Forex trading Melbourne: How to get started with it?

Updated on: July 15th, 2022

Forex trading Melbourne: What do you need to know?

The forex market’s high liquidity attracts many people to forex trading. However, starting forex trading in Melbourne can be confusing, especially for new participants. You can magnify your forex trading profits if you work with the right forex brokers in the city.

Here we have a comprehensive guide on starting forex trading in Melbourne. So, here we go:

How to start forex trading Melbourne?

Here are the essential steps to start forex trading Melbourne:

Select your currency pair

The first step of forex trading is to understand the currency pair you want to trade. Forex brokers usually offer multiple currency pairs to trade. As a beginner, you can focus on one or max two major currency pairs to focus. It’s always better to perform your due diligence and analyze the market before making any decision.

Determine how you will trade forex

Futures and Spot are two major forex market types. Spot Market gives traders currency pairs’ live prices. On the other hand, in the Forward market, you will set your trade for a certain price. Spot trading is performed in lots in the base currency’s unit.

Choose an ASIC-regulated Forex broker

Once you have decided on the currency pair and trade type, you’ve to choose an ASIC-regulated Forex broker. Choosing an ASIC-regulated broker will protect your rights as a trader.

Consider different factors given below to make a more effective choice in this regard:

• Spreads and leverages
• Supported platforms
• Minimum deposit limit
• Withdrawal and deposit options
• Demo account
• Available account types
• Risk management tools
• Available currency pairs to trade
• Fees and commissions
• Educational and research tools, etc.

All these factors will ensure enhanced security and help you to trade with a reliable forex trading platform.

Open your account and start the journey

After selecting a forex broker, you need to open an account by providing the required information at signup. Connect your forex trading account with your bank account to add funds and start your trading journey.

Is forex trading regulated in Melbourne?

Forex trading is completely legal and regulated in Melbourne. ASIC (Australian Securities and Investments Commission) oversees the activities of forex traders here. Any forex brokers must be regulated by ASIC and hold an AFSL (Australian Financial Services License) to operate in Melbourne, Australia.

Recently, ASIC regulatory authority has started following the FCA and ESMA standards. This is major because forex trading is a high-risk practice area, especially when trading leveraged products. ASIC has taken this step to reduce the number of distressed financial conditions due to losing money in forex trading.

The new ASIC forex trading rules include:

• The regulatory authority has reduced the leverage cap from 500:1 to 30:1 as a maximum.
• ASIC has introduced close-out margins and negative balance protection to protect investors.
• Brokers can’t induce new traders by offering gifts and rewards in their promotions.

ASIC also enforces basic investor protection policies such as PDS, website disclaimers and segregated client funds. Moreover, ASIC also protects forex traders from large losses. To ensure this practice, a broker must comply with the rules above.

Forex brokers in Melbourne also offer risk management tools to reduce forex trading risk. For this, brokers develop tools such as order types and demo accounts.

Best forex brokers to consider for forex trading Melbourne

Here are some of the top ASIC-regulated forex brokers you must know:

1. Vantage
2. IG
3. Ava Trade
4. IC Markets

Quick overview of ASIC-Regulated forex brokers in Melbourne

Forex Brokers	ASIC Regulated	Min Deposit Requirements	Accepts AU residents	Average Spreads
Vantage	Yes	$200.00	Yes	1.220
IG	Yes	£250.00	Yes	0.828
AVA Trade	Yes	$100.00	Yes	0.910
IC Markets	Yes	$200.00	Yes	0.620

 

Vantage

Vantage offers an intuitive meta trading platform suite for forex trading. It also supports multiple social trading platforms. A proprietary mobile application makes mobile trading super convenient and easier.

Pros

• Vantage trails the forex trading industry in research and education areas.
• It has maintained regulatory status with multiple judiciaries.
• It has ranked among the best Meta trade brokers for 2022.

Cons

• Pro Trader tools access requires a hefty deposit of $1000.

IG

IG is a comprehensive ASIC-regulated forex broker that offers excellent research and trading tools. It offers industry-leading tools with an extensive tradeable market range. This is a highly trusted, multiple asset broker with having strong customer base across the globe.

Pros

• The most trusted forex broker of 2022.
• The broker has a smart portfolio.
• It supports share dealing.

Cons

• Manual configurations are required some time.

Ava Trade

Ava Trade is another extensive forex broker that offers an amazing collection of trading platforms for traders. It also has an exceptional library of educational and research tools that make it a suitable forex broker for beginners.

Pros

• Great broker for copy trading
• Ava Trade is highly regulated and operates globally.
• It costs low commissions and fees comparatively

Cons

• The desktop platform of Ava trade is a bit slower.

IC Markets

The scalable execution and competitive pricing of IC Markets make it one of the best ASIC-regulated forex brokers in Melbourne. It also supports an amazing range of third-party plugins and tools to make trading easier.

Pros

• It has expanded its market range significantly from 204 to 3500+ symbols.
• It is 2022’s top-ranked Meta Trader broker.
• IC Markets offer highly competitive pricing for every account type.

Cons

• Its research and educational tools aren’t that impressive.

Conclusion

Forex Trading Melbourne is emerging as Australia considers it a legit income-generating activity. However, always trade through an ASIC-regulated Forex broker to make the most out of your forex trading efforts. Above are some options you can consider in this regard.