How to choose the right forex broker in Australia?
For those new to the world of currency trading, a forex broker plays a pivotal role in their success. In essence, a forex broker can be seen as an interpreter or intermediary between the trader and the market—they offer services that include maintaining an electronic trading platform for clients to use, managing their accounts and carrying out transactions.
More importantly, choosing the right forex broker is crucial for any beginner looking to establish a foothold in this field. Forex brokers differ on several significant factors, which you should consider before making any final decision about which one to choose.
A good broker will be known to treat his clients fairly and with respect. Any forex broker worth his salt will have a good reputation. It would help if you trusted them to act honestly and with integrity towards their clients.
If you are starting in forex trading, it is best to look for brokers who possess ample experience in this field. They should possess good trade history to ensure that you can trust them with your money.
It would be best to look for forex brokers regulated by reputable regulatory agencies such as the ASIC (Australian Securities and Investments Commission). It ensures that they follow all laid out rules and regulations regarding fair business dealings. It also guarantees transparency in transactions carried out on their sites.
Licensing & compliances
Before choosing a forex broker, it is best to check on their licensing and compliance info. They should be appropriately licensed to operate in Australia. Depending on the type of licence they have, certain activities may or may not be carried out by the broker – again, depending on whether it’s a full-blown forex broker’s licence or a restricted one. You can quickly check online for this information.
Trading platforms available
In essence, you will use your chosen forex broker’s trading platform when conducting transactions yourself. In light of this, it makes good sense to go with a company that offers multiple trading platforms catering to different needs and operating systems (such as mobile vs desktop).
It ensures that you can comfortably navigate the site and carry out your transactions without any hassles, no matter which device you are using.
Minimum deposit requirements
It would be best if you also looked at their minimum deposit requirements. Each forex broker will have its own set of minimum deposit limits, which may vary depending on their clients (retail traders vs professional traders). Make sure that you factor this into account before finalising your decision.
It is also essential to look for a company that offers extensive educational resources, learning materials and tutorials to ensure your success in this field. They should ideally provide free and paid training content to cater to different needs.
Check out some advice from professionals to further your own education before trusting a broker. Even though you’re making use of a broker, educating yourself on the topic will help you advance your career.
Customer support & service delivery times
Instead, forex brokers offer a wide range of customer support channels such as phone, email and live chat. It is best to select good communication with its clients in the shortest possible time frame when choosing a company.
Number of pairs offered
It helps look for forex brokers who offer a wide range of pairs (standard currencies) for beginners. It ensures that you get exposure to many different trading opportunities and test your trading skills on different pairs. For more experienced traders, this may not be such an essential factor.
Deposit & withdrawal limits
Depending on where you are based and how much money you wish to deposit into your account with any given broker, there will be limits imposed by the financial institutions themselves. These limits are more stringent on international transactions. Make sure that you factor these into your calculations when choosing an online forex broker in Australia.