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f you are from Australia or you want to trade with an Australian broker, there is good news for you. There are several good brokers in Australia, and we found the Best Australian Based Forex Broker in 2021 after doing extensive research.

There are many well-known and regulated forex brokers in the world, and we will guide you to find the best Australia based forex broker. As we know, the Forex market is the world’s biggest financial market with daily transactions of over 5.3 trillion US dollars. However, the price movement in the forex market happens due to the interventions of institutional traders.

Therefore, the involvement of retail traders is very little in the Forex market. The main way to trade in the forex market by retail traders is the trade through a retail Forex broker. There are several ASIC regulated brokers in Australia. Before we go through on broker list, we like to give you a small idea about ASIC and how it regulates forex broker.

Australian Securities and Investments Commission Definition

Australian Securities and Investments Commission is a distinct government association. ASIC is liable for laws in regions identified with investments, life and general assurance, banking and finance. Besides, the Commission is Australia’s corporate controller, with obligations to implement laws for organizations and financial administrations. Including banks, credit associations and home loan and finance brokers. However, their objective has to lessen extortion and unreasonable practices to help and secure consumers. Also, assure organizations are performing accurately. So, The Commission has liabilities to the following parties:

  • Businesses
  • Financial professionals
  • Consumers

Organizations that associate with ASIC or visit their site will discover data relating to renewing or enrolling a business name. Also, launching and running a company and understanding shares and yearly proclamations. Moreover, financial professionals can look for tips to applying for auditor enrollment, data about acquiring a credit permit and steps toward winning an AFS permit. That has required when maintaining a financial administration business.

Australian Securities and Investments Commission Roles

Underneath the financial administration’s laws, the ASIC has facilitative, administrative and implementation powers, which incorporate the ability to:

  • Australian Securities and Investments Commission roles to make rules planned for guaranteeing the honesty of financial markets.
  • Explore associated penetrates with the law and in this manner, expect individuals to deliver books or answer inquiries at an assessment.
  • Australian Securities and Investments Commission roles to issue encroachment circulars in corresponding to accused breaches of certain laws.
  • Restrict individuals from taking part in credit activities or offering financial services.
  • Australian Securities and Investments Commission roles to look for common punishments from the courts, and
  • Commence prosecutions.

Australian Securities and Investments Commission roles to enhance investor and financial consumer faith and certainty by instructing them and the general population on investor liability. Therefore, ASIC considers gateman to account. Besides, it examines consumer conduct and how investors and consumers decide. Apart from this, ASIC likewise guarantees reasonable and straightforward markets by assuming a role in market management and corporate administration.

Ideal Forex Broker Characteristics

Forex market is the world’s biggest trading market with daily transactions over $5.3 trillion US Dollar. The main market mover in the forex market is Central Banks, Financial institutes, and other institutional traders. However, the impact of retail traders is very less in the Forex market. Therefore, somehow the forex market is very risky for retail traders. By identifying good broker traders can mitigate some of the risks.

In addition, a bad forex broker can make the trading experience worse for retail traders. There are some possibilities that the Forex brokers can manipulate the price by creating false moves or false spikes to eat clients’ stop-loss orders. Therefore, a forex broker with proper regulation is compulsory to make retail traders successful.

Moreover, if you want to make and investment in the forex market through a forex broker, you should follow the checklists before choosing the right forex broker –

1. Regulation

Most of the well-known and loyal forex brokers regulated by an authority that has enormous trustable positions among traders. A regulation ensures forex traders that their investments are secured in the forex broker. Most of the well-known regulations cover insurance of investments. Therefore, a trader has a chance to get his investment back in case of loss that occurred by the broker.

However, regulated brokers maintain a standard of service that helps the trader to perform their trading activity without any hassle. Examples of the Forex brokers’ regulations are- ASIC, CySEC, FCA, etc.

2. Safety of Funds

A regulated forex broker ensures the safety of funds compared to unregulated brokers. However, the question arises when the Forex broker mixes your investment with their day to day activities.

A good and regulated forex broker never mixes clients’ investments with their daily activities. Some brokers use segregated accounts with tier 2 securities for the client’s investment to keep their funds secure and separate from the broker’s own funds.

3. Trade Execution

Based on the execution of trade Forex brokers are differentiated in several ways.

  • ECN Broker – Electronic Communications Networks (ECNs) gives traders access to other participants in the Forex market.
  • STP Broker – Straight Through Processing (STP) brokers receive a client’s order and pass on the orders directly to their liquidity provider without any intervention.
  • Market Maker Broker - Market Maker brokers do not have any liquidity providers. Therefore, it acts as a liquidity provider.

4. Availability of Liquidity

As we know, the Market maker broker does not have any liquidity provider as it works as a liquidity provider itself. Therefore, the question arises if the broker has enough liquidity to fill-up clients’ orders or not. Same to the ECN or STP broker, it is possible that the linked liquidity provider does not have enough liquidity to fill-up your order. Therefore, before choosing a broker, it important to ensure that the broker has linked to a liquidity provider that has enough liquidity to fill trading orders.

5. Customer Support

A good Forex broker should have good customer support. Most of the regulated forex brokers have a live chat, phone or email support for their clients. Some brokers recruit customer service managers to look after trading accounts in a zone or area.

For those looking for further insight, check out the full article on Best Australian Based Forex Broker in 2021.