Since there is no central exchange in the foreign currency market, it is necessary for forex traders to do their trades via Australian forex brokers. The choice of brokers is very wide and it is advisable that you take time to assess and compare the different available brokers to find one that will suit your particular needs.
Not many people are interested in the location of their broker as they have no intention of visiting them. The broker’s location is important because of the regulations that are applicable and if you are looking to attend training events. A broker based in a country with limited or no regulation would prove to be a bigger risk for you. If you deal with a broker who is registered with the regulatory body, you will be protected to some degree in cases of fraud and bankruptcy. You will have the facility to file complaints and reach a possible resolution. If your broker is located within your city of residence, it may be possible for you to attend seminars or workshops they offer.
Year of Establishment
The year of establishment of your brokerage will indicate its professionalism and durability. All brokerages have to start as new firms, but if your brokerage has endured for several years, you can probably rely on its credibility. Fraudulent or badly managed firms will not remain in practice for very long.
Regulation of Australian Forex Brokers
Australian forex brokers should be registered with the regulatory body called the Australian Securities and Investments Commission. The regulatory body should ensure that forex brokers abide by the rules that will protect the forex market’s integrity. You should be protected from abusive practices, fraud and manipulation. You should ensure that the broker you choose is registered with the regulatory body relevant to the country its headquarters is based in. The registration information related to the broker should be clearly visible on their website.
You must make sure that the trading platform used by your broker is easy to use and that it offers you additional trading tools. The most important facility you should have is an easy method of entering and exiting your trades. If the software is well designed, it will offer clearly market sell and buy buttons that are easy to access. The more advanced packages offer you a panic button which allows immediate closure of all your existing open trades. Badly designed cumbersome software could cost you dearly in your trades because it may add to your trade, rather than close it if the layout is complex. Other factors you have to look at are the strategy builders, customisation options, automated trading options, order entry types and trading alerts that are available.
There is a massive amount of currency pairs available for your trading, but only a few are focused on. The ones with the most liquidity are the most popular ones. These are normally the major currency pairs as they offer more predictable price movements and ranges. You should check if your broker offers your intended currency pairs before you sign up.
You should determine the most suitable account for your purposes and level of trading experience. The account type you decide on will determine the initial investment required.
There are many available forex brokers and you should ensure that you are being offered everything you need before you sign up with one.