Introduction To Australian Forex Brokers

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Registering to Australian Forex Brokers

This article is about the factors you should consider when choosing Australian forex brokers.

Once you have undergone suitable training in the market and you are ready to trade, you need to find a market maker to enable you to trade.  Some of these Australian forex brokers are large brokerages, some will offer you tighter spreads and others will offer you better services and tools.  Each one of them has something to offer, but you have to make the decisions based on your personal requirements.

Choosing Australian Forex Brokers

You will not find a perfect forex broker.  They all have their benefits and their disadvantages.  You have to base your decision on the services you are offered that will be suitable for your trading strategy and style.  Some of the questions you should have on your list to be answered may include the following:

  • Is the broker registered with a regulatory body?
  • If so, in how many countries is it registered?
  • Where is the brokerage incorporated?
  • What is the brokerage’s size?
  • How many people does it employ?
  • Is 24 hour support available?

It is in your best interests to find a larger brokerage that is registered with a regulatory body in the country where it is based.  The larger brokerages have more funds at hand to ensure that you obtain the best software and to pay for secure servers that will not kick you out of your trades.  You need to know that the brokerage has enough employees to deal with your calls, emails and queries.

Registration

It is important that you know which regulatory bodies the broker has registered with.  You should determine the requirements of those governing bodies to see if you are covered in cases of fraud or bankruptcy.  In Australia, the forex brokers are regulated by the Australian Securities and Investments Commission.  It is a good idea for you to visit its website and take note of the requirements for registration.  This will give you an idea of the stability of the broker you choose.

If you opt for an overseas broker, you should ensure that it is registered with its local regulatory board.  You should bear in mind that many of the overseas brokers may not offer the same leverage and the margin rules may also differ.

Recommendations on Australian Forex Brokers

If you are confused or simply cannot decide on a forex broker, you should ask acquaintances, friends or family for recommendations.  You can also join some trading forums and request help with your decision.  This method of obtaining recommendations could provide you with a wider scope of what the brokers offer.  If other traders are using a specific broker, you will be able to find out information related to leverage and the type of trading platforms offered.  If you have a shortlist of potential brokers, you should request references from them.  If the broker is not willing to provide you with references, you should consider taking it off your list of potentials.  You may be able to obtain a list of registered brokers from the regulatory body.

The one factor you should consider is that you find a broker that is trustworthy and reliable.  You need to find one that offers the services you need.

 

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