From Sydney’s financial hubs to Melbourne’s cafes, more Australians are turning to Forex trading. Australia is already ranked in the top ten nations around the world for Forex trader numbers, and the domestic market was valued at US$160.4 billion in 2024. This is expected to more than double in the coming years, reaching US$323.32 billion by 2033.

The popularity of forex trading lies in its potential, not just as a typical side hustle, but as a means of achieving real financial freedom. With the right approach, you have the chance to make useful extra income. 

This article explains why Forex trading might appeal, highlighting its risks and providing some tips for success.

The Growing Popularity of Forex Trading in Australia

Forex as a side hustle has become a more viable option over the past decade, due to increased connectivity to the web and better access to Forex trading platforms. Not only can you trade from anywhere (as long as you have a web connection), but you can also trade at just about any time of the working week. 

In addition to better access, there are now plenty of Forex brokers to choose from. Many of these brokers have no minimum deposit requirements to sign up; you just need to fund your account with a small amount of capital to trade with. Your biggest challenge will be to learn to trade with success.

Justin Grossbard, the founder of CompareForexBrokers, found that out of all the countries in the world, Australians engage in CFD and Forex trading at the highest rate per capita. Over 100,000 Australians were involved in foreign exchange or contracts for difference (CFD) trading in 2021, surpassing more populous countries like Poland.

Poland’s population is almost 39 million, and with 80,000 active traders, it is one of the leaders in the European market. And yet Australia, with a population of just under 26 million, has 20,000 more active traders.

Why Forex Trading Beats Other Side Hustles

Justin says: “Forex can be a handy way to supplement income because, unlike freelancing or e-commerce, it’s all about smart analysis and strategic trades, not selling products or services.” 

Forex trading offers several other appealing advantages, such as:

1. Potential for High Returns

You can achieve good profits with the right commitment to learning and implementing sound trading strategies.  The key is to invest the time needed to learn to trade, and to practice, practice, and practice your strategies before putting them to work. Plus, while risky, leverage helps you control larger positions and maximise returns, even with smaller initial investments.

2. Flexibility and Convenience

Another reason you may wish to consider forex trading as a side hustle is its flexibility. Since the market runs 24 hours a day during the working week, you can trade whenever it fits your schedule—whether it’s during lunch, after work, or late at night. It’s a convenient option for anyone juggling a full-time job but still looking for ways to earn extra income.

3. Low Initial Investment

Unlike stocks or real estate, Forex trading doesn’t require a significant upfront investment. You can start with as little as $5 to $100, depending on the broker. This makes it an easy entry point for anyone without a large amount of capital.

4. Accessibility of Research & Education Resources

Finally, there are countless resources available to help you learn and improve. Many brokers offer free educational materials like tutorials, webinars, and demo accounts to practice trading without risking real money.

On top of that, there are many online communities and social media platforms where traders share strategies, tips, and personal experiences. You can also access books, articles, podcasts, and videos to continue learning and sharpening your skills.

The Role of Regulation and Reliable Brokers

If you’re planning on getting into forex trading as a side hustle, finding the best forex brokers in Australia is essential to ensure safety and security when trading. 

Choosing the right broker can make all the difference in achieving consistent success in the market, especially for new traders. 

 Choosing a Reliable Forex Broker In Australia

Regulation should be the priority when choosing a broker. You want to work with a firm that plays by the rules—after all, they’re the ones handling your Forex transactions.

As an Australian trader, you’ll benefit from a tightly regulated market overseen by the Australian Securities and Investments Commission (ASIC). The tier-one regulator protects your funds, and ensures that the broker adheres to ethical trading practices.

Beyond regulation, look for brokers that offer a good number of currency pairs, competitive spreads, fast trade execution, and intuitive trading platforms. Reliable customer support, educational resources and demo accounts are also worth considering, especially for beginners looking to build confidence before committing real money.

Common Pitfalls for New Forex Traders

Enthusiasm alone isn’t enough when trading forex. Many new traders make a lot of mistakes that can drain their accounts before they even get a solid footing in the market. 

Impatience & Unrealistic Expectations

Jumping hastily into Forex without a solid understanding, or getting into it thinking you’ll make millions overnight, is a recipe for disappointment. Success in this market requires patience, discipline and a commitment to learning. Taking the time to master technical analysis, market fundamentals, and risk management strategies will set you up for long-term profitability.

There’s no way to sugarcoat it—the learning curve in Forex trading is steep and can feel discouraging, especially if you expect quick results. Becoming a consistently profitable trader takes time, often months or even years. But the process becomes far more manageable with the right educational resources and dedication.

Emotional Trading & Overtrading

Many novice traders allow fear and greed to dictate their trading behaviour. This results in poor decisions and losses.  Additionally, many will experience financial losses as a result of overtrading.  It is imperative to establish a comprehensive trading strategy and adhere to it.  So concentrate on executing high-quality transactions, rather than just a high volume.

Inadequate Risk Management

Forex trading carries many risks, and market volatility can wipe out gains as fast as it generates them. Although leverage can be effective, it also amplifies losses. Therefore, it’s critical to know how to reduce these risks and only trade with funds you can afford to lose.

Expert Insight: Is Forex a Viable Side Hustle for You?

There is some useful money to be made in Forex as a side hustle, but at the same time, this venture can financially wipe out all your hard work. The good thing with Forex is that many brokers offer you a demo account that mimics real money.

Start off using a demo account, and consider swing trading. With swing trading, you won’t be looking at the charts all day–this means there is still time for a formal job, so trading forex stays as a side hustle.

Once you start having consistent success on your demo account, then invest a relatively small amount into a live account and build from there. Successful forex trading is hard, but if you stay dedicated and follow your proven process, you can make it a profitable opportunity.

Like experienced industry expert Justin Grossbard says, “Forex isn’t a get-rich-quick scheme. It only rewards those who are willing to invest time in understanding how the market operates.”