Brokers With AUD Accounts

Brokers with AUD accounts are popular with swing traders in Australia. They also appeal to retail forex investors dealing in large quantities of Australian Dollars and local assets. This guide covers the top brokers offering an AUD base currency account. We also explain how they work, key benefits and more.

How AUD Accounts Work

An AUD trading account means you fund, hold and trade in Australian Dollars. All investing activity, profit statements, determination of margin and other account management happen in the currency. The base currency is usually selected at the registration stage and can be amended within the trading platform. With that said, some brokers do not allow you to change the base currency once a live account has been verified.

While many Australian traders choose an AUD account, they are also popular with international clients who actively invest in the Australian Dollar – reducing conversion fees. As the fifth most traded currency globally, there are plenty of brokers with AUD trading accounts, though they’re not quite as common as USD or EUR account denominations.

AUD Currency Explained

The Australian Dollar (AUD) was established in 1966 as the official currency of Australia and surrounding territories, including Christmas Island and Norfolk Island. It replaced the Australian Pound and was pegged to the US Dollar in 1967 at a rate of 1 AUD: 1.12 USD. Years later, in 1983, the currency became free-floating and remains so today. You may also see the currency referred to as the ‘buck’ or ‘Aussie’.

AUD money supply is authorized by the country’s central bank, the Reserve Bank of Australia (RBA). The RBA is also involved in implementing and regulating monetary policy. The value of Australian Dollars in circulation exceeds A$94 billion and is backed heavily by the country’s commodity-driven economy. Its geography provides a wealth of natural resources including gold, oil, agriculture, iron ore and nickel which are high in international demand and a key export for the country.

Aligned to this, the strength of the AUD is entwined with its exposure to Asia and the commodity cycle. The demand from these countries for natural resources saw the value of the currency rise rapidly in past cycles, though it did fall later as commodity demand declined.

Benefits of Brokers With AUD Accounts

Reasons to open an AUD trading account include:

• Access – Brokers with AUD accounts allow Australian investors to speculate on global markets, such as stocks, forex and commodities in their local currency. Trading conditions on AUD FX pairs, such as USD/AUD, EUR/AUD and GBP/AUD, are also usually competitive.
• Regulation – Brokers that offer AUD accounts are more likely to be authorized by the Australian Securities and Investments Commission (ASIC). Importantly, all brands offering retail trading services to customers in the region should hold a license with the country’s financial watchdog. The ASIC enforces limits on retail leverage and sign-up bonuses, among others, to help protect consumers.
• Convenience – Signing up to a broker with an AUD account can save costly exchange rate charges. You can view account balances, margin calculations and trading history in your registered currency.
• Fees – Local bank transfers can be fast, with payments often clearing within one working day. Charges for local deposits may also be cheaper than international wire transfers. The best AUD accounts work seamlessly with major deposit solutions such as credit/debit cards and wire transfers so you don’t need to register for a new funding solution.

Checking Brokers Offer AUD Accounts

It is straightforward to check whether an online brokerage offers an AUD trading account. A quick scan over the accounts section of the broker’s website should indicate accepted base currencies. Alternatively, on the sign-up page, many firms provide a drop-down menu where retail clients can choose a base currency. The deposits/withdrawal page should also detail accepted currencies.

If you still can’t find any information, it could be worth contacting the broker’s customer service team or visiting their FAQ page. Tip: Live chat support tends to provide the quickest response times.

Comparing Brokers With AUD Accounts

There are several factors to consider when choosing between brokers with an AUD account:

• Assets – Does the broker offer access to the assets you would like to invest in? This could be international securities or specific assets local to Australia, such as commodities or stocks on the Australian Securities Exchange (ASX).
• Mobile Application –  Does the broker offer mobile app compatibility? For many, it’s important to be able to manage your AUD account while on the go. A customizable interface and access to graphs and charts can prove useful.
• Demo Account – The best AUD brokers offer access to paper trading accounts. Simulated real-market conditions and virtual funds help investors of all experience levels practice swing trading in a risk-free setting.
• Minimum Deposit Requirements – Minimum deposit amounts can be a major consideration, particularly for new investors. CMC Markets, for example, offer AUD trading accounts with no minimum funding requirement.
• Regulation – The top brokers with AUD accounts are regulated and authorized by the Australian Securities and Investment Commission (ASIC). You can check whether your trading broker is a member via the register on the official website. Regulated brokers are considered the safest option and promote fair trading within the securities market.
• Fees – There are many trading and non-trading charges to think about when opening a live account. Make sure commissions or in-built spreads are competitive as these can quickly take from profits. Non-trading fees to review include account inactivity charges, overnight rollover fees or payments to deposit or withdraw.

Bottom Line on Brokers With AUD Accounts

Brokers with AUD accounts are suitable for swing traders in Australia, as well as global FX investors. It is worth noting, however, that the currency is not as widely offered by international brokerages as the USD or EUR, so you may need to use a local broker-dealer. Importantly, the biggest brokers with AUD accounts are authorized by the ASIC, providing reliable customer protection.

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