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AuthorAuthor: Jeffrey CammackPublished: Oct 14, 2019
EditorEditor: Chris CammackUpdated: Dec 7, 2023

Last Updated On Dec 7, 2023

Jeffrey Cammack

The Australian Securities and Investments Commission (ASIC) is well-known for being one of the world’s toughest regulatory authorities and has a reputation for ensuring that Forex brokers provide a secure trading environment for traders. In March 2021, ASIC introduced stricter regulatory requirements to further protect traders, including restricting leverage to 30:1, banning bonuses and promotions, and ensuring that traders are granted negative balance protection. 

While the new rules introduced by ASIC harmed many of the low-quality brokers in Australia, the brokers below are well-placed to benefit traders with their low fees and excellent reputations. We understand that different traders have different needs based on their experience level, choice of platforms, trading tools, and trading strategies. We have curated a list of diverse brokers so that you can find the ASIC-regulated broker that suits you.

According to our testing and our research, these are the best ASIC-regulated brokers for 2024.

1

AvaTrade

Best Mobile Trading Experience

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2

IG

Widest Range of Financial Instruments

Visit
3

IC Markets

Best Broker for Beginners

Visit
4

FP Markets

Three Platforms, Low Trading Fees, and Fast Execution

Visit
5

XM

Best Education and Low Costs

Visit
6

Admirals

Best MetaTrader Platform Support

Visit
7

FBS

$1 Deposit, Low-Cost Cent Account for Beginners

Visit
8

Fusion Markets

Low Costs, 3 Copy Trading Platforms

Visit
9

Axi

Best MT4 Customisation, No Min. Deposit

Visit
10

markets.com

Best Proprietary Platform

Visit
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Broker
Broker Score
Official Site
ASIC
ASIC License
Min. Deposit
Max. Leverage
Beginner Friendly
EUR/USD - Standard Spread
Cost of Trading
EUR/USD - Raw Spread
Total CFDs
Currency Pairs
Platforms
Website Language: English
Support Language: English
Compare
AvaTrade
4.59 /5
Read Review
Visit Broker >
76% of retail CFD accounts lose money
406684USD 100400:1Excellent0.90 pipsUSD 90.90 pips87255MT4, MT5, Avatrade Social, AvaOptions
IG
4.69 /5
Read Review
Visit Broker >
69% of retail CFD accounts lose money
220440USD 0200:1Excellent0.60 pipsUSD 60.85 pips1929580MT4, L2 Dealer, ProRealTime
IC Markets
4.56 /5
Read Review
Visit Broker >
70.81% of retail CFD accounts lose money
335692USD 20030:1Excellent0.10 pipsUSD 80.02 pips174464MT4, MT5, cTrader
FP Markets
4.40 /5
Read Review
Visit Broker >
79% of retail CFD accounts lose money
286354AUD 10030:1Excellent0.10 pipsUSD 70.10 pips1016270MT4, MT5, cTrader, IRESS
XM
4.45 /5
Read Review
Visit Broker >
75.33% of retail CFD accounts lose money
443670USD 51000:1Excellent0.60 pipsUSD 60.60 pips155457MT4, MT5
Admiral Markets
4.28 /5
Read Review
Visit Broker >
76% of retail CFD accounts lose money
410681USD 100500:1Excellent0.80 pipsUSD 80.10 pips399682MT4, MT5, MT Supreme
FBS
4.33 /5
Read Review
Visit Broker >
76% of retail CFD accounts lose money
426359USD 53000:1Excellent0.80 pipsUSD 70 pips25437MT4, MT5
Fusion Markets
4.33 /5
Read Review
Visit Broker >
89% of retail CFD accounts lose money
385620USD 0500:1Excellent0 pipsUSD 4.500 pips25285MT4, MT5, cTrader
Axitrader
4.34 /5
Read Review
Visit Broker >
75.6% of retail CFD accounts lose money
318232USD 0500:1Excellent1.00 pipsUSD 100.00 pips18870MT4
Markets.com
4.68 /5
Read Review
Visit Broker >
70.3% of retail CFD accounts lose money
424008USD 10030:1Excellent0.70 pipsUSD 70.60 pips100956MT4, MT5, markets.com

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. However, 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 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 and 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 payments, and many accept online payments through Skrill and Neteller, and some will also accept Bitcoin. Always check the withdrawal fees before making a deposit.


Avatrade – Best Mobile Trading Experience

Broker Score
4.594.59 / 5
🏦  Min. DepositUSD 100
🛡️  Regulated By
💵  Trading Cost 
USD 9
⚖️  Max. Leverage400:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Founded in 2006 in Dublin, Ireland, Avatrade is an ASIC regulated broker (AFSL 406684) with over 200,000 registered users and an average monthly trading volume of 60 billion USD. It also provides a user-friendly trading environment on a range of trading platforms, including its innovative mobile app – AvaTradeGO. AvaSocial, Avatrade’s social trading platform, is also available as a downloadable app.

AvaTradeGO: An award-winning application, AvatradeGO allows traders to connect to global trading markets, create their own watchlists, and view live prices and charts.  AvatradeGO also provides free access to analysis tools such as Autochartist, Duplitrade, a copy trading tool, and AvaProtect, its own state-of-the-art risk management system. Avatrade’s trading fees are low compared to other similar brokers, with a minimum deposit requirement of 100 USD, spreads that start at 0.90 pips pips on the EUR/USD, and no commissions charged on Forex trades.  

Avasocial: Avasocial is Avatrade’s social and copy trading platform. Available on both Android and iOS, the mobile app allows traders to replicate the trades of other successful traders.  Traders can opt to trade manually or to use a fully automated service. Traders can also interact with other traders and ask questions on specific strategies, find out more about various markets, and seek out a mentor, making it a great tool for beginner traders.

Pros
  • Good for beginners
  • Well regulated
  • Low minimum deposit
Cons
  • Dealing desk
  • Limited market analysis
AlertAccepts Indian Clients. Average spread EUR/USD 0.90 pips on trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. MT4 & MT5 platforms supported. AvaTrade Group regulated by ASIC, FSCA, B.V.I FSC & FSA.

IG – Widest Range of Financial Instruments

Broker Score
4.694.69 / 5
🏦  Min. DepositUSD 0
🛡️  Regulated By
💵  Trading Cost 
USD 6
⚖️  Max. Leverage200:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Founded in London in 1974, IG has a regional HQ in Melbourne and has been regulated by ASIC since 2002 (220440). The largest broker in the world by revenue and regulated by 17 authorities worldwide, IG is also one of the few brokers that supported ASIC’s introduction of tighter regulations in early 2021. In addition to being one of the best-regulated ASIC brokers, IG has the widest range of financial instruments and some of the lowest trading fees in the industry on three trading platforms.

Widest range of financial instruments: IG offers over 17,000 financial instruments, many more than most other brokers. Tradeable CFDs include 13,000 share CFDs, 6000 ETFs, and 80 Forex pairs. IG also offers weekend trading on major Forex pairs and 24-hour trading on Australia’s leading stock index, the ASX 200. Both of these are unique services that are not available at other brokers.  IG’s single account has low fees compared to other brokers, with no minimum deposit requirements, spreads starting at 0.85 pips on the EUR/USD, and no commission charged on Forex trading.

Trading Platforms: IG Markets’ trading platforms include MetaTrader 4 (MT4), its own web-based platform, and L2 Dealer, a specialist share trading platform that offers direct market access (DMA) to clients who maintain an account balance of 2000 USD. MT4 and the IG trading platforms are more user-friendly and suited to beginner traders, while the L2 Dealer offers advanced analytical tools and charting packages for more experienced traders.

Pros
  • Well regulated
  • Tight spreads
  • Great platform choice
  • Excellent education
  • Excellent market analysis
Cons
  • High minimum deposit
AlertAccepts Indian Clients. Average spread EUR/USD 0.85 pips on trading account with lowest minimum deposit. Max leverage 200:1. Islamic account available. MT4, ProRealTime and L2 Dealer platforms supported. IG Markets Group is regulated by FCA, ASIC, and the FSCA.

IC Markets – Best Broker for Beginners

Broker Score
4.564.56 / 5
🏦  Min. DepositUSD 200
🛡️  Regulated By
💵  Trading Cost 
USD 8
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

IC Markets (ASFL: 335692) is a leading ASIC-regulated online retail Forex and CFD broker founded in 2007 and headquartered in Sydney. One of the largest Australian brokers, IC Markets’ daily trade volume averages at over 15 billion USD and is available in over 162 countries worldwide, including India. IC Markets provides a welcoming environment for beginner traders with its well-structured educational section developed by a team of in-house experts and two beginner-friendly accounts.

Education: With a comprehensive library of course material, including video tutorials, articles, frequent webinars, and IC Markets’ Web TV, traders will receive extensive 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.

Beginner-friendly accounts: IC Markets offers three live accounts, all with a minimum deposit of 200 USD, making them accessible to beginner traders. IC Markets’ trading fees are some of the lowest in the industry – its commission-free Standard Account has fees included in its variable spreads, which average at 1 pip (EUR/USD), while the Raw accounts offer spreads that average at 0.02 pips on the EUR/USD in exchange for commissions of between 6 and 7 USD (round turn), depending on the platform.

Pros
  • Well regulated
  • Tight spreads
  • Wide range of assets
  • Great platform choice
Cons
  • High minimum deposit
  • Limited market analysis
AlertAccepts Indian 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, ASIC, and the FSA.

FP Markets – Three Platforms, Low Trading Fees, and Fast Execution

Broker Score
4.404.40 / 5
🏦  Min. DepositAUD 100
🛡️  Regulated By
💵  Trading Cost 
USD 7
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

FP Markets was founded in Sydney, Australia, after receiving an ASIC licence (ASFL: 286354) in 2005. Under the strict ASIC rules, FP Markets is constantly monitored and evaluated on its performance and trade execution. FP Markets has gained recognition for its competitively low trading fees and its broad trading platform support, including Mt4, Mt5, and cTrader.

Low Trading Fees: FP Markets offers competitive trading fees 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 commission of 7 USD. The minimum deposit requirements are 100 AUD on both accounts, making them accessible to all traders.

Trading Platforms: FP Markets’ trading platforms include MT4, MT5, and cTrader.  MT4 is the most popular trading platform in the world, while MetaTrader 5 (MT5) has more tools, such as an embedded economic calendar and chat system.  Compared to the MetaTrader platforms, cTrader has a simpler user interface and more functionality, including advanced order types, news alerts, and customisable charts.

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

XM – Best Education and Low Costs

Broker Score
4.454.45 / 5
🏦  Min. DepositUSD 5
🛡️  Regulated By
💵  Trading Cost 
USD 6
⚖️  Max. Leverage1000:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Founded in 2009 in Cyprus, XM has over 5,000 0000 traders on its books from 192 countries. With a long history of regulatory oversight, XM gained its ASIC licence (AFSL number 443670) in 2014 and set up a regional office in Melbourne. All XM accounts feature maximum leverage of up to 500:1, negative balance protection, and minimum deposits starting at 5 USD.  XM also has a strict no-requote policy, and as such, all trades are filled at the expected price, and 99.35% of trades are executed in less than one second. 

Daily Live Education: XM excels in its educational offering, which includes educational videos, courses, platform tutorials, Forex seminars, and live Q&A sessions available every hour from Monday to Friday. Topics include the basics of Forex trading, technical analysis, trading strategies, fundamental analysis, and major currency fundamentals.  XM also offers comprehensive market analysis, providing traders with a daily market overview, frequently updated news, trading ideas, technical summaries, a podcast, and regular research updates. 

XM’s Ultra-Low Account: Available on the MT4 and MT5 trading platforms, XM’s Ultra-Low Account has competitive trading fees, with spreads that start at 0.6 pips on the EUR/USD, no commissions for Forex trading, and a minimum deposit of 50 USD. 

Pros
  • Well regulated
  • Excellent education
  • Free deposits and withdrawals
Cons
  • Dealing desk
  • Wide spreads on its entry-level accounts
AlertAccepts Indian Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 1000:1. Islamic account available. MT4 & MT5 platforms supported. XM Group regulated by CySEC, ASIC, and the Belize FSC.

Admiral Markets – Best MetaTrader Platform Support

Broker Score
4.284.28 / 5
🏦  Min. DepositUSD 100
🛡️  Regulated By
💵  Trading Cost 
USD 8
⚖️  Max. Leverage500:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

An ASIC-regulated CFD broker, Admiral Markets offers a range of trading accounts on both the Metatrader 4 and Metatrader 5 platforms.  It has also created a customised plug-in, the MetaTrader Supreme Edition, which provides insights from Trading Central, including pattern recognition and technical analysis directly to the platforms.  Also included in the plug-in is the Global Opinion toolset, which contextualises millions of financial news stories, giving traders a dynamic view of market sentiment. 

Admiral Markets offers both MT4 and MT5 market execution accounts suitable for beginners and more experienced traders alike, with spreads as tight as 0 pips on the EUR/USD in exchange for a commission of between 1.8 – 3 USD per lot traded. This commission level is relatively standard for the industry and comparable to similar brokers.

Pros
  • Well regulated
  • Excellent education
  • Wide range of assets
Cons
  • Expensive withdrawals
AlertAccepts Indian Clients. Average spread EUR/USD 0.80 pips with 0.0 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4, MT5 & MT4 Supreme Edition platforms supported. Admirals is regulated by ASIC, CySEC, and the FCA.

FBS – $1 Deposit, Low-Cost Cent Account for Beginners

Broker Score
4.334.33 / 5
🏦  Min. DepositUSD 5
🛡️  Regulated By
💵  Trading Cost 
USD 7
⚖️  Max. Leverage3000:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Regulated by ASIC since 2012, FBS is a large global broker with over 17 million customers worldwide. FBS offers three trading accounts on the MT4 and MT5 platforms. The Cent Account has a 1 USD minimum deposit and spreads down to 0.6 pips on the EUR/USD, and all trading is denominated in cents rather than dollars.

Beginners will also like FBS’ well-structured education section, detailed webinars and 24/7 customer support. Weekend customer support is especially important for trading FBS’ range of crypto CFDs, as the crypto market never closes. More experienced traders may be interested in FBS´s Pro Account, which offers spreads down to 0.5 pips, no commissions, and unlimited open positions, though the minimum deposit is 200 USD on this account.

Pros
  • Tight spreads
  • Low minimum deposit
  • Excellent education
  • Excellent market analysis
Cons
  • Limited range of assets
  • Extreme leverage
AlertAccepts Indian Clients. Spreads start at 0.80 pips on the EUR/USD on the trading account with lowest minimum deposit. Max leverage 3000:1. Islamic account available. MT4 & MT5 platforms supported. FBS is regulated by ASIC, CySEC, the FSCA, and the IFSC.

Fusion Markets – Low Costs, 3 Copy Trading Platforms

Broker Score
4.334.33 / 5
🏦  Min. DepositUSD 0
🛡️  Regulated By
💵  Trading Cost 
USD 4.50
⚖️  Max. Leverage500:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Founded in 2017 in Melbourne, Fusion Markets is an ASIC-regulated broker (AFSL 226199) with a range of copy-trading options, exceptionally low trading costs and no minimum deposit requirements. Its Fusion+ copy trading platform is only available in a proprietary trading platform, but it also offers Duplitrade and Myfxbook Autotrade – two of the largest Forex social trading communities in the world.

In terms of traditional trading, Fusion Markets is one of the lowest-cost brokers in the world. EUR/USD spreads start at 0 pips on its Zero Account with a very low commission of 4.50 AUD (round turn); most other brokers offering raw spreads will have a commission of 6 AUD or higher. The only drawbacks are a relatively limited number of CFDs (though 85 Forex pairs is better than most brokers) and very limited education, so beginners will have to educate themselves elsewhere.

Pros
  • Low minimum deposits
  • Tight spreads
  • Excellent market analysis
Cons
  • No in-house platform
  • No education
AlertAccepts Indian Clients. Average spread EUR/USD 0 pips with 0 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4, MT5, cTrader platforms supported. Fusion Markets is regulated by ASIC, FSA (Seychelles), & VFSC.

Axi – Best MT4 Customisation, No Min. Deposit

Broker Score
4.344.34 / 5
🏦  Min. DepositUSD 0
🛡️  Regulated By
💵  Trading Cost 
USD 10
⚖️  Max. Leverage500:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Founded in 2007, Axi (formerly Axitrader)  is an Australian-owned online forex broker, regulated by the Australian Securities and Investments Commission (ASIC AFSL number: 318232). While Axi only supports the MT4 trading platform, the MT4 NexGen plugin transforms MT4 into a superior trading platform. It also offers lower-than-average trading costs on two live accounts.

Trading Platforms: Although trading platform support is limited to MT4, Axi offers a range of tools and plugins that can be added to the trading platform to make it more powerful. Traders who maintain an account balance of more than 1,000 USD can access the MT4 NexGen plugin, which includes a sentiment indicator, a correlation trader, a more intuitive terminal window, and an automated trade journal. Traders also have free access to Autochartist and PsyQuation, an advanced data analytics plugin that analyses your trading style, identifies mistakes, and helps you avoid making similar mistakes again. 

Trading Fees: Axi’s trading fees are highly competitive. It offers two live accounts with no minimum deposit requirements (although Axi recommends depositing an initial sum of 200 USD) – the commission-free Standard Account with spreads that average at 1 pip on the EUR/USD and the Pro Account with spreads that average at 0.1 pips (EUR/USD) in exchange for a round turn commission of 7 USD.  

Pros
  • Low minimum deposit
  • Tight spreads
  • Innovative trading tools
Cons
  • MT4 only
  • Limited range of assets
AlertAccepts Indian Clients. Average spread EUR/USD 1.00 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 & MT5 platforms supported. Axi Group is regulated by the FCA, ASIC and the DFSA.

Markets.com – Best Proprietary Platform

Broker Score
4.684.68 / 5
🏦  Min. DepositUSD 100
🛡️  Regulated By
💵  Trading Cost 
USD 7
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Markets.com is a global broker founded in 2008 and regulated by ASIC with AFSL number: 424008. Markets.com offers one live account, with various account tiers available on three trading platforms, including MT4, MT5, and the Markets.com platform, one of the best in-house trading platforms in the industry.

Markets.com platform: The Markets.com platform is an award-winning trading platform known for its ease of use and excellent features. With a clean, intuitive design, the platform offers advanced charting, making it easier to spot trends and identify new trading opportunities. It also allows traders to add up to five types of indicators to the chart at once and compare up to eight instruments side-by-side. Additionally, the platform integrates with a number of trading tools, including signals, bloggers’ opinions, and trends, among others.

Markets.com’s Trading Fees: Markets.com’s trading has extremely low trading fees, starting at 0.6 pips (EUR/USD) with no commissions for Forex trading, which is lower than other similar brokers. The minimum deposit is also reasonable, at 100 USD/EUR/GBP, putting it well within reach of most traders.

 

Pros
  • Well regulated
  • Tight spreads
  • Wide range of assets
  • Fast and free withdrawals
Cons
  • High minimum deposit
AlertAccepts Indian Clients. Average spread EUR/USD 0.70 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. MarketsX is regulated by CySEC, ASIC, and the FSCA.

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 brokers 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 is 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 counterparties to their client’s trades. Furthermore, all brokers are required to offer a fast and efficient platform with no broker interference. It is perhaps due to these restrictions that Australia hosts many of the world’s best ECN brokers.

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-Data

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 most customers are known to lose money.

ASIC-Complaints-1

In early 2020, ASIC conducted a further study just as the Covid-19 pandemic began to spread worldwide. 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, 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 contacting 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: Leverage, market volatility, slippage arising from a lack of liquidity, inadequate trading knowledge or experience, and a lack of regulatory protection. Traders should not deposit any money that is not considered disposable income. 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 about these risks from the UK’s regulator, the FCA, or the Australian regulator, ASIC).

Our Rating & Review Methodology

Our overall Forex Rankings report and Directory of CFD Brokers to Avoid are the result of extensive research on over 180 Forex brokers. These resources help traders find the best Forex brokers – and steer them away from the worst ones. These resources have been compiled using over 200 data points on each broker and over 3000 hours of research. Our team conducts all research independently: Testing brokers, gathering information from broker representatives and sifting through legal documents. Learn more about how we rank brokers

Editorial Team

 

Chris Cammack
Head of Content

Chris joined the company in 2019 after ten years experience in research, editorial and design for political and financial publications. His background has given him a deep knowledge of international financial markets and the geopolitics that affects them. Chris has a keen eye for editing and a voracious appetite for financial and political current affairs. He ensures that our content across all sites meets the standards of quality and transparency that our readers expect.

 

Alison Heyerdahl
Senior Financial Writer

Alison joined the team as a writer in 2021. She has a medical degree with a focus on physiotherapy and a bachelor’s in psychology. However, her interest in forex trading and her love for writing led her to switch careers, and she now has over eight years experience in research and content development. She has tested and reviewed 100+ brokers and has a great understanding of the Forex trading world.

 

Ida Hermansen
Financial Writer

Ida joined our team as a financial writer in 2023. She has a degree in Digital Marketing and a background in content writing and SEO. In addition to her marketing and writing skills, Ida also has an interest in cryptocurrencies and blockchain networks. Her interest in crypto trading led to a wider fascination with Forex technical analysis and price movement. She continues to develop her skills and knowledge in Forex trading and keeps a close eye on which Forex brokers offer the best trading environments for new traders.

 

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