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AuthorBy Jeffrey Cammack
Updated: September 3, 2021

These are the best Forex brokers regulated by the Australian Securities and Investments Commission (ASIC). As one of the world’s toughest regulatory authorities, ASIC ensures that Forex brokers provide a level playing field for traders via constant monitoring and strict licencing requirements. By choosing an ASIC regulated Forex broker, you will ensure your funds’ security. Hedging and scalping are allowed while leverage is limited to 30:1, bonuses and promotions are banned and all traders have negative balance protection. 

To test these brokers, we checked their ASIC regulation, signed up and completed the verification process, and validated hard factors like platform selection, trading desk type, and minimum deposit. Next, we researched the trading conditions, assets available, the overall cost of trading for a client, fee structures, and withdrawal fees, as this is what sets each broker apart. According to our testing and our research, these are the best ASIC-regulated brokers for 2021.

English

Best ASIC Regulated Forex Brokers in 2021

Last updated on 3 Sep 2021
Updated 3 Sep 2021
by Editorial Director Jeffrey Cammackby Jeffrey Cammack
Jeffrey Cammack
All Brokers Regulated
All Brokers Regulated
by Trusted Authoritiesby Trusted Authorities
Trusted
1
IG Markets
Min. Deposit
GBP 250
4.694.69
Min. Spread
0.60 pips
Fx Pairs
93
ASIC Licence
220440
Platforms
Overall Rating
4.69/5
AlertAccepts UK Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, ProRealTime and L2 Dealer platforms supported. IG Markets Group is regulated by FCA, ASIC, and the FSCA. 75% of traders lose money with this provider.
2
Pepperstone
Min. Deposit
GBP 5
4.614.61
Min. Spread
0 pips
Fx Pairs
80+
ASIC Licence
414530
Platforms
Overall Rating
4.61/5
AlertAccepts UK Clients. Average spread EUR/USD 0.69 pips with 0.0 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & cTrader platforms supported. Pepperstone is regulated by the FCA, ASIC, and the DFSA. 79.3% of traders lose money with this provider.
3
IC Markets
Min. Deposit
GBP 200
4.464.46
Min. Spread
0.10 pips
Fx Pairs
64
ASIC Licence
335692
Platforms
Overall Rating
4.46/5
AlertAccepts UK Clients. Average spread EUR/USD 0.10 pips with 7 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & cTrader platforms supported. IC Markets is regulated by CySEC and ASIC.
4
FP Markets
Min. Deposit
GBP 100
4.284.28
Min. Spread
0 pips
Fx Pairs
60+
ASIC Licence
286354
Platforms
Overall Rating
4.28/5
AlertAccepts UK Clients. Average spread EUR/USD 0.10 pips with 6 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4& MT5. FP Markets is regulated by CySEC and ASIC.
5
AvaTrade
Min. Deposit
GBP 100
4.484.48
Min. Spread
0.90 pips
Fx Pairs
50+
ASIC Licence
406684
Platforms
Overall Rating
4.48/5
AlertAccepts UK Clients. Average spread EUR/USD 0.9 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. AvaTrade Group regulated by ASIC, FSCA, B.V.I FSC & FSA. 72% of traders lose money with this provider.
6
Plus500
Min. Deposit
GBP 100
4.094.09
Min. Spread
0 pips
Fx Pairs
70+
ASIC Licence
417727
Platforms
Overall Rating
4.09/5
AlertAccepts UK Clients. Average spread EUR/USD 0.80 pips on trading account with lowest minimum deposit. Max leverage 30:1. Cryptocurrency availability subject to regulation. Islamic account available. Plus500 proprietary trading platform supported. Plus500 is regulated by FCA, CySEC, ASIC, and MAS. 72% of traders lose money with this provider.
7
XM
Min. Deposit
GBP 5
4.254.25
Min. Spread
0.60 pips
Fx Pairs
57
ASIC Licence
443670
Platforms
Overall Rating
4.25/5
AlertAccepts UK Clients. Average spread EUR/USD 1.60 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. XM Group regulated by CySEC, ASIC, and the IFSC. 77.19% of traders lose money with this provider.
8
eToro
Min. Deposit
USD 50
3.693.69
Min. Spread
1 pips
Fx Pairs
52
ASIC Licence
491139
Platforms
Overall Rating
3.69/5
AlertAccepts UK Clients. Average spread EUR/USD 1 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. Only eToro proprietary trading platform supported. eToro is regulated by CySEC, FCA, and ASIC. 67% of traders lose money with this provider.
9
Axi
Min. Deposit
GBP 5
4.344.34
Min. Spread
0 pips
Fx Pairs
80+
ASIC Licence
318232
Platforms
Overall Rating
4.34/5
AlertAccepts UK Clients. Average spread EUR/USD 1.20 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. Axi Group is regulated by the FCA, ASIC and the DFSA. 75.6% of traders lose money with this provider.
10
FXCM
Min. Deposit
GBP 50
4.134.13
Min. Spread
0 pips
Fx Pairs
40
ASIC Licence
286354
Platforms
Overall Rating
4.13/5
AlertAccepts UK Clients. Average spread EUR/USD 1.30 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & Ninja Trader platforms supported. FXCM is regulated by FCA, ASIC, and the FSCA. 76.31% of traders lose money with this provider.

How to compare ASIC regulated brokers

ASIC is one of the most respected financial regulatory agencies in the world. While they have a traditional centre, they try to be modern in their approach, researching and making regulatory changes to maintain fairness in the CFD industry. All ASIC-regulated brokers can be considered safe due to the strict regulatory environment in which they operate, and most of them are very strong all-round. But it is essential to look at the detail of each broker to find out what differentiates them from each other. When comparing ASIC regulated brokers consider:

Regulation: While your broker is ASIC regulated, your trading account may not be. It is increasingly common for ASIC regulated brokers to onboard Australian clients onto a different license where trading conditions, like leverage, can be increased without the ASIC oversight. While this is not fundamentally bad, a trader should know their trading account is regulated and that ASIC will not enforce their regulations in overseas territories.

Platform choice: Traders have a wide range of industry platforms to choose from, each with pros and cons. When comparing brokers, always consider the platform options, as unique features or a wide variety of platforms could change your trading experience. MetaTrader 4 is still the industry standard, but many brokers offer MetaTrader 5 and their proprietary platforms. ECN/STP brokers will often support cTrader as it is built specifically for market execution and only allows for minimal broker interference.

Trading costs: Every broker will charge for their services, but each will have different pricing models and costs. While ECN brokers will charge a smaller spread combined with a commission based on volume, market maker brokers will charge a wider spread. We compare brokers by looking at what 1 lot of EURUSD costs to trade and would encourage traders to do the same in comparing costs.

Minimum Deposit: The minimum deposit could change by account type, with higher minimum deposits often linked to better conditions. Always consider the minimum deposit specific to the account type you may open.

Deposit and Withdrawal Methods: Most brokers accept credit cards and bank transfer payment, and many accept online payments through Skrill and Neteller, and some will also accept Bitcoin. Always check the withdrawal fees before making a deposit.


IG Markets – Best Regulated Broker

IG Markets is one of the best-regulated brokers in the world.  With regulation from no less than ten regulating authorities including ASIC, the FCA, MAS, and FINMA, it is also listed on the London Stock Exchange, providing an additional level of regulatory oversight. Along with strong regulation come strict internal processes. At IG Markets all funds are kept in separate trust accounts where the funds cannot be used to settle debts to other traders or finance the operations of the business. Furthermore, an audit of all client funds is performed daily to ensure the broker has the needed liquidity.

IG Markets offers tight spreads compared to other market makers, starting at 0.6 pips on the EUR/USD and fast execution on a single live account.  No commissions are charged, and traders can access leverage of up to 30:1.  Lastly, IG Markets offers support for MT4 and its own L2Dealer platform which offers direct market access and advanced order management.

Pros
  • Well regulated
  • Tight spreads
  • Great platform choice
  • Excellent education
  • Excellent market analysis
Cons
  • High minimum deposit
AlertAccepts UK Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, ProRealTime and L2 Dealer platforms supported. IG Markets Group is regulated by FCA, ASIC, and the FSCA. 75% of traders lose money with this provider.

Pepperstone – Best Platform Support

An ASIC-regulated pure ECN broker, Pepperstone is known for its fast trade execution and broad platform support.  Traders can choose between MT4, MT5, and CTrader which are all available on Windows and Mac OS for desktop trading, iOS and Android for mobile trading, and on its web app, WebTrader.   Most trades are executed in under 30 milliseconds which is ideal for scalpers and clients who run Expert Advisors. 

Pepperstone’s trading conditions are among the most competitive in the industry.  Traders can choose between two live accounts – a standard commission-free account with spreads that average at 1.09 on the EUR/USD, and the Razor Account with exceptionally tight spreads – averaging at 0.09 pips on the EUR/USD in exchange for a reasonable commission of 7 USD per trade. 

Pros
  • Well regulated
  • Tight spreads
  • Great platform choice
  • Wide range of assets
Cons
    AlertAccepts UK Clients. Average spread EUR/USD 0.69 pips with 0.0 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & cTrader platforms supported. Pepperstone is regulated by the FCA, ASIC, and the DFSA. 79.3% of traders lose money with this provider.

    IC Markets – Best Broker for Beginners

    IC Markets is a beginner-friendly ASIC regulated CFD broker with a well-structured educational section developed in-house by a team of knowledgeable experts.  With a full library of course material, including video tutorials, various articles, frequent webinars, and IC Markets’ Web TV, traders will receive comprehensive instruction in CFD trading.   IC Markets also has a dedicated support department operating 24/7, to help beginner traders answer any technical or trading-related questions. 

    IC Markets is one of the few brokers to offer support for all three major trading platforms, including MT4, MT5, and CTrader, alongside an array of trading tools including Autochartist, Trading Central, and a free VPS service.  IC Markets strives to provide the lowest latency and fastest possible execution for its clients, and with over 25 liquidity providers, IC Markets offers the tightest average spread, at 0.1 pips on the EUR/USD, of any broker globally.

    Pros
    • Well regulated
    • Tight spreads
    • Wide range of assets
    • Great platform choice
    Cons
    • High minimum deposit
    • Limited market analysis
    AlertAccepts UK Clients. Average spread EUR/USD 0.10 pips with 7 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & cTrader platforms supported. IC Markets is regulated by CySEC and ASIC.

    FP Markets – Best Metatrader Execution 

    FP Markets is a leading ASIC-regulated CFD broker offering trading on both MT4 and MT5 platforms.  Combined with its ECN model, FP Markets provides the ideal conditions for scalping and those using Expert Advisors (EAs).  In addition to low latency fast trade execution, it offers versions of the platforms for alternate operating systems, including Mac OS and WebTrader.  Traders also have access to institutional-grade liquidity with no price manipulation, no dealing desk and no requotes.

    FP Markets offers competitive trading conditions on two live accounts, with spreads averaging at 1.2 pips (EUR/USD) on its commission-free Standard Account, and 0.10 pips (EUR/USD) on its Raw Account in exchange for a 7 USD round turn commission.  FP Markets is also a good choice for beginner traders, with excellent educational content and 24/7 customer support.   

    Pros
    • Well regulated
    • Tight spreads
    • Good range of accounts
    • Great customer support
    Cons
    • Expensive withdrawals
    AlertAccepts UK Clients. Average spread EUR/USD 0.10 pips with 6 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4& MT5. FP Markets is regulated by CySEC and ASIC.

    Avatrade – Best Mobile Trading Experience

    Avatrade is an ASIC regulated broker that provides a reliable, user-friendly trading environment on a range of platforms, including its innovative mobile app – AvaTradeGO.  Voted Best Forex Trading App by the Global Forex Awards, AvatradeGO allows traders to connect to global trading markets, create their own watchlists, and view live prices and charts.  Avatrade also offers free access to trading tools such as Autochartist, Duplitrade, and AvaProtect, its own state-of-the-art risk management system.

    Avatrade provides some of the best trading conditions in the industry, with spreads starting at 0.9 pips (EUR/USD) on its single commission-free account, and a minimum deposit requirement of just 100 USD. Lastly, Avatrade’s award-winning customer service is available 24/5 and traders that deposit 1,000 USD or more are assigned a dedicated Account Manager to guide them in their first trades. 

    Pros
    • Good for beginners
    • Well regulated
    • Low minimum deposit
    Cons
    • Dealing desk
    • Limited market analysis
    AlertAccepts UK Clients. Average spread EUR/USD 0.9 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. AvaTrade Group regulated by ASIC, FSCA, B.V.I FSC & FSA. 72% of traders lose money with this provider.

    Plus500 – Unlimited Demo Account

    Plus500 is a leading CFD provider, driven mainly by an easy-to-use mobile platform and competitive trading conditions. Plus500 offers an unlimited demo account, meaning that it will never expire and is available for the mobile app and web browser versions of the platform. Mobile trading apps are often poor shadows of desktop trading platforms, however, the Plus500 app has the same functionality as the web platform.  It is intuitive and feature-rich, meaning traders can use the app’s advanced order types, sentiment indicators and price alerts on the move.

    Plus500 offers tight spreads compared to other market makers, starting at 0.8 pips* on the EUR/USD and fast execution on a single live account.  No commissions are charged, and traders can access leverage of up to 30:1.  One drawback is that support is only offered for Plus500’s proprietary platform, which does not integrate with the industry-favourites – MT4 and MT5.
    *spreads correct as of 17:40 GMT on 02/09/21

    Pros
    • Well regulated
    • Wide range of assets
    Cons
    • Limited education
    • Limited account options
    AlertAccepts UK Clients. Average spread EUR/USD 0.80 pips on trading account with lowest minimum deposit. Max leverage 30:1. Cryptocurrency availability subject to regulation. Islamic account available. Plus500 proprietary trading platform supported. Plus500 is regulated by FCA, CySEC, ASIC, and MAS. 72% of traders lose money with this provider.

    XM – Best Education

    XM is an ASIC-regulated market maker broker with a comprehensive selection of educational and market analysis materials that cater to traders of all experience levels.  Included in the offering are educational videos, platform tutorials, Forex seminars, and live Q&A sessions available every hour from Monday to Friday 05:00 – 15:00 GMT.  XM also excels in market analysis, providing traders with a daily market overview, frequently updated news, trade ideas, technical summaries, a podcast, and regular research updates. 

    All XM accounts feature maximum leverage of up to 30:1, negative balance protection, and minimum deposits starting at 5 USD.  XM’s spreads are wider than industry-average on its entry-level account, starting at 1.6 pips on the EUR/USD, but tighten to 0.6 pips on its Ultra-Low Account.  XM also has a strict no requote policy, and as such, all trades are filled at the expected price and are executed in less than one second. 

    Pros
    • Well regulated
    • Excellent education
    • Wide range of assets
    • Fast and free withdrawals
    Cons
    • Dealing desk
    AlertAccepts UK Clients. Average spread EUR/USD 1.60 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. XM Group regulated by CySEC, ASIC, and the IFSC. 77.19% of traders lose money with this provider.

    eToro – Best Social Trading Platform

    An ASIC-regulated market maker, eToro offers clients a unique trading experience on its bespoke crowd trading platform.  A leader in the field of social trading, it gives traders access to 52 Forex pairs, alongside a wide range of stocks, commodities, ETFs, indices, and an impressive array of 96 crypto pairs.  eToro’s popular CopyTrader tool allows clients to automatically copy other trader’s strategies, and its CopyPortfolio tool bundles together all tradable assets under one chosen market strategy to minimise long-term risk and create diversified investments.

    While eToro’s trading conditions are in line with other similar brokers, with spreads starting at 1.0 pips on the EUR/USD on a single live account, it charges a 5 USD withdrawal fee, regardless of the size of the withdrawal.  Its trading community is also let down by non-responsive customer support, and a limited selection of educational and market analysis materials.

    Pros
    • Well regulated
    • Good for beginners
    • Innovative trading tools
    Cons
    • Limited education
    • Wide spreads
    AlertAccepts UK Clients. Average spread EUR/USD 1 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. Only eToro proprietary trading platform supported. eToro is regulated by CySEC, FCA, and ASIC. 67% of traders lose money with this provider.

    Axi – Best MT4 Customisation

    Axi is an Australian ASIC-regulated ECN broker with full support for the MT4 platform, a range of useful trading tools, and excellent MT4 customisation options.  By limiting its platform choice to MT4, it focuses on providing various powerful platform-integrated analysis tools, including Autochartist, MyFxBook, and PsyQuation, which help beginner and more experienced traders make better trading choices. 

    PsyQuation is one of the world’s most advanced data analytics plugins. Featuring highly sophisticated algorithms, it analyses your trading style and coaches you into more profitable trades.  In addition to the powerful trading tools, Axi offers excellent customer support available 24/5 to help with platform set-up and any other technical inquiries. 

    Pros
    • Low minimum deposit
    • Wide range of assets
    • Well regulated
    • Tight spreads
    Cons
    • Poor customer service
    • Limited demo account
    AlertAccepts UK Clients. Average spread EUR/USD 1.20 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. Axi Group is regulated by the FCA, ASIC and the DFSA. 75.6% of traders lose money with this provider.

    FXCM – Best Proprietary Platform 

    An ASIC-regulated broker, FXCM offers support for MT4 in addition to its award-winning proprietary platform, Trading Station.  Trading station’s features are similar to MT4, and it provides Expert Advisor (EA) integration, micro-lot trading, custom indicators, strategy optimisation, strategy backtesting, and advanced charting.  In contrast to MT4, Trading Station is easy to use and requires less setup. 

    In addition to Trading Station, it supports a number of specialty platforms for more experienced traders, allowing for algorithmic trading and API integration and a number of advanced trading tools.  FXCM offers commission-free trading and a simple account structure.   The minimum deposit requirement is only 50 USD but spreads average at 1.3 pips on the EUR/USD which is wider than other similar brokers. 

    Pros
    • Well regulated
    • Great platform choice
    • Excellent education
    • Innovative trading tools
    Cons
    • Limited demo account
    AlertAccepts UK Clients. Average spread EUR/USD 1.30 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & Ninja Trader platforms supported. FXCM is regulated by FCA, ASIC, and the FSCA. 76.31% of traders lose money with this provider.

    Why Trade with an ASIC Regulated Forex Broker?

    There are few genuinely strong regulators in the world; the UK’s Financial Conduct Authority is one, the Cyprus Securities and Exchange Commission is another, and most would agree that ASIC is also a member of this group. ASIC has already built a reputation for guaranteeing trader security and dealing harshly with bad brokers, but in March 2021 ASIC deployed an even stricter regulatory environment. We will talk about what that environment looks like in more detail below, but first, let’s look at the current benefits of trading with an ASIC-regulated broker.

    • Segregated Accounts: Like most good regulators, ASIC ensures that all brokers keep client funds segregated from broker operational funds and in Tier 1 Australian banks.
    • Negative Balance Protection: ASIC requires all broker to provide protection against negative balance by limiting a retail client’s CFD losses to the funds in their CFD trading account.
    • Dispute Resolution and Customer Satisfaction: The Australian Financial Complaints Authority (AFCA) handles all disputes between traders and brokers and are known for efficiency and fairness. Importantly, brokers are responsible for the cost of the resolution and not the trader – this provides an incentive for brokers to respond quickly and fairly to all customer complaints. Unsurprisingly, ASIC Forex brokers are consistently rated very highly for customer satisfaction.
    • No Conflict of Interest: ASIC has banned all Forex brokers from being counterparty to their client’s trades, furthermore all brokers are required to offer a fast and efficient platform with no broker interference. It is perhaps as a result of these restrictions that Australia hosts many of the world’s best ECN brokers.

    All ASIC Regulated Brokers

    This is our list of all ASIC-regulated Forex brokers we have reviewed. They are ordered by overall rating, where the highest scoring brokers is at the top of the list. 

    Scroll for more detailsPreviousNext
    Broker
    Overall Rating
    FCA License
    Min. Deposit
    Cost of Trading
    Fees
    No. of FX Pairs
    Compare
    4.69 /5
    Read Review
    195355
    GBP 250
    USD 6
    Fees Included in Spread
    93
    4.69 /5
    Read Review
    173730
    GBP 5
    USD 7
    Fees Included in Spread
    330
    4.64 /5
    Read Review
    793714
    USD 20
    USD 6
    Fees Included in Spread
    166
    4.61 /5
    Read Review
    684312
    GBP 5
    USD 6.90
    From 7 USD / lot - Razor Account
    80+
    4.49 /5
    Read Review
    607305
    GBP 100
    USD 7
    Fees Included in Spread
    67
    4.48 /5
    Read Review
    GBP 100
    USD 9
    Fees Included in Spread
    50+
    4.46 /5
    Read Review
    GBP 200
    USD 8
    7 USD / lot - Raw Spread Account
    64
    4.34 /5
    Read Review
    509746
    GBP 5
    USD 12
    7 USD / lot - PRO account
    80+
    4.28 /5
    Read Review
    GBP 100
    USD 7
    6 USD / lot - RAW Accounts
    60+
    4.25 /5
    Read Review
    705428
    GBP 5
    USD 16
    7 USD / lot - XM Zero Account
    57
    4.24 /5
    Read Review
    595450
    GBP 100
    USD 5
    1.8 - 3 USD per lot
    50+
    4.18 /5
    Read Review
    113942
    GBP 50
    USD 6.90
    Fees Included in Spread
    84+
    4.10 /5
    Read Review
    GBP 200
    USD 10
    6 USD / lot - GoPlus+
    50+
    4.09 /5
    Read Review
    509909
    GBP 100
    USD 8
    Fees Included in Spread
    70+
    4.05 /5
    Read Review
    525164
    GBP 5
    USD 6
    Fees Included in Spread
    33
    3.98 /5
    Read Review
    GBP 25
    USD 20
    Fees Included in Spread
    103
    3.74 /5
    Read Review
    585561
    GBP 50
    USD 11
    Zero Accounts
    85
    3.70 /5
    Read Review
    GBP 250
    USD 40
    Fees Included in Spread
    48
    3.69 /5
    Read Review
    583263
    USD 50
    USD 10
    Fees Included in Spread
    52

    Changes in ASIC Regulation

    Big changes in ASIC regulation have been coming for some time. In ASIC’s 2019 review of the Australian OTC retail derivative market, it found a considerable increase in the number of traders since 2017 and an equally large increase in turnover at ASIC regulated brokers.

    ASIC also published the data on complaints filed against CFD brokers over the same period, and the results were shocking.

    From 2017-19 complaints received by ASIC had increased by 600%, a situation that ASIC has concluded is not sustainable in a sector where the majority of customers are known to lose money.

    In early 2020, ASIC conducted a further study, just as the Covid-19 pandemic began to spread across the world. Over a volatile five-week period in March and April 2020, the retail clients of a sample of 13 CFD issuers made a net loss of more than $774 million. Also during this period:

    • over 1.1 million CFD positions were terminated under margin close-out arrangements (compared with 9.3 million over the full year of 2018)
    • more than 15,000 retail client CFD trading accounts fell into negative balance, owing a total of $10.9 million (compared with 41,000 accounts owing $33 million over the full year of 2018).

    As a response to these damning sets of data, and citing the 2018 tightening of regulation in Europe by ESMA, ASIC issued a product intervention order for all ASIC-regulated CFD brokers. This product intervention order went into force on 29th March 2021 and includes:

    • A complete ban on binary options
    • Varying leverage restrictions for all CFDs: 30:1 for forex and gold, 15:1 for stock indices, 10:1 for commodities (excluding gold), 2:1 for cryptocurrencies and 5:1 for equities and all other instruments.
    • A forced stop-out at 50% of the total initial margin of all open trades
    • Mandatory negative balance protection
    • A complete ban on all bonus schemes, promotions and other incentives to traders.
    • All broker trading platforms must always display total position size and overnight funding costs related to open positions in real-time.
    • ASIC also stated that they expect all brokers to publish their pricing methods

    As these new restrictions went into force ASIC Commissioner Cathie Armour said:

    ‘We will closely monitor compliance with the product intervention order and won’t hesitate to take appropriate action to enforce the order. We are also paying careful attention to changes in CFD providers’ reported holdings of retail client money and any misclassification of retail clients as wholesale clients, which would risk denying them important rights and protections. Protecting retail investors from harm, particularly at a time of heightened vulnerability, is a priority for ASIC,’

    ASIC has also warned Australian brokers away from working with offshore investors illegally, especially as regulators in China, Japan and Europe and North America have placed restrictions or bans on CFDs for retail investors. ASIC has also started working more closely with CFD brokers to ensure compliance with foreign laws and is actively engaged with multiple international regulatory bodies in this matter.

    If you want to know more about how these changes might affect your trading, we recommend getting in touch with ASIC or your broker to discuss the options available to you.

    Forex Risk Disclaimer

    Trading Forex and CFDs is not suitable for all investors as it carries a high degree of risk to your capital: 75-90% of retail investors lose money trading these products. 

    Forex and CFD transactions involve high risk due to the following factors: Over-leveraging, unpredictable market volatility, slippage arising from a lack of liquidity, inadequate trading knowledge or experience, and a lack of regulatory protection for clients.

    Traders should not deposit any money that is not disposable. Regardless of how much research you have done, or how confident you are in your trade, there is always a substantial risk of loss. (Learn more from the FCA or from ASIC)

    Our Methodology

    Our State of the Market Report and Broker Directory are the result of extensive research on over 100 Forex brokers. The explicit goal of these resources is to help traders find the best Forex brokers – and steer them away from the worst ones – with the benefit of accurate and up-to-date information.

    With over 150 data points on each broker and over 3000 hours of research and review writing, we believe we have succeeded in our goal. 

    In a world where trading conditions and customer support can vary based on where you live, our broker reviews focus on the local trader and give you information about these brokers from your perspective.

    All research has been conducted by our in-house team of researchers and writers, gathering information from various company representatives, websites and by sifting through the fine print. Learn more about how we rank brokers

    Featured Brokers

    Trading Forex and CFDs is not suitable for all investors and comes with a high risk of losing money rapidly due to leverage. 75-90% of retail investors lose money trading these products. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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