Trading Forex can bring a lot of benefits. However, FX does not offer the get-rich-quick method of making money. Instead, it is significant to devote enough time for developing the trading plan and designing the profitable strategy. To help you achieve the best results, we would like to provide some tips for Australian traders.
Always go for the ASIC brokerage
If you want to stay afloat in the long-run, it is vital to trade only with properly regulated brokers. Therefore, ASIC brokers should be the number-one choice. ASIC stands for Australian Securities and Investments Commission and it is the main regulatory body in Australia. The license given by this institution ensures the best quality of services and full credibility. ASIC means that you will never deal with a scam. Hence, we advise you trade with ASIC brokers and avoid unregulated firms.
Look for the bonuses
The bonus received from the reputable broker rewards the trader with extra cash for the future trades. There are many types of promotions, though most often you will be offered Deposit/No Deposit bonuses. As the name suggests, deposit bonus is the specific amount of funds which is credited to the account once the initial deposit is made. On the other hand, no deposit bonus is free cash which is given by the broker after verifying the account or the phone number. For already registered clients, brokers run promo campaigns as well.
Defining true ECN
It will not be an exaggeration to say that only some of the most reputable Australian Forex brokers offer true ECN model of trading execution. ECN brokers provide the best current market prices, come up with tight spreads and super-fast order execution. Moreover, there are no requotes as well as no slippage at the ECN trading execution model. However, there are scams that imitate ECN brokers. So how to tell the true ECN from the fake one?
First of all, the true ECNs make their revenue from the commissions and variable spreads. Logically, if the broker claims to be ECN but suggests no commissions and fixed spreads - then it is most likely the Market Maker. The second point is that ECNs will never provide insane leverage such as 1:500 or even more. Last but not the least important, all ECN brokers are regulated.
How to trade AUD/USD
Australian traders often seek for the best strategies to trade the Aussie. Before we provide the example of AUD/USD strategy, we should inform that this pair is quite volatile.
Considering this important factor, one of the best ways of trading the AUD/USD is the breakout strategies. However, this strategy works properly when the trend is settled. Essentially, you should monitor the support and resistance, wait for the break of the price level with the further expectation that the price will go in the predicted direction. Therefore, during the trending markets it is possible to collect substantial profits with the help of AUD/USD.
