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Forex Trading in Australia • Forex Strategies • Benzinga

Trading in the forex market from Australia has some clear advantages over trading from the U.S. or Europe. One of the biggest advantages involves the high leverage ratios you can use for forex positions. These can range as high as 500:1 at Australian Securities and Investments Commission (ASIC) regulated forex brokers. But leverage represents a…

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Trading in the forex market from Australia has some clear advantages over trading from the U.S. or Europe. One of the biggest advantages involves the high leverage ratios you can use for forex positions. These can range as high as 500:1 at Australian Securities and Investments Commission (ASIC) regulated forex brokers. But leverage represents a double-edged sword with losses magnified as much as profits. 

Prepare yourself for the risks and rewards with our guide to trading forex in Australia.

Get Started with Forex in Australia

Many quality forex brokers from around the world offer services to Australian clients due to the country’s strong resource-based economy and vibrant financial sector.  If you’ve never traded before, trading forex in Australia can be relatively easy. All you need to do is follow the 6 steps outlined below:

  1. Obtain a smartphone, PC or tablet with Internet access. 
  2. Find an online forex broker that accepts clients from Australia.
  3. Open a margin account for trading forex with that broker. 
  4. Deposit funds to your account using a payment method accepted by the broker.
  5. Download the broker’s trading platform or a platform you can use with that broker such as MetaTrader. 
  6. Make your 1st trade.

Now your online brokerage account is ready to trade forex from Australia. 

Australian Forex Trading Strategies

At this point, you’ll need a trading plan that incorporates a profitable trading strategy to make your chances of success more likely. You can practice your trading and test strategies through a forex demo account with your trading platform. 

The trading strategies you can implement depend on your level of experience and trading expertise are listed below. All of these strategies have yielded positive results for retail forex traders who have developed profitable trading plans. These strategies can work for forex traders whether they trade from Australia or from some other location. 

  • Scalping: a short-term trading strategy that involves taking advantage of small market fluctuations. Scalpers enter and exit the market quickly aiming to capture profits a few pips at a time.  
  • Day trading: a day trader limits trading activity to a single trading session. The day trader buys and sells throughout the trading session but generally liquidates all positions before the end of the session to avoid the extra risk of carrying positions overnight. 
  • Swing trading: Swing or momentum trading involves establishing forex positions based on the signals generated by momentum technical indicators. The main objective for this trading strategy is to capture a swing move by buying at a low exchange rate and selling at a higher rate or by selling at a high exchange rate and liquidating at a lower level. The strategy has no time constraints, so traders hold positions for as long as needed. 
  • Trend trading: A trend trader generally has a long view on currency moves and establishes positions accordingly. The strategy involves identifying long-term moves in a currency pair, establishing a position in the direction of the trend and then letting the trend conclude before liquidating the position. 
  • News trading: For traders who keep an eye on economic and geopolitical news, news trading might be the right strategy. This strategy involves taking advantage of sharp exchange rate moves seen immediately after the release of sensitive economic data or news of significant geopolitical events. 

This daily candlestick chart shows an upwards trend from 0.5506 on March 19, 2020 to 0.7063 on June 10, 2020 a trend trader could have taken advantage of after reviewing the displayed trend indicators. Source: MetaTrader.

Forex Trading Example in Australia

Australia’s national currency is the Australian dollar (AUD) with the code A$. The Australian dollar is divided into 100 smaller units known as cents. The Reserve Bank of Australia issues and manages the value of the Australian dollar that ranked 5th in forex market turnover among global currencies in April 2019. 

A recent quote for the AUD/USD exchange rate was 0.6920 U.S. dollars to 1 Australian dollars. If your market analysis leads you to expect an increase in the AUD/USD exchange rate, then you might buy 100,000 Australian dollars against the U.S. dollar today at that 0.6920 exchange rate.

If the AUD/USD exchange rate then rose to 0.7020, then you would use the calculation below to determine your trading profits:

100,000 AUD x (0.7020-0.6920 USD/AUD) = 1,000 USD

To then convert that amount of U.S. dollar profit into Australian dollars, you would need to perform the following calculation:

1,000 USD ÷ 0.7020 AUD/USD = 1,424.50 AUD

Conversely, if the AUD/USD exchange rate had instead dropped to 0.6820, then your trading loss would be:

100,000 AUD x (0.6820-0.6920 USD/AUD) = -1,000 USD

That incurred loss converted into Australian dollars at a AUD/USD exchange rate of 0.6820 would be:

-1,000 USD ÷ 0.6820 USD/AUD = -1,466.27 AUD

Making Money with Forex in Australia

Making money trading forex from Australia depends on developing a successful trading plan. The plan should include a profitable trading strategy, a position sizing guide and a sound money management component. 

Since Australian forex brokers allow traders to leverage positions by as much as 500:1, you can control sizable positions with a relatively small margin deposit when trading from Australian. 

Your success trading forex will usually depend on how well your trading strategy performs and if you have the discipline to follow your plan. Any strategy that has proven successful can be incorporated into a trading plan — whether you prefer trading for short-term profits or trend trading to profit from long-term moves.

While a trading plan and strategy may seem like a lot of work, the rewards can make the effort well worth your while. Keep in mind that many strategies that initially perform well may eventually yield diminishing results due to changes in market conditions.

Best Online Forex Brokers in Australia

If you live in Australia, you have many options with respect to regulated forex brokers. The ASIC has oversight and strictly regulates the financial sector including forex trading in Australia. ASIC regulated forex brokers are known for their reliability and strict compliance. 

If you are just starting out as a forex trader, most top brokers offer a wide range of educational resources you can access online.  The list of well-regulated brokers below can help you select the best online brokerage for your needs that are available to Australian forex traders.  

Account Minimum

$100 USD (or equivalent)

Pairs Offered

69

Account Minimum

100 of your selected base currency

Pairs Offered

80+

Account Minimum

100 of your selected base currency

Pairs Offered

80+

1 Minute Review

FOREX.com is a one-stop-shop for forex traders. With a massive range of tradable currencies, low account minimums and an impressive trading platform, FOREX.com is an excellent choice for brokers searching for a home base for their currency trading. New traders and seasoned veterans alike will love FOREX.com’s extensive education and research center that provides free, informative forex trading courses at multiple skill levels. While FOREX.com is impressive, remember that it isn’t a standard broker. You can’t invest in the stock or bond market through your FOREX.com and you cannot open an account with tax advantages. The confusing pricing and margin structures may also be overwhelming for new forex traders.

Best For
  • MetaTrader 4 users
  • Beginner forex traders
  • Active forex traders
Pros
  • Impressive, easy-to-navigate platform
  • Wide range of education and research tools
  • Access to over 80 currencies to buy and sell
  • Leverage available up to 50:1
Cons
  • Cannot buy and sell other securities (like stocks and bonds)
  • Confusing margin requirements that vary by currency
  • Limited customer support options
  • Cannot open an IRA or other retirement account
Account Minimum

$50 USD

Pairs Offered

47

Account Minimum

$50 USD

Pairs Offered

47

1 Minute Review

Though Australian and British traders might know eToro for its easy stock and mobile trading, the broker is now expanding into the United States with cryptocurrency trading. U.S. traders can begin buying and selling both major cryptocurrencies (like Bitcoin and Ethereum) as well as smaller names (like Tron Coin and Stellar Lumens).

eToro offers traders the opportunity to invest their assets into premade portfolios or cryptocurrencies, similar to services offered by robo-advisors through traditional brokers. Though eToro isn’t a one-stop-shop for everything an investor needs, its easy-to-use platform and low spreads is a great way to enter the cryptocurrency market.

Best For
  • International Forex/CFD Traders
  • New cryptocurrency traders looking for an easy-to-use platform
  • Traders who want to buy and sell cryptocurrencies on-the-go
Pros
  • Simple platform that is easy to master
  • CopyTrader feature that allows new traders to copy the same strategies used by professionals
  • Virtual dummy account that gives you $100,000 to practice trades
Cons
  • U.S. traders currently limited to cryptocurrencies
  • Only 15 major coins available to trade
Account Minimum

100 EURO

Pairs Offered

50+

Account Minimum

100 EURO

Pairs Offered

50+

1 Minute Review

A fully regulated broker with a presence in Europe, South Africa, the Middle East, British Virgin Islands, Australia and Japan, Avatrade deals with mainly forex and CFDs on stocks, commodities, indexes, forex, cryptocurrencies, etc. This brokerage is headquartered in Dublin, Ireland and began offering its services in 2006. It offers multiple trading platforms and earns mainly through spreads.

Best For
  • Beginners
  • Advanced traders
  • Traders looking for a well-diversified portfolio
Pros
  • Controlled by regulatory agencies of multiple countries
  • Choice offered in terms of trading platforms
  • Support available in 14 languages and trading platforms in 20 languages
  • Practice/demo account available for trying out
  • Breadth of trading assets
Cons
  • Does not accept customers from the U.S. as it isn’t regulated in the U.S.
  • Transferring funds to the account may take up to five days; withdrawals could take up to 10 days

Forex Terminology

Forex traders have developed unique terms to describe some of the market’s features. Familiarize yourself with these basic terms before you start trading: 

  • Lot size: a lot describes the size of a unit. For example, a standard forex lot represents 100,000 base currency units. Other smaller sizes supported by online brokers include the mini lot (10,000 units) and the micro lot (1,000 units).  
  • Pip: a pip represents the smallest movement in the exchange rate for a particular currency pair.
  • Margin call: an action taken by a broker when holding your trading positions requires an amount of margin that exceeds the amount of funds in your account. The broker issues a notice for you to deposit additional funds to cover these positions. Some forex brokers will automatically liquidate any position that exceeds their margin requirements. 
  • Orders: instructions you give to your broker to execute transactions on your behalf. The most commonly used orders in the forex market include limit, market, stop-loss and take profit orders.  

Is Trading Forex in Australia for You?

Trading forex requires knowledge of the market, a profitable trading strategy and the discipline to follow a trading plan. If you can meet all of these requirements, you stand a much better chance of becoming successful trading forex. 

Make sure any broker you select is strictly overseen by a major financial regulator like the ASIC. Start with our recommended brokers to find success in forex today.

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Statements about Cryptocurrency

Statements about Cryptocurrency

Cryptocurrencies are in a bubble and regulators could burst this at a whim.

  • Eight years after the introduction of Bitcoin, there are now over 900 cryptocurrencies and their prices are at all-time highs.
  • Richard Schiller categorizes bubbles as an underlying story driving the market forward, as opposed to the fundamentals of the assets. Cryptocurrencies are riding on a narrative of economic empowerment and freedom.
  • Despite the widespread attention that cryptocurrency receive, many of the actors involved in the market are not fully informed. Debate tends to turn to hype and naive investors are buying crypto-assets without fully understanding what they are.
  • Banks spend 73% of the market capitalization of Bitcoin each year on regulatory compliance. Crypto-assets are currently unregulated and free of these restrictions. As such, the market has thrived but also developed some bad habits.
  • Regulators cannot necessarily shut down cryptocurrencies, but they can restrict liquidity into them from fiat currencies and hamper their growth. The global derivatives market, for example, is worth $1.2 quadrillion, dwarfing Bitcoin’s $100 billion market cap.

Statements about Cryptocurrency

Market manipulations in crypto markets are undermining their credibility.

  • Due to low liquidity, no regulation, and a lack of clear understanding of the markets, pump and dumps are widespread in crypto markets. This is where a speculator can artificially sell while concurrently buying their own currency, wait for the market to rise, and then dump their holdings.
  • Frontrunning is also a common occurrence in ICOs, where early investors—who are used to show initial faith in the enterprise—buy discounted tokens before immediately selling them on.

As with historic bubbles, scams are exploiting naive investors.

ICOs can have the characteristics of vaporware. Entrepreneurs are raising hundred of millions of dollars purely on concepts. Money is being raised from investors who do not truly understand the technical concepts being proposed to them, let alone whether they are feasible.

  • The actual asset structures of ICOs are not only complex but also new forms of assets in their own right. This further confuses investors, which is compounded by the “FOMO” mentality of rushing into investments and following the crowd.
  • The use of celebrities to promote ICOs further demonstrates the use of manipulative marketing techniques used to cajole immature investors into participating in ICOs.
  • The current ICO craze is reminiscent of the South Sea Bubble of the 18th century, a speculatory period that involved crazed investment into enterprises in the New World. Once one of the highest valued companies of all time, the South Sea Company’s bubble burst and the company disappeared almost as quickly as it appeared.

Blockchains are still not proven technology, and more work is required.

  • Blockchains are still new concepts and their technology has not yet been proven on a consumer-wide scale. Attention should be focused on developing this, not speculating on short-termist projects.
  • The security of blockchains is a concept that most investors in crypto-assets do not understand. The onus is on them to protect their assets, which, on the basis of the amount of thefts and frauds in the space, is not being done properly.

There are some solutions to these issues.

  • A less polarized mentality of “us against the world” is needed; this could be enforced by the promotion of self-regulatory standards. These could also help to highlight the bad actors in the ecosystem.
  • More development is required into the underlying technology of blockchains. In the long run, this would be far more valuable than ICO moon-shot projects.
  • Awareness and discussion needs to be promoted. Conferences should present balanced debates from both sides of the crypto-view and more emphasis should be placed on educating investors instead of soliciting their investments.

Originally Published here at https://www.toptal.com

Statements about Cryptocurrency

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CMStrader Signals provider, the number 1 signal provider 4 years in a row

CMStrader Signals provider, the number 1 signal provider 4 years in a row.

CMStrader, the number 1 signal provider 4 years in a row, is now offering free signals to new clients!  Reliable trading tools are fundamental part of successful trading.

cmstrader for the Best Trading Signals

cmstrader for the Best Trading Signals

 

CMStrader’s signals success rate is estimated in 91% this should be enough to take a look and decide for yourself. since this is their biggest feature and drives this broker towards success, it is opretty afe to say that they do their utmost to provide you with quality forex signals.

This broker also entered the cryptocurrency market and offers several cryptocurrencies.  in short they act on the market and engage their clients directly.

when you start trading at CMSTrader, you can choose from a extended list of currencies, indices, commodities, gold and oil.

CMStrader Signals for better Trading

CMSTrader sends trading signals to traders’ accounts when there is an opportunity to buy or sell orders at specific points; an overview of the speculated price or loss ratio is included.

CMStrader Signals the number 1 signal provider among brokers

CMStrader Signals the number 1 signal provider among brokers

The signals are sent directly via SMS to a cellphone for major currencies traded on the stock exchange, foreign goods and precious metals.

In addition, signals can be sent to an e-mail address and or traders can be notified directly over the phone.  This service is available 24/5.

Like with Most proper signal services don’t expect 50 signals a day as simply there are not that many. you will get maybe a few good ones a day on which you could and most of the time should act.

Earn profits with CMStrader Signals in the forex market – the biggest trading scene in the world. Enjoy our unique benefits, trading education, minimum margin and best leverage! Start with a demo account and enter the amazing world of forex with CMStrader.

More about CMStrader Signals & Forex Broker

  • Name :CMSTrader
  • Website :cmstrader.com
  • Established :2013
  • Regulation :FSP
  • Country :United Kingdom
  • U.S. Clients Allowed ?  :No

CMSTrader is a leading investment advisor specializing in personal wealth management and growth and is a somewhat a newcomer to the Forex market.

they started in 2013 and since then have won several awards 2 including one for having best customer service in 2013.

CMSTrader “CMStrader Signals” is authorized under the name of CMS Ventures Limited which is a New Zealand Registered Financial Service Provider (FSP).

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Supreme Court Sides With Bits of Gold in Bank Dispute

Supreme Court Sides With Bitcoin Broker “Bits of Gold” in Israeli Bank Dispute

Upon appeal, the Israeli Supreme Court has rejected the closure of Bits of Gold’s banking facilities at Leumi bank, Tel Aviv.

The Israeli cryptocurrency brokerage’s appeal followed a previous ruling against it that has now been set aside by the higher court.

As Israel and many other countries struggle with the accelerated phenomenon of virtual currencies, Leumi Bank recently made the news for being a particularly blunt in its rejection of Bitcoin.

We should of course not be surprised with the banks attitude towards bitcoin or any other cryptocurrency for that matter. keep in mind that the banks become more and more obsolete because of them. Bits of gold versus leumi

They will keep on loosing money which now they make with ridiculous commissions of work that is fully automated. so they will try to see how they are able to make the operation and acquiring cryptos  as hard as possible knowing that they will never be able to stop them.

There is widespread anticipation that the upcoming G20 Summit in March 2018 will produce a global, moderate framework for a regulatory approach. Set against that are persistent hostile stances the world over from banks, asset managers and even governments towards cryptocurrencies.

Now that the countries understand there is money to be made with Taxation in cryptocurrencies they might want to make sure that the banks stay within their lane. 

Apart from the Israeli revenue service opting to tax cryptocurrency assets as “properties” and other more positive developments dating back to mid-2017, Israel remains a strange mix of genteel acceptance alongside wildly opposing voices.

There is thus Hope But no decision

Bits of Gold has fought a David and Goliath battle since their banker decided it wanted to steer clear of all cryptocurrency-related business.

On record as recently telling another bitcoin-related trader that they simply don’t want the business, Leumi Bank’s hard-line stance is accumulating bad press. The second-largest bank in Israel appears as discriminatory when analyzing virtual currency traders and other digital coin businesses.

During 2017, a customer made a bank transfer to the Kraken exchange site for buying bitcoin worth $1000. The bank identified the request, halted it, and started investigating.

The elated CEO of Bits of Gold, Youval Rouach said that “The court’s decision enables us to focus on the growth of the Israeli cryptocurrency community.”

 

The February 26 Supreme Court ruling granted Bits of Gold a temporary injunction against their account closure pending further scrutiny by the bank and other parties. The presiding bench declared that the company had “acted transparently and did not violate any provision of law.”

Calling the bank’s concerns “speculative” and turning an unsympathetic ear to the plaintiff, the ruling does, however, allow for the bank to still close the account on any small technical detail that defies legislation. As a record of a public spat around cryptocurrency’s right to be recognized in many ways, the ruling is seen as a victory for the local cryptocurrency community.

One Small Step Forward

Although not as absolute as nations like China that has opted for draconian bans, Israel is a front line for digital coins’ right not just to exist, but also become assets in the true sense of the word. The Supreme Court noted in its written ruling that Bits of Gold had not made itself guilty of the violation of any standing laws since opening its doors for business.

 

The Bits of Gold v. Leumi Bank case might become something of a test case once the bank applies its mind in scrutinizing the company’s accounts against the backdrop of existing legislation. The outcome will also be informed by sentiment post the G20 Summit due in March as well as other global regulatory trends.

Now that the countries understand there is money to be made with Taxation in cryptocurrencies they might want to make sure that the banks stay within their lane.

This was First Published by coindesk

 

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