ASIC Regulated Forex Brokers

Richard Montana | November 10, 2022

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.

Broker
Rating
Regulated
Min. Deposit
Founded
Max. Leverage
1.
AvaTrade Review

ADGM FRSA, ASIC, BVIFSC, CBI, FFAJ, FSCA, IIROC, JFSA

$100

2006

1:400

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
2.
IG Review

ASIC, BaFin, CFTC, DFSA, FCA, FINMA, FMA, FSA, FSCA, JFSA, MAFF, MAS, METI, NFA

$250

1974

1:200

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
3.
Pepperstone Review

ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB

$200

2010

1:400

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
4.
IC Markets Review

ASIC, CySEC, FSA, SCB

$200

2007

1:500

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
5.
XM Group Review

ASIC, CySEC, DFSA, IFSC

$5

2009

1:888

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
6.
City Index Review

ASIC, FCA, MAS

$100

1983

1:200

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
7.
Eightcap Review

ASIC, VFSC

$100

2009

1:500

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
8.
FP Markets Review

ASIC, CySEC, SVGFSA

$100

2005

1:500

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
9.
GO Markets Review

ASIC, CySEC, FSC, FSA

$200

2006

1:30

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
10.
ACY Securities Review

ASIC, VFSC

$50

2013

1:500

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.

Advantages of ASIC regulated forex brokers

  • 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

Disadvantages of ASIC regulated forex brokers

  • 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.

About the Author

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Richard Montana
Richard has many years of experience in broker research, testing, analysis and reviews. He knows what to look for through years of trading himself with different brokers and listening to the feedback of others.

Review Methodology

For all of our broker reviews, we research, validate, analyse and compare what we deem to be the most important factors to consider when choosing a broker. This includes pros, cons and an overall rating based on our findings. We aim to help you find the best broker according to your own needs. You can read more about our review process.


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