Is Forex Trading Legal in Australia?

Updated on: July 15th, 2022

How Legal is Forex trading in Australia?

Before knowing about the legality of forex trading in Australia, it is good that you know how Forex trading works. Forex trading works based on a currency pair with a bid and an ask. For every currency pair, the broker makes the bid for buying that currency from the trader, while the ask is the price for which the trader wants to sell that currency.

The difference between these prices is the spread. When the price changes and your deal is going in profit when you sell that currency, you make a profit. This is the simplest explanation of how Forex trading works. When discussing Forex trading in Australia, there are a few differences depending on how you choose the platform. The main difference that you may feel is the currency pair.

It is because, in Australia, there are many Forex brokers, but not all of them offer to trade on the same currency pair. So, for the most profitability, you need to go with a Forex trading platform that provides a trading option on the currency pair of your choice.

Is Trading Forex legal in Australia?

Yes, trading forex in Australia is legal. The Australian Securities & Investments Commission(ASIC) regulates all the platforms providing Forex trading services in Australia. So, if you find a Forex trading platform in Australia that ASIC does not regulate, you must ask yourself, “Is Forex trading legal in Australia?”. It is because such a platform might be a fraud. It is where ASIC protects the people of Australia from such fraud acts. This way, there are more opportunities for legit Forex brokers in Australia.

Do you need to pay taxes for Forex trading in Australia?

Forex trading and earning through it is considered a business activity and subject to taxes. However, there are no instant taxes. You have to pay your taxes when you make profits, and you have to pay taxes for your profits within that tax year.

An important thing to consider about Australia’s Forex trading is that those tax laws sometimes change due to specific circumstances. So, it is better to consult a tax expert to stay safe from any tax issues or illegal acts.

Australian Legal Trading Platforms Reviews

Many global trading platforms provide their trading services in Australia. However, all of them are not good enough. So, we did our research and here are our findings about the top 5 Forex trading platforms in Australia.

1. City Index

City Index is a Forex trading platform operational in Australia that is known for its regulation and safety and for the feature-rich mobile app that makes trading on the go very easy. It brings news headlines and market statistics for you so that you can make better trading decisions and the SMART signals feature helps you get 200 weekly signals according to trading market insights.

2. eToro

Next up is eToro, which brings the largest network of social trading platforms for you. Here you get many trading options, including Forex, and it also offers $0 commissions and broker fees. With the minimum trade amount being $10, it is a good choice for beginners. Learning with eToro is practical as you can learn things in a demo account with $100000 virtual funds.

3. IC Markets

IC Markets is known for the lowest trading spreads in Australia, bringing other beneficial features like the latest tech trading platforms and fast trade execution. The fees of IC Markets are low, and most things are user-friendly, like no inactivity fee or admission fee. With IC Markets, you get the choice to trade on MetaTrader or cTrader platforms according to your trading requirement. It also offers rich learning content.

4. Saxo Bank

If you like the Web trading experience better, you can start your Forex trading journey with Saxo Bank. It is an award-winning platform that brings more than 190 Forex pairs for you and many other assets. Trading here starts at only 0.6 pips while you use a market-leading trading platform. Besides its safety and reliability, the best thing about Saxo Bank is its transparency.

5. AvaTrade

AvaTrade also offers a lot of trading options and assets, including Forex. It brings negative balance protection, so any trade you make, your account balance will never go in negative figures. The educational content here is good and clears most things for beginners. However, remember that AvaTrade charges a quarterly inactivity fee of $50.

Comparison of Best Australia Forex trading platforms

It is how all of these platforms stack against each other to provide you with the best trading experience.

While all these platforms come with ASIC regulation, your trading journey will be safe and reliable. However, the minimum deposit requirements and the average spread are also important. Considering all these things will help you maintain good earning and profitability figures from the beginning of your trading journey. Learn more about Forex Brokers in Australia to know which one is the best for you.

Conclusion

If you are from Australia and going to start your Forex trading experience, you need to know all the rules and regulations about trading and taxes. Well, if you were also searching for things like “is Forex trading legal in Australia?” we hope you got the answer to all your questions. With Forex Trading being legal in Australia, you will find a lot of brokers. Make sure to go with the best one to have the best Forex trading experience.