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Forex Investing Australia | Investing in Forex Beginner’s Guide 2021


Forex investing, or Foreign exchange and FX is the biggest financial market that facilitates the trading of all the world’s currencies. By reading this article, you’ll learn about the key benefits of forex trading, such as market hours, liquidity, and the option to trade on margin, 

Investing in forex has never been easier. With trading apps and copy trading, you can trade forex without breaking a sweat.

#1 Broker for Forex Investing Australia – eToro

Forex Investing Australia – Step-by-Step Guide 2021

When compared to other markets such as equities or indices, many traders are lured to forex because of the market’s volatility and extended trading hours. 

According to Statista.com, the 24-hour trading volume was about six billion US dollars for the USD fiat currency. This figure is three times greater than for the euro. These figures show that the demand for USD currency far outweighs that of other fiat currencies. 

If you want to invest in forex we recommend opening an account with a trusted forex broker such as eToro. With low spreads, copy trading tools, and a user-friendly interface, eToro is ideal for beginner forex traders. 

  • Step 1: Create an eToro brokerage account by tapping on ‘Join Now’ from the eToro website. Choose a username and password and provide a valid email address.
  • Step 2: Verify your Account – Verify your eToro account by uploading a copy of your passport or driver’s license as well as proof of address (a copy of a bank statement or utility bill).
  • Step 3: Make a $50 minimum deposit via a credit/debit card, a bank transfer, or an e-wallet.
  • Step 4: Investing in Forex  – Click ‘Trade’ after searching for the currency pair you want to invest in. Click ‘Open Trade’ after entering the amount you want to invest to participate in the forex market.

If you’re looking for the best trading platforms Australia, be sure to also read our comprehensive guide for everything you need to know. 

Best Place to Start Investing in Forex – Best Forex Brokers Australia

Whether you want to buy cryptocurrency in Australia, or if you’re looking for the best shares to buy you’ll need to choose a top-rated trading platform that offers everything you need. 

Here at EconomyWatch.com we’ve researched and pinpointed the best global forex brokers you can use in 2021. eToro, AvaTrade, and Capital.com are three fully regulated, trusted, and low-cost forex trading platforms. 

1. eToro – Best Forex Broker with Tight Spreads and Copy Trading Tools

Forex Investing Australia with eToro

eToroeToro is one of the leading brokers for passive investing in Australia. Launched in 2006, eToro now boasts a client base of over 20 million traders worldwide. Alongside its growing popularity, this social trading platform is regulated by a whole host of top-tier financial regulators. These include the UK’s FCA, ASIC, and CySEC. With such high levels of regulations, it’s clear to see why so many people trust this broker. 

Assets

Forex investing - eToro's low spreads

Tradable assets – In terms of currency trading, there are 49 currency pairs to choose from covering majors, minors, and exotics. As well as being a forex broker, eToro is also known for supporting CFD trading. CFD trading doesn’t involve ownership of real assets and instead incurs tight spreads and overnight financing fees. Users also have access to real stocks and ETFs, making it one of the best ETF trading platforms in Australia.

Fees

Fees – eToro is a discount broker. This means when you trade stocks and ETFs you’ll pay 0% commission. When it comes to forex trading, you’ll incur competitive market spreads and overnight fees. Non-trading fees are also on the cheaper side of the spectrum with no account or deposit fees to worry about. 

Payments

Payments – eToro supports a wide range of payment methods including debit cards, credit cards, e-wallets, and bank transfers. The minimum deposit is just $50. 

Fee Type Fee Amount
Commission 0% on Stocks and ETFs
Spread Fee Variable low spreads
Deposit Fee $0
Withdrawal Fee $5
Inactivity Fee $10 after 1 Year
Account Fee None
EUR/USD Spread 1 Pip

Pros

Cons

68% of retail investor accounts lose money when trading CFDs with this provider.

2. AvaTrade – Best CFD Broker for Investing in Forex 

Forex investing with AvaTrade

AvaTrade, an international CFD and forex broker, was founded in 2006, and is regulated by many financial institutions. These including the Central Bank of Ireland and the Australian Securities and Investments Commission (ASIC).

Account creation is simple and entirely digital. AvaTrade offers a variety of deposit and withdrawal options, all of which are free of charge. It also offers a variety of easy-to-use research and educational tools.

Assets

Forex Investing EUR/USD chart AvaTrade

Tradable assets – In terms of currency trading, there are 55 currency pairs available including major, minor, and exotic pairs. AvaTrade also offers CFD trading, including ETF CFDs, stock CFDs, commodity CFDs, and cryptocurrencies. 

Forex investing - forex fees with AvaTrade

Fees

Fees – AvaTrade doesn’t charge any commissions as all fees are built into the spreads. AvaTrade charges a variety of non-trading fees. The broker does not charge account fees, and deposits and withdrawals are also free.

On the negative side, AvaTrade charges a $50 per quarter inactivity fee after three consecutive months of inactivity. In addition, after 12 months of non-use, an annual administration fee of $100 will be deducted. When these inactivity-related fees are totaled, they are high in comparison to other trading platforms.

Payments

With an AvaTrade account, you can pick from five base currencies including AUD, USD, EUR, GBP, and CHF. AvaTrade does not charge any deposit fees. In addition to depositing via bank transfer or credit/debit card, you can also use electronic wallets such as Neteller and POLi. The minimum deposit is just 100 AUD. 

Fee Type Fee Amount
Commission Fee 0%
Spread Fee Low spreads
Deposit Fee $0
Withdrawal Fee $0
Inactivity Fee $50 per quarter after 3 months
Account fee None
EUR/USD Spread 0.9 Pips

Pros

  • Tight forex spreads
  • One of the best MT4 Trading Platforms Australia
  • Heavily regulated by ASIC and other financial authorities
  • Low non-trading fees
  • Variety of automated trading solutions available, such as Trading Central

Cons

71% of retail investor accounts lose money when trading CFDs with this provider.

3. Capital.com – Low-Cost CFD Broker for Investing in Forex 

Capital.comCapital.com is a global CFD and forex broker that debuted in 2016. It is regulated by the UK Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), the Australian Securities and Investments Commission (ASIC), and the National Bank of the Republic of Belarus (NBRB).

Assets

Forex investing with Capital.com

When it comes to investing in forex with Capital.com you’ll be spoilt for choice. This is because there are 140 currency pairs to buy and sell. You’ll also have access to a range of CFDs from stock CFDs and ETF CFDs to commodity CFDs and…



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