Online Forex Trading in 2020
FX trading, also known as Forex , has gained enormous popularity in Australia and across the world over recent years. From professionals through to everyday Aussies, the growth of online forex brokers and the technological advances of online trading platforms has made it easier than ever before to get involved.
With high liquidity and non-stop opening hours in Australia 5 days a week, it's no wonder the forex market presents so many great opportunities. The forex market is the world’s most traded market with a daily trading volume of $5 trillion USD.
The advantages of trading Forex with AvaTrade Australia
- Trade with confidence – Australian Securities and Investment Commission (ASIC) regulated .
- 50+ currency pairs – Trade major, minor and exotic pairs.
- Competitive spreads – Trade with low spreads
- Powerful platforms – Manage your trade manual or use our Australian's automated trading platforms.
- Leveraged trading – Up to leverage on currency pairs, among the highest.
- Master your trading skills – High quality trading educational materials & daily market analysis.
- Best in class customer service – Multilingual live support with a dedicated account manager.
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The basic concept of forex trading
When you are trading Forex, you are buying one currency by using another. Therefore, the forex trader is trading currency pairs and not each currency individually. Take for example the EURUSD, when buying the pair – it means you are buying EUR using (selling) USD. When selling the pair – it means you are buying USD using (selling) EUR.
Forex trading rates
The pairing of the currencies is presented as a rate, which reflects the ratio between the values of the two currencies. For instance, the rate for buying the pair GBP USD is 1.50514, i.e. £1 GBP = $1.50514 USD.
Forex pairs groups
The Forex pairs are divided into three main groups – majors, minors and exotic pairs. The main difference between the pairs is their liquidity which is a result of the trading volume of these pair. E.g., the major currency pairs are the most traded pairs and each include the USD and another currency, while the most traded minor pairs include one of the three major non-USD currencies (The Euro, the UK Pound and the Japanese Yen). Of course, you can also trade the local AUD against other global currencies. To learn more about Forex trading we recommend to visit our education section dedicate to beginner traders, where you can find our Sharp Trader, video tutorials and more.
How to trade forex in Australia with AvaTrade?
Forex trading platforms
AvaTrade offers a selection of trading platforms, to Australian traders. We provide both automated and manual trading solutions, with unique features and tools to optimize your experience. Whether you are interested to trade on your own, or copy the trades of others, our selection caters to all traders, where you are sure to find the one for you. We also offer the option to open a demo account on each platform, where you can practice trading on your platform of choice and master your trading skills, before you start trading in the real market with your own hard-earned money.
Leverage is given by the broker to enable traders to hold trading positions that are larger than what one’s own capital would otherwise allow.
How to calculate the cost of a forex trade
When a trader opens a position at AvaTrade, he is not charged any other commissions beside the spread. The spread is the difference between the buy and sell price which is counted in pips – the fourth digit after the dot. For example if the buy price of EURUSD is 1.1123 and the sell price is 1.1120, then the spread is 3 pips. The spread charged for a position opened by a trader is the spread multiplied by the size of the position.
Start Trading Forex with AvaTrade
AvaTrade provides its traders with the ability to trade over +50 pairs, including all the major currency pairs, minors and exotics. Trading Bitcoin and other digital currencies is also available to AvaTrade's Australian clients.
For more information regarding leverage and spreads for all pairs offered by AvaTrade, please take a look at our Trading Conditions & Charges.
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