There are a number of forex brokers in Australia to choose from, having choice is anadvantage but it can even beextremely confusing especially if you are new to forex currency trading. In order to save you precious time I figured that I would discuss my experiences withthe several types of forex brokers and which kind I prefer.
The most crucial things to watch out for when selecting a forex broker is to figure out what kind of broker they are – There are generally three types of brokers: market-makers, straight through processing broker (STP) and ECN brokers.. Generally it’s the market-marker or STP brokers that spend plenty of money marketing to have new clients, the reason behind this is because they often take advantage of client losses. DMA or ECN brokers however pass on your entire trades to an investment bank which means that they do not hold the other side of their client’s trades, these types of forex brokers often charge a commission on each trade instead of a widened spread.
Sadly in Australia there’s almost no option if you’relooking for a DMA or ECN broker. I have got accounts and traded with all the forex brokers in the nation and have only identified one real ECN broker in Australia on the contrary you’ll find around 10 market maker or STP brokers available.
I’m not about to take the trouble labeling the market-maker and STP brokers that I have traded with but let’s just say that they all are the same, they market themselves as having tight spreads and high leverage however the troubles are often the same, sluggish performance, re-quotes, server failures, slippage, stop placement limits, stop hunting, and the list keeps going. Stay away from the issues that will undoubtedly develop in case you do business with these kinds of broker and choose a DMA or ECN broker.
DMA and ECN brokers have no secret agendaand always put in efforts to make you more successful at the time you trade, they don’t have limits on stop placement plus they do not limit your trade sizes either, there aren’t any re-quotes and executions rates in many cases are a lot faster as compared to any other type of broker. It’s for these reasons that trading with a DMA or ECN broker is the only choice for active forex traders.
After searching everywhere I’ve found only one forex broker in Australia that is an actual ECNIC Markets is the broken that I’m telling you about.. I’ve traded with IC Markets for more than twelve months now and have hardly ever had any issues with, order delivery or speed, spreads are tight and are often zero that is fairly common with ECN brokers. I can trade 50 standard lots with no troubles, a sale this size can be impossible to place using an STP or market-maker broker. Due to the tight spreads and deep liquidity scalping with IC Markets is a trader’s dream, this is just not possible with any market maker or STP broker.
Obviously I’m able to only attest to ICMarkets from my own experience, I usually recommend that you test drive their platform by yourself and find how IC Markets ECN forex offering is best in Australia.