Trade Online with FX Forex

FxForex.com will introduce you to the myriad of opportunities in forex trading, crypto trading and CFD trading, and help you find the best online brokers available to Aussie traders and the tools which will help you profit from your investments.

Best CFD

AvaTrade

  • Minimum Deposit: $100
  • Demo Account: Yes
  • Tradable Assets: Forex, CFDs, cryptos, stocks and options
  • Low minimum deposit and trade amounts
  • Regulated in 8 different countries

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider

Top Rated

Markets.com

  • Minimum deposit: $250
  • 2,200+ trading instruments, including CFDs, ETFs, shares, crypto, commodities, indices, blends
  • proprietary MarketsX trading platform
  • no intermediaries
  • low margins

73.9% of retail investor accounts lose money when trading CFDs with this broker.

Award Winning

Plus500

  • Minimum Deposit: $100
  • Demo Account: Yes
  • Tradable Assets: CFDs on Forex, Cryptocurrencies, Stocks, Commodities, ETFs, Options and Indices
  • Low fees
  • Listed on LSE

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.4% of retail investor accounts lose money when trading CFDs with this provider.

 

TOP ONLINE BROKERS

1
Plus500 Read review
  • Minimum Deposit: $100
  • Demo Account: Yes
  • Tradable Assets: CFDs on Forex, Cryptocurrencies, Stocks, Commodities, ETFs, Options and Indices
  • Low fees
  • Listed on LSE
Demo account:
Min 1st deposit: A$ 100
Leverage: Max 1:300

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.4% of retail investor accounts lose money when trading CFDs with this provider.

2
AvaTrade Read review
  • Minimum Deposit: $100
  • Demo Account: Yes
  • Tradable Assets: Forex, CFDs, cryptos, stocks and options
  • Low minimum deposit and trade amounts
  • Regulated in 8 different countries
Demo account:
Min 1st deposit: A$ 100
Leverage: Max 1:400

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider

3
Markets.com Read review
  • Minimum deposit: $250
  • 2,200+ trading instruments, including CFDs, ETFs, shares, crypto, commodities, indices, blends
  • proprietary MarketsX trading platform
  • no intermediaries
  • low margins
Demo account:
Min 1st deposit: A$ 250
Leverage: Max 300:1

73.9% of retail investor accounts lose money when trading CFDs with this broker.

4
easyMarkets Read review
  • Minimum Deposit: AU$200
  • Demo Account: Yes
  • Tradable Assets: CFDs, forex, cryptos and stocks
  • Simple, intuitive mobile app
  • Guaranteed stop-loss
  • Negative balance protection
  • No fees
Demo account:
Min 1st deposit: A$ 200
Leverage: Max 1:400

Between 74-89% of retail investor accounts lose money when trading CFDs with this broker.

What is Online Trading?

what is online trading?

Trading stocks and commodities doesn’t have to be done inside trading houses. In this guide, we’re going to explain how online trading platforms make it possible for you to invest in multiple assets on your desktop or mobile device.

Online trading, as the phrase suggests, is the act of financial trading online. Prior to the internet, all forms of financial trading were conducted inside trading houses or over the phone. Today, thanks to the advent of electronic trading, investors can connect to the world’s major markets from any internet-connected device.

Regardless of whether you’re a novice or professional, there are trading sites and conditions to suit. From low-cost desktop brokers to mobile trading tools designed for experts, there’s something for everyone online. What’s more, it’s possible to trade every type of commodity and asset. From forex (foreign exchange currency) to gold, oil and shares, online trading has opened up the industry in a variety of ways. 

Forex Trading

Forex Trading

Foreign Exchange Trading (Forex), involves trading a number of different national currencies by speculating on the currency value fluctuations.


Crypto Trading

This involves the exchange of one cryptocurrency for another, or buying and selling cryptocurrency through an exchange, with the aim of making a profit through currency fluctuations

Crypto Trading

Stocks Trading

Stocks Trading

Online stock trading (also known as e-trading) has become the norm for investors these days. You can use an online trading platform to buy and sell financial products online


CFDs

CFD (Contract for Difference) trading allows you to speculate on rising or falling prices of global and fast-moving financial markets, which may include forex, shares, indices and commodities

CFD Trading

Binary Options

Binary Options

A Binary Option is an option with two possible results: you either get a fixed payout or nothing at all for the investment made.


Futures Contracts

Futures are a type of derivative financial contracts that oblige both parties to transact an asset at a set price, irrespective of the curret market price at maturity.

Futures Contracts

How Online Trading Works

At its core, online trading works in the same way as traditional trading. As a trader, you have the option to buy or sell a particular asset. The price at which you cut a deal will determine whether or not you make a profit. However, the real fun starts when you dive into the nuances of online trading and the different assets you can trade.

Leverage

What is Leverage

Leverage is most commonly used in forex trading, but it’s also available when you trade other assets. Leverage is a proverbial helping hand, used to increase a trading position. For example, in forex trading, currency is sold in something known as “lots”. Each lot is, typically, 100,000 units of said currency. Unless you’re a hedge fund, brokerage or professional trader, you probably won’t be able to invest that much. This is where leverage comes in.

Online trading sites will leverage your investment so that you can purchase currency at a professional level. So, the broker might offer you leverage of 1:33. This means they’ll put in 33 units for every one you put in. So, to purchase a standard lot, you’ll only need to spend $3,000 to own 100,000 units of currency.

Leverage works the same way in all forms of trading. The broker will multiply your initial investment and make up the difference so that you can purchase a standard lot.

Short-Trading

Short trading, otherwise known as short selling, is the process of selling an asset for a particular price and buying it back at a later date for a lower price. When you engage in short trading, the first step is to find something you believe will decrease in value. From there, you “borrow” the asset/shares for a set period of time, i.e. you have to return the shares by a certain date.

Once you’ve borrowed the asset/shares, you can sell them on the open market at whatever the daily rate is. You then have to wait. You’re hoping that the asset's value drops so that you can buy it back at a lower price before you’re obligated to return the borrowed shares. The difference between the sale price and the buy-back price will determine your profit or loss.

Short trading is regarded as a high-risk/reward strategy as the profits can be large if you’re correct. However, it’s often harder to predict a sustained downswing than an upswing. Therefore, it’s also possible to lose money when you sell short.

Social Trading

social trading

Social trading is a product of the internet. When online trading sites started to become popular, certain operators found interesting new ways to make the markets more accessible to novices. Social trading was one of those ways.

When you join a social trading site such as eToro, you’ll be able to follow, observe and copy the trades of professionals. Social trading sites will offer profiles for certain traders. You can review their stats and follow the ones you like, just as you would on social media sites. From there, the copy-trade software will mimic the trades of those you follow. What’s neat about social trading is that the software will adjust the amount you invest based on your own pre-set conditions. So, when a pro makes a move, you’ll make the same move at a level that suits you.

Is Online Trading Legal?

Yes. Online trading is no different from what goes on in exchanges around the world. All legitimate online trading sites are licensed and regulated by financial conduct authorities. Therefore, the sites are legal and your investments are legal.

Is Online Trading Safe?

Yes. Trading sites use SSL encryption technology, secure payment methods and funds are insured. What’s more, every company offering online trading has to abide by strict rules and regulations.

Assets to Trade Online

The beauty of online trading is that it’s easy to access multiple assets and commodities. Although there are specialist sites that only deal with one type of security, many cover a variety of markets.

Currencies (Forex)

Forex Trading

Forex trading is the common way of saying foreign exchange trading or, simply, currency trading. It’s one of the most popular types of trading in the world, with more than $5 trillion worth of currencies exchanged on a daily basis.

Cryptocurrencies

Cryptocurrency trading is one of the newest additions to the industry. Pure crypto exchanges allow you to buy and sell digital currencies such as Bitcoin, Ethereum and Litecoin. A defining feature of these exchanges is that they allow you to buy the underlying asset.

In other words, when you buy some Bitcoins, you own those coins. However, that is not the only way to trade cryptocurrency online, as we'll see below.

Stocks

A stock, also known as a share, is a financial instrument (essentially a contract) that represents a claim on a certain percentage of the assets owned by a company. In simple terms, when you buy shares, you’re buying a small piece of a company. Trading shares is the process of buying and selling small pieces of companies.

Other commodities you can trade

But online trading sites don’t just cover the basics. Depending on your interests and preferences, you can buy and sell a variety of assets, including:

Metals

Anything other than gold is regarded as a “metal” in the trading world. The most commonly traded metals are silver, platinum and copper.

Oil and Gas

Like gold, oil and gas are “hard” commodities – and two of the most widely traded assets in the world.

Agriculture

Agriculture commodities cover a variety of assets. In general, agricultural trades fall into one of six categories: Oilseeds, Meat, Dairy, Cereal grains, Other soft commodities (coffee, sugar), Miscellaneous agricultural commodities (lumber, wood, wool).

Gold

Known as a “hard” commodity, gold is a precious metal that’s been traded for centuries. Today, you can use online trading sites to buy and sell gold based on daily market rates.

ETFs

ETF stands for Exchange Fund Trading. This type of trading involves a collection of securities that are bundled together to form a single investment opportunity. The value of ETFs is tracked by an index. For example, the S&P 500 Index tracks the market capitalisation of the largest 500 companies in the US. As a trader, you can buy and sell S&P 500 ETFs that will increase/decrease in value in line with the market capitalisations of the companies listed on the index.

Indices

Indices are similar to ETFs in that you’re speculating on the price movements of multiple assets under one banner. For example, the FTSE 100 is a round-up of the top 100 companies in the UK. When you trade indices, you’re essentially buying shares in each of these companies. However, you’re doing it with one overall investment, rather than buying shares in each individual company.

CFDs

CFDs Trading

Contracts for Difference (CFD) are a unique way to trade that can be applied to a variety of assets, including shares, indices, commodities and forex. When you trade CFDs, you are not purchasing the underlying asset. Instead, you’re speculating on the price of an asset. Basically, you’re buying and/or selling virtual contracts in something instead of actually owning it.

As a CFD trader, you’re agreeing to exchange the difference in price of an asset from the time the contract was opened to the time it was closed. To put it another way, you open a contract at one price with the agreement to close it at a set point in time. The difference in price between these two points will determine whether you make a profit or a loss. 

Binary Options

Binary options are based on yes/no outcomes – hence the name. Trades will start with a simple statement and it’s your job to agree or disagree with it. For example, a binary option may be “the share price of X company will surpass $100 by Y date”. If you agree, you take the yes side. If you don’t, you take the no side. When the binary option expires on the pre-set date, you’ll make money if you choose the right answer.

Future Contracts

Futures contracts allow you to enter into a legal obligation to buy or sell a commodity at a set point in the future for a predetermined price. If you’re buying futures contracts, you’re saying that you’ll purchase the asset for X price by Y date. If you’re selling futures contracts, you’re saying that you’ll sell the asset for X price by Y date.

Difference between Trading and Investments

In a certain light, trading and investing are, essentially, the same thing. In both instances, you’re speculating on a financial instrument. However, trading is a much more active process.

When you trade, you’re often looking at short-term movements and aiming to be on the right side of a price increase or decrease. When you invest, you’re hoping a stock’s value increases over time. You put in your money and wait to cash out (hopefully at a profit) at a later date.

Therefore, trading is an active process whereby you’re using various tools and mechanisms to play the financial movements of stocks. Investing is a long-term proposition where you stick with something in the hope it will increase in value.

Best Online Brokers in Australia 

Best Online Brokers

There are dozens of online brokers to choose from these days, all of which offer various types of financial instruments for trading, from shares, indices and commodities to forex and crypto trading.

Each broker comes with its own minimum deposit to start off with, and the best online brokers also offer additional onsite tools!

Plus500

  • Platforms: iOS and Android
  • Minimum Deposit: AU$100
  • Demo Account: Yes
  • Tradable Assets: CFDs on Forex, Cryptocurrencies, Stocks, Commodities, ETFs, Options and Indices
  • Selling Point: Low fees and listed on LSE

For more information about this broker, see our full Plus500 Review here.

Plus500
  • Minimum Deposit: €100
  • Demo Account: Yes
  • Tradable Assets: CFDs on Forex, Cryptocurrencies, Stocks, Commodities, ETFs, Options and Indices
  • Low fees
  • Listed on LSE
76.4% of retail CFD accounts lose money.

Markets.com

  • Platforms: iOS and Android
  • Minimum Deposit: AU$250
  • Demo Account: Yes
  • Tradable Assets: Forex, shares, ETFs, indices, commodities and cryptos (all CFDs)
  • Selling Point: Great onsite research tools

For more information about this online broker, view our Markets.com Review.

Markets.com
  • 2,200+ products to trade, including CFDs, ETFs, shares, crypto, commodities, indices, blends
  • proprietary MarketsX trading platform
  • no intermediaries
  • low margins
73.9% of retail investor accounts lose money when trading CFDs with this provider.

Skilling

  • Platforms: Desktop, Mac and iOS and Android
  • Minimum Deposit: US$100
  • Demo Account: Yes
  • Tradable Assets: Forex and CFDs for gold, silver, oil, gas, other commodities and shares
  • Selling Point: Easy to use and over 3,000 financial instruments to trade

How to Trade Successfully Online

Becoming a successful online trader requires time, effort and research. Your only real chance of making money is by understanding the markets, and even in this case, losses are always a possibility.

Watch tutorials, learn about the trading tools available online and always stay on top of the latest financial news.

Once you’re confident that you understand the basics, set your bankroll and never spend more than you can afford. If you can follow these simple tips, you’ll be giving yourself the best chance of succeeding at online trading. However, keep in mind that assets are highly volatile, and there are always inherent risks present.

Start With a Demo Account

In line with learning about the business and managing your money, you can hone your skills using demo trading accounts. Almost all of the top online trading sites allow you to play the markets for free using virtual money.

It’s imperative that you use demo trading accounts if you’re a beginner.

The software not only gives you all the tools a real trader has, but it also allows you to get a feel for how financial markets move. This is crucial if you’re aiming to make money when you trade for real.

Best Online Trading Apps for Aussie Traders

Mobile Trading Apps

Apps are a great way for investors to trade on the go, at the tap of a screen!

The best online brokers have their own intuitive app, allowing you to trade financial instruments on your mobile, and most trading apps these days are available on both iOS and Android.

The below are some of the best online trading apps based on the huge selection of financial instruments and stocks that can be traded, as well as their user-friendly functionalities.

eToro

  • Platforms: iOS and Android
  • Minimum Deposit: $50
  • Demo Account: Yes
  • TradableTradeable Assets: Forex, cryptos, 2,000 stocks, CFDs, 150 ETFs
  • Selling Point: Social trading site
eToro
  • Trade in Forex, cryptos, CFDs, ETFs
  • Social trading site
  • Low trade amounts
  • Exceptional range of features
75% of retail investor accounts lose money when trading CFDs with this provider.

AvaTrade

  • Platforms: iOS and Android
  • Minimum Deposit: $100
  • Demo Account: Yes
  • Tradable Assets: Forex, CFDs, cryptos, stocks and options
  • Selling Point: Low minimum deposit and trade amounts
AvaTrade
  • Trade Forex, CFDs, cryptos, stocks and options
  • Low minimum deposit & trade amounts
  • Regulated in 8 different countries
  • Excellent Customer Support
Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.

easyMarkets

  • Platforms: iOS and Android
  • Minimum Deposit: AU$200
  • Demo Account: Yes
  • Tradable Assets: CFDs, forex, cryptos and stocks
  • Selling Point: Simple, intuitive mobile app
easyMarkets
  • Trade Forex, CFD, cryptocurrencies, commodities, shares, metals & indices
  • Guaranteed stop-loss
  • Negative balance protection
  • No fees
Between 74-89% of retail investor accounts lose money when trading CFDs with this broker.

Online Trading Risks

In addition to offering opportunities, online trading also has inherent risks. The value of an asset can increase or decrease at any time. As we’ve explained, it’s possible to take both sides of the equation and cover different outcomes by buying or selling.

However, the moves you make won’t always be right. As an online trader, you have to be prepared for this. Managing your money correctly will allow you to ride any rough patches and thrive when things are going well.

Why Trust Us

We’re experts in all things trading. Our team has decades’ worth of experience in all forms of trading, including forex, stocks and commodities. Using this knowledge of the industry, we’ve reviewed all the leading online trading sites and given you our honest opinion of them. Moreover, we’ve compiled a variety of trading guides so that you can learn how to spot a good investment. Indeed, as much as you should see us as experts, we want you to become experts in your own right. That way, you can get the latest news, reviews and insights, but also make your own judgments as to what works for you. 

FAQs

The minimum deposit at online trading sites will vary, as will the size of the trades you can make. However, in some situations, you should be able to start trading with 100 AUD or less.

The best online trading strategy is one that suits your preferences and financial circumstances. Find options that appeal to your interests and that you understand. Also, never spend more than you can afford. Finally, do as much research as possible.

We’ve reviewed many of the leading trading sites online. Our team makes sure everything is in order and will only recommend legit, high-quality platforms. So, if you’re looking to start your online trading journey, the sites we have chosen for you are a great place to start. Check our Brokers section for more details.