Before we get into trading currencies in Australia, every investor must grasp the general terms of the forex market in the world and their own region. An individual must also learn how to interpret forex calculations and forex quotes.
Forex trading is described as the simultaneous purchasing of a certain currency and selling of another currency. Both currencies together form what is referred to as a “currency pair”. Currencies must always be traded in pairs. While trading the currencies, each currency is characterized by three letters. The first two letters symbolize the currency’s country while the third letter symbolizes the currency itself.
The main aim of forex trading is basically to create a profit by exchanging one certain currency for another at a desirable prices. It is advisable to purchase a certain currency if indeed the value of the specific currency will rise. If an investor is convinced that the value of a certain currency will decrease soon, then it is advisable to open a bid and sell the currency.
When the time comes to open a trading account in Australia, traders only want to know one single thing. Which is the best forex trading platform in Australia. For you to zero in on the best forex trading platform, you must first consider three main divisions that your broker must be in line with.
First, research if your desired platform has taken steps to ensure that they are regulated and secure with the Australian ASIC Regulation. The ASIC requires every broker to hold each of their clients’ funds and capital in isolated accounts. This is to eliminate any frauds who could be using their customer’s funds to keep their own brokerage afloat. The ASIC regulation ensures that your broker is safe and secure allowing you to enjoy efficient trading experiences that are void of any market conflicts or spread markups.
If you are an Australian Forex trader then you must also ensure that the platforms you are using have RAW ECN forex spreads and low commissions. The trades with the lowest commissions and the tightest spreads are the best. The platforms offering the lowest commissions are without a doubt more efficient and cost effective. Such platforms using the RAW ECN forex spreads also offer their clients direct access to the forex market. It is also important that clients ensure that the files they are provided with are verified and transparent.
The MetaTrader 4 (MT4) platform offers long term solutions for every broker in Australia. The MT4 platform has advanced graphing tools and a user friendly interface offering quicker forex trading solutions for all.
Based on the mentioned ASIC Regulation, RAW ECN forex spreads, leverage and other forex trading factors, Australia actually has a relatively good number of forex brokers with high leverage forex trading. Leverage is important and necessary when trading currency to augment really small currency movement. Based on these factors experts listed some of the most preferred forex broker in Australia.
Forex trading allows you to create wealth by profiting from the constant change in the value of one currency against the value of another currency. Forex traders make decisions by determining the way they think forex prices will change. Placing a trade using Australian forex trading platforms is quite simple. However before you embark on this take some time to effectively research on your desired platform allowing you to safely place your capital and build your wealth.