Australian Day Trading

CFD Sites in Australia

When you begin your search for a broker, we recommend that you start by reading as many broker reviews as possible. This is really important because day trading often relies heavily on the availability of good spreads and high percentage leverage. There are other factors you will need to take into account as well, but these make a good starting point:

Mobile Trading

In modern society, is it less likely that you are going to spend all of your time at a desk and this is where the standard of your broker’s mobile platform becomes of major importance. While all brokers offer some form of mobile accessibility, some are better equipped for mobile clients than others. A broker that can give you a choice of mobile platforms has obviously invested some time and money into this side of the business.

Deals And Incentives

Although they may appear great at first glance, not all bonuses, ‘special’ deals and other incentives are as good as they may appear. They are often used by brokers to attract new clients, but when you take the time to read through the T&Cs for withdrawal, some are prohibitive. It is always best to look for a broker that offers fairness throughout all of its business, rather than using the giveaway tactic. In fairness, that may not apply to all brokers, but the main point is that you need to be certain before opting for the broker that is offering the biggest up-front incentive.

Diverse Asset Types

This is a subject that should be dear to the heart of every day trader. Unless you are particularly experienced and use a very specific trading strategy, then where assets and diversity are concerned, the more strings you have to your bow the better. Most brokers have some or all of the more common assets and derivatives available, such as indices, stocks, currencies and commodities, while others may operate a niche brokerage dealing in more exotic options like cryptocurrencies.

Good Customer Support

From time to time, everyone has a bad day and things do not go according to plan. It is on those days that you may need to rely on your broker’s customer support team to help you out. Good brokers will provide a quick and easy contact service, such as a toll-free telephone number, where experienced advisers are available for you throughout trading hours.

Australian Licencing

Australia has its own licensing authority, the Australian Securities and Investments Commission (ASIC), which oversees every part of the broker licensing process and monitors ongoing performance. ASIC is regarded as one of the best licensing authorities in the world due to the stringent requirements brokers must meet in order to hold a much-coveted AFS (Australian Financial Services) Licence.

Under its licensing regulations, ASIC ensures that investors receive the highest levels of service and security for their investment funds. All client funds are held in segregated accounts at regulated banks. However, as an Australian citizen, you are legally free to select any broker you wish to trade with. What you should bear in mind is that the security of your investment may not be protected as well by brokers licensed under certain less conscientious authorities.

Should you still prefer to use an offshore broker, it is highly recommended that you choose one which has an office in Australia and is correctly licensed by one of the more stringent licensing authorities, which include:

• Financial Conduct Authority (FCA)
• Cyprus Securities and Exchange Commission (CySEC)
• Malta Financial Services Authority (MFSA)
• EU Members (MiFID)

One thing to bear in mind is that some less-than-scrupulous brokers may claim that they are licensed under one of these authorities, but it is not always the case. A genuine broker will display its licensing badge and AFS Licence number prominently and allow access to view the licence itself.