Forex Trading in Australia
Foreign Exchange is massive in Australia and all around the globe. About 5 trillion United States Dollars is being traded 24 hours every single day. If you are an Aussie and you are looking for a way to profit from trading forex then you are at the right place. Your first step is to open a Demo Account then later advance to a real one.
Is forex trading tax free in Australia?
Forex trading is not tax-free in Australia. In Australia, profits made from forex trading are considered taxable income. Traders are required to report their forex trading gains and losses to the Australian Taxation Office (ATO) and pay taxes accordingly. It’s essential to keep accurate records of all forex transactions and seek professional tax advice to ensure compliance with Australian tax laws.
TABLE OF CONTENTS
- What is forex trading in Australia?
- Best forex broker in Australia
- Top 4 regulated brokers in Australia
- Forex trading platforms Australia
- Conclusion
- Frequently Asked Questions
- Recommended for you
What Is Forex Trading and is it legal in Australia?
Is forex trading legal in Australia? Yes, it is legal and many Aussie traders are becoming millionaires from trading. There is quite a number of regulated brokers which offer trading services to Australian traders. We will look at this later, for now lets look at how trading works and try to familiarize ourselves with a few terms used in the forex language.
Forex traders simple purchase a currency against its value to another. These currencies are traded in pairs, hence they’re known as currency pairs. As an example we will look at AUD/USD which is an abbreviation for Australian Dollar against the United States Dollar.
When a trader buys AUD (base currency) he or she will be selling the USD (quote currency) at the same time, makes sense? The amount needed to buy AUD for this example is known as the BID price, this is the total amount of the quote needed to purchase the base currency. The selling price also known as the ASK price works exactly as the BID, just opposite.
The Australian country is highly dependent on agricultural and mining commodities. Thus, the Australian Dollar trades on the basis of commodity prices and high-interest rates. However just because one is an Aussie it doesn’t necessarily mean you are limited to only trading the Australian pairs.
There is a wide range of currency pairs, with the most volatile and traded ones being EUR/USD, GBP/USD, USD/JPY etc. These can be traded by anyone with a forex trading account and an internet connection from anywhere around the world.
Best Forex Brokers in Australia
Brokers vary in what they offer, most traders choose a certain broker based mainly on preference. This can be because of low deposit amounts, tight spreads, instant withdrawals, low fees, few or no manipulation, high leverage and so on. Choosing a forex broker in Australia is no different as choosing a broker in any part of the world, however one has to research and make sure that the broker is regulated.
There are a lot of sites that review brokers and give really informative research so you already have the hard work cut out for you. Make sure you find out if your broker is listed with the Australian Securities Investment Commission (ASIC), as this organisation maintains Australia’s company name registers. If it is listed, it means that it meets the industry standards, it is regulated and subject to audits and reviews by the agency.
Top 4 Regulated Brokers in Australia
Deriv.com
I.C. Markets
Capital.com
Vantage FX
Deriv.com
This is one of the most fastest growing broker in the world. We commend them for their transparency, low fees, effective customer support and lightning fast deposits as well as instant withdrawals.
This broker is fully regulated and it also offers synthetic indices which is the first of its kind and the most traded assest worldwide.
We highly recommend you to open an account with deriv as you can trade all assest with one broker.
I.C. Markets
Trade Forex on 0.0 pip spreads with the world’s leading True ECN forex broker IC Markets. Great choice for serious traders. ASIC regulated.
Capital.com
Offers 68 Forex pairs for trading. All have competitive spreads. The firm also ensures negative balance protection.
Vantage FX
Trade Forex CFDs from 0.0 spreads on our RAW account through Trading View, MT4 or MT5. Vantage is ASIC regulated and client funds are segregated.
Forex trading platforms in Australia
Australian forex trading platforms are offered by regulated brokers offering their services in Australia. Each and every broker have their own application that can be downloaded and installed on a laptop or smartphone.
These platforms give users access to live markets in real time and they can open and close trades as they will. Trades can be executed on smart phones, however we advise traders to thoroughly analyse the market on a larger screen such as on a laptop to get the bigger picture and overall direction of the trend.
Conclusion
In conclusion, forex trading in Australia is not tax-free. Traders are obligated to report their forex trading profits and losses to the Australian Taxation Office (ATO) and pay taxes on their income from forex trading. Staying compliant with Australian tax laws and seeking professional advice is crucial for individuals engaged in forex trading in Australia.
F.A.Q
Is forex trading legal in Australia?
Yes, forex trading is legal in Australia and is regulated by the Australian Securities and Investments Commission (ASIC).
Do I need a license to trade forex in Australia?
No, individual traders do not need a specific license to trade forex in Australia. However, it’s essential to choose a broker that is ASIC-regulated for a secure trading experience.
What are the tax implications of forex trading in Australia?
Forex trading profits are subject to income tax in Australia. Traders must keep detailed records of their transactions, report gains and losses to the Australian Taxation Office (ATO), and pay taxes on their earnings.
Do I need a large capital to start forex trading in Australia?
The capital required to start forex trading can vary widely. It’s possible to start with a relatively small amount, but it’s essential to manage risk and use proper risk management strategies.
What are the trading hours for forex in Australia?
Forex markets operate 24 hours a day, five days a week. The major trading sessions in Australia typically overlap with the Asian trading session, which starts around 7:00 AM AEST (Australian Eastern Standard Time).
Download Forex Strategy eBook
The only trading strategy you’ll ever need!
Download the All-In-One Strategy worth $49.00
Recommended for You
[wp_show_posts id=”28903″]
Message from the Author
I hope you enjoyed this article and that it was an eye-opener. If you found value, kindly share with your fellow traders on social media and let’s grow together both in knowledge and skill.
Written By: Allen Matshalaga
Allen is a professional forex trader, blogger, and online enthusiast who spends most of his time testing and reviewing legit ways of making money online and is determined to help others succeed.
Leave a Reply