Low spread forex brokers in Australia are required to be licensed by the Australian government’s financial regulator, the Australian Securities and Investment Commission (ASIC). This is a highly regarded regulator both among brokers and traders, partly because it allows for much higher trading leverage than regulators in the US and Europe does.
Because of the favorable regulatory environment combined with stable politics and a well-developed financial system, Australia is a very popular country for low spread forex brokers to set up shop in. On some of the most popular forex pairs, such as the EUR/USD, spreads may even go as low as 0.0 during times of high liquidity in the markets. Take note, however, that when liquidity dries up in these pairs, such as during the night in their home markets, spreads may move significantly higher.