Find the Best CFD Broker Here – Updated for 2017
Finding the best CFD brokers or Forex Broker in Australia is a tough task as the competition in Australia is incredibly hot.
The main CFD brokers have amazing enticements to get you on their books, and you’ll find a range of offers to get you started.
By far the most popular broker offer at present is the deposit bonus. While there is nothing wrong with accepting a bonus, just be aware that many of them have extremely strict criteria.
To claim your ‘bonus’, you will be asked to do a high number of trades. Alternatively, you may receive a 50% or 100% bonus but the money cannot be withdrawn at any stage. Instead, they are offering it to you as a way to access more leverage.
Bottom line is, deposit bonuses are great if they asked you to complete a reasonable number of trades. But most ask you to trade like a professional fund manager.
If the terms of the offer mean you have to trade the pants off your account, politely pass on the offer and just open a standard CFD or Forex trading account.
2017 CFD Broker Comparison Chart – Australia
Click play on the video below to see the top 6 questions you should ask your broker when looking for the best CFD broker in Australia.
From fantastic account opening offers to an extensive range of free CFD Tutorials, you get all of this for opening up and funding your CFD or Forex trading account.
With all these great giveaways on offer from your CFD & Forex broker, you’d be forgiven for thinking that ‘It’s too good to be true’.
But you can be sure the offers are genuine and these companies are doing their absolute best to get you off to a flying start.
Once again, just be mindful some require you to do 200+ trades in a short space of time to claim the offer. This falls into the over trading category, which you want to avoid.
Instead, stick to those offers that are genuine like:
- matching deposits or
- trading rebates that act like a safety net on your losses.
But nothing is for free – what is the real cost?
Your broker understands exactly how important it is to secure your business in the highly competitive CFD & Forex broking business. They want your business and are willing to pay for it (at least initially).
The reality is you will open your trading account, receive the special and then do nothing.
Instead, you’ll open your CFD or Forex trading account, receive the special and have flashing lights, markets moving up and down and opportunities everywhere.
Guess what…It’s time to trade.
So you dip your toe in the water and decide ‘I’ll just give it a go’. Now the fun begins.
You’re in the market and experiencing first hand the trials and tribulations of winning and losing with real money.
Here at LearnCFDs.com we’d prefer that you get started on the right foot, so we’ve compiled a few things to think about when reviewing which CFD broker in Australia is best for you.
Choosing the best Forex or CFD Broker – 5 things to look for
When choosing a CFD or Forex broker in 2017, you may want to consider the following five key points before jumping on board.
1. Is their software easy to use?
There is nothing worse than trying to navigate your way around the difficult software. Be sure to open up a free demo account and see for yourself how easy it is to place trades, open a chart, amend orders and receive timely news updates.
You don’t want to spend the first two months learning the software they provide. Ask your CFD broker if they have some basic CFD tutorials on using the software.
Most CFD brokers in 2017 provide both MetaTrader 4 and cTrader. MetaTrader 4 or MT4 is considered the most widely used and popular Forex trading platforms available.
Our AxiTrader Broker Review highlights a number of advanced features available in MT4.
cTrader, by Spotware, is an incredible program as well, with many built-in features, made for the modern Forex trader.
In the beginning, cTrader was a dedicated Forex platform. But some CFD brokers have started introducing Index CFDs and other instruments to the platform.
2. Is their trading platform fully featured?
- Are you looking for advanced charting features or just a broker to place trades quickly into the market?
- Are you looking for advanced order placement or will the standard orders be sufficient?
- Do they provide daily market analysis provided by a team of professionals?
- Can you receive notifications when certain price points are reached via email or SMS?
- Do they provide a free iPhone and Android app to trade on the go?
When reviewing the best CFD & Forex brokers, keep in mind, commissions are not the be all and end all.
But the one fixed cost all traders have is brokerage. You don’t want to be paying too much so be sure to ask what their Australia Share CFD brokerage rates (for ASX Stocks) are.
For Forex, Index and Commodity traders, you want to make sure the spreads are tight. Also, you need to ask about any other costs associated with trading through their platform.
$5 minimum brokerage and 0.06% is the best standard rate we have heard of for share CFDs.
When it comes to Forex ECN brokers and Pro MT4 or cTrader trading accounts, commission rates are normally $7 round-turn per lot ($100,000 position). So $3.50 per side. In our Pepperstone review, you will note they charge the commission in the currency of the pair you are trading.
- When review your CFD or Forex broker, ask about the following charges:
- Commission charges
- CFD Financing rates
- Software fees (IRESS or other platform fees)
- Accessing relevant exchanges (i.e. ASX data)
4. The range of markets
Reviewing the range of markets of your CFD/Forex broker is a significant consideration.
Market Makers have the upper hand here by being able to offer you nearly all of the world’s markets from the one account including Forex, Indices, Commodities and global shares.
Direct Market Access (DMA) usually focus on the local exchange and costs to trade international markets can be quite high.
You can see on this page that Saxo provide access to over 29,000 trading instruments. Truly mind boggling. IG have over 10,000 instruments to choose from.
Brokers in 2017 truly favour the trader.
5. Reputation and security
With MF Global going bankrupt in 2011, reputation and security have become one of the biggest factors when reviewing the best CFD & Forex brokers in Australia.
- Are they a publicly listed company?
- How long have they been in business?
- What are others saying about them on broker review sites online?
Stick with those with a good reputation who are backed by a solid financial history and you should be on the right track.
Choosing the best CFD or Forex broker is largely a matter of testing their trading platforms and ensuring you feel comfortable with them.
The old saying ‘horses for courses’ is right when it comes to finding the best CFD or Forex broker for your needs. The truth is, the characteristics you value highly may be of no interest to the next person.
So write down exactly what you believe you need with respect to your new broker and start asking questions.
Hopefully, this review of the CFD & Forex brokers here in Australia helps you identify which one will earn your trading business.