This article is about the requirements for Australian forex brokers and what you should be looking for.
The foreign exchange market is a massive financial market that accounts for transactions in excess of $4 trillion per day. It does not operate through a central exchange. Instead, traders have to do their trades through Australian forex brokers. There are so many forex brokers available and you should make time to research, assess and compare the available options.
Reputable Australian forex brokers should have programmes, services and rules to protect the market integrity. They should offer protection from fraud, abusive practices and manipulation related currency trading and investment. The different global countries have regulatory bodies for forex brokers. In Australia, forex brokers should be registered with the Australian Securities and Investments Commission.
Simply looking at the broker’s website is not sufficient. Having a professional website does not mean that the broker can be trusted.
Knowing when the broker established his business could confirm if it is a professional, durable brokerage. This market is wide open to scammers and fraudsters and many traders have been duped by forex brokers. Some of these brokers have set up shop, behaved in a fraudulent manner or had poor business practices. These brokers would simply disappear after a very short while. All brokers start as new brokerages and if they have been around for a long time, it indicates that they are more than likely trustworthy, with good business practices.
Australian Forex Brokers Location
In this technological age, you may wonder why location is important. You may not want to make a visit to your broker in his office building, but a broker’s location is important because of regulation and if they offer educational programmes. It is probably in your best interest to look for a broker that is based in a country where there are strict regulatory enforcement and compliance. If you deal with a forex broker that is regulated, you have some recourse if there is ever a problem with your broker. You have the opportunity to make contact with the relevant authorities and file a complaint. This could lead to a favourable resolution. There are brokers that offer in-person educational workshops and this makes the location of your broker quite important.
Size of Brokerage
It is important to know the size of your brokerage as far as its staff complement goes. You may be wondering why you need to know this if your intention is to trade online. If you experience difficulty placing a trade during internet or power supply outages, you want to have the option to place a trade by telephone. If your broker has a large staff complement, chances are that your call will be handled promptly. You will not lose precious time and will be able to place your trade at the most advantageous rate. Brokers who are contactable by telephone are often available to provide their clients with advice.
You should ensure that you do thorough research on a potential broker. Your broker is an extremely important part of your trading life and you need to have a good relationship with him or her.