Best CFD Trading Platforms in Australia

Founded in 1978, Interactive Brokers is one of the largest international brokers and is listed on the NASDAQ exchange (Ticker: IBKR). They are regulated by many top-tier regulators, including the Australian Securities and Investments Commission (ASIC), making it a good choice for Australian traders. 

In addition to CFDs, Interactive Brokers offers great research tools and advanced trading platforms. For instance, their trading platform, TWS (desktop version), is one of the best trading platforms with advanced features and a high degree of customisation. In addition, they offer a well-designed web interface, IBKR GlobalTrader, and a mobile app.

Australian residents can trade CFDs issued by Interactive Brokers Australia PTY LTD (IBA) which includes:

• IBA Share CFDs with approximately 6,200 Share CFDs covering the principal markets in the US, Europe and Asia,
• IBA Index CFDs, which include the main US, European and Asian indices,
• IBA Forex CFDs with 85 tradeable currency pairs,
• IBA Metals CFDs which includes Gold and Silver.

IBA offers tight spreads on its CFD trades, but commissions are charged based on the type of CFD being traded and the volume. IBKR is known to provide one of the narrowest spreads on Forex where traders benefit from direct access to interbank quotes and real-time prices from 14 of the world’s largest FX dealing banks while being charged a tiered commission based on monthly trading volume. 

Share CFDs have low commissions starting at 0.05% and overnight financing charges starting at benchmark +/-1.5%, while commission rates for Index CFDs are only 0.0005% – 0.01% and overnight financing rates are just benchmark +/-1.5%. And in general, IBKR’s CFD margin requirements are generally more favorable than stock margin requirements.

Below is a table showing sample spreads on major CFDs across various asset classes.

Interactive Brokers spreads on major CFDs

1 pip equal to 0.0001

While using IBKR’s platform, you can view and trade multiple asset types from the same screen using a single integrated account. You can have several account base currencies at Interactive Brokers Australia, including AUD, USD, EUR, HKD and GBP, without a minimum amount required. Still, the only way to fund them is through a bank wire transfer. 

IBA provides its clients with leverage on CFDs, allowing them to increase their exposure to assets or indices with the same initial capital. However, you should be aware that leverage can magnify potential losses as well as gains. As for other fees, IBA does not charge any inactivity fees, and you are entitled to one free withdrawal per month.

IG Group, a London-based broker founded in 1974 and listed on the London Stock Exchange, is also included in our list of top CFD brokers in Australia. IG offers access to an extensive range of trading instruments, with over 18,000 CFDs spanning various asset classes and spreads starting at 0.6 pips. It is perfect for both beginners and professional traders. For instance, their free educational resources through its IG Academy help traders improve their understanding of financial markets and trading skills. Furthermore, IG’s news and analysis section provides professional insights to keep traders updated on market-moving events.

IG charges a spread or commission on trades, depending on the asset class. For example, spreads on major CFD currency pairs start at 0.6 pips, while on major indices, spreads start at 0.8 points and 0.1 points on commodities. As for share CFDs, commission fees start from AUD 7 or 0.08% for Australian-listed shares.

IG spreads on major CFDs

1 pip equal to 0.0001

In addition to spread and commission fees, there may be other potential charges and factors that could influence how much your trading costs. These fees are only applicable when they apply to your trades, such as overnight financing charges or fees for guaranteed stops. IG has a very transparent fee structure, and you can check all the details and examples on its website, allowing you to calculate the cost of your trades accurately.

When trading with IG, you can choose from a variety of trading platforms. The IG trading platform is available on iOS and Android devices. It also offers a progressive web app, allowing traders to access their accounts from any device with internet access. For more advanced traders, IG offers ProRealTime and MetaTrader4, two platforms known for their advanced charting capabilities and customization options. For those looking to trade with Direct Market Access (DMA), IG offers L2 Dealer, a platform designed for professional traders that provide direct access to exchange order books and market depth.

Since 2007, eToro has been recognized for its social trading platform, which allows users to copy the trades of other successful investors and engage in market discussions with a large community of over 30 million users. eToro is regulated by the Australian Securities and Investments Commission (ASIC) to ensure compliance and safety for Australian users.

The costs and charges when you trade one of the CFD instruments are generally low and built into the spread, which depends on the asset class traded and depends on trading hours.

eToro spreads on major currencies

1 pip equal to 0.0001

The web platform is user-friendly for beginners and has an intuitive layout with many features that enhance your trading experience, such as one-click trading, limit orders, and advanced charting tools.

CMC Markets (CMC) is a global CFD broker that was established in 1989 and is listed on the London stock exchange. It currently serves more than 300,000 clients globally and gives access to over 12,000 CFDs, and offers one of the largest CFDs on Forex that includes 330+ currency pairs. It is regulated by many international top-tier regulators, including the Australian ASIC regulator.

At CMC Markets, the commission charged for CFD trading depends on the asset class. For example, there is no commission for Forex trading, but a spread and holding cost applies. On the other hand, CFD share trading is subject to a commission that is calculated based on the executed order. In addition, holding costs may apply to open CFD trading positions at the end of each trading day (5 pm New York time). These holding costs can be positive or negative, depending on whether the position is long or short. Here is a brief overview of the spreads applied on major CFDs.

CMC Markets spreads on major currencies

1 pip equal to 0.0001

CMC Markets offer a 30:1 leverage on Forex, which means that you can open a position worth up to 30 times the amount of deposit you put down. However, the leverage varies according to the asset class and instrument. They offer a web platform and mobile app that support various languages. Alternatively, the widely-used MetaTrader 4 (MT4) platform is also available.

Established in 2008, Plus500 is another broker included in our list of the best CFD brokers in Australia. It has developed its own user-friendly web trading platform and a mobile app that provides access to over 2,800 CFDs. It’s a great choice for those who want to keep their costs low, as it offers tight spreads and free deposits and withdrawals. Its services are mostly compensated through the “market spread,” which means that you won’t have to pay any commissions for your trades (overnight fees still apply).

Plus500 spreads on major currencies

1 pip equal to 0.0001

Plus500 offers a wide range of indicators and drawing tools that assist you in analyzing trends and market movements. You can open an account online, and you can fund it by bank transfer, credit or debit cards, PayPal, or Skrill, and the minimum deposit is AUD 200.