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Best CFD Broker Australia

Best CFD Broker AustraliaAre you looking for opportunities to invest your money in a wide range of underlying assets: stock indices, stocks, commodities and currencies. Best CFD Broker Australia tests and ranks the best CFD brokers according to their advantages, their Spreads, their leverage effects and their minimum deposits. There has been a major change in the regulation of Australian CFD brokers. We have made every effort to prioritize safety over price when selecting the best CFD broker in Australia.

What is CFD trading?

CFD is an abbreviation for Contract for Difference. It is a type of trading instrument and is also called derivative trading. A trader that trades CFD is engaging in a contract between himself and the broker. The trader will speculate on the price of an asset to make a profit in CFD trading. A trader makes a profit if the price of the contract or asset moves in his favor. The trader will record losses if the price of the asset moves against him. CFD makes it possible for the trader to make money from trading either the price of the asset rises or falls. In the remaining part of this write-up, we will inform you about how to choose the top rated CFD brokers.

Best CFD broker Australia

Forex Brokers Minimum Deposit Trust Rating Visit Site
Easy Markets Australia
AUD 1
98.85%
Sign Up
Most Recommended Aussie Forex Site
XM Australia
AUD 5
99.81%
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Best stock app
FXTM Australia
AUD 100
99.25%
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Best AU forex broker
Avatrade Australia
AUD 150
99.11%
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User-friendly Forex site!

How to choose a good CFD broker in Australia

CFD is derivative trading. The trader only needs to speculate on the movement in the price of an asset. The trader can also trade different types of markets including the following:

  • Bonds
  • Commodities
  • Currency pairs
  • Equities
  • Indices

Check below for tips on how to choose the Best CFD broker Australia.

CFD broker in Australia

Consider Regulation

You should never deal with any CFD broker if it is not regulated. Regulation of the broker helps to protect the interest of the trader. This way, there is an assurance that the broker will never steal your fund or treat you poorly. As a CFD trader in Australia, you should look for a broker under the regulation of the Australian authority. The regulatory body in Australia is the Australian Securities & Investment Commission (ASIC) the body is directly under the National Consumer Credit Protection Act (NCCP). Regulation by the CySEC is also great. CySEC stands for Cyprus Securities and Exchange.

Check Available Trading Platform

One other very important thing to consider when looking for the best CFD broker Australia is the trading platform available for CFD trading. The entire activities in CFD trading take place online. You should look out for a high-quality trading platform. A very good example is the MetaTrader 4 (MT4) trading platform. You can also trade using WebTarder. It will be good if the broker offers mobile trading. Check if the mobile trading platform is accessible on both iOS and Android operating systems. Some CFD brokers even go a step further by providing a proprietary trading platform. The proprietary trading platforms differ from one broker to another.

Trading Platform Australia

Check for Educational Tools

One other way to know if that broker is reliable or not for CFD trading is by checking the educational tools that the broker offers. If you are a beginner in CFD trading, you will find the educational tools very useful. You can use them to improve your trading knowledge and make yourself better. The educational tools will equally help you to better understand the dynamism in CFD trading. Such knowledge will make you a more profitable CFD trader. For one, find out if the broker offers great charting tools. Check also if the broker offers market updates. This way, you can easily deduce what will happen in the future of the CFD market. Such knowledge will help you to make better CFD trading decisions. Check also for economic calendars on the broker’s platform. This will save you a lot of stress. Other educational tools to consider are:

  • Comprehensive FAQ datasets
  • Webinars
  • Signal indicators
  • Expert financial insights

Check for Types of Accounts

It is very important to check the various account options that the CFD broker is offering before you register there. It is good to look for a broker that offers multiple account options. You should also focus more on brokers that offer the type of account you need. Additionally, check the minimum and maximum account deposits on that platform. Also, check if the account gives you access to good support and educational resources. Some accounts also permit special trading opportunities. Do to forget to check the spread before you register on any broker. You should go for a broker that offers a highly competitive spread.

Consider Leverage

Leverage is also important before you choose a CFD broker. The leverage is the money that the broker lends you to trade. Leverage will help to boost your account but will not be added to the account balance. The leverage makes it possible for you to open a large trading position with a small amount of money you have. Leverage can range from 50:1 to 500:1 the boost the leverage can give your account depends on the leverage you use. If you use a leverage of 50:1, for example, it means that the leverage will boost your open position 50 times. If you have say $100 in your trading account, leverage of 50:1 will give you the ability to open a position as much as $5,000. However, leverage is a 2-edged sword and should be used carefully.