Best Forex Brokers in 2025

What is Forex or the Foreign Exchange Market?

The Forex (Foreign Exchange) market, also known as the currency market, is the largest financial market in the world, where currencies are traded continuously. It operates 24 hours a day, 5 days a week, with daily trading volume exceeding several trillion dollars. This market is based on the exchange of currency pairs, where one currency is bought and the other is simultaneously sold. Each pair is written in the format XXX/YYY, for example AUD/USD (Australian Dollar vs US Dollar) or GBP/JPY (British Pound vs Japanese Yen). The first currency in the pair is called the base currency, and the second is the quote currency. So, if AUD/USD is quoted at 0.65, it means that 1 Australian dollar is worth 0.65 US dollars.

The Forex market is driven by a range of participants. Central banks influence the market through monetary policy decisions. Financial institutions and hedge funds execute large-volume trades, while multinational corporations exchange currencies for international operations. Finally, retail traders access the market through Forex brokers, allowing them to speculate on currency movements using leverage.

This market has several features that attract investors. It operates continuously, providing opportunities at any time. Its high liquidity ensures fast execution of trades without a lack of counterparties. The leverage offered by Forex brokers enables traders to open much larger positions than their initial capital, although this also increases risk. Moreover, unlike stock markets, Forex allows speculation on both rising and falling prices by selling one currency against another.

What is a Forex broker?

A Forex broker, or foreign exchange broker, is a platform that allows investors to buy and sell currencies on the foreign exchange market. It serves as an intermediary between the trader and the interbank market, where large financial institutions exchange currencies on a large scale. Thanks to online brokers, Forex has become accessible to individuals, who can speculate on the evolution of exchange rates from an intuitive interface and with relatively little capital.

Forex brokers offer currency pairs such as EUR/USD, GBP/JPY or USD/CHF, and allow you to open positions with or without leverage, depending on the desired level of risk. They provide advanced tools to analyse the market, such as real-time charts, technical indicators and automated trading features. Some brokers also offer access to CFDs (Contracts for Difference), allowing you to speculate on currency fluctuations without actually owning the underlying asset.

Compare the best Forex brokers regulated in Australia.

How to choose a Forex broker?

Choosing a Forex broker is an essential step for trading currencies under good conditions. Several criteria must be taken into account to select the platform that best suits your needs and trading style. Here are the main elements to analyze before opening an account.

1. Regulation and Security of Funds

A reliable Forex broker should be regulated by a recognised financial authority, ensuring the safety of client funds and transparent trading practices. In Australia, it is essential to verify that the broker is licensed by:

• ASIC (Australian Securities and Investments Commission) – the primary financial regulatory authority in Australia.

ASIC-regulated brokers are required to comply with strict standards, including:

• Keeping client funds in segregated accounts separate from company operational funds.
• Undergoing regular audits and supervision to ensure financial integrity and consumer protection.

You may also consider international regulators if trading with offshore brokers, such as:

• FCA (UK)
• CySEC (Cyprus)
• CFTC/SEC (USA)

However, choosing a broker licensed by ASIC is the safest option for Australian residents due to stronger local enforcement and dispute resolution mechanisms.

2. Type of Broker: Market Maker or ECN/STP

There are two main categories of Forex brokers:

What type of broker should you choose?

• Beginner : Market Maker (fast execution, no commission)
• Advanced Trader: ECN/STP (more transparent execution, tight spreads)

3. Spreads and Commissions

Forex brokers primarily make money in two ways:

• Les spreads : différence entre le prix d’achat et le prix de vente d’une paire de devises. Ils peuvent être fixes ou variables.
• Les commissions : appliquées sur chaque transaction, généralement par lot de 100 000 unités de devise.

4. Leverage Offered

Leverage allows traders to control larger positions with less capital, increasing both potential gains and potential losses.

In Australia, ASIC limits leverage for retail clients to the following levels:

• 1:30 for major currency pairs
• 1:20 for minor currency pairs, gold, and major indices
• 1:10 for other commodities and minor indices
• 1:5 for individual shares
• 1:2 for cryptocurrencies

These restrictions are designed to protect retail traders from excessive risk. Some offshore brokers may offer leverage up to 1:500, but such offerings often come with higher risk and fewer protections, and should be approached with caution.

5. Available Trading Platforms

A good Forex broker should offer a platform that is both intuitive and efficient. The most popular options include:

• MetaTrader 4 (MT4) : ideal for automated trading and technical indicators.
• MetaTrader 5 (MT5) : improved version of MT4 with more assets.
• cTrader : appreciated for its speed of execution and transparency.
• Proprietary platforms : some brokers develop their own online and mobile trading software.

6. Deposit and Withdrawal Methods

A reliable broker should offer several methods for depositing and withdrawing funds easily. Check the available options:

💳 Bank card (Visa/Mastercard)
🏦 Bank transfer
📱 Electronic wallets (PayPal, Skrill, Neteller)
💰 Cryptocurrencies (Bitcoin, USDT, etc.)

Hidden Fees

Some brokers charge withdrawal fees or impose long delays for processing requests.

7. The Quality of Customer Service

A good broker should offer responsive and available customer service in case of technical or administrative problems. Before opening an account, test:

• Contact methods: online chat, phone, email
• Reactivity: fast response and in English if possible
• Availability: 24/7 support, especially during trading hours

8. Educational Tools and Resources

If you're new to Forex trading, choose a broker that offers:
📊 Webinars and online training
📈 Market analysis and trading signals
📘 Guide to learning how to use the platforms

Which Forex Broker is Best for a Beginner?

Choosing a Forex broker when you are starting out can be complex, as you need to prioritize a simple, secure platform with transparent fees. A good broker for beginners should offer:

• An intuitive interface: a platform that's easy to learn, with clear tools and mobile access.
• A free demo account: to practice without risk using virtual money.
• Competitive fees: reasonable spreads and no hidden commissions.
• Responsive customer service: available in English and accessible via chat, phone, or email.
• Reliable regulation: a broker licensed by a recognized authority (such as the IIROC).
• Access to educational resources: guides, webinars, market analysis, and tutorials.
• Appropriate leverage: limited (maximum 1:50 in Canada) to limit risks and avoid rapid losses.
• A wide selection of currency pairs: to trade major Forex pairs (EUR/USD, GBP/USD, USD/JPY...).

How to Trade Forex with an Online Broker?

Trading Forex with an online broker involves several key steps. 

1. Choose a Reliable Forex Broker

The first step is to select a regulated broker offering an intuitive platform, competitive fees, and suitable leverage. Check the following criteria:

• Regulation by a recognised authority (ASIC, FCA, CySEC, etc.).
• Competitive spreads and no hidden fees.
• Access to a high-performance platform (MetaTrader 4, MetaTrader 5, cTrader...).
• Responsive customer service available in English.

2. Opening a trading account

Once the broker is selected, you need to create an account. The procedure generally includes:

• Fill out a registration form with your personal information.
• Verify your identity by sending a photo ID and proof of address.
• Select the account type (standard account, ECN account, demo account, etc.).
• Accept the broker's terms of use.

3. Depositing Funds into Your Account

To start trading, you need to fund your account via:
💳 Credit card (Visa/Mastercard)
🏦 Bank transfer
📱 Electronic wallets (PayPal, Skrill, Neteller)
💰 Cryptocurrencies (depending on the brokers)

4. Choosing a Currency Pair to Trade

Forex trading relies on trading currency pairs such as:

• Majors: USD/CAD, GBP/USD, USD/JPY (the most liquid and the least volatile).
• Minors: EUR/GBP, AUD/NZD (less traded but interesting).
• Exotics: USD/ZAR, EUR/TRY (more volatile with higher spreads).

5. Analyse the market and define a strategy

Before opening a position, it is necessary to analyse the market using:

• Technical Analysis: Using charts and indicators (RSI, MACD, moving averages) to identify opportunities.
• Fundamental Analysis: Monitoring economic news (interest rates, inflation, employment) to anticipate trends.
• Trading Plan: Defining objectives, acceptable risk, and money management.

6. Placing a Trading Order

On your platform, you need to:

• Select the currency pair to trade.
• Define the position size (in lots).
• Choose the order type:✅ Market order: immediate execution at the current price.✅ Limit order: buying or selling at a defined price.✅ Stop order: execution when the price reaches a certain level.
• Add a stop-loss (to limit losses) and a take-profit (to secure gains).
• Validate the order.

7. Managing Your Positions and Adjusting Your Trading

Once the order is executed, it's important to monitor your trade in real-time:

• Adjust the stop-loss or take-profit according to market movements.
• Follow the evolution of economic news that may impact the currency pair.
• Close a position manually if necessary to secure profits or limit losses.

8. Withdrawing Your Profits and Optimising Your Strategy

Once you've accumulated profits, you can request a withdrawal to your bank account or e-wallet. Remember to:

• Check the withdrawal times and fees imposed by the broker.
• Analyse your trading performance and adjust your strategy.
• Continue to learn and improve through the broker's educational tools (webinars, market analysis, demo accounts, etc.).

What currency pairs to trade on Forex with an online broker?

Forex trading is based on trading currency pairs, classified into three main categories: major, minor and exotic. Each type of pair has specific characteristics in terms of liquidity, volatility and spreads. Here is a summary table of the main currency pairs to trade with an online broker.

Which currency pair to choose?

• Beginner? → Focus on major pairs (AUD/USD, USD/JPY, GBP/USD) for their tight spreads and liquidity.
• Experienced Trader? → Consider minor pairs (EUR/GBP, GBP/JPY) for more volatility and opportunities.
• High-Risk Appetite? → Exotic pairs (USD/ZAR, EUR/TRY) offer potentially high gains, but with wider spreads and significant volatility.

What are the Forex broker fees?

Forex brokers apply different types of trading fees that can impact investor profitability. These fees vary depending on the type of broker (Market Maker or ECN/STP), the currency pair traded and market conditions. Here are the main fees to know before choosing a Forex broker.

1. Spreads (price differences between buying and selling)

The spread is the difference between the buy (Ask) and sell (Bid) price of a currency pair. This is the main fee applied by Market Maker brokers. It can be fixed or variable, depending on market volatility.

Example of average spreads

• EUR/USD → 0.5 to 1.5 pips
• GBP/USD → 1 to 2 pips
• USD/JPY → 0.8 to 1.5 pips

Tip: an ECN/STP broker generally offers tighter spreads but charges a commission per trade.

2. Transaction fees

Some brokers charge a fixed commission per lot traded, in addition to the spread. This model is common among ECN brokers, where orders are executed directly on the interbank market.

ECN Commission Example:

AU$5 to AU$7 per standard lot (100,000 currency units) for a round trip (buy + sell).

3. Swap Fees (Overnight or Rollover)

Swap fees are applied when you keep a position open after market close (usually 11 PM GMT). This cost depends on the interest rate difference between the two currencies in the traded pair.

Swap Example

• On AUD/USD, if the Australian dollar has a lower interest rate than the US dollar, a trader buying AUD/USD will have to pay a fee to keep their position open.
• Conversely, if they sell AUD/USD, they may receive a credit (positive if the sold currency has a higher rate).

4. Currency conversion fees

If you trade a currency pair that is not denominated in your base currency (e.g. an account in AUD trading USD/JPY), the broker will apply an exchange fee.

Example of conversion fees

A broker may charge 0.25% of the amount converted for a transaction in USD with an account in AUD.

5. Inactivity fees

Certain brokers charge fees if you do not make any transactions for a given period (usually 3 to 12 months).

Example of inactivity fee

$15 AUD to $75 AUD per month after 6 to 12 months of no trading.

6. Deposit and withdrawal fees

Brokers may charge fees for depositing or withdrawing money from your trading account. These fees vary depending on the payment method used.

Example of withdrawal fees

• Bank transfer: fixed fees between AUD 7 and AUD 75 depending on the country and the bank.
• Credit card: some brokers charge 1 to 3% of the amount withdrawn.
• E-wallets (PayPal, Skrill, Neteller): fees between 0% and 3%.

What strategies to trade with a Forex broker?

Forex trading offers various strategies tailored to the profiles and objectives of traders. Some methods favour quick gains on small movements, while others focus on long-term trends. Here is a summary table of the main Forex trading strategies and their characteristics.

What is the taxation on Forex income in Australia?

In Australia, profits and losses from Forex trading are subject to taxation under specific rules outlined by the Australian Taxation Office (ATO). The tax treatment depends on various factors, including the nature of the trading activity and the taxpayer's circumstances.​

1. Taxation of Forex Gains and Losses

Under Division 775 of the Income Tax Assessment Act 1997, foreign exchange (forex) gains and losses are recognized when they are realized through specific forex realisation events. These events include the disposal of foreign currency or the cessation of rights or obligations to receive or pay foreign currency.

For individuals, forex gains are generally considered assessable income, while forex losses may be deductible, provided they are not of a private or domestic nature. 

2. Classification of Traders

a. Individual Traders (Investors):
Individuals who engage in Forex trading sporadically or as a hobby are typically considered investors. Their forex gains are treated as assessable income, and losses may be deductible if they meet certain criteria. ​

b. Business Traders:
Those who trade Forex as a business activity, characterized by regularity, volume, and a profit-making intention, are considered business traders. Their profits are taxed as business income, and losses may be deductible against other income. ​

3. Capital Gains Tax (CGT) Implications

In some cases, Forex transactions may give rise to capital gains or losses, particularly when dealing with capital assets denominated in foreign currency. However, if both the forex provisions and CGT apply, the forex measures take precedence.

4. Reporting Requirements

Forex gains and losses should be reported in your annual tax return. For individuals, forex gains are typically reported under "Other Income," while deductible losses are claimed under "Other Deductions." ​

5. Record-Keeping and Compliance

Accurate record-keeping is essential. Maintain detailed records of all Forex transactions, including dates, amounts, exchange rates, and the nature of each transaction. This documentation supports the accurate reporting of income and deductions.​

6. Special Considerations

a. Functional Currency Election:
Eligible taxpayers may elect to use a functional currency other than Australian dollars for tax accounting purposes. This election must be made in writing and is subject to specific conditions. ​

b. $250,000 Balance Election:
Taxpayers can elect to disregard certain forex gains and losses on qualifying foreign currency accounts with balances below AUD $250,000. This election helps simplify tax reporting for small-scale forex activities. ​

7. Declaration of Overseas Accounts

Australian residents must declare any foreign bank accounts or trading accounts held overseas. Failure to disclose such accounts can result in penalties. Ensure compliance by reporting all foreign financial interests in your tax return.

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.