What is a Forex Broker
Investing and trading have been known to be some of the best ways to liquidate cash and earn some profit. Lately, a lot of people have found that trading foreign currencies is a great way to earn money – for that, people have started to trade Forex.
The fluctuations in foreign exchange rates allow traders to earn their profits. In Forex, traders are able to purchase a currency pair offered by their Forex broker. Afterward, by following analytics and making assumptions, people trade the pair when they profit most.
So, a Forex Broker is considered to be the financial intermediary in exchanging foreign currencies. The Forex Broker’s job is to provide all the necessary means and tools for traders, and the broker earns its profits from earning a commission from the exchange that traders conduct. To further elaborate, suppose a beginner in Forex is trading using the Pepperstone Broker; the trader will be able to have access to a demo account that the broker provides, allowing the beginner to trade with hypothetical money and gain the needed experience. Many other brokers offer numerous other benefits to their users. To learn about them, a beginner can continue reading about the best Australian Forex brokers and choose the one that fits their preferences.
Thus, a Forex broker is the middleman that connects Forex traders together and ensures that both parties follow the necessary laws and regulations to prevent fraud or a scam.
What is Meta Trader 4 (MT4)
Meta Trader 4 (MT4) is one of the most popular trading platforms, making the foreign exchange process easier for traders. The MT4 is considered a software that offers licenses and legal rights for Forex brokers, allowing them to integrate the software onto their platforms and offer them to their clients.
MT4 can be used on almost all types of electronic devices. The benefit that comes with using MT4 is that it offers an automated solution for traders. In other words, when traders use the MT4 software to trade foreign currencies, they do not need to constantly check the fluctuations to understand the best time to trade. Instead, the software will read all the necessary analyses and predict the best trade time, allowing traders to make as much profit as possible.
The importance of choosing a good Australian Forex Broker
There are numerous Forex Brokers that offer MT4 for their clients; however, this is not a good indicator of whether a broker is the right one for a trader. Firstly, the Forex broker needs to be regulated to ensure that the financial and bank information of clients is protected by laws and regulations. For Forex brokers in Australia, the official regulatory body is the Australian Securities and Investments Commission (ASIC).
Here are some Forex Brokers in Australia that are regulated by ASIC and have the MT4 software integrated onto their platforms:
1- FP Markets
FP Markets was founded in 2005 and is regulated by the ASIC and Cyprus Securities and Exchange Commission (CySEC).
- Minimum deposit: 100$
- Account types: Real and Demo
2- Pepperstone
As mentioned above, Pepperstone is a widely spread Forex Broker worldwide. The advantage of Pepperstone is that there are no withdrawal fees; however, the costs to hold a position overnight to increase the profits from a currency pair are high.
3- IG
IG broker is considered to be one of the trusted MT4 providers worldwide. The broker is regulated by numerous regulatory bodies, including the ASIC, making it a trusted broker in Australia.
Advantages of using IG:
- Availability of user-friendly analytical and educational tools
- Tight spreads
4- IC Markets
On the other hand, IC Markets is suggested for traders who will use MT4 for the first time. This is because when using IC Markets for the first time, beginners will be able to get 24/7 customer support regarding MT4 software.
5- AVA Trade
AVA Trade is another useful Forex Broker for beginners, as it provides users with numerous languages within the platform. Additionally, the low minimum deposits offered can be attractive to beginners in the foreign exchange field.
6- Axi
Axi is a Forex Broker that only allows users to trade using the MT4 platform – this has had some benefits and disadvantages. The benefit of using the Axi is that it offers the most customization to traders in the world; however, being able to trade only using MT4 can become discouraging for some brokers.
Conclusion
To sum up, Forex trading requires traders to constantly check the fluctuations of the exchange rates to understand the right times of trade. However, to make this process easier, MT4 was introduced to provide automated services to those who do not have much time to spend on looking at exchange rates. Instead, the software automatically trades the available currencies at the right time by looking at the graphs and statistics available on a broker’s platform.
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