The Best Brokers for Trading EUR/AUD
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As part of our comprehensive forex trading section, we’re sharing comprehensive information on some of the best forex trading platforms available in the market place.
We recently shared details of the best forex brokers for those wishing to trade EUR/GBP and we’re now turning our attention to another minor forex pair; the EUR/AUD.
Forex trading is an investment opportunity where users try to maximize their profits by purchasing and selling currency pairs.
If timed correctly, there’s an opportunity to make significant financial gains as currency prices can fluctuate, allowing you to sell your currency for a greater price than you initially paid.
However, as with any investment, forex trading requires good timing, an understanding of market forces and an ability to make trades quickly and decisively.
But how do you know how to find the best broker if you are keen to trade EUR/AUD?
Let’s find out.
What Is EUR/AUD?
Forex trading is based on pairs of currency.
In this instance, the 'EUR' abbreviation relates to the Euro; a currency used throughout most of Europe. Countries such as Spain, Italy, Germany and France all have a singular currency.
The AUD abbreviation refers to the Australian dollar.
Is EUR/AUD a Minor Pair or a Major Pair?
As you get used to the niche terminology found within the forex trading market, you’ll come across ‘major’ and ‘minor’ pairs. This relates to how common the forex pair is.
Major pairs are those that are commonly traded. They will always include the US dollar, and they have high liquidity. This means that there will always be an opportunity for a trader to use those currencies as part of a trade.
A minor pair is one that doesn’t involve the US dollar. Minor pairs are not necessarily about trading niche currencies; some of the world’s biggest and most stable currencies can be considered a ‘minor pair’ – for example, the EUR/GBP (the Euro and British Pound) is one of the most tradeable forex pairs.
In this article, our attention will focus on the EUR/AUD pair.
The absence of the US dollar means that it is regarded as a minor pair, despite both currencies being strong and highly regarded currencies.
What You Should Consider When Trading EUR/AUD
The EUR/AUD pair is one of the most widely traded minor pairs by forex traders.
Due to the relative stability of both currencies, the EUR/AUD pair is often coveted by both inexperienced forex traders and experienced/professional traders.
This is because it’s a pair with low volatility, making it a relatively ‘safe’ investment choice (although it should be reiterated that no forex trade is ever guaranteed to make a profit).
A key consideration of trading EUR/AUD is the significant time difference between the financial markets.
Unlike the EUR/GBP pair, which operates across broadly similar time zones, the EUR/AUD has the disadvantage that just as one market closes, the other opens.
This means that traders looking to trade a EUR/AUD pair may need to take advantage of 24-hour trading platforms or forex robots.
What Could Impact the EUR/AUD Pair?
Currency pairings can be influenced by a wide range of political and economic factors.
Anyone who pays close attention to currency exchange rates will know that currencies can fluctuate. When trading Forex, it’s important to be aware of what could impact both parts of your pair.
The Euro is controlled by the European Central Bank. Unlike other currencies which only have to consider one country’s economic forecast, the Euro is impacted by a wide range of countries (known as the Eurozone), from economic giants, such as Germany and France, through to smaller economies, such as Greece, Finland and Slovakia.
Unemployment rates, political uncertainty and even global events (such as the 2020 coronavirus pandemic) can play a huge part in influencing the stability of the Euro currency.
In contrast, the AUD can be heavily influenced by its import/export capabilities.
As Australia relies heavily on importing and exporting to the Asian continent, this can heavily influence the stability of the AUD.
However, the economic health of Australia remains strong thanks to the Reserve Bank of Australia and the low-interest rates on government debt.
It may also surprise you to know that because Australia is one of the leading gold producers, the price of the AUD is heavily linked to the price of gold.
This may also be of interest if you are looking to buy gold online.
How Can You Trade EUR/AUD?
There are two primary ways that traders choose to trade EUR/AUD currencies.
They can either trade the currencies directly using a forex contract or they can choose to trade a contract for difference (CFD).
This means that the trader speculates on the price difference between a pair of currencies.
CFDs typically involve investors working with forex brokers. There will be a starting point and an end point to the trade and one will pay the other the price difference.
These are typically used as short-term investments due to the volatility of the currency difference.
However, there are ways that you can use forex trading as part of a long-term investment strategy.
Why It’s Important to Choose the Right Broker to Make Your EUR/AUD Trade
When it comes to forex trading, you must find the right trading platform to help you increase your profitability.
Forex trading takes place 24 hours a day thanks to global markets.
As you become more experienced, you’ll start to understand how fluctuations are caused across time zones and the best time of day to make your trades.
For those trading in currencies across multiple time zones, this is increasingly complex.
This is where trading platforms with automation can be of valuable assistance – after all, you won’t want to be monitoring your trade 24 hours a day.
When choosing the best broker for your EUR/AUD Forex trade, you may need to consider what platforms are available.
- Is the trade conducted over the phone via a trading expert or is it self-managed through an online platform?
- Can you use a mobile app to help you wherever you are in the world?
- Can you implement automated risk management strategies to minimize your losses?
Your choice of the best forex trading platform will be heavily influenced by your forex trading experience.
For new traders, some platforms are daunting and difficult to use, resulting in significant financial losses.
Whilst other trading platforms are designed specifically for professional traders and are full of data analytics which can help inform decision-making on a wide range of investments, far beyond just forex.
Who Are the Best Brokers for Trading EUR/AUD?
If you’re ready to start trading EUR/AUD, here are five highly recommended forex brokers who can help you to make the most of your trades.
Please remember that these recommendations do not constitute financial advice.
You should always undertake due diligence and speak to a financial advisor before starting your journey into forex trading.
Investor retail accounts that lose money: 67%
Founded in 2007, eToro is considered a very low-risk broker as it is highly regulated by the Financial Conduct Authority (FCA) in the UK and many other regulatory bodies elsewhere.
Opening an account is free and you can access a $100,000 demo account to test the system.
It offers 47 currency pairs for trading. Spreads for forex trading have recently been significantly reduced and range from a very competitive 1 to 3 pips for major currency pairs.
Typical spreads for EURUSD and USDJPY trades, for example, are just 1 pip. EURAUD sitting at around 7 pips.
You can see the full list of spreads on the eToro website.
You’ll need to deposit a minimum of $200 for Copy Trading, eToro's standout feature which allows you to follow other traders and copy their trades.
This forex broker is great for beginners due to its user-friendly interface and app and 24-hour customer support. It allows you to trade currencies, stocks and cryptocurrencies in one portfolio and the Copy Trading system is a great way to learn.
The company also offers trading courses and features a Learning Lab which houses a variety of tools to support clients with their trading experience.
*67% 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.*
Investor retail accounts that lose money: 76.4%
Plus500 is a CFD provider and offers a CFD service only.
Though Plus500 is very user-friendly, CFDs are complex financial products, thus the platform is not suitable for beginners/in-experienced traders.
The low opening deposit required to start your trading journey (£100) ensures that traders can feel at ease with their new investment opportunities.
The company has intuitive trading platforms and new users are offered unlimited access to the demo account ensuring that they feel confident in their choices before taking the next step.
As specialists in CFDs, Plus500 has created a variety of risk management tools that are designed to maximize your profits and minimize your losses.
With ‘Close at Profit’, ‘Close at Loss’, ‘Guaranteed Stop’ and ‘Trailing Stop’ options available, there are a variety of ways users can manage their accounts.
Availability subject to regulations
76.4% of retail CFD accounts lose money
3. CMC Markets
Investor retail accounts that lose money: 76%
CMC has a reputation as one of the very best web-based forex brokers and is highly regarded by experienced traders due to its highly competitive pricing structures.
CMC also has a professional account option that offers better margin rates and access to new products for those who are professional forex traders.
The company has heavily invested in its trading platform, 'Next Generation', which is available on desktop as well as on mobile.
The user functionality has won numerous awards for its usability and comprehensive data analytics which enable traders to make informed decisions.
Operating across global markets, CMC has a comprehensive risk management plan in place to help traders minimize losses. However, it should be noted that users may have to pay a premium to implement guaranteed stop-loss functionality.
Investor retail accounts that lose money: 75%
IG is highly rated as a specialist forex trading platform and offers a variety of short term and long term investment opportunities.
For those looking specifically at forex trading, this is an impressive platform that is recommended for both novice and experienced traders.
The low minimum deposit ($250) and comprehensive stop-loss opportunities (which are free of charge) mean that new investors can feel confident in their ability to trade EUR/AUD pairs.
IG has 51 pairs available for forex trading. This means that it’s a good option for those wanting to test their trading expertise across major and minor pairs.
However, those looking for exotic pairs may wish to look for a trading platform with more variety.
Users can take advantage of a user-friendly desktop trading platform, with mobile apps also available for traders to use whilst on-the-go.
Equally, there’s strong customer service available, with phone trading capabilities enabling you to take advantage of the wealth of advice available from the expert team.
5. IC Markets
Investor retail accounts that lose money: 74.25%
IC Markets is an Australian forex broker that excels in low commissions across CFDs.
With a quick and easy account opening process, as well as free deposits and withdrawals, it’s easy to see why so many forex traders chose to use the IC Market trading platform.
The company offers 65 currency pairs which offers more flexibility than some other trading platforms.
However, it is limited in that trading hours are 24 hours a day, five days a week. For those looking for a continuous trading service, this could be a dealbreaker.
Additionally, it should be noted that although the company is regulated by the Cyprus Securities and Exchange Commission (CySEC), the Seychelles Financial Supervisory Authority (FSA) and the Australian Securities and Investments Commission (ASIC), there is limited protection for those living in non-EU countries.
Investor retail accounts that lose money: 77%
Markets.com is a highly intuitive and interactive trading platform that is designed to educate users on how to make the most of their currency pairs.
The site has been widely praised for the variety of tools available for users that include research, market analysis, webinars and informative videos.
It’s a hugely beneficial tool for those looking to learn how to make the most of forex trading.
The exceptional customer service levels and a team of FX experts mean that you can benefit from real-time analysis of the forex market.
However, as a trading platform itself, the company is more expensive than other brokers and has a more limited product portfolio.
To find the best forex trading platform and broker, you need to consider your level of trading experience, your investment capabilities and how much time you have to actively manage your investment.
Our research of the five best brokers for trading EUR/AUD has shown us that different trading platforms have different capabilities, even though they are broadly offering the same service at similar pricing structures.
Some platforms are designed to be accessible to all, from any budget and any level of trading experience, whilst others are more suited to experienced or professional forex traders.
It’s important to look at a range of forex platforms to examine how they perform across major and minor pairs. Some traders may be more attuned to major trades involving the US dollar, whilst others may have lots of experience in minor pairs such as the EUR/AUD or prefer the niche, exotic pairs that have less liquidity.
Reputable forex trading platforms will be heavily regulated and will have comprehensive risk management tools in place (such as automated stop losses) which will enable you to minimize your losses.
You should pay close attention to these tools – if you are trading EUR/AUD, then you will be working across significantly different time zones. Therefore, you will need to have a function set up to protect your finances 24 hours a day.
You may wish to look at ways to automate your trading.
You also need to be confident that your chosen forex trading platform is regulated in your country. If it is not, your finances may not be fully protected.
You should also look closely at the reputation of the forex broker.
The best trading platforms will publish details of how many users make a loss through their systems. The higher the percentage of users making a loss, the riskier your investment could be.
We’ve listed the current details alongside each description of our five Forex brokers, but it should be noted that these change regularly. You should always look at the broker’s website for the latest information.
As you make your final choice of the best forex trading platform to aid your EUR/AUD trade, you should ask each broker for access to their demo accounts.
These are simulated accounts that let you test the platforms before making any actual investment.
Each user will have their interpretation of how to use trading software, and what works well for some traders may be off-putting to others. Therefore, it’s important that you find what works best for you, rather than relying solely on recommendations from others.
WikiJob does not provide tax, investment or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal.