There are a lot of traders who consider using Australian forex brokers when they trade. If you are one of these people then you should know what you need to look for in Australian forex brokers. There are certain points that you need to consider from the regulations they operate under to what they have to offer you. It is important that you find Australian forex brokers that will help your trading and not hinder it.
Regulations and Australian Forex Brokers
The first point you need to consider is whether or not the broker adheres to the regulations in place in Australia. Not all countries have regulations for forex trading, but all Australia-based forex brokers need to adhere to the ASIC regulations. The ASIC or the Australian Securities and Investment Commission oversee all financial trading in the country. Broker will need to have a set amount of capital of 500,000 Australian dollars. These brokers are allows to offer any amount of leverage they want unlike American brokers.
Looking at the Trading Platform
Once you have verified with the ASIC that the brokerage company is legitimate you should consider the trading platform they offer. All retail forex brokers will have a platform that they allow their account holders to use. This platform is where you will be trading on the forex market from. The type of platform you get should allow you to complete all the parts of trading that you need to. Some brokers will offer basic platforms that only have the prices of the currency pairs and features to open an order. However, there are other brokers that have highly integrated platforms that offer charts, news feeds and much more. The amount of integration you need depends on the strategy you are using and whether you want all your tools in one place.
Which Currency Pairs Do They Offer?
It is important that you find out which currency pair your broker offers. Some brokers offer a large number of pairs while others only offer the major pairs. It is best to not assume that all Australian forex brokers offer all Australian dollar currency pairs. The broker is likely to offer the Australian dollar in a currency pair with other major currencies. It is best that you find out the currency pairs offered before you open an account with the broker.
What is the Deposit?
You should look at the minimum deposit required to open a live trading account. Brokers do not need a deposit if you are only going to open a demo account. Of course, they will need you to sign up with them and they may contact you to try to get you to deposit and trade with them. The minimum deposit is set by the broker and will vary from company to company. There are some brokers that have a minimum deposit of $1 while others have a minimum deposit of $500.
You need to think about the capital that you can use. All of the capital that you use should be money that you can afford to lose. If you use money that you cannot afford to lose then you are more susceptible to emotional trades because of the fear and anxiety of losing the money.