City Index Australia – Do They Even Accept Australian Traders in 2020

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Contents

City Index Australia – Do They Even Accept Australian Traders in 2020?

With over 150,000 global traders using their platform and some USD $945 million of client assets held in segregated bank accounts around the world, City Index is a CFD trading giant.

Launched in 1983, City is one of the longest-serving CFD brokers in the industry. With its headquarters based in London, they also have offices in Australia, Dubai and Singapore. They are part of GAIN Capital , an NYSE-listed company. City Index launched in Australia in 2006 and is regulated by ASIC (AFSL: 345646).

Why trade CFDs with City Index?

Competitive spreads
City Index are one of the most competitive brokers when it comes to spreads. Their FX spreads start at just 0.5 pips (EUR/USD & AUD/USD) and most of the major indices (Australia 200, German 30 & UK100) are all fixed spreads at 1 point.

Wide range of markets
You can trade on over 5,000 global markets across Indices, FX, Stocks, Commodities and Cryptos.

City Index’ iPhone and iPad app.

Trusted broker
They have been around for over 35 years and have a very good reputation. Also, their parent company, GAIN Capital, is listed on the NYSE.

Excellent trading platforms
Trade using their browser-based Advantage Web platform or use their desktop platform, AT Pro. MT4 is also available, as are some mobile apps.

Powerful charting tools
If your trading edge is all about charts, then City has some of the best charting packages going. Their charts provide 80+ advanced trade indicators. What’s more, all charts can be configured & saved to suit your analysis and trader style.

Up to $1,000 welcome bonus
City offer a $200 bonus upon signing up, placing $500 on your account and making 5 trades*. Additionally, there is also a $1,000 bonus once you sign up, place $7,500 onto your account and make 5 trades*. *T&Cs apply. Click here for more .

Which markets can I trade with City Index?

City Index’ desktop platform

  • Stocks: trade over 4,500 global stocks, including ASX, FTSE100 & US stocks
  • Indices: including the Australia 200, UK100, German 30, Wall St, Japan 225 + more
  • Forex: 84 FX pairs including all the majors; AUD/USD, EUR/USD, USD/JPY + more
  • Commodities:Gold, silver, Brent Crude oil, coffee, US Light crude oil + more
  • Cryptocurrencies:Bitcoin, Ethereum, Litecoin and Ripple.

Test Demo Account >

City Index spread costs

One of the world’s cheapest CFD brokers, offering reasonably-priced spreads and extremely generous leverage of up 500:1.

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City Index offer both fixed and variable spreads. Their spreads vary depending on asset class but are typically very reasonable. Moreover, they are certainly on the cheaper side within the industry which is a great thing.

    • Australian stocks: trade ASX shares from just $5 or 0.08%
    • Global stocks: trade 4,500+ shares from all around the world – Apple & Amazon; 2 cents per share, plus more.
    • Indices: trade the Australia 200 index, the DAX and the UK100 index, all with a fixed spread of 1pt.
    • Currencies: trade EUR/USD with an average of around 0.69pts and AUD/USD from 0.73pts. There is no added commission.
    • Commodities: trade Gold (3 points), Silver (2 points) and Brent Crude Oil (5 points), plus other commodities. Again, no commission added.
    • Cryptocurrencies: trade Bitcoin with a 40 point spread and Ripple from 0.8. Plus other cryptos to choose from.

Does City Index charge commission?

All CFD trades with City are commission-free, excluding stock CFDs. The commission charged on Australian shares is 0.08% ($5 minimum).

Leverage at City Index

City Index offers a very generous leverage rate of up to a massive 500:1!

Other Important Features

Education – City offer one of the most comprehensive educational suites available in the industry. Go to their Trading Academy page and find trader courses, trading strategies, videos and tutorials
Secure funds – all client funds are held in a segregated client account with a Tier 1 AA-rated Australian bank. These funds are not used for hedging purposes, meeting the trading obligations of other clients or in any other business dealings
Different order types – City offer stop loss orders, limit orders, stop and limit entry orders, one cancels other (OCO) order and trailing orders
24hr support – they offer a true 24/5 support desk to help with your queries, day and night – through email, phone call and live chat
ASIC-regulated – City Index is a trading name of GAIN Capital Australia Pty Ltd which holds an AFSL (No. 345646).

City Index trading platforms

City Index offer a wide-range of trading platforms, both downloadable and web-based.

  • Web Trader:a powerful new platform built for you“. This fast and reliable trading platform includes features such as advanced charts with customised indicators and customisable work-spaces. Worth a look.
  • Advantage Web: City’s highly customisable, web-based trading platform, this platform is extremely popular with its clients. Trade thousands of global markets, whilst utilising over 80 technical indicators, one-click trading capability and intuitive charts.
  • AT Pro: AT Pro is City’s popular desktop trading platform designed for more-experienced users.
  • MT4: the world’s most popular trading platform – need we say more. Access MT4’s standard array of features, made even better by City’s ecompetitive pricing and top-quality support.
  • Mobile Trading Apps: trading apps are available on iPhone, Android and Tablets. Furthermore, access live streaming prices, news-feeds, an economic calendar and more. Open & close positions, add orders, you name it!

City Index account types

  • Standard: traders can open a standard account with City with a minimum $200 deposit
  • Premium: want priority service and a dedicated relationship manager? City Index offer a VIP service to clients who fund (and maintain) an account balance of $10,000 or more. Benefits include loyalty rewards, cash rebates, credit allowance and priority service
  • Demo account: traders can test drive City Index’ platform by accessing a demo platform free-of-charge. The demo account is available for up to 12 weeks and they come with a £2,500 virtual balance on them
  • MT4 account: try City Index’ MT4 platform for free by utilising their MT4 demo. The MT4 demo comes with a virtual £10,000 balance.

City Index deposits;

To make a deposit, you will need to login to your account and fund by using one of the following options;

  • Credit card: only Visa or Mastercard are accepted. Simply click on the FUNDING tab (top-right corner of the trading platform) and then select DEPOSIT > DEBIT/ CREDIT CARD.
  • Debit card: City accepts Visa card, MasterCard, Maestro and Electron when it comes to debit card transactions.
  • Bank transfer: EFT, BPAY or PayID. Further details, including their bank details, can be found by clicking the FUNDING tab on the trading platform.

Please note, they do not accept cash payments paid directly into their bank account. What’s more, they are unable to accept third-party payments (payments that do not come from you). Deposits with City are free of charge.

Withdrawal fees and options

To withdraw funds from your City Index account, please visit the funding section on the platform and select WITHDRAWAL. You can withdraw via bank transfer and/or credit or debit card. All withdrawals are free of charge.

The minimum you can withdraw is $50 and the maximum you can withdraw in one (single) transaction is $20,000.

Bank transfer withdrawals typically take 2-3 business days to be returned. Whilst withdrawals to a debit or credit card can sometimes take up to 10 business days in some cases!

How do I apply for a City Index trading account?

If you’re interested in applying for a trading account with City, you can do so by clicking the button below. City Index accepts customers from most countries around the world.

Best Forex Trading Platform Australia Comparison

Australian Forex traders should look for brokers offering trading platforms with tight spreads, low fees and a range of analysis tools.

View the best trading platforms offered by Forex brokers below.

By Justin Grossbard / Updated: Thursday, February 27th, 2020

Best Trading Platforms and Brokers in Australia

The brokers with the best trading platforms for Australian traders in 2020 are:

  • Pepperstone – Best Overall
  • IC Markets – Lowest Spreads And Fees
  • CMC Markets – Best CFD and Share Trading
  • EasyMarkets – Best Beginner Trading Platform
  • Interactive Brokers – Most Advanced Trading Tools
  • ANZ eTrade – Most Sophisticated Share Trading
  • IG Markets – Best Range-Of-Markets Platform

To compare the forex brokers offering the best trading platforms, we created a best forex broker platform comparison table.

In this article, firstly we explain the two most popular trading platforms for retail investors in Australia (MetaTrader 4 and MetaTrader 5), then we look at the best Australian brokers and the platforms offered.

Best Forex Trading Platform for Australian Traders

Australian forex traders have a selection of online trading platforms to choose from. Below we discuss some of the best trading platform options available to Australian forex traders and the best brokers that offer them.

MetaTrader 4 and MetaTrader 5

The two most popular online trading platforms offered to retail investors in Australia are the MetaQuotes platforms MetaTrader 4 and MetaTrader 5. Both trading platforms offer an excellent trading experience, providing a range of technical analysis and risk management tools assist with forex and CFD trading. Both Metaquotes trading platforms offer the popular Expert Advisors (EAs) which allow you to develop algorithms and apply automated trading strategies.

MetaTrader 4 (MT4) is the gold standard used by the majority of retail forex traders in Australia and around the globe. Since its release in 2005, MT4 hosts one of the largest online forex communities, Australians using MetaTrader 4 can access forums and gain answers to nearly any trading queries.

MetaTrader 5 was released in # and was developed to cater to traders’ wanting to trade Shares (as Stock trading is restricted on MT4). Although not as popular as MT4, MT5 will continue to grow in popularity due to its more expansive product range with a greater offering of trading tools such as more timeframes, metrics, charting features and order types.

1. Pepperstone – Best Overall

Melbourne based forex broker Pepperstone offers MetaTrader 4, MetaTrader 5 and cTrader to retail traders. The Australian broker offers two account type options depending on how a trader wants to structure trading fees. The Standard account offers all-inclusive spreads where commission fees are included in the spread, while a Razor Account gives traders access to spreads as low as 0.0 pips while incurring a flat rate commission fee. When trading with Pepperstone, CompareForexBrokers recommends using MetaTrader 4 through a Razor Account type.

Pepperstone’s ECN-Style Razor Account

The Razor account is compatible with both MetaTrader trading platforms as well as cTrader. One of the benefits with the Razor account is it provides a trading environment similar to an Electronic Clearing Network (ECN) account. ECN-like accounts allow for trades to be routed straight to the markets (STP), bypassing broker dealing desks, meaning that you will never wake up to find one of your orders filled at a price other than what you expected. Another key benefit is the ability for you to determine the amount of leverage you want to employ, which is a great way for traders to manage risk exposure. Additionally, Pepperstone offers excellent award-winning customer support, ensuring Australian clients can receive efficient answers to any queries regarding the MetaTrader platform and Razor account.

Trading Tools available on MT4

Pepperstone clients’ using MetaTrader 4 as their trading platform can enjoy a user-friendly interface with a range of advanced analysis tools. Pepperstone customers can utilise MT4’s Autochartist features to assist with developing complex trading strategies. Autochartist offers a market scanner, risk calculator with backtesting, volatility analysis tools, market reports and a range of technical indicators.

For traders’ wanting to automate trading with algorithmic strategies, Expert Advisors (EAs) can be created and executed using MQL4 (MetaQuotes MT4 Language). If further Expert Advisor tools are required, Pepperstone’s Smart Trader Tools can be downloaded from the broker’s website. The suite of 28 different EAs and indicators allow for sophisticated trading strategies to be developed while managing the high-risk of forex trading.

Expert Advisor Smart Trader Tools

Foreign Exchange Market Regulation

Traders with Pepperstone will appreciate the security and investor protection provided through ASIC regulation. ASIC, the Australia Securities and Investments Commission, requires brokers to follow stringent regulation to ensure Australian traders’ can access fair and competitive forex markets.

2. IC Markets – Lowest Spreads and Fees

IC Markets an Australian based CFD broker offering ultra-competitive forex spreads while charging low trading and account fees. The regulated broker holds an AFSL (Australian Financial Services License) issued by ASIC (Australian Securities and Investments Commission) and therefore is seen as one of the best brokers for currency trading in Aussie.

The table below shows the minimum and average spreads for different currencies against the Australian Dollar. Few brokers can compete with IC Markets institutional-grade pricing, with clients’ having the ability to trade the fx financial instruments listed below at spreads as low as 0.0 pips in ideal market conditions.

The ECN-style spreads are due to IC Market’s top-tier liquidity providers and No Dealing Desk (NDD) execution. To ensure traders can access the tightest spreads possible, the regulated broker sources prices from 25 different financial institutions including major European, American and Australian banks.

IC Markets Spreads Raw Acc. Minimum Spread Raw Acc. Average Spread
EUR/USD 0.0 0.1
AUD/USD 0.0 0.2
AUD/NZD 0.0 0.8
EUR/AUD 0.0 0.5
AUD/SGD 0.0 1.1
GBP/AUD 0.0 1.1
AUD/JPY 0.0 0.4

Commission Fees for MetaTrader and cTrader Platforms

Commission fees vary between trading platforms. For traders’ signed up to a Raw Spread Account a commission fee of $3.50 (per lot/per side) will be incurred when using MetaTrader 4, while those trading on cTrader will pay a commission fee of $3.0 per USD 100,000 traded.

Trading Account Fees

As well as tight spreads and low commission fees, clients trading with IC Markets mostly incur no fees when depositing or withdrawing funds. Traders’ face no fees when withdrawing funds via credit/debit card and domestic bank wire, yet a processing fee of AUD $20 is charged for international bank wire transfers. When it comes to depositing funds into trading accounts, IC Markets customers’ have a range of payment methods available as shown below.

Australian Dollar (AUD) Funding Methods Processing Time Accepted Currencies
Credit and Debit Card Instant AUD, USD, JPY, EUR, NZD, SGD, GBP, CAD
PayPal Instant AUD, USD, JPY, EUR, NZD, SGD, GBP, CAD, HKD, CHF
Neteller Instant AUD, USD, GBP, EUR, CAD, SGD, JPY
Neteller VIP Instant AUD, GBP, EUR, CAD, SGB, JPY
Skrill Instant AUD, USD, JPY, EUR, SGD, GBP
POLi Instant AUD
Wire Transfer 2-5 Working Days AUD, USD, JPY, EUR, NZD, SGD, GBP, CAD, CHF
Bpay 24-48 Hours AUD

It is easy to start trading with IC Markets, the process of signing up is efficient and a low initial deposit of $200 is required. Once signed up, traders’ can access a range of CFDs in addition to foreign exchange markets, such as Cryptocurrencies, Indices, Commodities, Stocks, Bonds and Futures.

3. CMC Markets – Best CFD and Share Trading

CMC Markets is a London based forex broker, yet the companies Sydney hub caters to the unique requirements of Australia’s retail forex market. The broker is highly regarded for its impressive market access, with traders able to trade over 330 currency pairs among other CFDs. The tight ECN-like spreads CMC offers are not restricted to major currency pairs such as EUR/USD, with the ability to trade more exotic Asian-Pacific fx pairs at competitive spreads as well.

As well as a large selection of forex pairs to trade, CMC clients’ can take CFD positions in an impressive range of financial instruments.

  • Commodities: 100+ cash and forward commodity instruments
  • 90+ cash and forward global indices
  • 2000+ Australian shares, 9000+ international shares and 1000+ ETFs (Exchange Traded Funds)
  • 55+ treasury products
  • 10+ Cryptocurrency products

Proprietary and MetaQuotes Trading Platforms

CMC Markets clients’ can execute trades using their proprietary web-based platform, Next Generation, or MetaTrader 4. For traders’ wanting to access CMC Markets full product range, they are required to use Next Generation as MT4 only provides market access to Forex, Indices and Commodities. As well as greater market access, the Next Generation platform has a wider range of inbuilt features such as pattern recognition, watchlists, guaranteed stop-loss orders, Reuters news and an economic calendar.

As mentioned in our CMC Markets Australia review, when executing trades on the brokers proprietary trading platform, users’ can access trading accounts via a webtrader platform or mobile apps compatible with iOS and Android. MT4 is a desktop-based platform and has trading apps available for iOS and Android devices.

4. EasyMarkets – Best Beginner Trading Platform

EasyMarkets is a well-established Australian forex and CFD provider that holds an AFSL issued by ASIC. For investors’ wanting an easy introduction to forex trading, EasyMarkets is an excellent option due to its user-friendly proprietary trading platform and easy-to-use risk management tools.

The EasyMarkets web trading platform offers a simpler interface than MetaTrader 4, providing an intuitive yet versatile platform for traders’ wanting to gain experience.

When trading forex via EasyMarkets webtrader platform customers’ are given access to a range of fx pairs with a simple pricing structure. Fixed spreads on forex are inclusive of commission charges, while account management costs are low with no deposit or withdrawal fees. Minimum deposit requirements suit those new traders’, as only $100 is needed to open a trading account. Additionally, EasyMarkets prides itself in transparency, with information such as Product Disclosure Statements (PDS) and FAQs displayed clearly on the broker’s website.

Tools available on the web trading platform that are useful for traders new to foreign exchange markets include:

  • Freeze rate: halt the market and place orders taking advantage of favourable price movements
  • Deal Cancellation: pay a small fee to ‘insure’ trades for 60 minutes
  • Inside Viewer: provides market sentiment stats allowing users’ to view whether the majority of traders’ are buying and selling.

Contract for Difference (CFD) products available to trade through EasyMarkets web trading platform include:

  • 136+ forex pairs with fixed spreads with free guaranteed stop-loss orders (GSLO)
  • Metals such as gold, silver, copper, platinum and palladium
  • Energy commodities including Crude Oil, Brent Crude and Natural Gas
  • Agricultural commodities such as cotton, sugar and cocoa
  • Indices that track major markets around the globe including S&P 500, NASDAQ, Australian ASX and the US dollar index.
  • Cryptocurrency CFDs derived from Bitcoin, Ethereum and Ripple

If a trader is wanting to sign up with EasyMarkets yet the brokers’ proprietary platform lacks advanced tools required, MetaTrader 4 can be downloaded as a desktop platform. The EasyMarkets MT4 platform provides access to the same product range as the brokers proprietary platform, with a wider selection of order types and advanced risk management features.

5. Interactive Brokers – Most Advanced Trading Tools

Interactive Brokers offer traders’ a selection of trading platform options depending on the products and tools required. For those taking a simple approach to forex trading, the IBKR Webtrader and Client Portal platforms provide easy-to-navigate interfaces. For high volume traders’ conducting advanced technical analysis, the brokers desktop platform, Trader Workstation (TWS), offers a customisable trading environment with extensive tools. To access TWS, IB clients need to sign up to an IBKR Pro account type. Below shows the available trading tools for different IB trading platforms.

IB’s Advanced Trading Platform: TWS

In addition to the standard trading tools offered by most online brokers, Interactive Brokers provides an extensive range of advanced trading tools and risk management resources.

Order Types and Algos

When trading forex with IB, users’ can employ different order types and algorithmic tools to manage risk, increase execution speeds and maximise profits.

IB TWS Order Types Accumulate/Distribute Arrival Price Basket Bracket Conditional
GAT (Good After Time/Date) GTC (Good-til-Cancelled) GTD (Good-til-Date/Time) IOC (Immediate or Cancel) Limit Limit if Touched
Market Market if Touched OCA (One-Cancels-All) Scale Stop Adjustable Stop
Trailing Stop Trailing Stop Limit Stop Limit Trailing Limit if Touched Trailing Market if Touched TWAP

Advanced algorithmic trading strategies can be developed with 26 different tools available on TWS. Examples of IB’s custom-designed trading tools include:

  • Probability Lab
  • Portfolio Analyst

Risk Management tools:

  • IB Risk Navigator
  • Model Navigator

Interactive Brokers Trader Workstation software can be downloaded and accessed via a demo account. IB’s ‘Paper Trading’ feature allows users’ to explore the TWS platform, as well as test complex strategies prior to using real money.

6. ANZ eTrade – Most Sophisticated Share Trading

Investors’ wanting to focus on Share trading may prefer the ANZ eTrade service over an online forex broker. Traders’ using ANZ eTrade can buy and sell a range of products including:

  • Domestic Shares (Au): ASX or Chi-X Australia Indices
  • Global Shares: 11 international markets that include NASDAQ and NYSE
  • Options: Equity and Index Options
  • Exchange Traded Funds (ETFs)
  • Warrants
  • Managed Funds
  • IPOs

ANZ eTrade offers its proprietary trading software as a Standard or Pro platform. ANZ’s Standard platform offers basic features yet lacks analysis tools needed by many investors. Although users’ can conduct simple market research with real-time market data, ASX updates and Dow Jones news; technical analysis tools are restricted. For investors requiring technical indicators, advanced charting features and drawing tools to develop trading strategies, ANZ’s Pro platform is better suited.

Brokerage and account fees when trading with ANZ eTrade’s service are relatively high when compared to other online brokers.

Trading Forex in Australia

Trading forex in Australia has unique but not insurmountable challenges. The best trading platform for Australian forex brokers making a living in the southern hemisphere, far removed from the big financial centres of London and New York, no more difficult than any other aspect of daily life. In an increasingly connected 24/7 world, you can trade forex on a level playing ground in real time with anyone in the world.

One of the factors Australian traders seeking to capture profits from online trading currencies in foreign exchange currency markets (forex) is that the times of peak currency market activity are out of sync with Australian time zones. Whilst it is entirely true that the Forex market trades 24 hours per day for 5-1/2 days per week, there are many hours when price activity is quiet due to a lack of trader participation.

There are four predominant forex sessions during a trading day, that is based on the time in major cities with large financial market operations. Those sessions are based on Sydney, Tokyo, London and New York. The different sessions overlap to a certain degree. By far, the most critical session in which to participate in is the tail end of the London Market and the beginning of the New York market. The four-hour period when those two sessions overlap is when the vast majority of trading activity, even activity related to the Australian and New Zealand dollars, takes place in terms of currency pair price movements.

For someone living in the Australian Eastern Standard Time (AEST) zone, those prime hours when the London and New York Forex sessions overlap are 11:00 PM to 3 AM. Given that you would prefer to be sleeping during those hours, choosing the best trading platform for Australian traders requires various order types and algorithmic trading functions because very little of the trading being done will be actively managed.

Taking Advantage of Forex Orders Based on AEST

No, you do not have to forego sleep in order to participate in the forex markets. Rather, you can use special order types to set up your trades in advance, go to bed, get yourself a good night’s sleep, and then have a look in the morning when you get up to see how your online trading strategies panned out. Strange as it may sound, trading in this fashion is less stressful, because price analysis, trade entries, exits and maximum acceptable risk can be made outside times of peak price activity without your emotions getting the better of you.

Using “Limit” and “Stop” orders on your forex trading platform, you can efficiently plan your trades. You will be much more objective without watching trades go in your favour or against you, tick by excruciating tick, and you will be able to determine logical entry and exit points, as well as control your exposure to risk. To new traders, this discovery is a welcome revelation. To those with some degree of experience, it is a solid reality. A good trading platform for Australian traders will take the effect of time zones into account and offer tools to compensate for this.

Brokerage Fees When Online Trading

The best trading platform Australia option should also factor in brokerage fees. Generally, there are two main brokerage fees:

The spread is more applicable to forex trading with the difference between the buy and sell (bid/ask) price being the compensation to forex brokers facilitating trading. A round trip, flat rate commission is often associated with share trding or ECN-like forex trading accounts. Here a set commission is set per trade or more often, by the quantity traded. Commissions are more straightforward than spreads to calculate brokerage fees, hence why experienced traders often opt for these online trading accounts.

Share Trading Options With These Platforms

For Australian investors requiring an online share trading platform, IG Markets and easyMarkets offer both forex and share trading on their primary trading platforms. Another firm that offers a forex/share trading hybrid is CMC Markets. Alternatively, forex brokers such as Pepperstone, offer CFD share trading on MetaTrader 5.

Published by Justin Grossbard

Thursday, February 27th, 2020

Compare Brokers in Australia

For our australia comparison, we found 23 brokers that are suitable and accept traders from Russian Federation.

We found 23 broker accounts (out of 147) that are suitable for Australia.

Pepperstone

Spreads From

What can you trade?

  • Forex
  • Crypto currencies
  • Indices
  • Commodities
  • Stocks
  • ETFs

About Pepperstone

Platforms

  • MT4
  • MT5
  • Web Trader
  • Mobile App

Funding Methods

  • Credit cards
  • PayPal
  • Bank transfer

73.6% of Pepperstone Limited’s retail investor accounts lose money when trading CFDs

Spreads From

What can you trade?

  • Forex
  • Crypto currencies
  • Indices
  • Commodities
  • Stocks
  • ETFs

About IG

Platforms

  • MT4
  • MT5
  • Web Trader
  • Mobile App

Funding Methods

  • Credit cards
  • PayPal
  • Bank transfer

68% of retail investor accounts lose money when trading spread bets and CFDs with this provider

Read our in-depth IG review

Plus500

Spreads From

What can you trade?

  • Forex
  • Crypto currencies
  • Indices
  • Commodities
  • Stocks
  • ETFs

About Plus500

Platforms

  • MT4
  • MT5
  • Web Trader
  • Mobile App

Funding Methods

  • Credit cards
  • PayPal
  • Bank transfer

76.4% of retail CFD accounts lose money

Spreads From

What can you trade?

  • Forex
  • Crypto currencies
  • Indices
  • Commodities
  • Stocks
  • ETFs

About XTB

Platforms

  • MT4
  • MT5
  • Web Trader
  • Mobile App

Funding Methods

  • Credit cards
  • PayPal
  • Bank transfer

75% of retail investor accounts lose money when trading CFDs with this provider.

Read our in-depth XTB review

AvaTrade

Spreads From

What can you trade?

  • Forex
  • Crypto currencies
  • Indices
  • Commodities
  • Stocks
  • ETFs

About AvaTrade

Platforms

  • MT4
  • MT5
  • Web Trader
  • Mobile App

Funding Methods

  • Credit cards
  • PayPal
  • Bank transfer

71% of retail investor accounts lose money when trading CFDs with this provider.

Forex.com

Spreads From

What can you trade?

  • Forex
  • Crypto currencies
  • Indices
  • Commodities
  • Stocks
  • ETFs

About Forex.com

Platforms

  • MT4
  • MT5
  • Web Trader
  • Mobile App

Funding Methods

  • Credit cards
  • PayPal
  • Bank transfer

69% of retail investor accounts lose money when trading CFDs with this provider

Axitrader

Spreads From

What can you trade?

  • Forex
  • Crypto currencies
  • Indices
  • Commodities
  • Stocks
  • ETFs

About Axitrader

Platforms

  • MT4
  • MT5
  • Web Trader
  • Mobile App

Funding Methods

  • Credit cards
  • PayPal
  • Bank transfer

68.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

eToro

Spreads From

What can you trade?

  • Forex
  • Crypto currencies
  • Indices
  • Commodities
  • Stocks
  • ETFs

About eToro

Platforms

  • MT4
  • MT5
  • Web Trader
  • Mobile App

Funding Methods

  • Credit cards
  • PayPal
  • Bank transfer

62% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

XM Group

Spreads From

What can you trade?

  • Forex
  • Crypto currencies
  • Indices
  • Commodities
  • Stocks
  • ETFs

About XM Group

Platforms

  • MT4
  • MT5
  • Web Trader
  • Mobile App

Funding Methods

  • Credit cards
  • PayPal
  • Bank transfer

71.6% of retail investors lose money when trading spread bets and CFDs with this provider.

City Index

Spreads From

What can you trade?

  • Forex
  • Crypto currencies
  • Indices
  • Commodities
  • Stocks
  • ETFs

About City Index

Platforms

  • MT4
  • MT5
  • Web Trader
  • Mobile App

Funding Methods

  • Credit cards
  • PayPal
  • Bank transfer

72% of retail investor accounts lose money when trading CFDs with this provider

Between 54-87% of retail CFD accounts lose money. Based on 69 brokers who display this data.

The Ultimate Guide to

Best Online Brokers for Australia

The primary Australian stock market is the Australian Securities Exchange (ASX), and located in Sydney, Australia, it’s also referred to as the Sydney Stock Exchange. The ASX was formed in 1987 by a conglomeration of six regional securities exchanges and a more recent merger in 2006 with the Sydney Futures Exchange.

The ASX is regulated by the Australian Securities and Investment Commission (ASIC), an institution that supervises all Australian financial markets, as well as the clearing and settlement of securities. It is important to note that in order to conduct any financial service business, including being a registered forex broker, it’s necessary to apply for the license through ASIC.

Currently, the ASX ranks 16 th among the world’s largest stock exchanges, and allows for the listing of shares and equity derivatives. In addition, there is also listings for bonds, hybrid securities, exchange traded funds (ETFs), exchange traded products (ETPs), warrants, indices, derivatives based on interest rates, as well as grain and energy commodities.

The ASX categorizes its premier market with an All Ordinaries Index (XAO) reflecting the top 500 companies listed on its platform. Note that the eligibility criteria for XAO is the market capitalisation of its members, as liquidity is not considered in this index (with the exception of foreign domiciled companies). In addition, ASX continues to further segment stock indices into S&P/ASX 20, the S&P/ASX 50, the S&P/ASX 100, the S&P/ASX 200 and the S&P/ASX 300 indices; in short classifying the top 20, 50, 100, 200 and 300 qualified corporations listed on ASX by varying criteria related to the company’s liquidity.

Furthermore, the ASX has instituted the ASX Compliance which operates as a separate division of ASX. ASX Compliance oversees the adherence of listed entities and participants with ASX listing and operating rules for the various exchange traded markets. ASX also works closely with ASIC by notifying the government regulator of any rule violations.

In terms of forex trading, the Australian dollar (AUD) is a highly traded currency. The AUD is managed and issued by the country’s central bank, Reserve Bank of Australia (RBA). As of 2020, The Bank for International Settlements (BIS), an international organization that aims to promote financial cooperation by fostering collaboration between central banks, ranked the AUD 5 th among the most actively traded currencies.

BIS determined that AUD composed roughly 6.9% of overall forex market turnover. Furthermore, in accordance to the International Monetary Fund (IMF) the AUD ranked 6 th among the world’s most popular currencies held as reserves by central banks, comprising about 1.62% of total central bank reserves of the fourth quarter of 2020.

How to Trade in Australia

The type of trading undertaking in Australia, may it be asset or stock trading, can vary greatly between brokers. The majority of online brokers provide a forex trading capability and CFD which is popular since they typically allow trading in a broader range of assets. With stock trading, the ASX aims to provide a transparent and fair market for investors in wide range of asset classes, as well as Australian stocks and indices.

Additionally, the ASX Group of exchanges currently has two trading platforms. The first is known as ASX Trade and allows the trading of ASX listed equity securities, while the second is the ASX Trade24 system that facilitates trading in ASX listed derivative securities.

Due to the high popularity of the AUD, many forex brokers are situated in Australia. Nevertheless, Australian traders can choose from a wide selection of brokers based anywhere in the world using margin trading accounts opened with foreign online brokers.

When considering trading with an online broker in either forex or in derivative trading such as contracts for difference (CFDs) , having an Australian based broker may provide distinct advantages to foreign online brokers. Firstly, a locally situated broker will be registered with ASIC with a need to uphold its reputation. Secondly, any disputes that could potentially arise could be handled locally. Thirdly, a local broker’s normal business hours and market focus will usually be more akin to those needs of an Australian trader. However, if a foreign broker is better suited for your needs, it is important to ensure that it is governed by a well-regulated jurisdiction.

In considering online brokers there are some factors that may be helpful to bear in mind such as demo accounts or minimum deposits. Many online brokers offer a demo account , complete with virtual money for traders to use for practicing, testing a strategy or even the broker’s services. Alternatively, some brokers also offer live trading accounts where a minimum initial deposit is normally required to begin trading with real money. There are also those catering to Sharia law compliant or Islamic accounts , which do not have swaps on rollovers.

Biggest Opportunities of Trading in Australia

Australia’s financial services sector is relatively new compared to markets in Europe and Asia. Also, the population of Australia’s 25.06 million people sparsely covers the subcontinent’s 2.9 million square miles, with most of the population concentrated in the major cities and neighbouring areas.

According to export.gov , Australia welcomes exports such as electronic products, chemicals, machinery and agricultural products from developed countries. Prospect sectors include building products, cloud computing, auto parts, medical equipment, mining, oil and gas equipment.

The country also provides additional opportunities for businesses as follows:

  • Since January 1st, 2005, the Australian Free Trade Agreement (AUSFTA) lowered the threshold for foreign investment as well as providing enhanced intellectual property protection, stimulating greater two-way investments. Additionally, since the inception of AUSFTA, more than 99% of goods exported from the United States now enter Australia duty-free.
  • Despite Australian GDP growth in 2020 slowing down to its lowest level in the past 28 th years, nominal GDP expanded by +4.9%, mainly due to an increased demand for Australian natural resources.
  • The RBA, Australia’s central bank, recently cut its benchmark Cash Rate to an all-time low of 1.25%. Due to the nation’s current economic slowdown, the RBA is expected to make additional cuts to the Cash Rate that will most likely reach 1.00% by July or August of 2020.
  • Australia is one of the gateways to doing business in the Far East, as well as New Zealand and the rest of Oceania.

With respect to enforcing contracts, starting a business, obtaining credit and dealing with construction permits, Australia ranked 5 th , 7 th , 8 th and 9 th respectively in accordance to the World Bank . They also ranked Australia 18 th for the general ease of doing business there.

Biggest Challenges of Trading in Australia

One of the biggest non-tariff challenges of doing business in Australia is due to the remoteness of the subcontinent. Moreover, many foreign companies that open for business in Australia discover that Australia buys many products from established emerging markets suppliers. Products made in Australia by a foreign company may therefore have to compete with low cost goods already imported from these competitively priced markets.

Moreover, the Australian dollar has also been quite volatile over the last twenty years, according to historical data provided by MetaTrader . In October of 2008, the AUD traded as low as 0.6008 against the U.S. Dollar, rallying up to 1.1079 by July of 2020. The AUD currently trades at the 0.7000 level against the dollar, with a good chance of declining further if the RBA lowers interest rates.

As an overview, in accordance to the World Bank registering property and obtaining electricity, Australia ranked 50 th and 52 nd . Furthermore, the business environment was also rather unfavourable for trading across borders, protecting minority investors and paying taxes, with Australia ranking 103 rd , 64 th and 26 th respectively in those areas.

Summary

Traders and businesses should generally find Australia a very secure place to operate, due to its mature economy and a stable political structure. Additionally, financial institutions with offices in Australia receive oversight by ASIC, as well as ASX Compliance if involved with exchange traded securities.

As a rule of thumb, when looking to trade from Australia via an online broker, traders really should ensure that the financial firm offers an adequate asset class range, is adequately regulated, and has a good reputation and a full featured trading platform. Acceptable brokers should also provide a secure place for a margin deposit by keeping its clients funds separate from its own in case of financial difficulties.

Why Choose Pepperstone
For Australia?

Pepperstone scored best in our review of the top brokers for australia, which takes into account 120+ factors across eight categories. Here are some areas where Pepperstone scored highly in:

  • 8+ years in business
  • Offers 170+ instruments
  • A range of platform inc. MT4, MT5, Mac, ZuluTrade, Web Trader, cTrader, Tablet & Mobile apps
  • 24/7 customer service
  • Tight spreads from 0.00pips
  • Used by 0+ traders.
  • Offers demo account
  • 3 languages

Pepperstone offers three ways to tradeForex, CFDs, Social Trading. If you wanted to trade AUDUSD

The two most important categories in our rating system are the cost of trading and the broker’s trust score. To calculate a broker’s trust score, we take into account a range of factors, including their regulation history, years in business, liquidity provider etc.

Pepperstone have a AAA trust score. This is largely down to them being regulated by Financial Conduct Authority,UK and ASIC, segregating client funds, being segregating client funds, being established for over 8

Trust Score comparison

Pepperstone IG Plus500
Trust Score AAA AAA B
Established in 2020 1974 2008
Regulated by Financial Conduct Authority,UK and ASIC Financial Conduct Authority and ASIC Financial Conduct Authority (FRN 509909) and Cyprus Securities and Exchange Commission (License No. 250/14). Plus500AU Pty Ltd (ACN 153301681), licensed by: ASIC in Australia, AFSL #417727, FMA in New Zealand, FSP #486026; Authorised Financial Services Provider in South Africa, FSP #47546
Uses tier 1 banks
Company Type Private Private Private
Segregates client funds

A Comparison of Pepperstone vs. IG vs. Plus500

Want to see how Pepperstone stacks up against IG and Plus500? We’ve compared their spreads, features, and key information below.

Best Binary Options Brokers 2020:
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