The benefits of learning how to invest and trade securities online are many. Besides the opportunity of making extra money, you will get a greater understanding of how financial markets work and what affects the value of assets.
Some might even argue that everyone who can afford to invest a certain amount each month, really should make use of that opportunity. Yet, many people still fail to do so.
Now, we’re not here to tell you that you have to start trading securities online and we’re not going to teach you how (there are too many free resources online already). However, we do want to talk a bit about the brokers that you can use and thought we’d list the best online trading platforms in Australia.
First Things First: Safety
Before we get into the different brokers that we recommend that you use, we have to discuss one very important topic: safety.
All forms of trading and investments are associated with risk and it’s your responsibility to lower those risks as much as you possibly can. The risk of losing money will be ever-present and even though you can lower that risk, it’s impossible to get rid of completely.
That being said, you can easily avoid all risks associated with being ripped off or registering for an untrustworthy broker by following a few easy rules. Number one, never use an unlicensed and unregulated broker because they have no obligation to protect you. In Australia, it’s the Australian Securities and Investment Commission (ASIC) that regulates brokers so make sure you only use brokers with a license from them.
Second, always read reviews of a broker before you sign up. You see, even though a broker is regulated it doesn’t mean it’s the best fit for you and signing up for a broker that you can’t use to its full potential, can be a costly mistake.
And with that out of the way, let’s have a look at the top three online brokers in Australia.
1. CMC Markets
CMC Markets is a well-established online broker with its roots in the UK. They have been active on the Australian market for many years and are considered to be one of the best, if not the single best broker in the country.
Signing up with this broker will give you access to well over 10,000 tradable assets ranging from currency pairs and stocks to cryptocurrencies, two award-winning platforms, and competitive spread. CMC Markets is a forex, CFD, and spread betting broker, meaning you have the option of trading assets in several different ways.
Naturally, CMC Markets is licensed and regulated by the ASIC, so there is no need to worry about your safety when using it.
2. City Index
City Index is another broker based in the UK that’s considered to be one of the leading online brokers in the world. They have a long history that spans back several decades and are continuously awarded some of the industries most prestigious awards.
With a City Index account, you’ll gain access to over 12,000 assets on several exciting markets as well as two incredible platforms, one of which City Index has developed themselves. You can also choose between trading assets as CFDs or spread betting, giving you the option of varying your efforts.
And yes, City Index is also licensed and regulated by the ASIC.
Similar to the other two brokers, eToro also belongs to the top tier of online brokers in Australia and the rest of the world. However, eToro is based on a unique feature that neither of the other two brokers offers.
The eToro trading platform is a copy trading platform and there are many benefits to this, especially for beginners. The eToro copy trading platform allows you to copy other more successful traders, thus avoiding having to do all the analytic work yourself. Needless to say, that makes trading much easier and less involved and is perfect when you don’t have the time or skills needed to trade on your own.
eToro was founded in Israel and holds a license from ASIC as well as several of the other world’s top regulatory bodies.