Forex trading in Australia
Australia has been a hot spot for this industry due to safe jurisdiction and by virtue of its trading culture. Thus, Forex trading in Australia has become an alternative source of earnings to many retail players too. It is said that the turnover of some of Australia’s leading brokers have the potential to exceed the entire cash equities volume of the Australian Securities Exchange on a given day.
Impact of technology on trading in Forex :
The transaction costs have reduced to a considerable extent due to the influence of technology on the Foreign exchange trade. It has also allowed a lot of malpractices in the activity. With the advent of Internet, there has been many online websites that help traders to carry on day trading. These websites are brokers or agents. In Australia , ASIC , APRA and AUSTRAC are the regulating authority to oversee the Forex trading in Australia. The recommended and regulated Forex broker for Australian traders are :
Forex trading hours in Australia :
The most productive hours for day trading are from the opening of the London markets at 08:00 GMT to the closing of the US markets at 22:00 GMT. The peak trading time for forex trading in Australia is when the US and London markets overlap between 1 pm GMT – 4 pm GMT. The main sessions of the day are the London, US and Asian markets.
Forex trading sessions in Australia are as under :
LONDON SESSION – It opens between 8 am GMT – 5 pm GMT. EUR, GBP, USD are the most popular currencies.
US SESSION – It operates from 1 pm GMT to 10 pm GMT. USD, EUR, GBP, AUD, JPY are the most popular currencies.
ASIAN SESSION – It opens at about 10 pm GMT on Sunday afternoon, goes into the European trading session at about 9 am GMT. This session is not very attractive for day trading.
Advantages of Forex trading
One has the advantage of taking leverage of trading forex in Australia. Also, the traders can invest in huge volumes thus making the ability to make profits slightly more with less transaction costs at high volumes of trade.
One can scale to huge profits provided the market matches their opinions. However, there are chances of making losses too. One should research carefully and only then indulge in trading in forex markets.
One needs to watch out for the Government reports and properly study the economic conditions. A lot of Australia’s day traders lost huge amount when the Swiss Franc had fallen substantially. One needs to give attention to the trading hours and the currency they choose. Also, one should only risk up to what they can pay.