International trading laws for beginners


International trading is defined as any transaction on a commercial basis that takes place between businesses that are based in and operate fromdifferent countries. This definition includes a wide range of transactions, including investments, and investing internationally is an increasingly common activity as technology brings the different parts of the global economy together.

But while there are many benefits to international trading, there are a number of pitfalls that can cause problems forthe unwary. That’s why when you’re choosing a broker or other business partner, you should take care to ensure that they are fully aware of the risks involved in international trading. Fortunately, there are many CFD brokers out there so you have plenty of choice.

Legal issues

Although the legal situation in international trading is complicated, there are laws in Australia governing the conduct of international trading. The Foreign Corrupt Practices Act 1977 is the most notable, and it is important to be aware of this piece of legislation before you embark on any international trading. As with all legal issues, ignorance of the law cannot be a defence!

You should also bear in mind that other countries’ legal systems canwork in very different ways to Australia’s. Overlooking this fact can lead to costly experiences for international traders, so make sure that you are aware of the relevant trading laws and have a rough idea of the legal risks that can occur in a particular country before you begin to trade there.

Registered agents

If you’re doing business in another country, it is a good idea to appoint and retain a registered agent in that location, even if you are not physically setting up operations there. A registered agent, which is often a legally trained individual or a law firm, can be your contact point in the country in question, helping you to be aware of local laws and issues with which you may not be familiar.

International treaties

International law is a confusing network of regulations and treaties that cross borders, and without a proper understanding of the legal landscape, you could unintentionally end up in breach of a treaty or agreement. If you’re trading with other countries, then it is essential to seek legal advice to ensure that you are not falling foul of any international legal rules.

World Trade Organization

The World Trade Organisation (WTO) is a hub for the regulation of international trade and provides a wealth of information and resources for companies and individuals looking for information on any aspect of global trade. It is also the main arbiter in many international trading disputes, so doing your research into the WTO and how it works can help you to trade internationally more effectively.


Trading internationally is an increasingly common practice for investors and businesses. By taking the time to understand the distinct legal issues involved, you will be in the best position to avoid potential pitfalls and ensure that your international trading activity is successful.

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