Disclosure: Privacy Australia is community-supported. We may earn a commission when you buy a VPN through one of our links. Learn more.
Best Forex Trading Apps (2022)
Today, this market is worth over an estimated $2.400 quadrillion globally…
This goes to show how far the principles of currency-trading have come since the slow, financial stone-age (pre-forex began way back in 1894 BCE and used precious metals).
Today, we trade in milliseconds via numbers and networks faster than Spock; modern forex markets show us, at a glance on-screen, how much of a winner a thing is, proportionate to the mammoth pool of funds mentioned above.
Table of Contents:
- How We Choose our Platforms
- Best Broker: Copy Trading Australia – Our Reviews
- Buying Guide
- Subcategories of Forex traders
- What Is a Forex Broker
How We Choose our Platforms 📚
The following brokers were hand-picked by our team.
Thankfully, we have Spock on board, to keep things sensible.
Whatever service you end up with, remember that it’s often the user and not the tool, so take time to know your strategy, adapt to your chosen service, and, as always, use good financial common sense! 🖖🏻
1. IG Markets (Best Overall Forex App)
- Commission (for CFDs)
- Assets include: Forex, crypto, penny, EFTs, CFDs
- Indexes available: 22
- IG community hub
- Around since 2006
- 200,000 active users
- Offers good exposure such as forex, CFDs/EFTs, shorts, crypto, and commodities
- Most Traded Stocks include: Tesla (number 1), Amazon, Apple, Netflix, with US_500 as the most traded index; gold the biggest commodity
- Strong social trading
- Up-to-the-minute social news feed
- $250 needed to start trading
IG markets were launched in 1999, becoming a market leader, particularly in Contracts For Differences (CFD). Market exposure is extensive, with 24/7 trading on forex, as well as a wide section of the stock indexes around the globe (meaning that there are round-the-clock opportunities).
Regulated by the FSA, Financial Services Authority; they’re also a member of the London Stock Exchange (LSE). As well as being regulated by the Australian Securities and Investments Commission (ASIC) for their Australian operations.
So if you’re looking for a forex powerhouse with extensive financial derivatives and a strong reputation (over 200,000 users), then it’s difficult to find fault in their services regarding the necessities of bog-standard trading – whether it’s scalping, day trading, long positions, or in-between.
Other mentions are mobile trading 24/7, free educational tools, and free-phone customer service. That said, they’re probably not the best for complete beginners.
- Funding minimum: $10
- Great for beginners
- Duplicate member trades
- 2000+ assets: CFDs, EFTs, forex, crypto, shorts
- Indexes include: NASDAQ 100, AUS 200, and SPX 500
- Recommends investment strategies
- Trading 52 cryptocurrencies
- Fund minimum: only $10
- Up-to-the-minute social news feed
- Social feeds display ideas, and discuss trading decisions
- Australia dollar conversion to US dollars involves a fee
- Fees can be complicated according to network
Easily could have taken the number 1 spot. (In fact, if copy-trading and passive income is a must, then it should be!) Why? Seeing as eToro won’t charge a commission when you use the app to trade. There are also:
- ☑️ No ticketing fees
- ☑️ No stamp duty
- ☑️ No deposit costs
- ☑️ No markups
- ☑️ No management fees at all, even if you use its Smart Portfolio to mirror positions of other players.
*That said, some currency conversion fees do apply. Get started on the most bustling and high-volume forex (FX) market on the planet – trade her large variety of major AUD pairs and more currency crosses, with as much of the 1:30 leveraged (or even up to 1:404 professional accounts) to participate more deeply in forex with less initial capital.
While there used to be only 17 types of crypto coins, you can now access over 50, including bitcoin (BTC), which is the most popular and most traded asset across the whole app on any exchanges – compete against coin prices (as CFDs) on the forex and across commodities like gold. In short, where IG Markets excels in deep data, eToro dominates in social (passive) trading capabilities.
- Account minimum: AUD$200
- More than 1200 securities: shorts, EFTs, crypto, CFDs, forex
- Number of indices: 23
- Myfxbook social trading
- Most-traded pairs: EURUSD
- Availability of crypto coins: 24
- One of the largest FX brokers
- Both ASIC and FCA regulated (one of the two top regulatory bodies for retail forex)
- Fast execution across upgraded trading platform
- Pretty high fund minimum needed to begin investing
- Has commissions
A strong range of tradable markets, with strong research quality, as well as integrated support for copy social trading across multiple platforms. They’ve been around since 2010, with two tier-one jurisdictions, which means this is a highly regulated solution (i.e. low-risk) for trading CFDs as well as forex.
They also offer both Copy Trader and MetaTrader, which are best-in-class trading Interfaces. Pepperstone provides numerous add-on features and tools to fine-tune and improve the MetaTrader experience.
Overall, their research is superior to the industry average, although IG Markets is a cut above them. And while the social-copy trading is expansive in its integrations, it is nowhere near as consumer-tailored as eToro. So a blend of both, but not the best in either arena.
- Commission & spreads (from 0.03)
- Minimum to trade: $100
- Zulutrade: Follow and copy seasoned traders
- More than 1250 securities: shorts, EFTs, crypto, CFDs, forex
- Indexes currently tradable: 22
- AvaSocial: Learn from tutorials and videos
- Does it all from forex & short-selling to CFDs & EFTs
- Strong social trading
- $100 needed to start trading
- Charges commissions
- Only 20 cryptocurrencies
AvaTrade is known for its copy trading, mobile optimisations, and good pricing against the industry. Get extensive exposure to the CFD and forex markets. Its social-oriented trading background makes it one of the more beginner-friendly trading tools out there.
They’re also not lax on the regulatory front. Since they were founded in 2006, they’ve accomplished three tier-one jurisdictions and three tier-two jurisdictions, which makes them low-risk broker trading CFDs and forex.
In terms of offerings, choose MetaTrader or their proprietary WebTrader which has its special additions. Overall, access 44 forex options, as well as over a thousand CFDs.
History of Forex Trading 📜
In 1894, the basic pre-forex trading system became used to exchange currencies, in Babylon. Most of the time, the system involved the exchange of gold for provisions of practical goods, less precious metals like silver were also integrated into the transaction system a little after.
Jumping ahead to between 1696 and 1812, the increasing complexity of political systems inspired the adoption of native currencies and coins; especially as gold became limited in use as a practical trading medium. This introduced the “gold standard”, which tied national currencies to the worth of gold.
Around the time of the 1930s Great Depression, however, and the banking systems collapse, the public became frightened about gold hoarding, leading to the abandonment of the gold standard formally by the UK in 1931 and the US following suit two years after.
‘Bretton Woods’ System, 1944
The gold standard was substituted for the “Bretton Woods” system in 1944, with an eye on the governing of global fiscal relations. In short, international currencies globally were pegged to the value of the US dollar, which itself was reducible to the value of gold; and this became the world’s most popular reverse currency.
Later dissatisfaction with the Prioritisation of the USD, in the early 70s, happened as the forex market developed. While the US dollar is still the leading currency and global reserve, forex markets now determine currency exchange rates and the plethora of greater macroeconomic factors.
With time, technological innovations increased forex accessibility into consumer markets, with advancements needing to take on over 170 currencies and spoke day-to-day trading volumes of $6.6 trillion internationally.
Technological developments and the explosion of online brokerage sites and apps certainly opened up the market to part-time traders, emerging markets, and a raft of wide-ranging small and exotic currencies as additional options trading.
Development of Forex Apps 📱
The 1990s saw a rapid growth of forex markets. As the Internet improved, the world became closer together and currency markets more sophisticated.
Beforehand, the currency markets were for the most part available to institutions and big banks. This suddenly expanded to include retail traders, who could speculate and even trade from home.
During this period, the nature of forex trading altered forever. And the early 2000s saw further telecommunication hardware and internet-speed spike, expanding forex markets further to new traders. In order to service the multitude of new people discovering forex markets, new tools and services were created.
Forex brokers became more convenient, streamlined for cost, and advanced; offering more forex pairs available to trade. For instance, one of the most-used trading platforms, MetaTrader, started in 2002. While the first trading apps were developed all the way back in the 1990s.
Three Types of Forex Traders
Making money on the forex market happens in different ways. Throughout the decades, the differing approaches have stood out into 3 categorizations:
☑️ Day Trading
Anyone who doesn’t leave their positions overnight is day trading. The trading itself can look different because the timeframe for analysis can be chopped up several times over. Day traders who focus on fast trades and tiny wins are called “scalpers”. Whereas day traders make acquisitions that are larger and made in fewer positions, all still inside of a single day.
The biggest boon to day trading is limiting risk (each trade ends in one session) and reducing costs because brokerage commissions and other fees do not roll over (no overnight fees).
☑️ Swing Trading
This is when positions are held between 2 days and anywhere up to a few weeks. Also, traders typically rely on technical analysis, also ‘reading the tea-leaves’ according to calendar rhythms which can be possible from volatility spikes after news events. Commonly used swing trading strategies include indicators such as moving averages, Bollinger Bands, Fibonacci retracement, and more.
The biggest boon to swing trading is the more moderate pace which better fits part-time traders with less time to continuously monitor the positions and less time overall. The biggest drawback to this approach is incurring greater costs due to rollover fees and expanded risks from longer exposure to the markets.
☑️ Position Trading
Position trading ranks as the most strategic of approaches to trading and is reserved for people with the greatest amount of time and resources to conduct accurate research. A position trader might not even make more than 10 trades a year. But each is hyper-focused on longer-term price changes, combining foundational technical factors.
Once again, the cornerstone is research, with chart technical tools as pin-pointers of optimal entry and exit points – to shave off costs and maximise profits.
For research, data is drawn from large timeframes, typically daily or weekly charts. Their motivation is to work out the market’s direction of movement before anyone else, and then watch as the world catches up. This strategy depends on knowledge, patience, and usually a substantial account for it to be worthwhile.
As for the “face” of position trading, that would be Warren Buffett!
Subcategories of Forex traders 📁
As mentioned above, these are day traders who trade in the smallest timeframes. Strategies normally draw from one-minute and five-minute charts and tiny trade durations.
This dynamic approach is well suited to traders who thrive on adrenaline. Scalpers prefer tons of small wins over large big ones.
Not for the fainthearted. News trading centres on leveraging key news events, on a regular basis, in order to use the volatility to opportunistically profit. These traders search out big event-driven movements such as non-farm payrolls, rate decisions, and more.
Trading the news is not advisable for those still learning.
This final subcategory has become popularised as a result of the influence of high-frequency algorithmic trades in totally transforming the professional and trading landscape.
In short, algorithmic trading centres on computer software automatically open or close a position once preset criteria are met. Therefore, this approach to trading can be quasi or totally automated. Whereas some algorithmic traders prefer creating their own systems independently, others purchase turnkey black box algorithmic systems that frequently result in unimpressive results.
What Is a Forex Broker?
The word “Forex” is a blend of two words: for(eign) and ex(change). While the word “broker” means to act as an agent for another; negotiating purchases, contracts, or sales in return for a commission or fee.
Therefore forex brokers are financial services firms that give traders access to the platforms used for exchanging foreign currencies.
By necessity, the foreign exchange market is international and 24-hour. Clients of forex brokers will include retail currency traders who use forex platforms in order to speculate on currency movements. But other clients include big financial services companies who deal on behalf of investment banks and other clients.
Any single forex broker company will negotiate only a tiny fraction of the full transaction volume of the forex exchange market.
Day-to-Day Activities of a Forex Broker ⚙️
Most brokers facilitate trades from one currency to another and will incorporate emerging market currencies.
For instance, an overview of typical steps:
- A trader signs up with a forex brokerage account.
- Using this forex broker, the trader opens a trade by purchasing a currency pair, at one exchange rate. (For instance, the trader buys the USD/AUD pair.)
- *This would mean the trader exchanged Australian dollars for U.S. dollars. This is the equivalent of buying U.S. dollars using Australian dollars
- The trade is ended by selling this same USD/AUD pair At the same rate, or the different rate, according to the market value.
- *Once closing the deal, this is the equivalent of buying Australian dollars with U.S. dollars.
- In the normal way of trading, if the exchange rate appreciates to higher by the time the trader closes the trade, compared to when they opened it, a profit is made. If not, then a loss is made.
What is Forex Trading?
☑️ Day Traders – these never leave any open positions overnight. There are two types. The first focuses on quick trades that have incremental wins and so are known as “scalpers”. But the standard type of day trader makes larger acquisitions that are made using fewer positions.
Either way, all decisions are opened and ended inside of a single day. The biggest perk to boon to day trading is less risk (traders don’t drag on to the next day, and there were no overnight fees)
☑️ Swing Trading is where positions are held between 2 days and up to a few weeks. They’re reliant on technical analysis, peering into probabilities according to calendar rhythms which can be possible from volatility spikes after news stories.
The biggest perk to swing trading is a slower pace which best suits part-time traders (i.e. the ones who are being copied) with less time to continuously monitor positions. The biggest downside is a few higher fees and more risks from prolonged exposure to the markets.
☑️ Position Trading – If you look if you have come across the term HODL Related to cryptocurrency, this is the Training mentality where you choose investments where you are likely to hold on and not sell for long periods of time. You ignore short-term market fluctuations, as long as they do not affect the longer-term patterns. This is what position trading is, in forex.
Position trading is the most strategic of approaches to trading and is chosen by people with the greatest amount of time and resources to conduct accurate research. If you are copying a trader uses this approach; they are drawing from research data that uses large timeframes, typically daily or weekly charts.
Their motivation is to work out the market’s direction of movement before anyone else, and then watch as the world catches up. This strategy depends on knowledge, patience, and usually a substantial account for it to be worthwhile. Basically the closest thing to Warren Buffet.
Who Can Trade Forex?
Professionals trade the forex for profit. But most nonprofessionals do not. These will be the tourists exchanging money while traveling abroad. These exchanges are not speculative but pragmatic, and high spreads mean it is nearly impossible to profit.
Only a slim margin of independent forex traders make a profit, representing roughly 6% of the market ($360 billion daily in volume). Therefore, the majority of forex trading is a relationship between the institutions, who oftentimes play as both buyer, seller, and intermediary.
What Are Currency Pairs?
Currency pairs are national currencies from two nations that have been coupled in order to exchange their values on the foreign exchange (FX) marketplaces. The position possible will be based on the current real-time exchange rate between the two. And all trading on the forex market, whether trading, buying, or selling, takes place via currency pairs.
Most transactions occurring on the FX markets are between currency pairs of the 10 nations making up the G10. These countries and their currencies include the Euro (EUR), the US dollar (USD), the British Pound sterling (GBP), the Australian dollar (AUD), the Japanese yen (JPY), the New Zealand dollar (NZD), the Canadian dollar (CAD), the Swiss franc (CHF).
You Might Also Like: