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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…


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.
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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:
- Obtain a smartphone, PC or tablet with Internet access.
- Find an online forex broker that accepts clients from Australia.
- Open a margin account for trading forex with that broker.
- Deposit funds to your account using a payment method accepted by the broker.
- Download the broker’s trading platform or a platform you can use with that broker such as MetaTrader.
- 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 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
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+
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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Forex Trading Knowledge Questions and Answers


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Forex Trading Knowledge Questions and Answers
What Is A Demo Account?
Demo accounts enable new investors to test their ideas and learn how to use trading technologies without risk. Users can use the demo account to trade with simulated money and see what their returns would be if they traded with real money. Demo accounts are often used in schools and universities to teach investing and compete in trading competitions.
Demo accounts are commonly used by stock traders, currency exchange traders, and commodities dealers, but not by long-term investors. A demo account is less effective since the longer it takes to produce earnings from an investment, the more time it takes away from compounding real money.
How Does A Demo Account Work?
Using demo accounts, investors can practice trading on a platform without putting their own money at risk. You will not be exposed to the dangers associated with live trading platforms on a demo account. As a result, you can learn how platforms work without putting your money at danger.
A demo account guarantees that you will not lose money, but it also guarantees that you will not make money. To reduce risk when trading on the real market, traders must learn discipline and establish techniques.
How to Open A Demo Account?
In general, opening a demo trading account is pretty simple. Choose a Broker – Most brokers provide demo trading interfaces to help you become acquainted with the features and create techniques. Choose which broker to use initially.
Registration is necessary, and you must provide your personal information. Name, address, and financial information will be requested. Your identification will almost certainly have to be validated as well.
Once you’ve decided on a broker, you can install MetaTrader4. Once you have decided on a broker, you will require a trading platform. MetaTrader 4 and MetaTrader 5 are the most popular trading platforms.
You will obtain login details after registering with a trading program. You will be able to open an account.
How Long Do Demo Accounts Last?
Traders can use a demo account to test out a program for up to three months before deciding whether to purchase the complete edition. The three-month term is basically offered to guarantee that the prospective buyer has enough information to make them desire to buy.
Why Is It Necessary to Open A Demo Account?
Traders can use a demo account to test out a program for up to three months before deciding whether to purchase the complete edition. The three-month term is basically offered to guarantee that the prospective buyer has enough information to make them desire to buy.
What Are Advantages of A Demo Accounts?
Demo accounts are an excellent method to learn about various trading tactics and software. Paper trading is a lot safer way for a beginner investor to make technical mistakes than real trading. Investors can benefit from the customised trading software provided by each firm.
A demo account lets you to test methods without risking any money, whether you are a novice or an experienced trader. Trading on a demo account allows the trader to test the approach before trading with real money.
Even though many traders begin with equities, commodities and Forex can be profitable. The same strategies, however, may not be applicable in all three asset groups. A demo account allows experienced traders to experiment with several asset classes.
The Differences Between Demo & Live Accounts
A forex demo account is distinct from a genuine account in that it is utilised as a training account for traders to practise trading without putting real money at risk. Real accounts, on the other hand, use actual money, and traders put their own money at risk. A demo account enables users to trade with fictitious money in order to imitate the earnings they would receive if they traded with real money. Demo accounts are often used in colleges and institutions to teach investing and compete in trading competitions.
However, studies have shown that even if a person has obtained extensive trading expertise through the use of virtual accounts, things may turn out differently when real money is involved. Because you are not putting anything at risk is more accessible when dealing with virtual money than when trading with actual money.
Can I have Multiple Forex Demo Accounts?
You may be able to open up to five demo accounts depending on the broker. Some, however, provide up to 19 demo accounts. There is no way to predict how many demo accounts are available at any particular time. All brokers do not limit the number of demo accounts.
If your broker has a demo account limit, you can contact their customer service via email or live chat to request more demo accounts.
There are brokers who will only allow you to open one account of each type per email address.
As a result, you are not able to establish any additional accounts until you give them with another email address or open a new account. Traders do not benefit from this practise because it requires them to spend their resources on opening new accounts rather than allowing them to open as many as they like.
In most circumstances, you won’t need more than five accounts, and depending on your plan, one may enough.
In any case, you should practise on a demo account until you are really proficient.
Is A Demo Trading Account Free?
Demo platforms are usually free. There is no risk of losing money because you will not be dealing with real money. As a result, there are no deposits, withdrawals, or training fees involved.
How to Choose Forex Accounts?
Different accounts have different settings. Before you open a trading account, you should answer the following questions:
How much money do you want to put down? You should keep in mind that trading with money you cannot afford to lose is not a good idea.
What is your level of risk tolerance? If you are a cautious trader, you can open a micro account and trade micro-lots. However, if you wish to trade more aggressively, you should open a regular account.
Do you require any specialised equipment? Many forex brokers provide their best trading tools to its professional clients, which may include cutting-edge news analysis or access to a diverse set of indicators.
Once you’ve determined what kind of trader you are, your trading objectives, and your risk tolerance, you’ll be able to choose which account is best for you.
Can I Take Money Out of a Demo Account?
Unfortunately, the answer is no. Demo accounts are only for practise purposes. You do not deposit anything because the account is not funded with real money.
As a result, any profits you would have made would be ineligible for withdrawal.


Forex Trading Knowledge Questions and Answers
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AvaTrade introducing 3 new crypto pairs


AvaTrade introducing 3 new crypto pairs – updating 3 others
AvaTrade has yet again improved their cryptocurrency trading offering.
AvaTrade is introducing three new cryptocurrency pairs: NEOUSD, EOSUSD & MIOTAUSD in addition to the 15 crypto assets already on offer.
These new pairs have been available since July 1st, 2019 and provide an excellent opportunity to diversify your clients’ portfolios and increase their exposure to this vibrant 24/7 market.
Asset | Typical Spread | Leverage | Margin | Min Nominal Trade Size |
NEOUSD | 1.5% Over-market | 2:01 | 50% | 10 |
EOSUSD | 2% Over-market | 2:01 | 50% | 10 |
MIOTAUSD | 1.5% Over-market | 2:01 | 50% | 10 |
To unify their cryptocurrency instrument labels, They are relabeling their existing Ethereum, Ripple & Litecoin instruments, by replacing the existing instruments with new USD labelled ones:
Asset | Old Symbol | New Symbol |
RIPPLE | XRP | XRPUSD |
ETHEREUM | ETH | ETHUSD |
LITECOIN | LTC_Mini | LTCUSD |
These new pairs have also been available since July 1st,
The trading conditions for each one is identical to those of the older respective assets they replace.
Effective immediately, new positions are only available on the new pairs.
Avatrade Clients will not be able to open new positions on the old assets, but those already open will remain unaffected until July 29th.
Existing positions on XRP, ETH and Litecoin-mini that remain open on July 29th will be automatically replaced with corresponding positions on the new pairs, , at the same opening price and at no cost to clients.
as any broker that values their clients would do , Avatrade makes sure that the clients will not be affected by the change.
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Neteller Launches Cryptocurrency Exchange Service


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Neteller Launches Cryptocurrency Exchange Service
Neteller one of the most known Digital fiat currency wallet provider , has started allowing its users to buy, sell, and hold cryptocurrencies including BTC, BCH, ETH, ETC, and LTC.
They do this on the large scale with a pilot in 10 countries and soon another 50 countries to join . They understand that if you do this effort it will only succeed if you can do this on a global scale.
Neteller and Cryptocurrencies
Neteller is a service which is operated by Paysafe Financial Services Ltd.,


paysafe
founded in 1999, Paysafe Financial Services entered the market with the mission to provide an online alternative to the known traditional payment methods.
Most of the traders aiming us now neteller as one of the companies through which we made our deposits and if we had any profits also our withdrawals. A couple of years ago they left the Forex and Binary industry behind since the charge-back issue became just too expensive.
But as any companies knows, if you do not adept you die. The binary option market is all but dead and the Forex industry has moved also into the directions of the cryptocurrencies. thus, neteller understands that this is where the future is.
So Lasts week they announced that they are now offering a wallet with buy and sell cryptocurrency options.
As of today, Neteller users can buy, hold and sell cryptocurrencies via a recognized cryptocurrency exchange including bitcoin, bitcoin cash, ethereum, ethereum classic and litecoin, purchased using any one of 28 fiat currencies available in the Neteller wallet.
It may not seem so exciting but for many users that love this service it actually is. More and more currencies will be added making them an true exchange in the near future.
Now one is able to fund their neteller account through many different means (Mobile, Epay, Paysafecard, local bank deposits, and bitcoin)
We think that will make the threshold for many people, who would want to buy or sell cryptocurrencies, lower. This in return is a good thing for the overall acceptance of the cryptocurrencies in the mainstream of every day life.
Conditions for buying and selling cryptocurrencies through Neteller
The rates offered are somewhat in the lower middle of the current market making them go for the save route. The average market rates on the major cryptocurrency exchanges differ all in all not that much anyways, as this is not the main reason to choose to buy Bitcoin through Neteller
The minimum cryptocurrency purchase or sale amount is “approximately equal to 10 EUR,” the firm clarified, adding that the maximum amount depends on the transaction limits associated with each account.
When You open an account with Neteller you have to choose your default currency. This is of course for most people in accordance on their geographical locations, people in Britain will go for the pound most Europeans go for the euro and pretty much the rest of the work goes for the US Dollar, thou other currencies are available
The fee is 1.5 percent for purchasing and selling cryptocurrencies from wallets with EUR or USD as the default currency.
The fee rises to 3 percent for wallets with other default currencies.
Neteller | Why is this a good move for neteller and one that we should expect from other online Payment providers as well ?
At this moment till last week Neteller users can pay, get paid on thousands of sites, and send money around the world through their system.
The company claims to have “millions of point-of-sale, ATM and online locations” for users to withdraw or spend their cash.
Last July 25, Paysafe ( which as you remember is the company that owns Neteller
We could now see that this was like their test run on this concept.
We do not know the numbers that Skrill produced since they offered this service but it must have been encouraging enough for Paysafe to include their flagship brand in this endevour.
We will see where this leads but we are hopeful that this is the next step in global acceptance to the cryptocurrency revolution. Let me know what you think
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