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If you want to try trading on the Forex market in this country, you are probably interested in whether it is legitimate and subject to taxes. Besides, you will probably need expert advice on reliable brokerage services. You will find this information and much more in our guide for beginners.
First, every potential trader wants to know whether speculating on foreign currencies is legal. The answer is definite ― “Yes”. That means you can enter this sphere without any fears. Besides, due to the regulation by the ASIC, you will be protected from scams and other fraud. The local authorities have managed to create a friendly and comfortable environment for brokers, exchanges, and other participants of the market, which promotes its further growth.
Another popular question relates to taxation. Since Forex trading Australia is fully legal, every trader is supposed to pay taxes as soon as he starts earning, i.e. within the first tax year.
Also, many beginners are interested in how much money they need for a start. Most brokers set an initial deposit limit as low as about $10. Still, if your budget is so limited, you will not be able to generate decent income without using high leverage, which is risky, especially combined with an absence of experience. Hence, most professionals would recommend you make an initial deposit of $500–1000.
How to become a trader?
- Register with a broker licensed by the ASIC. That is a guarantee that the company chosen operates within the law. Besides, pay attention to fees, available assets, research instruments on offer, and deposit/withdrawal terms. Speaking about companies regulated in this country, we would like to mention AvaTrade, IC Markets, and eToro.
- Practice via a demo account. It will allow you to see how trading works in real market conditions by investing virtual money only.
- Formulate your own strategy. It must be based on trading signals and describe which positions you must open and close and at which point. You must not execute deals randomly, instead, you must form your strict system.
- Try passive methods. So, you can trade via a robot, which will monitor the market 24/7 and perform deals on your behalf. Or you can entrust that to a human expert via a managed account. Besides, you can subscribe to a signal provider and follow the notifications received. Another solution is copy trading, which involves mimicking other traders’ deals. Also, you can earn from attracting new traders as an introducing broker.
- Devote time to learning. Remember that there is always room for improvement. So, do not stop exploring new instruments and techniques. And be sure to analyze every trade of yours to determine the weaknesses of your strategy and eliminate them.
In sum, if you want to try trading foreign currency pairs in Australia, you can be sure that it is legal and your rights are protected by the law. Yet, in your turn, you must find a reputable and licensed broker and avoid deals, which are too risky.