Forex Brokers in Australia
In many cases, Australia has often been compared to the “Wild West” in America because its 21 million inhabitants have demonstrated resourcefulness and independence in many areas of endeavor, shunning restrictive constraints in early development, but displaying conservative virtues once a new market has evolved to the next stage. Retail forex trading in Australia is one of these areas. Driven by an enormous export trade of raw materials and minerals, the foreign exchange industry has also developed in lockstep to support cross-border settlements from these trade transactions.
At present retail forex trading is relatively new and has flown beneath the regulators, so to speak, while it developed in its infancy. Over the past decade, the growth in China and other emerging markets has produced a heavy increase in exports and a strengthening Aussie Dollar in the process. Many locals have jumped into the fray and profited from this upper move in the nation’s currency, as Australia skirted the recession that befell most all of the other developed economies on the planet. Forex traders in Australia, however, have traded in a safe environment, due to the watchful eye of its national regulator.
The number one consideration in choosing a forex broker, your business partner for the long run, is safety and security. Unregulated firms tend to make outrageous marketing claims to attract your patronage, but often fail to deliver as expected down the road. For this reason alone, it is prudent to follow the lead of the local regulator and independent testimonials from other traders when making your final decision.
The Australian Securities and Investment Commission (ASIC) regulates the forex industry in Australia. The regulator is charged with enforcing regulatory rules toward the goal of ensuring the safety of investors, consumers and creditors, and this mission includes retail forex trading. In short, if you wish to experience trading via your forex broker, Australia is a reasonably safe and comfortable place to get on with the job.
Many of the established and respectable forex brokers for Australians are regulated by the ASIC, and there is no point in trading through an unauthorized company regardless of the attractiveness of the offer. Beginners, in particular, lack the background in finance to understand the brokerage business, and as such, they will do well to place themselves under the protective umbrella of a regulator in order to avoid grave disappointments later. The benefit of local law, active regulatory oversight, and specified capital funding requirements that must be maintained will provide peace of mind and allow for a good night’s sleep.
Having historical ties to the British Commonwealth has its advantages, too. London has always been the world’s financial center for foreign exchange, and many professionals from the London area have migrated over time to Australia. The same is true for many financial professionals from other parts of the world, as well, so Australians can count on a sound foundation for trading within the country. This history, however, does not imply that all brokers are the same. There are good and bad in all markets, and your due diligence should include independent reviews and recommendations from other traders.
In order to facilitate your easy access to the best and most efficient regulated brokers in Australia, we have created our own forex broker toplist above by carefully picking what we believe to be the best firms in the business. Being in-the-know never hurts, so be sure to check our list before you make your final decision.