australia today 

  • Vantage
  • Pepperstone 
  • Saxo Bank 
  • CMC Markets 
  • Interactive Brokers 
  • eToro 
  • AvaTrade 
  • IC Markets
  • BlackBull

Factors to consider while choosing a forex broker in Australia today

  • Regulation: Before choosing any broker for trading in Australia, it is important to verify that the broker is registered with the major forex regulator in Australia known as ASIC. This body monitors the activities of all brokers in Australia and ensures they deliver the agreed contract to their clients. 
  • Duration for processing deposits and withdrawals: Deposit and withdrawals orders placed on a broker’s platform are expected to be released within twenty -four hours. Brokers who can abide by this standard are always the best to choose for trading. 
  • Trading Platforms: Brokers are expected to make their trading platforms very easy to use and accessible by traders at all times. 
  • Commissions charged for trading: The amount charged as commissions for trading with a given broker is an important factor considered when choosing a broker in Australia. Brokers with lower charges for trading are always recommended for beginners. 
  • Customer support service: The ability of a broker to attend to customers’ complaints and resolve them promptly, is an important quality considered when choosing a broker.