AUSForex Review

Finding a reputable AUSForex review local or worldwide can be a difficult process, especially finding a complete list from a trustworthy reputable source.

Below is an in-depth review regarding AUSForex to help you make an informed decision before opening your account or trading on their platform.

According to recent research, AUSForex is an Australian forex broker company, now based in London.

A Forex broker is a company that provides traders with access to platforms that allow them to buy and sell foreign currencies. Forex brokers are also known as retail forex brokers or currency trading brokers.

Retail currency traders in turn use these brokers to gain access to the 24-hour currency market for speculation purposes.

Forex broker services are also provided for institutional clients and large companies such as investment banks.

The company relocated its headquarters to the United Kingdom in 2015 in order to better serve the global market.

With the move, AUSForex also obtained regulation by the United Kingdom Financial Conduct Authority (FCA), as well as supervision by the Hong Kong Securities and Futures Commission (SFC) and the Cyprus Securities and Exchange Commission (CySEC).

As a leading online trading broker, AUSForex offers online dealing services to private investors, institutions, banks, and brokerages.

They specialize in Foreign Exchange (Forex) and Contracts for Difference (CFDs), and clients enjoy 24-hour access to all global financial markets via the provided MetaTrader 4 and MetaTrader 5 trading platforms.

AUSForexs dedicated and experienced staff comes from varied international financial backgrounds, with lots of shared expertise and knowledge to make available to clients.

AUSForex maintains offices in London, Cyprus, Beijing, Shanghai, Malaysia, and Vancouver but does not offer services to clients located in Japan, Iran, Cuba, Sudan, Syria, Belgium, and North Korea.

Awards and Recognition

In the world of forex broker companies being honored with awards from esteemed organizations or publications, count much for the companys reputation.

Although AUSForex is rated highly by many happy customers in personal reviews, there is no information available on the AUSForex homepage about any official awards received.

AUSForex Accounts

A forex account is a trading account held by a trader with a company like AUSForex that is primarily issued with the purpose of trading currencies.

Usually the number and type of accounts that a trader can open with a broker company differ according to the country in which the brokerage operates, the country of residence of the trader and the regulatory authorities under whose jurisdiction it operates.

Types of Accounts and Their Features

In the case of AUSForex two account types, the STP account (Straight Through Processing execution) and ECN (electronic communication network) account, are offered, both accessible through the popular MetaTrader 4 platform.

With an STP account the brokers trading commission is included into the spread and an ECN account, such as offered by AUSForex, is a computerised system that automatically matches buy and sell orders for securities in the market.

It connects major brokerages and individual traders to trade between themselves directly without going through a middleman. This makes it possible for investors in different geographic locations to easily trade with each other.

The ECN account earns money by charging a fee for each transaction. It eliminates a third partys role in executing orders and permits such orders to be entirely or partly executed.

The use of an ECN allows investors to trade outside traditional trading hours and provides a mechanism for traders that cant be active during normal market times and those who prefer the flexibility of wider availability.

The AUSForex ECN account offers lower spreads, but involves a commission of $10 per standard lot, while the STP account provides commission-free trading and comparatively high spreads.

Both accounts require a minimum Deposit of 1 000 USD, so in reality choosing an account comes down to a choice between one with above-average spreads but no commission fees, or one with amazing spreads but higher than average commission charges.

A SUMMARY of the two account types is described below:

STP Account

• Minimum Deposit: 1 000 USD

• Maximum Leverage: 1:400

• Average Spreads: 2.0 pips

• Commission: None

ECN Account

• Minimum Deposit: 1 000 USD

• Maximum Leverage: 1:400

• Spreads: 0.5 pips

• Commission: $10 per standard lot round-turn

Micro lots are available on both accounts and MAM and PAMM account options are also available.

Percentage Allocation Management Module (PAMM) accounts are offered as an attractive service for investors.

The PAMM system is a distinct set of Forex trading accounts used by traders to manage their own as well as joint capital of other traders. It enables traders to invest in other trading accounts and hold a share in them too.

A PAMM account can be seen as a form of trust management where the broker that performs the shared record, ensures the equal rights of all traders.

At the end of a trading period, the profit made in the PAMM account is distributed among all the investors in the account while the PAMM trader receives a commission as stipulated in the agreement.

Multi-Account Manager (MAM) accounts that help a trader to manage multiple trading accounts with a single terminal.

MAM accounts make use of combined individual trader accounts into a large pool of managed funds. All orders executed on the master trading account are reflected on every associated MAM account as set by the investor.

Investors also may choose to enter orders through their individual trading accounts and are free to modify MAM trades as preferred. A performance fee as a percentage of the returns is paid to the master trader according to his performance and.

AUSForex also offers a free demo account for 30 days.

Deposits and Withdrawals

The minimum deposit for opening a trading account with AUSForex is 1 000 USD, which is quite high.

Clients of AUSForex can deposit to and withdraw from their accounts with credit or debit cards, (Visa, MasterCard, Maestro) and bank wire. Popular e-wallets like Skrill and Neteller are not supported. Funds can be deposited in GBP, EUR, USD, AUD, and SGD.

Card deposits are processed in real-time, but wire transfers can take five business days or so, according to the company website. Withdrawals can be done with the same methods and withdrawal fees for all card methods are listed as free.

Fees may be charged by your bank for wire transfers which is something to keep in mind. Withdrawal via wire transfer takes 1 to 5 working days to reach your account, depending on the bank.

Leverage

The facility that enables a trader to get a much larger exposure to the market than the amount he or she deposited to open a trade, is called leverage. Such leveraged products magnify a traders potential profit – but of course, also increase the potential loss.

The amount of leverage is expressed as a ratio, for instance, 50:1, 100:1, or 500:1. Assuming that a trader has $1,000 in his or her trading account and is trading ticket sizes of 500,000 USD/JPY, that leverage will equate 500:1.

The maximum leverage offered by AUSForex is up to 1:400, which is quite average. The lowest leverage option is 1:50, meaning that you would be trading with fifty times the funds that you have sitting in your account.

When creating an account, you can choose from 1:100, 1:200, 1:300, and finally 1:400 as leverage options.

Bonuses

Forex brokers tend to lure new traders with offers of attractive deposit bonuses. This can be useful, but it is essential to discern what a proper bonus is.

Such a bonus is but a way to compensate traders for choosing a certain broker since once the account is opened, the trader will have the same expenses as any other.

The bonus is just a reward for the traders choice that gives some of these expenses back to the trader, once proving himself as an active trader.

Moreover, since 1 August 2018 The European Securities and Markets Authority (ESMA) has placed investor protection measures on the marketing, distribution, or sale of CFDs to retail clients.

These prevent brokers from directly or indirectly provide the retail client with a payment, monetary or excluded non-monetary benefit in relation to the marketing, distribution, or sale of a CFD, other than the realized profits on any CFD provided.

AUSForex does not offer bonus opportunities but offers an IB referral programme. In order to benefit, a trader needs to have someone sign up with his referral link.

The broker will manage the account, but the trader will receive commissions on a daily basis, based on the new customers trading activity.

Markets, Products, and Instruments

Most brokers offer all or some of the following kinds of market instruments for trading:

Forex:

Forex trading, also called currency or FX trading, involves the currency exchange market where individuals, companies, and financial institutions exchange currencies for one another at floating rates.

Commodities:

As with currency exchange markets, commodity markets offer different investment opportunities for traders. Investing in contract-based tradable goods is a reliable way to mitigate risk during times of inflation or economic uncertainty.

Indices:

Equity or stock indices are actual stock market indexes that measure the value of a specific section of a stock market. They can represent a specific set of the largest companies of a nation or they can represent a specific stock market.

Precious metals:

The trading of gold and other precious metals involves hard commodities that are contract-based tradable goods.

Energy:

The high volatility of energy prices due to political and environmental factors, supply and demand, extreme weather conditions, and global economic growth is a typical feature of this product, making it another popular trading choice.

Cryptocurrencies:

Bitcoin (BTC) is the digital currency with the largest market capitalization and price levels since its inception in 2008. It dominates 50% of the total crypto market cap.

Litecoin (LTC) is similar to Bitcoin but differs in terms of scalability. Litecoin is another very popular altcoin and LTCUSD is a fork of Bitcoin (BTCUSD), copied from Bitcoins code and with some alterations and launched a new project.

Ripple (RPL) is popular among big banks with the Ripple network a next-generation real-time gross settlement system. It allows instant cross-border fund transactions at very low costs.

Ethereum (ETH) is the second-largest cryptocurrency after Bitcoin and allows developers to create smart contracts on a platform.

Bitcoin Cash (BCH) was created by the Bitcoin hard fork in 2017 as a new version of the blockchain with different rules.

AUSForex offers trading on Forex, Index, Crude Oil, Gold and Silver, and CFDs. Forex trading includes popular currency pairs and some exotic options.

Safety and Regulation

One of the first things a potential trader needs to establish is whether a broker like AUSForex is safe to trade with. One of the surest benchmarks to measure the safety of a brokerage is to establish which regulating authorities are watchdogs over its actions.

AUSForex is now licensed by the following regulatory bodies:

• The Financial Conduct Authority (FCA) EEA, Regulatory Number: 803268.

• Hong Kong Securities and Futures Commission (SFC) Class III Licensing, Regulatory Number: BLU727.

• Cyprus Securities and Exchange Commission (CySEC) supervision, supervision number: 350/17.

• AUSForex has also been authorized and regulated by the Australian Securities and Investments Commission (ASIC) since 2005.

This implies that all client funds are being held in fully segregated client trust accounts and will not and cannot be used to pay back creditors if AUSForex would go insolvent.

Conclusion

AUSForex may be worth being tried out by potential traders, knowing that it offers trading in various currency pairs and CFDs on two great platforms, despite the fact that spreads are not the tightest and the initial deposit is high.