Compare Best Online Trading Platforms for Beginners in Australia

Choosing a CFD broker can be daunting. Here at CFDinvestors.com we understand how confusing it can be to decipher through all of the CFD options that are now available and furthermore, find the necessary information needed to make well-informed decisions.

That’s cool, who should I trade with?

Due to the array of CFD brokering options that are now available, as well as the variance of trading styles and preferences that investors themselves have, it is inevitable that there is not a ‘one size fits all’ approach to CFD brokers. CFDInvestors has therefore analysed multiple CFD providers using both a comprehensive comparison table as well as an in-depth evaluation of the companies providing these trading services in order to establish what exactly is being offered, and who these offerings may be best suited to.

The Table Below helps you compare ASIC-Regulated CFD-Brokers

city_index
  • Welcome Bonus:
    Up to $1000*
    Conditions Apply, visit broker for more information
  • High Leverage
    Up to 500:1
  • ASX 200 Spread:
    1pt day session
  • AUD/USD spread:
    From 0.5 pip
  • Standard Leverage:
    200:1
  • Commission charges:
    0.08% with $5 min.
  • Variable Spreads
  • Overnight Financing:
    2.5% fee
  • Minimum Deposit:
    $0
  • Regulated By:
    ASIC
  • Platform
    Advantage Web
tradedirect_logo
  • Welcome Bonus:
    Up to $2500*
    Conditions Apply, visit broker for more information
  • Easy to Use
    Simplified Platform
  • Overseas Account:
    Yes
  • ASX 200 Spread:
    from 0.9pt day session
  • AUD/USD spread:
    0.8 pip
  • Standard Leverage:
    200:1
  • Commission charges:
    0.07% with $5 min.
  • Fixed and Variable Spreads
  • Overnight Financing:
    2.5% fee
  • Minimum Deposit
    $0
  • Regulated By:
    ASIC
  • Platform
    Cloudtrade
fp_markets_logo
  • Welcome Bonus:
    Match Your Deposit*
    Up to $500 | Conditions Apply, visit broker for more information
  • TRUE ECN Execution
    From 0.0 Pip Spread
  • Overseas Account:
    Yes
  • ASX 200 Spread:
    From 1 points, day session
  • AUD/USD spread:
    From 0.5 pip
  • Standard Leverage:
    300:1
  • Commission charges:
    0.08% with $5 min.
  • Variable Spreads
  • Overnight Financing:
    Variable fee
  • Minimum Deposit:
    $100
  • Regulated By:
    ASIC, FCA, CySEC
  • Platform
    IRESS, MT4 & MT5
markets_com
  • Welcome Bonus:
    Weekly Trade Rebates*
    Conditions Apply, visit broker for more information
  • Professional Quality
    Analysis Tools
  • ASX 200 Spread:
    From 1 points, day session
  • AUD/USD spread:
    From 1.3 pip
  • Standard Leverage:
    300:1
  • Commission charges:
    Spread only
  • Fixed and Variable Spreads
  • Overnight Financing:
    Variable fee
  • Minimum Deposit:
    $100
  • Regulated By:
    ASIC, FCA, CySEC
  • Platform
    Markets Web Trader

Risk Warning: CFDInvestors contains factual information on a range of online brokers but does not cover every online broker available in the market. The various commission and spread rates and trading account terms & conditions can change and we cannot guarantee our information shows the latest updates. We cannot guarantee the quality of any financial advice or service given by organisations listed on the website. It’s important to conduct your own research or refer to a qualified investment professional before applying for any type of investment account. The risk of loss in CFD, Forex and share trading can be substantial. You should, therefore obtain and read the relevant Product Disclosure Statement (PDS) or other offer documents, and carefully consider whether such trading is suitable for you, or contact a qualified investment professional before applying for any type of investment account. CFDInvestors may receive a commission or benefit for referring you to the services of a 3rd party site.

Important things to consider when choosing a CFD Broker

When it comes to finding a CFD broker in Australia, there are many things that need to be considered. Choosing CFD broker is a personal decision, which means that there is not a right or a wrong answer as everyone has different personal tastes, so a CFD broker who is perfect for one person may not be the right one for another person. It is important to do your own personal research and decide what is most important to you when you decide on a CFD broker.

One of the most important things to consider when choosing a CFD broker is the costs that are involved. Each CFD broker will charge you to make a trade on their platform. When searching for a CFD broker to use, you will need to consider how much they charge as well as what they charge for. You should choose a broker that is transparent about all trading costs. Do not trade with a broker that cannot tell you quickly how much it is to open or close a trade on their platform.

Here are some typical trading costs you should consider before opening a trading account:

  • Spreads: The spread refers to the difference between the buy price and the sell price. This is the most common cost to make a trade. When searching for a broker, ask them about how wide the spreads are. The smaller the spread, the less they charge to trade. It is also important to find out if the spreads are variable or fixed.
  • Commissions: Another important thing to find out is if there are commissions charged. Typically, a CFD broker will only charge commission for stock trades, but it is important to know ahead of time.
  • Overnight financing: Is there a charge for keeping trades open over night? How much is this charge?
  • Inactivity fees: There are some brokers who charge fees for not trading. Make sure you find out about any inactive fees that are charged and how long you have to be inactive before this fee is charged.

When choosing a broker it is important to make sure that the broker that you have chosen is ASIC regulated. If the broker is not regulated by the ASIC, your money is at risk.

Choosing a regulated broker has several benefits. The most noted benefit of a regulated broker is that they will be closely monitored by the ASIC and have to operate in accordance with the laws and regulations that have been put into place.

We strongly recommend you only open accounts with an ASIC regulated CFD BROKER.

One of the best ways to choose a CFD broker is to open up a demo account to see what it is about before you commit any money to it. In order to make successful trades you are going to need to be comfortable with the technology that is offered.

Using a demo account will provide you with the opportunity to play around on the platform without any risks. If you find that you are not comfortable with how the platform works, look for a different one.

When searching for a broker, it is likely that you already know what markets that you want to trade. It is important to make sure that you look over the instruments offered by each broker in order to ensure that the markets that you want to trade are available. There are some brokers that have thousands of markets and others that focus on just a few. Make sure that you research the markets offered before committing!

We recommend the following Brokers

TradeDirect365

The platform is an innovative, top quality Australian online trading company, providing their clients with the lowest fixed spreads available on a very user-friendly, feature packed trading platform. Since their establishment in 2013, the company has been making waves in the financial industry by breaking all of the trends that previously governed CFD and forex trading.

Read The Review

City Index

The company has continually proven itself to be one of the most successful and credible financial company’s in the world. The company provides multiple platforms to suit traders with all skill and experience levels as well as a customisable interface that can be altered for traders desired preferences. The Demo account offered by the company assists beginners with becoming further acquainted and familiarised with the City Index software and trading tools, which depict the live trading platform they will experience when they begin their trading.

Read The Review

Markets.com

One of the fastest growing FX and CFD brokers, Markets.com offers traders a large variety of advanced trading products. The broker also provides fast execution speed and top level customer support that is available in several languages. Markets.com has been around since 2008 and serves clients throughout the world. It has grown over the years as it offers a competitive trading alternative with generous leverage and tight spreads.

Read The Review

What is CFD Trading?

Markets.com Trading Platform – cTrader

A CFD or ‘Contract for Difference’

The terminology used to describe this type of trading can be quite confusing. However, this type of trading is fairly straightforward. CFD trading is simply leveraged trading. It allows an investor to speculate the price movements of financial instruments such as FX, gold, oil, stocks, and indices. This type of trading allows you to take a position on whether the financial market will rise or fall. If you make the correct choice, you make a profit. When trading this way there are several things to consider.

CFDs are a Leveraged Product CFDs

This means that only a small amount of money is needed to gain a large market exposure. There are some CFD providers that offer a leverage of 500:1.

The Risks Involved

While there are many benefits to this type of trading, there are also a lot of risks. Leverage only requires a small amount of money to be deposited into your account to gain a high amount of exposure in the financial market. On the plus side this means that a large profit can be made easily. However, it also means that losses can be quite significant, even if the market moves just a small amount. For this reason, it is important to understand exactly what you are risking at all times. If the market turns against you, it is possible that you can lose more than the amount you deposited.

You do not own the Physical Asset

It is also important to remember that you do not own the assets. Essentially, you are simply taking a position on whether or not the financial instrument is going to rise or fall during a specific time frame.

Perks: the benefits of CFD Trading

How Much Does it Cost To Trade CFDs?

The ‘Spread’:

In order to trade CFDs you will be required to pay for the spread. The spread is the difference between a buy and a sell. A tighter spread, means a lower cost to open a trade. Most of the time trades for FX, bonds, commodities, and indices will not be charged a commission. However, CFD trades on stocks will often be charged a commission fee.

Commissions:

Most of the time a commission only applies to CFD trades on stock. Typically, one will pay commission to open the stock trade and then again when the trade is closed. Commissions should be disclosed to you by the broker.

Make sure that you check commissions before you open a trade.

Overnight Financing:

Most brokers will charge your account with a financing fee when a position is held overnight. This is essentially an interest payment that is used to help cover the leverage costs incurred for holding the trade open overnight.

This fee can be negative or positive based on the direction of the position.

Risks: These are the things you should consider before firing up a CFD account

Trading CFDs is a high-risk investment strategy:

The profits for CFD trading can be very high. However, the losses can be quite large as well. This type of trading requires some experience and may not be the right trading choice for all investments.

Volatility of the market:

The financial market can be quite volatile. This means that if the market goes against your trade your account can be wiped out in mere seconds. Another risk is gapping. This happens when the price of an asset suddenly shifts because of market volatility. There are times when your account may not be stopped out at the level that was requested and there is also a chance that the stop out may be executed at a price that is unfavorable. This can increase the losses that you incur

You could loose more money than you actually deposited

When trading CFDs it is important to remember that these are leveraged products. This means that you have to deposit a tiny percentage of the value of the trade. This means that if you make a $1000 deposit and the market moves against you, it is possible that you may owe more than your original $1000.