When starting forex trading in Australia, you need to consider several things that we will discuss in this article. Australia is a great place for forex traders because most brokers are supported in Australia and all the tools that a necessary for trading can be accessed from Australia.
Also, Australia does not have strict rules like that of the United States when it comes to forex trading. All you need to start forex trading is to have a laptop and a reliable internet connection.
Why Trade Forex?
Forex is the largest financial market in the world, even larger than the stock market. There are more than 5 trillion US dollars traded every single day in the forex market. That means that there is so much money to be made in the forex market, and there are a lot of opportunities as well. Trading forex can be a great side hustle or a great way to make a full-time income. There are plenty of advantages of trading forex. A few of the advantages are,
- 24-Hour Markets – the forex market is open 24 hours 5 days a week. That means you can trade anytime you want. If you have a 9 -5 job, you can trade after 5 pm. If you work in the evening, you can trade in the morning. There is so much flexibility in the forex market.
- Demo Accounts – Demo accounts allow you to practice trading with virtual money. Almost all brokers provide you with a demo account. This way you can test your forex strategy and master it before risking any real money.
- Leverage – with leverage, you are able to borrow money from your broker to execute larger trades that will make you a greater amount of money.
- Low overhead – You can get started with trading with just $100 in your account and slowly add more while you become a better, profitable trader.
- Nobody owns the market – The forex market is not owned by anybody, therefore anyone is free to trade in the forex market.
- Education – There is so much education out there, especially on our website, to help you get started with forex trading and even help you become a profitable trader.
There are so many other benefits to trading forex, which we will not go over in this particular article. Because if we do, this article will be too long.
But, before you start forex trading it is important for you to know about a few things which we will go over in the next few sections.
One of the most important things to consider when trading forex is to know what Forex broker to use. Now let’s talk about the best brokers for Australian traders.
Best Forex Brokers For Forex Trading in Australia
There are 1000s of brokers out there, but only a few brokers have a good track record. There are several things that you need to consider when choosing the right broker. These include,
- Customer Service – How is the customer support like, do they answer your questions within 24–48 hours? Do they have live chats? These are a few things to consider when thinking about the customer service the broker provides
- Reliability – reliability of the broker is a very important thing to consider as well. Does the broker have a good track record? Is the broker an award-winning broker?
- Speed of Trade Executions – Most brokers who have been in the game for quite some time generally have a good speed when executing trades. Therefore, it is important to know how old the broker is.
- Regulations – Regulated brokers can be trusted. Regulations like the ASIC (Australian Securities and Investments) are one of the best regulators out there. We personally recommend brokers who are regulated by ASIC.
- Platforms Provided – Does the broker provide all the necessary Platforms for trading? These include trading platforms for PC, Mac, IOS, Android, and Chrome OS. For example, we trade on the PC and on tablets. So it is important for us to consider a broker who gives us a platform to trade on both the PC and tablet.
Top Forex Brokers in Australia
Best for Low Spreads | Best for Speed | Best for High Leverage |
 Fusion Markets is one of the top brokers that provide traders with low spreads (Risk warning: 76% of retail CFD accounts lose money) |  BlackBull markets is a great broker that provides traders with fast executions speeds. (Risk warning: 76% of retail CFD accounts lose money) |  FBS broker is a highly regulated broker that is best for high leverage trading. (Risk warning: 76% of retail CFD accounts lose money) |
Strategies to Trade Forex
There are several strategies out there used by forex traders, but only some strategies are profitable. When learning about forex trading strategies, it is important to understand what works and what doesn’t. It is important to learn about three important things when developing a forex trading strategy. These are:
- Chart Patterns
- Candlestick Patterns
- Technical Indicators
With the combination of learning these three things, you will be able to develop a very profitable trading strategy.
Forex Terms You Need To Know
There are forex terms that you must know if you want to become a successful trader. These basic terms are important for you to learn.
- Pips – Pip is the smallest unit of the price of a currency.
- Short – Going short means selling a currency.
- Long – Going long means buying a currency.
- Ask Price – The price at which the market is willing to sell a specific currency at a specific time.
- Bid Price – The price at which the market is willing to buy a specific currency at a specific time.
- Spread – This is the difference between the asking price and the bid price. This is usually the amount the forex broker takes.
- Stop Loss – A stop loss is placed in a chart to prevent further losses if the market doesn’t go in the direction you predicted during a trade.
- Take Profit – Take profit is placed in a chart to take the profit from a trade when the market reaches the take profit value.
Why Mindset is Important?
Having the right mindset is a very important part of trading. If you don’t have the proper mindset, you will never be successful with trading. When it comes to the trading mindset, there are two important things. They are emotional control and self-discipline. You should never let your emotions impact your trading. It is hard to do, but over time you become more emotionally stable when trading. Also, if you want to become a successful trader, you have to become self-disciplined and be able to follow your own trading rules.
There are a few simple ways to help you develop a proper mindset for trading. First, you can start by setting rules for yourself and following those rules. This will help you develop self-discipline and help you become more patient.
How to Become a Profitable Trader
So, you should be interested in taking your forex trading knowledge to the next level. You want to become a profitable trader. There are 5 total skills that you need to master in order to become a profitable trader. These are pretty much the summary of all the things that we have discussed in this article,
- Emotional Control and Discipline
- Candlestick Patterns
- Chart Patterns
- Technical Indicators
- Developing your own trading strategy
Conclusion
Learning how to trade in Australia is a great way to make a side income or even a full-time income. Trading is a very valuable skill to learn that will pay you exponentially in the future. We recommend you go back and read through this article again and master all the skills necessary to become a very profitable trader. Also, make sure to check out our trading guide so that you can become a profitable trader.
