ASIC Regulated Forex Brokers
Trading forex with an ASIC regulated broker can give you the peace of mind that you are using a company which can be trusted. This is because they must comply with the strict rules and regulations that have been put in place to protect investors. Without any regulation, you might have nowhere to turn should something go wrong. Along with the FCA, the ASIC is one of the most well-respected regulators utilised by some of the best forex brokers in the industry.
What is the ASIC?
The Australian Securities and Investments Commission (ASIC) regulates registered companies, financial markets, and providers of financial services and credit services. They regulate these entities under a number of Commonwealth laws.
ASIC an independent commission of the Australian Government tasked as the national corporate regulator. The ASIC is responsible for promoting a fair, transparent and efficient financial system for all.
What does the ASIC do?
ASIC makes sure that forex brokers are operating in an honest and transparent manner. The provide a stringent set of rules that ASIC regulated forex brokers must abide by if they want to keep their license and provide retail forex trading to traders located in Australia.
ASIC has the powers to investigate breaches and institute civil or criminal proceedings under these Acts. This includes actions against directors, companies or other implicated persons, for matters such as breach of duties, misappropriation, and insolvent trading.
ASIC contributes to Australia’s economic reputation and wellbeing by ensuring that Australia’s financial markets are fair and efficient, supported by confident and informed investors and consumers.
ASIC’s Annual Report is tabled in Parliament. This includes an Annual Performance Statement under the PGPA Act, additional compliance reporting, audited financial statements and information on ASIC priorities and activities.
Under the financial services laws, the ASIC has facilitative, regulatory and enforcement powers, which include power to make rules aimed at ensuring the integrity of financial markets, investigate suspected breaches of the law and in so doing require people to produce books or answer questions at an examination.
How do I check if a forex broker is regulated by ASIC?
You can use the ASIC register to check if a forex broker has an up to date and valid license. The ASIC’s registers can help you to confirm if the company is registered and identify the officeholders, confirm the business name and check whether a company or person is banned or disqualified from managing companies, being involved in financial services or in the credit industry.
Guidelines for ASIC regulated brokers
ASIC has implemented the global standards of forex broker regulation, and because of this, brokers must be capitalized to the tune of at least $1 million in operating funds. In addition to this, the brokerage firms must work with only tier 1 banks for segregating their clients’ funds from their own corporate accounts. This means that the broker may never access or use the funds for their own purposes. ASIC has also stipulated that all forex brokers need to hold a valid Australian Financial Services License (AFSL), which brings them directly under the ASIC regulation.
Who are the best ASIC regulated forex brokers?
As the ASIC is considered to be a top-tier forex regulator, there are lots of ASIC forex brokers to choose from. Aside from confirming a broker is regulated by looking up their license on the ASIC register, other things you will want to consider include spreads, commission fees, deposit/withdrawal options, history, customer support, platforms, apps, educational resources and financial instruments available to trade. You can see a selection of our best ASIC forex brokers below.
ASIC, BaFin, CFTC, DFSA, FCA, FINMA, FMA, FSA, FSCA, JFSA, MAFF, MAS, METI, NFA
ASIC forex brokers pros & cons
- Must operate in an honest and transparent way
- Rules and regulation in place to protect clients
- Peace of mind so you can focus on your trading
- Recourse if something was to go wrong
- Restricted trading conditions
- Laws may only apply in certain jurisdictions
- Not all forex brokers are ASIC regulated
Conclusion: should I use an ASIC regulated forex broker?
If you are based in Australia, then I would probably be looking to trade forex with an ASIC regulated broker. There really is no need to trade with an offshore forex broker when you have so many options, including some of the best forex brokers in the industry. The downside is that you might not be able to get access to certain trading products and features such as high leverage and crypto funding. If those are things that you are looking for, then some ASIC forex brokers will also have offshore branches that you can open an account with instead.
If you are a trader who wants to see the market depth and order flow…
Best Broker For Pre Market Trading
The stock market is a dynamic and competitive arena, where investors are constantly looking for…
Zerodha Vs Sharekhan
In the dynamic world of online trading, choosing the right brokerage platform can significantly impact…
In the rapidly evolving world of financial markets, hybrid brokers have emerged as a unique…
In the dynamic world of online trading, the term "C-Book Broker" holds paramount importance, particularly…
Forex Brokers That Trade Cryptocurrency On Weekends
Are you tired of the traditional forex market that closes on weekends, leaving you unable…