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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 BrokersMin DepositPlatformsMax Leverage Rating Secure Link
1 fpmarkets Australia
$200
MT4, MT5
IRESS
500:15/5 Visit Site
2 BlackBull Markets Australia
$200
MT4, MT5
VPS, API
500:14.9/5 Visit Site
3 easyMarkets Australia
$200
Web platform, MT4
Mobile app
400:1 4.8/5 Visit Site
4 LegacyFX Australian Broker
$500
MT4, MT5
Mobile Trading
200:14.8/5 Visit 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.

CFD Trading in Australia

Contract for difference trading allows you to make predictions on whether an asset’s price will rise or fall in value.It can also be seen as an advantageous investment, which implies that you are not obliged to disclose your trade’s total value. This may lead to quicker gains or losses, depending on your trade’s performance.

This is how CFD trading functions : To get started, create an account and put money in it. Then select an asset which you will trade CFDs on.There are two prices to choose from; the buy price, in case you are anticipating that the value may rise, and the sell price, in case you are anticipating that the value may fall.

A method which allows you to trade on financial markets and not have any ownership of the basic asset you are trading on is a contract for difference (CFD).

Examine the following before you commence trading so as to discover a trading account with the best options:

  • The volume of the spread: it would be better if it is smaller
  • The margin for each trade
  • If you are able to trade on your preferable market
  • What is the importance of the spread?
  • The spread can be seen as the buying and selling price difference on a trade. A larger spread will imply that you will require a larger proportion of the market to favor you in order to realize some profit.

For instance, supposing the FTSE 100 has a sell/buy price of 6800/6801 (one point spread), you will need the market to move in your favor by more than a point so as to realize some profit.

When comparing CFD brokers, find the smallest spread on the market on which you are willing to carry out a trade.

WHAT IS THE ROLE OF THE MARGIN?

  • All you ought to have is a small portion of your trade’s total value in your account when making a trade and this total is known as the margin.
  • For instance, a trade valued at £100,000 with a 0.1% margin will require you to have just £100 in your account.
  • It can serve as a pledge, implying that the CFD Company can make use of it to cover-up any losses which you incur on a trade equivalent to the total of the margin.
  • Nevertheless, there is a greater possibility for a higher profit as well as a high possibility of risking your money when there is a small margin. More information about margins can be gotten from here.

WHAT TYPE OF MARKETS CAN CFDS BE TRADED ON?

This comparison can be used to have a look at the margin and spreads offered:

Indices, stock exchanges such as the FTSE 100 and Wall Street
Forex, currency pairs like EUR/USD (euro/US dollar) and GDP/USD (pound/US dollar)
Several companies allow CFD trading on several markets, so examine each of them before creating an account.

CFD TRADING ACCOUNT FAQS

Q : What is a CFD?
A : A contract for difference (CFD) can be seen as a method of carrying out a trade on financial markets and not having ownership of the basic asset you are trading on.

Q :What amount of money do I require to carry out a CFD trade?
A : This will depend on the margin because you are only able to carry out a trade if the account balance covers-up the margin required for the trade.

Q :What is the spread?
A  : It is the buying and selling price difference. A smaller spread will imply that you will require a smaller movement of the market in order to realize some profit.

Q :Is it possible to lose more money than what I deposited?
A : Yes, despite the fact that your margin aids in covering up any losses which you incur, you may lose more than what you have in your account.