| Updated: September 1, 2025Australia is home to a well-developed foreign exchange market whose average daily turnover reached $150.4 billion in 2022. The country has a robust regulatory framework, with the Australian Securities and Investments Commission (ASIC) overseeing the operations of all locally authorised forex brokers. Australian forex regulations aim to protect local investors, maintain the integrity of the financial markets and ensure fair trading practices for all market participants. Together, these factors make the country an attractive destination for those looking to trade currencies.
Below you can find a list of Forex brokers regulated in Australia:
Top 8 Forex Brokers in Australia
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Fusion Markets
- Australia regulated broker
- MT4, MT5, TradingView, Ctrader
- Leverage up to 500
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
-
FP Markets
- Australia and CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Energy CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
-
Axi
- Raw spreads start from 0.0 pips
- Offers order execution faster than standard ECN model
- Axi Select Funded Trader Program offers funding up to $1 million
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
-
Pepperstone
- Australia and CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Energy CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
-
Plus500
- Multi-Level Regulated Broker
- Proprietary trading platforms
- Easy to use mobile app
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Energy CFDs
- ETF CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Share CFDs
- Stock CFDs
- US Stock CFDs
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Global Prime
- Australia regulated broker
- Advanced MT4
- $0 Minimum Account Size
Trading InstrumentsDeposit Methods- Commodities CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
-
BlackBull Markets
- Broker boasting lightning-fast execution speed
- ECN brokers with tight spreads from 0.0 pips
- $0 minimum deposit requirement
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
-
ActivTrades
- Winner of 20+ Global Awards
- MT4/MT5, TradingView
- Leverage up to 1:400
Trading InstrumentsDeposit Methods- Bonds CFDs
- Commodities CFDs
- Crypto CFDs
- ETF CFDs
- Forex CFDs
- Indices CFDs
- Share CFDs
Brokers Compared by Spread
FX Brokers Deposit Method Comparison
| Brand | Minimum deposit | |
|---|---|---|
| Fusion Markets |  |
$0 |
| FP Markets | |
$50 (AU$100) |
| Axi | |
$0 |
| Pepperstone | |
$0 |
| Plus500 | |
$100 |
| Global Prime | |
$0 |
| BlackBull Markets |  |
$0 (Standard)$2,000 (Prime)$20,000 (Institutional) |
| ActivTrades | |
$0 |
Forex Brokers by Regulator
| Brand | Maximum leverage | |
|---|---|---|
| Fusion Markets | |
1:500 (ASIC | Pro Account), 1:30 (ASIC | Retail Account), 1:500 (VFSC | Retail Account) |
| FP Markets | |
1:500 (CySEC | Pro Account), 1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:500 (FSAS | Retail Account) |
| Axi | |
1:500 (Elite Account), 1:400 (Pro Account), 1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:30 (DFSA | Retail Account), 1:30 (FCA | Retail Account), 1:500 (SVGFSA) |
| Pepperstone | |
1:500 (CySEC | Pro Account), 1:500 (SCB | Pro Account), 1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:30 (DFSA | Retail Account), 1:30 (FCA | Retail Account), 1:200 (SCB | Retail Account) |
| Plus500 | |
1:300 (Pro Account), 1:30 (ASIC | Retail Account), 1:30 (BaFin | Retail Account), 1:30 (CySEC | Retail Account), 1:30 (FCA | Retail Account), 1:30 (FMA | Retail Account), 1:30 (SFSA | Retail Account), 1:30 (DFSA), 1:300 (FSAS), 1:20 (MAS), 1:300 (SCB) |
| Global Prime | |
1:500 (ASIC | Pro Account), 1:30 (ASIC | Retail Account), 1:500 (VFSC) |
| BlackBull Markets | |
1:500 (FMA), 1:500 (FSAS) |
| ActivTrades | |
1:400 (CMVM | Pro Account), 1:30 (CMVM | Retail Account), 1:1000 (FSC), 1:200 (SCB) |
Forex Brokers Platform Availability
| Brand | FX pairs to trade | |
|---|---|---|
| Fusion Markets | |
cTrader, MetaTrader 4, MetaTrader 5, TradingView |
| FP Markets | |
cTrader, TradingView |
| Axi | |
MetaTrader 4 |
| Pepperstone | |
MetaTrader 4, MetaTrader 5, Proprietary Mobile, Proprietary Web |
| Plus500 | |
Proprietary Mobile, Proprietary Web |
| Global Prime | |
MetaTrader 4 |
| BlackBull Markets | |
cTrader, MetaTrader 4, MetaTrader 5, TradingView |
| ActivTrades | |
MetaTrader 4, MetaTrader 5, Proprietary Web, TradingView |
Comprehensive Comparison of the Best Australian Forex Brokers
| Brand | Min. Deposit | Trading Platforms | Spread | Regulation | Trustpilot |
|---|---|---|---|---|---|
 |
$0 |
|
AVG 0.93 pips |
|
|
 |
$50 (AU$100) |
|
AVG 1.2 pips |
|
|
 |
$0 |
|
AVG 0.1 pips |
|
|
 |
$0 |
|
AVG 1.1 pips |
|
|
 |
$100 |
|
AVG 1.3 pips |
|
|
 |
$0 |
|
AVG 0.96 pips |
|
|
 |
$0 (Standard)$2,000 (Prime)$20,000 (Institutional) |
|
AVG 0.3 pips |
|
|
 |
$0 |
|
AVG 0.5 pips |
|
In this article, we explore the legal forms of Forex trading in Australia, the restrictions on currency trading, the regulatory requirements for Forex brokers and how to identify reliable brokers that accept Australian clients. We also discuss taxes on profits generated from Forex trading in Australia and provide an overview of the current state of the market.
Legal Forms of Forex Trading in Australia
In Australia, Forex trading is permitted in various forms, including spot trading, futures, options and forwards. Spot trading allows you to buy or sell forex immediately at the prevailing market rate. Futures, options and forwards are specific types of contracts that enable traders to buy or sell forex pairs at a predetermined future price. Each of these contract types has its own specifics, which you can explore further if you intend to trade forex via futures, options or forward contracts.
Despite the variations discussed above, Contracts for Difference (CFD) trading is the most popular way to trade forex pairs in Australia. CFDs allow traders to speculate on the price movement of different currency pairs without taking ownership of the underlying assets.
Additionally, Australian Forex brokers offer leveraged trading, which enables traders to control larger positions with a smaller amount of capital. However, it is important to note that spread betting on currency pairs is not permitted in Australia, as it is classified as gambling and is regulated under separate legislation. The Australian Securities and Investments Commission (ASIC) oversees the Forex market in Australia, ensuring that brokers comply with the relevant regulations.
Restrictions on Currency Trading in Australia
While Australia has a relatively liberal approach to Forex trading, some restrictions are in place to protect investors. For example, brokers are not permitted to offer trading in certain exotic currency pairs or instruments that are deemed too risky for retail investors.
ASIC has also introduced rules limiting the leverage that brokers can offer to retail traders, capping it at 1:30 for major currency pairs and 1:20 for minor and exotic pairs. This measure is designed to reduce the risk of significant losses and to protect investors from excessive leverage. Furthermore, Australian Forex brokers must provide clear risk warnings and disclaimers to traders, highlighting the potential dangers of Forex trading. Some brokers may also offer additional risk-management tools, such as stop-loss and take-profit orders, to help traders manage their exposure.
Who Regulates Forex Trading in Australia?
The Australian Securities and Investments Commission (ASIC) is the primary regulator of the Forex market in Australia. ASIC oversees the activities of Forex brokers, ensuring that they comply with the relevant laws and regulations and protecting investors from unfair trading practices. ASIC also maintains a register of licensed Forex brokers, which investors can consult to verify a broker’s legitimacy.
Additionally, ASIC provides guidance and resources to help investors make informed decisions and avoid scams. The regulator also works closely with other international bodies to ensure that Australian Forex brokers comply with global standards and best practices.
ASIC’s role in regulating Forex brokers includes:
- Licensing: ASIC issues licences to Forex brokers that meet the necessary criteria, including holding adequate capital, complying with regulatory requirements and demonstrating a commitment to fair trading practices.
- Regulatory Compliance: ASIC monitors Forex brokers to ensure that they comply with rules relating to risk management, client money handling and disclosure.
- Investor Protection: ASIC safeguards investors by ensuring that Forex brokers maintain adequate risk-management systems, including negative balance protection, leverage limits and fund segregation.
- Market Surveillance: ASIC monitors the Forex market to detect and prevent market manipulation, insider trading and other forms of unfair trading practices.
- Enforcement: ASIC can take enforcement action against Forex brokers that breach regulatory requirements, including issuing fines, suspending or cancelling licences and seeking court orders.
Requirements for Forex Brokers in Australia
To operate in Australia, Forex brokers must obtain a licence from ASIC and meet rigorous regulatory requirements. Brokers must also comply with strict rules on investor protection, including negative balance protection, leverage limits and fund segregation. Negative balance protection ensures that traders cannot lose more than their initial deposit, while leverage limits reduce the risk of significant losses.
Fund segregation requires brokers to keep client funds separate from their own, ensuring that traders’ money is safe should the broker become insolvent. Furthermore, Australian Forex brokers must offer clear and transparent pricing, including spreads, commissions and any other fees. They must also implement automatic margin close-outs to prevent traders from accumulating excessive losses. Some brokers may additionally provide investor-protection tools such as guaranteed stop-loss orders and trader compensation schemes.
The regulatory requirements that Forex brokers must meet in order to operate in Australia include:
- AFS Licence: Forex brokers must hold an Australian Financial Services (AFS) licence, issued by ASIC.
- Capital Adequacy: Brokers must maintain sufficient capital to cover their liabilities and to meet their obligations to clients.
- Risk Management: Brokers must implement robust risk-management systems, including negative balance protection, leverage limits and fund segregation.
- Client Money Handling: Brokers must have systems in place to handle client money properly, including segregating client funds from their own.
- Disclosure: Brokers must provide clear and concise information about their services, fees and the risks associated with trading.
In addition, Forex brokers in Australia must comply with further regulatory requirements, including:
- Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF): Brokers must have effective systems to prevent money laundering and terrorism financing.
- Know Your Client (KYC): Brokers must verify the identity of their clients and ensure they are not dealing with suspicious or high-risk individuals.
- Financial Reporting: Brokers must provide regular financial reports to ASIC, detailing their financial position, trading activity and client money handling.
How to Identify Reliable Forex Brokers Accepting Australian Clients
To identify reliable Forex brokers accepting Australian clients, investors should first check the ASIC register to verify that the broker is licensed and regulated. They should also look for brokers that offer price transparency, providing clear and concise information about spreads, commissions and other fees.
Additionally, investors should look for negative balance protection, leverage limits and fund segregation, as these are essential safeguards. It is also advisable to read reviews, check the broker’s reputation online and test their customer support and trading platforms. Many top-rated Forex brokers operating in Australia offer a range of trading instruments and platforms to suit different investor needs.
Are There Taxes on Profits from Forex Trading in Australia?
Before engaging in Forex trading, traders are advised to check the tax system within their own jurisdiction. The Australian Taxation Office (ATO) regards Forex trading as a form of investment, and profits generated are subject to capital gains tax (CGT). However, the tax treatment of Forex trading can be complex, and investors should consult a tax professional to ensure they meet their obligations.
In general, CGT applies to the sale of assets, including currency pairs, and the tax rate depends on the investor’s tax bracket and the length of time the asset has been held. Investors may also be able to claim deductions for trading expenses, such as platform fees and internet costs.
Forex Brokers in Australia FAQ
What type of licence do Forex brokers need to operate in Australia?
Forex brokers need to hold an Australian Financial Services (AFS) licence, issued by ASIC, to operate in Australia and provide financial services to clients.
Are Forex brokers in Australia required to provide negative balance protection to clients?
Yes. Forex brokers in Australia must provide negative balance protection, ensuring that clients cannot lose more than their initial deposit even if the market moves against them.
Can Australian residents trade with offshore Forex brokers?
Yes, Australian residents can trade with offshore Forex brokers, but they should be aware that such brokers may not be regulated by ASIC and might not offer the same level of protection as Australian-licensed brokers.
How can I check if a Forex broker is licensed and regulated by ASIC?
You can verify a Forex broker’s status by visiting the ASIC website and searching for the broker’s name in the Professional Registers, or by checking the broker’s website for their ASIC licence number and confirming it with ASIC.
What are some of the key factors to consider when choosing a Forex broker in Australia?
Key factors include the broker’s ASIC licence, trading platform, fees and commissions, leverage and margin requirements, customer support, regulatory compliance, reputation, security and transparency.
Conclusion
The Australian Forex market is a highly regulated and secure environment for investors, offering a wide range of trading opportunities and protections. By understanding the legal forms of Forex trading, the restrictions on currency trading and the regulatory requirements for Forex brokers, investors can make informed decisions and avoid scams. Moreover, by choosing reliable Forex brokers that provide price transparency, negative balance protection and leverage limits, investors can safeguard their capital and pursue their trading goals. While the taxation of profits from Forex trading in Australia can be complex, investors can minimise their liabilities by consulting a tax professional and claiming deductions for trading expenses. Overall, Australia remains an attractive destination for Forex traders, providing a stable and secure setting for participation in the global currency markets.
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What sets Rational FX apart is its rigorous evaluation process, which considers over 30 different criteria when selecting forex brokers. This comprehensive approach ensures that every aspect of a broker's service is taken in consideration, including regulation, forex spreads, trading platforms, deposit methods, and reputation. With its wealth of experience, transparent review process, and outstanding customer feedback, Rational FX is a trusted source for anyone seeking reliable information on forex brokers. You can reach us via e-mail at feedback@rationalfx.com or contact us through our social media accounts here: Facebook, YouTube, or leave a feedback here.