CFD Trading In Australia

CFD trading in Australia began in 2003. Now approximately one-third of trades on the Australian Securities Exchange (ASX) are born from CFD products. But before you start CFD trading in Australia, read our reviews of the best platforms and CFD brokers 2020. We’ll also cover any tax and legal implications.

CFD Brokers in Australia

A trader with a Plus500 account can trade CFDs on underlying financial instruments such as Forex, Stocks, Commodities, Cryptocurrency, Options and Indices. With tight spreads and no commission, they are a leading global brand. Plus500 offer a first deposit bonus, up to $10,000 AUD
Trade Forex on 0.0 pip spreads with the world's leading True ECN forex broker - IC Markets.
Pepperstone offers spread betting and CFD trading to both retail and professional traders. Clients can trade FX, indices and more on MT4, MT5 and cTrader platforms.
ThinkMarkets is a multi-regulated forex and CFD broker
Established spread betting, forex and CFD broker with over 30 years in the business. Regulated around the globe.
Leading forex and CFD broker regulated in Ireland, Australia, Canada and South Africa. Avatrade are particularly strong in integration, including MT4
Forex.com boast a global reputation. Regulated in the UK, US and Canada they offer a huge range of markets, not just forex, and offer very tight spreads and a cutting edge platform.
XM.com Offer a range of Account types and a low minimum deposit to appeal to all levels of trader. With 1000+ markets and low spreads they offer a great service.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Alpari offer forex and CFD trading across a big range of markets with low spreads and a range of account types that deliver for every level of trader from beginner to professional.
BDSwiss offer 250+ Shares, Indices, Forex, Commodities and Cryptocurrencies markets via CFDs. With spreads from 1 pip and an award winning app, they offer a great package.
Axi is a global online FX and CFD trading company, trusted by 60,000+ ambitious customers in 100+ countries around the world.
72.6% of retail investor accounts lose money when trading CFDs with this provider
Markets.com offer CFDs across a huge range of assets from shares and indices to commodities and cryptocurrencies.
Fusion Markets are delivering low cost forex and CFD trading via low spreads and trading costs. Their message is - Stop paying too much to trade
Trading 212 Offer a truly mobile trading experience. With tight spreads and a huge range of markets, they offer a dynamic and detailed trading environment.
FXCM are an FCA regulated, London based broker. Companies under the FXCM umbrella are also regulated in Australia and Canada.
easyMarkets.com - Simply Honest. Trade CFDs on Forex, Commodities, Indices, Shares & Cryptos With a Top Rated Forex Broker
Deriv.com are a new brokerage, offering binary options and CFD trading
Global brand offering exceptional execution, low deposit requirements and advanced charting and trading platform features.
Vantage FX are a Raw ECN Forex broker, regulated by ASIC is Australia. Boasting MT4, MT5 and Webtrader platforms, a range of account types and a deposit bonus of up to 50%
FXTM Are leading forex and CFD brokers. Offering a huge range of markets, and 6 account types, they cater to all level of trader.
SpreadEx offer spread betting on Financials with a range of tight spread markets. Popular award winning, UK regulated broker.
A regulated bank, Saxobank offer CFD, Stocks and Forex trading on 35,000+ markets via the SaxoTrader Pro and SaxoTrader Go platforms
Binary.com are the established pioneers of binary options. The choice of the advanced trader, Binary.com offer the greatest flexibility of any binary broker. They also offer Forex and CFD via the MT5 platform.
NinjaTrader offer Traders Futures and Forex trading. Use Auto-trade algorithmic strategies and configure your own trading platform, and trade at the lowest costs.
IG offer spread betting, CFD and Forex trading across a range of markets. They are FCA regulated, boast a great trading app and have a 40 year track record of excellence.
Dukascopy is a Swiss-based forex, CFD, and binary options broker
Based in Australia, HighLow offer a superior binary options experience. Regulated by ASIC, the firm run an honest and transparent service with a great platform.
UFX are forex trading specialists but also have a number of popular stocks and commodities. Offering tight spreads and one of the best ranges of major and minor pairs on offer, they are a great option for forex traders.
Ayondo offer trading across a huge range of markets and assets. They also offer negative balance protection and social trading.
LQDFX offers online trading with multiple STP accounts and MT4 analysis tools.
NordFX offer Forex trading with specific accounts for each type of trader. Zero accounts offer spread from 0 pips, while the Crypto offers optimal cryptocurrency trading. Open account from just $10.
LegacyFX is a multi-asset broker offering an MT5 download & free signals.
StormGain provides an online crypto trading platform & cloud mining tool.
FP Markets is a multi-asset broker offering a choice of trading platforms.
FXOpen is a highly regulated FX & CFD broker offering multiple trading platforms.
Axiory is a regulated forex & CFD broker offering tight spreads & leveraged trading.
LiteForex Investments Limited is a regulated Forex & CFD broker offering the MT4 & MT5 trading platforms.
PrimeXBT is a Bitcoin-based platform offering highly leveraged trading in FX, indices, commodities, & cryptocurrencies.
GO Markets is an ASIC-regulated FX & CFD broker.
IronFX offers online trading in forex, stocks, futures, commodities and cryptocurrencies
Spectre.ai is a blockchain-based binary options broker
Access global exchanges anytime, anywhere, and on any device. Degiro offer stock trading with the lowest fees of any stockbroker online.
Just2Trade offer hitech trading on stocks and options with some of the lowest prices in the industry
Zulutrade provide multiple automation and copy trading options across forex, indices, stocks, cryptocurrency and commodities markets
New Forex broker Videforex can accept US clients and accounts can be funded in a range of cryptocurrencies. Payouts reach 95% per trade.
Bit Mex Offer the largest market liquidity of any Crypto exchange. Ultra low trading costs and minimum deposit requirements. Join in 30 seconds.
Multi-Award winning broker. Specialising in Forex but also offering stocks and tight spreads on CFDs and Spread betting across a huge range of markets.
Deposit and trade with a Bitcoin funded account! Binarycent accept deposits in, and trade, 15+ Cryptocurrency types.
Show All Brokers ⇩

What Is CFD Trading?

Contract for difference (CFD) trading is about trying to profit from the movements in the price of an underlying asset. But crucially, traders never own the underlying asset. And where derivatives usually have a set expiry, CFDs do not. So Aussie traders have the flexibility to decide when to take a profit or loss.

Traditionally many derivatives were only available to institutions in Australia. Now individuals too can benefit from access to these markets with a straightforward instrument that reduces complexity and trading costs.

Assets

CFD trading in Australia gains you access to a range of asset types:

  • Stocks and shares
  • Government bonds
  • Commodities
  • Futures
  • Forex
  • ETFs

Most popular is the online share market, currency pairs, and commodities like gold. But the market in Australia is growing. Now also available are CFDs on cryptocurrency, such as Bitcoin, plus large events, including national elections.

How To Trade

To get started CFD trading in Australia:

  • Pick a market – Do you want exposure to the forex or stock market, or perhaps cryptocurrencies? Maybe you’ve spotted an opportunity in a major global market, such as the US or UK?
  • Buy or sell – Buy if you think price is on the up and sell if you think it’s going to fall. Bring up the trading ticket in your platform to view prices.
  • Choose a trade size – One CFD is the same as one physical share, while on other instruments it varies. Make sure you think about how much you can afford.
  • Use stop and limit orders – A fundamental part of your risk management strategy, a stop-loss order will protect your position if price goes against you by automatically exiting the trade. A limit order will lock in profits once they reach a certain level.
  • Close the trade – Keep an eye on your screen for changes to any profit or loss. Exit the trade when you’re ready to collect a profit or realise a loss. Any returns or losses should be reflected in your account balance.

Platforms

The best CFD trading platforms in Australia will change depending on who you ask. Many websites use the industry popular MetaTrader (MT4) or MetaTrader 5 (MT5) systems. But beginners may find these complex. Some brokers in Australia also promote their own platform. IG, for example, has its proprietary software that allows for customisation. It’s also easy to pick up so suitable for beginners. Mobile traders should check the platform will be available through an iOS or Android app.

For those undecided about which online platform to go for, open a demo account. They’re great for fine-tuning strategies and exploring a platform – trialing signals, charts and any other analysis tools available.

Brokers

Finding the best CFD broker in Australia will depend on individual needs. Still, Aussie traders should consider several factors. Firstly, look for low spreads and transparent fees. Generous leverage and margin requirements will also help you maximise your position size. Check you can open an account with AUD as your base currency too.

The range of markets available is important. And does the broker provide free access to ASX live data or is there an additional charge? Another consideration is the minimum account deposit required. A large initial investment may deter beginners. The best CFD trading brokers in Australia should also process trades quickly and reliably each day. It’s worth checking user reviews for confirmation that deposits and withdrawals are processed quickly too. One final consideration is negative balance protection. This will ensure you can never lose more than your initial deposit.

Some of the biggest names in Australia are IG Markets, CMC Markets, AU Online Capital Markets, and Xtrade. They frequently rank towards the top in customer reviews, offering competitive prices and intuitive platforms.

For further guidance on choosing a broker, see here.

CFD trading is legal in Australia. The other good news for traders is that brokers are subject to one of the strictest regulators – The Australian Securities Investment Commission (ASIC). This means clients’ investments are better protected.

So before you open an account, check the platform is regulated in Australia. The provider should have an Australian Financial Services (AFS) license number displayed on their website. Regulated brokers are also obliged to issue Aussie traders with a Product Disclosure Statement (PDS). This should list key information, including product features, fees, risks, and the complaints process.

Is CFD Trading Taxable In Australia?

The tax implications of CFD trading in Australia are centred around whether you’re operating as a business. The product traded is less important. For example, the tax implications of trading on CFDs are the same as if you were dealing in stocks, forex or futures.

The Australian Tax Office (ATO) states that if you’re operating as a sole trader or small business then you need to record income minus expenses. A loss can be offset against your total tax bill and carried forward while gains will be taxable. How much tax is owed will depend on the size of the gain. It’s also worth flagging that you do not need to detail every trade. Instead, it’s the total profit and loss that need to be declared to the ATO.

CFD trading and taxes can feel complex. This page aims to simplify the tax landscape by highlighting key areas to consider. With that said, it remains important to seek professional tax guidance.

For further information on day trading taxes in Australia, see here.

Education

Aussie traders can improve their CFD investing capabilities through a host of online tools. For example, top brokers may offer virtual training courses. Demo accounts are also a great forum to refine a strategy. Economic calendars and insights from experts can help hone market insights too.

Final Word

CFD trading in Australia is hugely popular amongst both novice and advanced traders. The best brokers are regulated by the ASIC and have good customer reviews. Once you’ve defined your risk parameters and formed a strategy, open an account with a provider you’re comfortable with.

FAQ

What is CFD trading?

A contract for difference (CFD) is a financial instrument that allows traders to speculate on the change in price of an underlying asset. CFD trading is available across multiple asset types, including stocks, forex and commodities.

Yes – CFD trading is legal in Australia. Make sure you open an account with a regulated broker by checking for an Australian Financial Services (AFS) license number. Not only will your funds be better protected, but you’ll also received detailed information about products and associated risks.

Is CFD trading taxable in Australia?

If you generate profits from CFD trading in Australia, you may owe tax. You’ll need to declare total income minus expenses to the The Australian Tax Office (ATO). The good news is that taxes on CFD trading in Australia work in the same way as taxes on other instruments, such as stocks and forex.

Is CFD trading in Australia safe?

CFD trading in Australia, like anywhere in the world, comes with risks. There is the risk of losing your money and a risk of being scammed if you sign up to an unregulated broker. Use our top list of CFD Brokers to minimise such risks.

Can you make a living trading Contracts for Difference in Australia?

Some people do make a living trading CFDs in Australia. However, as with all instruments based on the financial markets, there is a risk of losing money.

If you trade with leverage, you can profit or lose more money than you initially invested. Be aware of the risks and don’t trade CFDs with money you can’t afford to lose.