There are a number of ways that Australian forex brokers can affect the trading that you are looking at completing. When you consider the ways that this happens you should look at a number of points. These points will include the accounts you can open, the leverage that you are going to get, the currency pairs available and the restrictions that Australian forex brokers have.
Australian Forex Brokers Accounts
The accounts that you are able to open will affect how you can trade and the volume that you are going to trade. There are a number of Australian forex brokers that only offer standard trading accounts. These accounts are the ones that most traders are going to have eventually. However, when you are new on the market you should be using a micro or mini account.
If you are unable to get one of these smaller accounts then you are at higher risk when you start trading. The standard trading account will use standard lots which are the largest and more expensive lots that you can get. This means that you can make the most in profits, but you will also make major losses when you lose on a trade.
The Leverage That You Get
All brokers offer different amounts of leverage. The leverage that the Australian forex brokers offer will not be regulated like the leverage offered by broker in the United States of America. This means that you should be able to get the leverage you want to trade with. However, there are a number of broker who change the amount of leverage that the different accounts are able to get. You will need to check this before you start trading.
The Currency Pairs
All forex brokers limit the number of currency pairs that they offer. Most brokers will limit this to the most commonly traded currency pairs. However, there are some brokers that specialise in the more exotic currency pairs. You have to ensure that the broker you open an account with offers the currency pair you want to trade with. If they don’t then you need to use a different currency pair which may not work as well with the strategy that you are using.
The Restrictions Enforced by the Broker
There are a lot of terms and conditions that you have to consider when you are looking at trading on a broker’s platform. These terms and conditions may restrict the trading that you are able to complete with the broker. Most brokers have a problem with the use of scalping and restrict this on the platform. This restriction can manifest as a ruling against using scalping or an enforced minimum timeframe for the trades. When the broker has a timeframe for the trade you will not be able to close a trade if it has not been open for at least 5 minutes. The exact times will vary depending on the broker that you are using and how they feel about scalping. Rollover credits are another aspect of trading that could be restricted and you need to consider this.