Best Futures Brokers in Australia – March 2025

The Ultimate Guide to Futures Trading and Finding the Best Futures Brokers in Australia

Futures trading plays an important role in today’s financial markets, offering the potential for substantial returns alongside inherent risks. As derivatives sit at the core of this trading ecosystem, gaining a solid understanding of futures trading is essential for anyone looking to enter the market. This guide provides a comprehensive overview of futures trading while highlighting the critical role brokers play in facilitating successful trades.

What is Futures Trading?

Futures trading involves buying and selling futures contracts, which are standardised legal agreements to purchase or sell an asset at a predetermined price on a specified future date. These contracts cover a wide range of underlying assets, including commodities like gold, indices, and currencies, playing a key role in the financial derivatives market. Unlike other financial instruments, futures contracts obligate both parties to complete the transaction of the underlying asset upon the contract’s expiration, preventing early exits except through offsetting trades.

A major aspect of the futures market is its use for hedging the underlying asset, particularly by business owners and large funds. For example, companies involved in foreign exchange (FX) or commodities frequently use futures to hedge against price fluctuations, ensuring financial stability. This differs from retail traders, who typically engage in futures trading for speculative purposes. In Australia, the futures market is widely used for hedging, particularly by businesses and institutional investors.

Futures contracts differ from other derivatives such as options and forwards in both operation and structure. While an option grants the holder the right—but not the obligation—to buy or sell an asset, a futures contract requires both parties to commit to the transaction. Forwards, like futures, are agreements to buy or sell an asset at a future date but are customisable and traded over-the-counter (OTC), whereas futures contracts are standardised and exchange-traded. These unique characteristics make futures a valuable tool for both speculative traders and those looking to hedge against market volatility.

How to Trade Futures in Australia

Getting started with futures trading can seem complex, but following a structured approach will help you navigate the process confidently. Below are the key steps to begin trading futures with an Australian broker:

• Research and Education: Build a strong foundation in futures trading by studying books, online courses, and market analysis. Seek out resources that focus specifically on Australian market conditions.
• Select a Brokerage: Choose a reputable brokerage firm that specialises in futures trading. Compare their fees, margin requirements, and trading platforms. Opting for a well-established Australian brokerage can offer advantages such as regulatory assurances and AUD-based accounts.
• Open a Brokerage Account: Follow your chosen broker’s sign-up process, which generally involves funding your account, verifying your identity under Australian financial regulations, and agreeing to the platform’s terms and conditions.
• Understand Margin Requirements: Futures trading typically involves leverage, meaning brokers require a minimum margin to maintain open positions. Australian brokers have specific margin requirements that may vary depending on the asset class and Australian Securities and Investments Commission (ASIC) regulations.
• Placing Your First Trade: Use the broker’s trading platform to select the futures contract you wish to trade, choose your order type (market, limit, stop), and execute the trade. Reliable Australian futures brokers provide access to both local and international futures exchanges.

Futures Trading Strategies

Using the right trading strategy can significantly improve your success in futures trading. Below are some widely used strategies:

• Day Trading: Involves buying and selling futures contracts within the same trading day to take advantage of intraday price fluctuations.
• Swing Trading: Focuses on capturing price movements over a few days to weeks based on trend analysis and technical indicators.
• Hedging: Used by businesses and investors to manage exposure to price fluctuations in an asset, securing stable costs by locking in prices through futures contracts. Common industries that use futures hedging in Australia include agriculture, mining, and energy sectors.
• Speculative Strategies: Involves forecasting market movements to capitalise on price variations. Common methods include trend following, mean reversion, and breakout strategies.

Futures Trading for Beginners

Before getting started with futures trading, it’s essential for beginners to familiarise themselves with the fundamental terminology and concepts that form the foundation of this trading practice:

• Contract Size: The quantity of the underlying asset represented by the futures contract.
• Expiration Date: The date on which the futures contract must be settled.
• Leverage: Using borrowed funds to amplify potential returns on investment.
• Margin: A minimum deposit required to open and maintain a trading position.

What Are Futures Brokers and How Do They Work?

Futures brokers are intermediaries that provide services to individuals or firms looking to participate in the futures market. Their primary role is to connect buyers and sellers of futures contracts, offering various services such as market data access and trade execution. They help clients navigate the complex futures market by providing market insights, executing trades, and managing risk. 

In the Australian market, futures brokers act as intermediaries, connecting buyers and sellers of futures contracts. They provide various services, including market data access and trade execution.

Futures brokers charge a commission for their services, and in exchange, they offer a higher level of market access and professional expertise than individuals could access on their own. They play a crucial role in facilitating price discovery and providing liquidity to the futures market, making it easier for clients to buy and sell futures contracts.

Choosing the Best Futures Brokers

Selecting the right futures broker is a crucial step that can significantly impact your trading performance. Here are the key factors to consider, particularly for traders in Australia:

• Regulation and Security: Ensure the broker is regulated by the Australian Securities and Investments Commission (ASIC) to guarantee compliance with local financial regulations and investor protections.
• Fees and Commissions: Compare brokerage fees, spreads, and commission structures to understand the cost of trading. Some brokers may offer lower fees but charge additional costs for data feeds or platform access.
• Trading Platform: Evaluate the platform’s features, usability, and reliability. Look for platforms that provide a seamless user experience, advanced charting tools, and mobile trading capabilities.
• Customer Support: Assess the broker’s customer service quality and availability. Opt for brokers that offer responsive, local support with multiple contact channels, including phone, live chat, and email.

Key Features and Benefits of Top-Rated Futures Brokers

Leading futures brokers offer a range of features designed to enhance the trading experience. These include comprehensive research tools, advanced charting capabilities, competitive fees, and strong security measures. Many brokers also provide educational resources to help traders refine their skills and deepen their market knowledge.

When selecting a broker, it’s essential to identify the features that best suit your trading style and needs. For instance, active traders may prioritise low commission rates and fast execution speeds, whereas beginners might benefit more from extensive educational content, demo accounts, and responsive customer support.

The Pros and Cons of Using a Futures Broker

Engaging a futures broker has its advantages and disadvantages, and understanding both is crucial before making a decision. Below are the key pros and cons of working with a futures broker:

Pros:

• Professional Expertise: Futures brokers possess in-depth market knowledge and can offer valuable insights to give traders a competitive edge. They also help manage risk by providing advice on trade execution and access to advanced risk management tools.
• Convenience: A futures broker handles the complex details of trade execution, regulatory compliance, and record-keeping, simplifying the trading process and allowing traders to focus on strategy.
• Leverage: Brokers provide access to leverage, enabling traders to control larger positions with relatively smaller capital. However, while leverage can enhance potential gains, it’s important to use it responsibly, as it also increases exposure to risk.

Cons:

• Costs and Fees: A major consideration when trading with a futures broker is the cost of services, including commissions, spreads, margin requirements, and potential platform fees. These costs can impact overall profitability, particularly for frequent traders.
• Risk of Fraud: While ASIC regulation helps minimise fraud risk in Australia, it’s still essential to conduct thorough due diligence before selecting a broker. Choose brokers that are ASIC-licensed and have a strong reputation in the industry.
• Potential for Over-Reliance: Depending too much on a broker’s recommendations can limit independent decision-making. Staying informed and actively managing your trades is important for long-term success.

Best Futures Trading Platforms

Choosing the right trading platform is essential for efficient and successful futures trading. Here’s an analysis of top-rated futures trading platforms in Australia:

• AvaFutures – AvaFutures, a dedicated futures trading platform offered by AvaTrade, provides Australian traders with access to a diverse range of futures contracts, competitive spreads, and user-friendly risk management tools.
• Interactive Brokers – Known for its advanced charting and analysis tools, Interactive Brokers is a preferred choice among professional traders.
• Plus500 – Offers robust features suited for both beginners and experienced traders, making it a versatile option.
• TradeStation – Provides powerful trading technology and detailed market data, ideal for traders who require in-depth analysis.

Best Discount Futures Brokers in Australia

Here is a selection of the best discount futures brokers catering to Australian traders:

• MB Trading – A discount futures broker regulated by the Australian Securities and Investments Commission (ASIC), offering low commissions and customisable platforms. It provides access to multiple exchanges, market data, and research. Clients benefit from various account types and flexible funding options, including bank transfers, wire transfers, and credit card deposits.
• Lightspeed Trading – Known for its cost-effective trading options, direct market access, and advanced trading tools. It provides low commissions, appealing to cost-conscious traders.
• TradeStation – A respected name in futures trading, offering low-cost trading options, advanced trading technology, and comprehensive research tools. It features direct market access, real-time data, and customisable platforms, assisting traders in making well-informed decisions.

Best Crypto Futures Brokers

When selecting a crypto futures broker, comparing platform features and security measures is important. Here are some of the top options available in Australia:

• Binance Australia Derivatives – One of the largest cryptocurrency exchanges, offering a user-friendly interface, advanced charting, and multiple order types to assist in risk management.
• Kraken Futures – A subsidiary of Kraken, providing secure and intuitive crypto futures trading. It supports major cryptocurrencies like Bitcoin and offers real-time data, 24/7 customer support, and strong security protocols.
• AvaFutures – AvaFutures offers Australian traders access to crypto futures markets, with competitive spreads and an intuitive trading platform that supports both retail and institutional traders. Risk management tools and leverage options enhance flexibility in crypto trading strategies.

Best Futures Brokers for Beginners

Futures trading can be complex, so it’s important for beginners to choose a broker that offers educational resources and an intuitive platform. Here are some of the most beginner-friendly futures brokers:

• Fidelity Australia – Offers low fees, a user-friendly platform, and comprehensive educational resources. It provides access to market data and is known for its strong security and customer support.
• NinjaTrader – Provides a user-friendly interface with advanced charting, an extensive educational library, and a simulated trading environment for practice. With low commissions and no hidden fees, it is an affordable option for novice traders.
• AvaFutures – A strong option for beginners looking to get into futures trading, AvaFutures provides demo accounts, educational content, and risk management tools. The platform offers a simple yet powerful trading experience suited for new traders transitioning into live markets.

Best Futures Brokers with Low Intraday Margin

Having access to low intraday margin rates is important for traders looking to maximise capital efficiency. Here’s a selection of brokers with competitive margin offerings:

• Capital.com Australia Limited – Offers low intraday margins and a user-friendly platform. The broker provides access to commodity, index, and forex futures for greater diversification.
• eToro – A social trading platform that features low intraday margins and the ability to copy successful traders. It provides futures contracts on a range of assets, including stocks and cryptocurrencies.
• AvaTrade (AvaFutures) – AvaTrade offers competitive intraday margin requirements through AvaFutures, providing access to forex, stocks, and commodities futures. The platform is known for its customisability and strong educational support.

Best Futures Options Brokers

Selecting the right futures options broker ensures a seamless trading experience. Here are the top brokers offering futures options trading in Australia:

• Schwab Australia Pty Ltd – Provides a user-friendly platform with advanced trading tools and a dedicated futures options trading desk. It features competitive pricing with low trading fees and margin rates.
• Saxo Bank – Offers advanced trading technology and high-quality educational resources. Traders benefit from comprehensive market data, sophisticated charting tools, and a seamless user interface.
• AvaFutures – AvaFutures provides Australian traders access to a wide range of futures options contracts, supporting various hedging and speculative strategies. The platform is designed for both retail and professional traders, offering risk management tools and competitive pricing.

Best Commodity Futures Brokers

Commodity futures trading enables traders to profit from moves in resource-based assets such as gold, oil, and agricultural products. Here are some of the top brokers for commodity futures in Australia:

• Swissquote – Well-known for its strong compliance and security measures. As a regulated broker, it ensures client funds are protected and transactions are handled transparently.
• CME Group Direct – A leading choice for commodity futures traders in Australia, offering direct access to the CME Group’s derivatives marketplace, the largest and most diverse in the world.
• IG Australia – Provides a range of trading tools, advanced charting, real-time market data, and risk management features. Known for its user-friendly platform, IG Australia is ideal for traders looking for a streamlined trading experience in commodities, indices, and forex futures.

Futures Trading vs Options Trading

Futures and options are both derivatives used for hedging and speculation, but they differ in terms of obligations and risk exposure. Futures contracts require both buyers and sellers to complete the transaction, whereas options provide the holder with the right—but not the obligation—to buy or sell an asset at a predetermined price.

Pros and Cons of Each

Futures are ideal for straightforward hedging or speculative trading using high leverage. Options may be more suitable for traders seeking leverage with defined risk or those implementing strategies such as straddles and strangles.

Leveraging in Futures Trading

Leverage allows traders to control large positions with a relatively small amount of capital, increasing exposure to the market. While this can enhance potential returns, it also amplifies losses, making effective risk management essential.

Responsible use of leverage involves:

• Understanding margin requirements set by Australian brokers.
• Avoiding excessive exposure by trading within financial limits.
• Applying strict risk management to control potential losses.

Leveraging can enhance profitability when used wisely, but reckless use may result in substantial financial setbacks.

Futures Trading Risks and Risk Management

Trading futures involves several risks, including:

• Market Volatility – Rapid price movements can lead to unexpected gains or losses.
• Leverage Risk – Greater exposure means that small price changes can have a significant impact on capital.
• Counterparty Risk – Although futures contracts are exchange-traded, liquidity issues may affect trade execution.
• Liquidity Risk – Low trading volume in certain contracts can make exiting a position more costly.

Risk Management Strategies

To mitigate these risks, traders should implement solid risk management strategies, such as:

• Stop-Loss Orders – Setting automatic exit points to limit potential losses.
• Diversification – Spreading investments across different assets to reduce overall exposure.
• Maintaining Sufficient Margins – Keeping adequate capital beyond the broker’s minimum requirements to avoid margin calls.
• Staying Informed – Regularly monitoring market trends, economic news, and regulatory developments specific to the Australian market.

By incorporating these strategies, traders can better navigate the complexities of futures trading and work towards a more stable and informed trading approach.

Tips for Success in Futures Trading

Establishing yourself in futures trading requires a combination of strategy, practice, and continuous learning. Here are some essential tips for new traders:

• Start Small – Begin with a small position to familiarise yourself with market trends without exposing too much capital.
• Use Demo Accounts – Practise trading with a demo account offered by Australian brokers before committing real funds. This helps build confidence and refine strategies.
• Educate Yourself Continuously – Stay informed through books, webinars, seminars, and online courses tailored to futures trading. Many Australian brokers and financial institutions provide localised educational resources.

In Conclusion

Futures trading presents significant opportunities for Australian investors but also involves inherent risks. Gaining a solid understanding of the futures market, choosing a reliable broker, and implementing well-defined trading strategies are key to long-term success.

Prioritising education, risk management, and psychological resilience can significantly improve your trading outcomes. Equip yourself with knowledge, make well-informed decisions, and approach your futures trading journey with confidence.

Futures Trading FAQ

Q: What is a Futures Broker?

A Futures Broker is an individual or firm that acts as an intermediary between buyers and sellers of futures contracts, facilitating the trades on commodity exchanges.

Q: What are Futures Contracts?

Futures contracts are standardized agreements to buy or sell an asset at a predetermined price at a specific time in the future. These can include commodities, financial instruments, or indexes.

Q: What is margin trading?

Margin trading involves borrowing funds from a brokerage to trade futures contracts, allowing you to leverage your position. It carries increased risk and potential for higher returns and losses.

Q: What are the main exchanges for futures trading in Australia?

A: The primary futures exchange in Australia is the ASX (Australian Securities Exchange). It offers futures contracts on various assets including commodities, financial indices, and interest rates.

Q: How is futures trading regulated in Australia?

A: Futures trading in Australia is regulated by the Australian Securities and Investments Commission (ASIC), which ensures market integrity and consumer protection.

Q: Are there specific tax implications for futures trading in Australia?

A: Yes, profits from futures trading in Australia are subject to capital gains tax. It’s advisable to consult with a tax professional to understand the specific tax obligations related to futures trading.

Q: What are the typical trading hours for futures contracts on the ASX?

A: Trading hours for ASX futures contracts typically cover most of the Asian trading session and a portion of the European session, but specific times can vary depending on the contract.

Q: Can I trade international futures markets from Australia?

A: Yes, many Australian brokers provide access to international futures markets, such as those in the U.S. and Europe. However, you should check with your broker about the specific markets available and any additional requirements.

Q: What should I consider when choosing an Australian futures broker?

A: Key factors include ASIC regulation, fee structures, trading platform quality, customer service availability in Australia, and the range of markets and instruments offered.

Q: Are there educational resources for futures trading in Australia?

A: Yes, many Australian brokers and independent financial education providers offer courses, webinars, and seminars on futures trading. The ASX also provides educational materials and resources for traders.

Q: What factors should I consider when choosing a Futures Broker?

Consider factors such as fees and commissions, margin rates, trading platforms, customer service, account types, and additional services like research and education.

Q: How often is the information updated?

We strive to update our information regularly to ensure you have the most current data available on brokers’ offerings and any changes in the market.

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