Brokers offer you the means to access the foreign exchange market. If all brokers were the same you could pick the first one you come across without any fear. It would rule out any reason for you to actually have more than one broker available. Since the world does not work on monopolies very well you have multiple choices for Australian forex brokers. Yet, how are you going to weed out the brokers that offer nothing you want? What specifics can you review to make a decision? Answers are below along with a shot review of Bacera International for your information and as an example.
Australian Forex Brokers: Fitting the Trade to Your Style
You do not walk into a bridal shop and buy the first wedding dress you see. For guys you might take a shorter time picking out a tux, but you still review what is required of you from the bride. In either case once the gown or tux is found it has to be fitted to your body. You can think of Australian forex brokers like fitting articles of clothing. You will find what suits you such as adjustable leverage, costs, deposit requirement, lot sizes, and tools. Once you understand what you want in these categories you can start to search out the brokers that fit your style.
Adjustable leverage ensures you do not have to use the same leverage on each trade. It also lowers your risk when you can lower the leverage per trade. For costs there is a spread that each currency pair will have. Some currency pairs have a larger spread than others. Australian forex brokers use the spread as a particular tool to gain your attention. The deposit requirement and lot sizes are two other ways brokers differ since some brokers require a larger deposit or have only larger lot sizes.
The tools should not be an afterthought. Tools like the calculators, charts, and fundamentals provided through the site will matter greatly to your ability to trade in the market for profit.
Australian Forex Brokers like Bacera International
Bacera International was assessed for three categories: regulatory agency, deposit requirement, and pip spread on the EUR/USD. Firstly the regulatory agency is important since it tells you what country is actually protecting traders. For Australia you need ASIC to be at least one of the regulatory agencies with an international company, which it is with Bacera. The other was SEC in the USA.
The deposit requirement is rather large compared to some of the other Australian forex brokers available to you. The deposit is $1000 AUD.
The EUR/USD is considered the most liquid and volume filled currency pair in the world. It is the most traded pair with more than 50% of traders on any given day. It is the best pair to assess for cost and Bacera asks for 1.4 pips on a trade in the EUR/USD. Other currency pairs were not assessed for Bacera costs. You will want to do your own review of other currency pairs. You are the only one that can make the decision as to whether you like the little bit reviewed here or not.