Best CFD Brokers in Australia (Ultimate Guide)

Guide to the Best CFD Brokers in Australia

If you are looking for the best CFD Brokers in Australia then you might be getting a tough time because the competition is incredibly hot. The main brokers of CFD products offer pretty awesome enticements to get as many traders on their books as they possibly can, which is why you might enter into the state of decision paralysis.

But dont fret, we are here to help you find the perfect CFD broker for you. We understand that traders, especially the new ones, are afraid to select a broker because they will be making major investments through them.

Therefore, we have made a list of only the top CFD trading Australia brokers. We have hand-picked the brokers based on factors such as minimum deposit, regulations, track record, trading fees, free CFD trading demo accounts and more so you get ready-to-invest brokers without the fear of getting a bad deal. So with that said, lets get started with our top picks of CFD brokers in Australia:

The Best CFD Brokers in Australia TradingGator’s Top Picks:

1. FP Markets

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Full review here

Founded in 2005, FP Markets is an Australian Forex and CFD broker as it is also regulated by the ASIC. The reason why this broker is considered safe is that not only it is regulated by the top-tier regulator but it also has a long track record. The best part of working with FP Markets is that they offer a whopping 10,000+ market instruments. Furthermore, they have excellent ECN access and due to their impeccable service, they have received 36 awards in just 14 years.FP Markets has deservedly earneda five-star ratingon Trustpilot, for being reliable and having an excellent customer support.

Through their CFDs you can trade numerous markets, including Forex, shares, indices, precious metals, commodities, and cryptos like Bitcoin and Ethereum. Check out our guide to buying bitcoin with PayPal.

Pros:

  • Flexible trading products and account types(10,000+ instruments)
  • Tightspreads(from 0.0 pips)andlowcommissions
  • Great educational tools
  • Accepts local payment methods
  • World-class support
  • The popularMetaTrader4 trading platform

Cons:

  • ECN account requireshighdeposit
  • No negative balance protection
  • Stock CFD fees are high

Min Deposit:$100

Platforms:Web, Desktop and Mobile

Related article:How to Open an FP Markets Account

Note: 74-89% of retail CFD accounts lose money when doing CFD trading with this provider.

 

2. Plus500

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Plus500Au Ltd strives to be among the top CFD providers in Australia. As far as regulatory over site and licensing are concerned, Plus500AU Pty Ltd (ACN 153301681) is licensed by ASIC in Australia, AFSL #417727, FMA in New Zealand, FSP #486026; Authorised Financial Services Provider in South Africa, FSP #47546. You do not own or have any rights to the underlying assets. Please refer to the Disclosure documents available on the website. Furthermore, their mobile CFD trading app is one of the best mobile CFD trading apps in Australia (Investment Trends 2018). The provider allows CFD trading over instruments including stocks, commodities, ETFs, and even cryptocurrencies.

Read full review of Plus500

 

Pros:

  • The company has a very stellar reputation
  • The platform is very easy to use
  • No commissions
  • Spreads are tight
  • Listed on London Stock Exchange
  • Excellent customer support with over 31 languages

Cons:

  • Lack of educational and training material
  • MT4 is unavailable
  • May not have the most advanced tools

Min Deposit: $100

Platforms: Web and Mobile

Related article:Step-by-Step Guide to Opening a Plus500 Account

Note: 80.5% of retail investor accounts lose money when trading CFDs with this provider.

 

3. IC Markets

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This one is what we call the true Australian broker because not only its headquarters is in Australia, it is also regulated by the top-class Australian regulator; ASIC. The broker offers a variety of markets and instruments making it possible for most traders to work with them. Furthermore, with powerful data centers in New York and London IC Markets can handle up to 500,000 traders per day. This allows its traders to have a smooth and solid trading experience without facing any delays.

Pros:

  • True ECN broker
  • Wide range of deposit and withdrawal methods
  • Powerful data centers execute orders with speed
  • Highly competitive spreads
  • Excellent educational material and customer support
  • Free CFD trading demo

Cons:

  • There is no protection of the negative balance
  • Not regulated by FCA

Min Deposit: $200

Platforms: Web, Desktop and Mobile

Note: 76.4% of retail CFD accounts lose money.

 

4. AvaTrade

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This CFD trading Australia broker stands out when it comes to the trading of CFDs. Apart from the common CFDs, AvaTrade not only covers Bitcoin but it also offers Ethereum, which is indeed a very rare offering. Furthermore, AvaTrade will not charge any commission or exchange fee when you trade CFDs, which is also an exciting feature. Lastly, you can benefit from social trading/copy-trading as well.

Pros:

  • Offers 24/7 trading of cryptocurrencies
  • A lot of educational content and free trading coach
  • Trading fees are low
  • Easy to open an account
  • Free deposit and withdrawal with multiple payment options

Cons:

  • Only offer CFDs, Crypto and Forex
  • Research tools are limited
  • Support is average

Min Deposit: $100

Platforms: Web, Desktop, Mac, Mobile

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

 

How to Select the Best CFD Brokers in Australia?

When it comes to selecting a CFD broker, there are a few things that you need to consider to ensure that you partner with a company that is right for you. Have a look at those factors below:

What Are Your Needs?

The broker you are going to choose will largely depend on what type of trader you are. And to determine that, you need to see what your specific needs are. Are you a day trader and need a fast executing broker? Or maybe you need historical price information because you are a longer-term trader, swing trader or position trader. What is your budget? If it is low then go with brokers that offer the lowest initial deposit. If you are trading for the first time and dont want to take huge risks, you might need negative trade protection, whether you will get CFD trading demo for practice or not. So these are some factors that you need to take into account to decide what type of trader you are.

Have a look at this Investopedia video if you need a deeper understanding of the CFD product itself.

What Type of Tools Do You need?

Now that you know your specific needs, you need to see what type of trading tools you will need to trade. See if you need technical analysis or fundamental analysis. If you need technical analysis then check the charting programs of the brokers and indicators offered by them. This will help you find a broker that offers the tools you need.

What are the Trading Costs?

People who are especially on a low budget need to determine what type of costs are associated with a specific broker. Generally, you need to know these things:

  • Spreads
  • Commission fees
  • Leverage rates

Generally, you want to go with a broker that offers low spreads and commission fees. However, take into consideration that a broker that offers the lowest fees can be a broker short on trading coaching, customer service and trading tools. You should also find the right balance between spread-based commissions and fee-based commissions. If you are a swing trader you should perhaps consider a plan that offers wider spreads and lower or no fees, and a day trader should lean towards tight spreads and comparably higher fees as this tights into trade execution.

Trade Execution

If you are working in fast-moving markets, then the execution of trade is a very crucial element. You need to go with the broker that offers the fastest trade execution so that there is no slippage resulting in you losing money because of slow trade execution. Go with the brokers that have powerful data centers and can offer excellent trade execution.

Are Your Funds Safe with the TopBrokers in Australia?

This is the last part that you need to focus on and that is whether the broker you are working with is trusted or not. Though we have included only the most trusted brokers in our list, you still need to consider who is regulating the broker, what their withdrawal limits are and what their track record is.

These are a few things that you need to consider when selecting the best CFD brokers Australia, just make sure to take your time and make a decision when most of the factors mentioned above are in your favor.

 

Opening a CFD Trading Account

There are some simple steps to opening an account. Firstly, you have probably heard about regulatory bank compliance requirements like Know Your Customer (KYC). These are essential steps when opening trading accounts with CFD and Forex brokers. Although it might require some documentation, it is very good to know that your CFD broker takes compliance seriously. Then you know that you are signing up with a good business partner. Usually you might be asked to upload a photo ID and proof of residence. Here are some examples that might come in handy.

Examples of photo ID:

  • Passport
  • Driver’s License
  • National Identification card

Examples of proof of residence (home address):

  • Utility Bills (Electricity Bill, Water Bill, Gas Bill, Internet Bill, Landline Phone Bill)
  • Bank Statement

Note: Make sure that the ID is still valid and that the utility bill or bank statement is no more than three months old.

The rest of the steps are usually basic questions. Some CFD brokers may require you to undergo a small questionnaire in order to show that you understand the risks involved in trading CFD products. Be sure to have that under control. But do not be afraid, the questions are pretty self-explaining in nature.

How to Open a Plus500 Account (One of the Most Reputable CFD Brokers in Australia)

Note! Be sure to have a Photo ID and Proof of Residence ready to upload before starting the process.

Step 1 – Go to Plus500

(Your capital is at risk!)

Step 2 – Click on Start Trading Now

How to Open a Plus500 Account - Start Trading

Step 3 – Select Account

Select the appropriate account. In this example we choose the Real Money Account.

How to Open a Plus500 Account - Real Money Account

Step 4 – Select Login Details

Choose how you want to create an account, either with email, your Google-account or Facebook.

How to Open a Plus500 Account - Log in details

This step takes you to the WebTrader.

 

Step 5 – Verify Account

Open the side bar Menu at the right hand side. Then click on the Account flip-down and Verify Account. Insert your account details as described. Click Next.

How to Open a Plus500 Account - Account Details

Then Select Country of Residence.

How to Open a Plus500 Account - Country Details

Address..

How to Open a Plus500 Account - Address

Terms and Conditions

How to Open a Plus500 Account - Terms and Conditions

Assessment of Appropriateness

How to Open a Plus500 Account - Assessment of Appropriateness 1

How to Open a Plus500 Account - Assessment of Appropriateness 2

ID Card and Proof of Residence.

How to Open a Plus500 Account - IDs

Verify both your phone and email by obtaining a 3-digit code.

Wait to get verified before you can go to the next step. It can take from several minutes to hours as the process is manual. In the meantime, you might get an incoming Live Chat asking you about prior experience or guiding you if there is a lack of information.

 

Step 6 – Deposit Funds

Now, you will get an email in you inbox welcoming you to Plus500 after your account application has been approved. This is the final step where you choose how do deposit funds into your new account. This could be done either by credit/debit card or wire transfer from your bank account.

Plus500 welcome mail

 

How to Open a Plus500 Account - Payment Options

Adding your card is the quickest way to get started. All you need is your credit card details, like card number, date of expiration and verification number (CVV/CVC on the back side of the card).

The bank account alternative requires country, name of your bank, swift code and IBAN number.

Lastly, you may be asked to verify your pay method by uploading your documents. Keep in mind that it may take a couple of business day for the funds to be visible in your account.

A Word of Caution

For the beginning trader it is important to remember that even though the Australian CFD providers offer high leverage of 100:1 or more, it is unwise to utilize all of it. Be sure to impose good risk management. Use a stop loss every time you trade, at the very least a mental stop loss, and do not risk too much on any given trade. A maximum risk of 1-2% of the equity in your account is a great rule of thumb, and something professional traders swear by. Additionally, there are a number of risk management tools available at many of the brokers’ websites. A simple position size calculator will serve you well.

 

Conclusion – Which One Is the Best CFD Broker in Australia?

Finding the best CFD broker in Australia is a question of pricing, tools available, coaching, trading style, CFD trading platform and degree of regulation. Luckily, the vast competition between online brokers in Australia is advantageous for the trader signing up today. This means that the pricing overall is very favorable. The competition also means that the minimum deposit is super low, which means that the barrier to entry is almost none-existent. Almost everybody can sign up to trade nowadays. It also means that it is very cheap to open an account to test the broker and its trading platforms, without making a full commitment right away.

If you want an all-in-one CFD broker, take a closer look at FP Markets. They offer pricing on the low end, various trading platforms including the popular MT4 platform, excellent customer support, 10,000+ financial instruments to trade, and is highly regarded within the trading community with a five-star Trustpilot score. Being an Australian trader, you can have trust that local regulator have oversight over this CFD broker as well as other regulatory bodies.

Another good CFD provider in Australia is Plus500. They offer a very good pricing model as well as top-class customer service. Moreover, their reputation is superb and they are well regulated. One drawback may be that they do not offer the widely used MT4 trading platform. However, with an award-winning proprietary trading platform offering to trade more than 2,000 instruments, which allows you to trade across several devices and easy in use, you should be more than able to apply your trading strategy.

Safe trading!

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