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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 2022.

Best ASIC Regulated Forex Brokers in 2022

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Broker
Overall Rating
Official Site
ASIC
ASIC License
Min. Deposit
Max. Leverage (Forex)
Beginner Friendly
EUR/USD - Standard Spread
Cost of Trading
EUR/USD - Raw Spread
Total CFDs
Currency Pairs
Platforms
Compare
AvaTrade
4.48 /5
Read Review
Visit Broker >
Your capital is at risk
406684
USD 100
400:1
Excellent
0.90 pips
USD 9
0.90 pips
872
55
Avatrade Social
AvaOptions
Pepperstone
4.61 /5
Read Review
Visit Broker >
Your capital is at risk
414530
USD 5
400:1
Excellent
0.69 pips
USD 6.90
0.09 pips
1129
60
XM
4.25 /5
Read Review
Visit Broker >
Your capital is at risk
443670
USD 5
888:1
Excellent
1.60 pips
USD 16
0.10 pips
1479
57
IC Markets
4.46 /5
Read Review
Visit Broker >
Your capital is at risk
335692
USD 200
500:1
Excellent
0.10 pips
USD 8
0.02 pips
1744
64
Zulu Trade
IG Markets
4.69 /5
Read Review
Visit Broker >
Your capital is at risk
220440
USD 250
200:1
Excellent
0.60 pips
USD 6
0.85 pips
19295
80
L2 Dealer
ProRealTime
FP Markets
4.28 /5
Read Review
Visit Broker >
Your capital is at risk
286354
USD 100
500:1
Excellent
0.10 pips
USD 7
0.10 pips
10084
60
IRESS
Axi
4.34 /5
Read Review
Visit Broker >
Your capital is at risk
318232
USD 5
500:1
Excellent
1.20 pips
USD 12
0.00 pips
183
70
ACY Securities
4.08 /5
Read Review
Visit Broker >
Your capital is at risk
403863
USD 50
500:1
Standard
1.00 pips
USD 10
0.30 pips
1731
63
Global Prime
4.19 /5
Read Review
Visit Broker >
Your capital is at risk
385620
USD 0
100:1
Excellent
0.10 pips
USD 8
0.16 pips
205
49
TraderEvolution

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 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

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. In line with the 2021 ASIC changes, Avatrade amended its product offering, which included reducing its leverage from 400:1 to 30:1 for retail traders. However, Nigerians will be onboarded through the British Virgin Islands-based entity, regulated by the BVI FSC. The regulatory rules of the BVI FSC are not as strict as those of regulators in the UK or Australia, but the ASIC oversight ensures that Avatrade will act reliably and transparently. Avatrade 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 average 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 Nigerian 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.

Pepperstone Lowest Cost ECN Broker

An ASIC regulated broker (ASFL: 414530), Pepperstone was founded in 2010 in Melbourne and has grown to be one of the largest ECN brokers in the world, with over 300,000 clients and 12+ billion-dollar daily trading volume. Although Pepperstone’s Nigerian clients will be trading under the Pepperstone subsidiary regulated by the SCB (Bahamas), the ASIC regulation ensures that Pepperstone will act in the best interests of all traders. While the new rules introduced by ASIC in 2021 will harm many of the low-quality brokers in Australia, Pepperstone is well-placed to benefit with its low fees, ultra-fast execution, and three popular trading platforms.

Lowest Trading Fees: Pepperstone offers two accounts with some of the lowest trading fees in the industry – a Razor Account with spreads that average at 0.09 pips (EUR/USD) in exchange for a commission of 7 USD, and a commission-free Standard Account with spreads that average at 0.69 pips on the EUR/USD. Trades are executed in under 0.3 seconds, which means that orders are filled as close to the quoted price as possible. Additionally, there are no minimum deposit requirements, making both accounts accessible to beginners.

Trading Platforms: Pepperstone’s trading platforms include MetaTrader 4 (MT4), Metatrader 5 (MT5), and cTrader, a broader range of platforms than is typically found at other brokers. MT4 is the most popular trading platform while MetaTrader 5 (MT5) has more tools, such as an embedded economic calendar and chat system. cTrader is a more modern trading platform and is easier for beginners to learn but still has all the sophisticated automation tools found in MT4 and MT5. While trading conditions vary slightly depending on the trader’s preferred platform, trading costs are still lower than those of other similar brokers.

Pros
  • Well regulated
  • Tight spreads
  • Great platform choice
  • Wide range of assets
Cons
  • Limited market analysis
AlertAccepts Nigerian 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 400:1. Islamic account available. MT4, MT5 & cTrader platforms supported. Pepperstone Group is regulated by the FCA, ASIC, and the DFSA.

XM – Best Broker Education

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. Nigerians will be trading under XM’s Belize-based entity, regulated by the IFSC. Although the IFSC’s rules are not as strict as other international regulators, the ASIC regulation provides traders with confidence that their funds will be safe and that they will be treated fairly. Under the strict regulatory regime, XM offers an Ultra-Low account with low trading fees and provides some of the best educational support in the industry.

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 0.8 pips on the EUR/USD, no commissions for Forex trading, and a minimum deposit of 50 USD.  XM also boasts a strict no requotes and no rejections policy, and 99.35% of all trading orders are executed in less than one second, which means that traders will usually receive the trading prices that are quoted.

Pros
  • Well regulated
  • Excellent education
  • Wide range of assets
  • Fast and free withdrawals
Cons
  • Dealing desk
AlertAccepts Nigerian Clients. Average spread EUR/USD 1.60 pips on trading account with lowest minimum deposit. Max leverage 888:1. Islamic account available. MT4 & MT5 platforms supported. XM Group regulated by CySEC, ASIC, and the IFSC.

IC Markets – Best Broker for Beginners

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 Nigeria. IC Markets was one of the first brokers to amend its product offering in line with ASIC’s 2021 restrictions, and while Nigerians will be trading under the Seychelles-based entity, the ASIC regulation provides additional confidence that IC Markets will behave responsibly and fairly.  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 Nigerian Clients. Average spread EUR/USD 0.10 pips with 7 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4, MT5 & cTrader platforms supported. IC Markets is regulated by CySEC and ASIC.

IG Markets – Widest Range of Financial Instruments

Founded in London in 1974, IG Markets’ 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 Markets is also one of the few brokers that supported ASIC’s introduction of tighter regulations in early 2021. Although Nigerians will be onboarded through IG’s Bermuda-based subsidiary, the ASIC oversight guarantees a reliable and transparent trading environment.  In addition to being one of the best regulated ASIC brokers, IG Markets 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 Markets 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 Markets 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 Market’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 AUD. 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 Nigerian 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.

FP Markets – Best ASIC-Regulated Forex Broker

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 also segregates all client funds in the Commonwealth Bank, one of the largest of four banks in Australia. FP Markets clients in Nigeria will be trading with FP Markets LLC, registered in St Vincent and the Grenadines (BVA FSC).  Although the BVA FSC applies no supervision of trading-related activities, under ASIC regulation, Nigerians can trade with confidence that they will be protected. FP Markets has gained recognition for its competitively low trading fees and its broad trading platform support, including IRESS, an advanced trading platform that allows trading on over 10,000 share CFDs.

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 USD on both accounts, making them accessible to all traders.

Trading Platforms: FP Markets’ trading platforms include MT4, MT5, and the IRESS trader, an advanced share trading platform with direct market access. 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.  In comparison to the MetaTrader platforms, IRESS has a simpler user interface and more functionality, including advanced order types, news alerts, customizable charts, advanced watchlist features, and access to over 10,000 trading instruments.

Pros
  • Well regulated
  • Tight spreads
  • Good range of accounts
  • Great customer support
Cons
  • Expensive withdrawals
AlertAccepts Nigerian Clients. Average spread EUR/USD 0.10 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4, MT5 & IRESS platforms supported. FP Markets is regulated by CySEC, ASIC and BVA FSC.

Axi – ASIC Broker with Best MT4 Support

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). Axi adheres to ASIC’s seven disclosure benchmarks to ensure that traders understand the risks of CFD trading. Although Nigerian traders will be trading under Axi’s Seychelles-based entity, the ASIC regulation ensures that the broker provides a reliable and fair trading environment. While Axi only provides support for 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 1000 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 1.20 pips pips 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
  • Wide range of assets
  • Well regulated
  • Tight spreads
Cons
  • Poor customer service
  • Limited demo account
AlertAccepts Nigerian Clients. Average spread EUR/USD 1.20 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.

ACY Securities – Best Bespoke Trading Account

An ASIC-regulated broker (AFSL: 403863), ACY Securities is headquartered in Sydney, in the heart of Australia’s financial district. As part of ACY Securities’ requirements under ASIC Regulatory Guide, it has partnered with Aon to provide Professional Indemnity Insurance to all Australian clients- up to 2,5 million USD. ACY Securities’ Nigerian clients will be trading under the subsidiary authorised by the VFSC. Although the VFSC is not considered a Forex broker regulator, the ASIC regulation provides a level of confidence that ACY Securities will act in the best interests of its Nigerian traders. ACY Securities offers three live accounts on the MT4 and MT5 trading platforms, including a Bespoke Trading Account with customisable trading conditions.

Bespoke Account: ACY Securities’ Bespoke Account can be opened with a minimum deposit of 10,000 USD and clients benefit from extremely low trading fees, including spreads as tight as 0.0 pips (EUR/USD) with low commissions of 5 USD.   

Platforms: The Bespoke Account is available on both the MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms, some of the most popular trading platforms in the industry. Developed by Metaquotes in 2002, MT4 is still the most widely used platform with excellent charting functionality, automated trading, and fast execution speeds. MT5, the newer version of MT4 is being adopted by more brokers all the time and offers the same features as MT4, but also allows share trading and has more tools, such as an embedded chat function and an integrated Economic Calendar.

Pros
  • Great platform choice
  • Low minimum deposit
  • Great customer support
  • Wide range of assets
Cons
  • Limited educational material
  • Limited market analysis
AlertAccepts Nigerian Clients. Average spread on the EUR/USD is 1.00 pips on trading account with the lowest minimum deposit of 50 USD. Max leverage 500:1.MT4/MT5 platforms supported. ACY Securities is regulated by ASIC & VFSC.

Global Prime – Lowest Cost Commission-free Account

Founded in 2010 and headquartered in Australia, Global Prime is an ASIC-regulated broker (AFSL: 385620) that provides services to traders in over 196 countries, including Nigeria. Although Nigerian traders will be trading under Global Prime’s Seychelles-based entity, ASIC regulation ensures that the broker provides a fair and transparent trading environment.  Global Prime provides exceptionally low trading fees on its commission-free account in addition to low non-trading fees, including free deposits and withdrawals.

Low-Cost Commission-free Account: Global Prime offers two low-cost accounts – an ECN account with tight spreads, starting at 0.10 pips pips on the EUR/USD in exchange for a round turn commission of 7 USD, and a commission-free account with spreads that start at 0.4 pips on the EUR/USD, making it one of the lowest cost commission-free accounts in the industry (most other good brokers offer spreads of 0.8 – 0.9 pips on their commission-free accounts).

Lowest Non-Trading Fees: At Global Prime, no fees are charged for deposits or withdrawals, and Global Prime does not charge inactivity fees on dormant accounts.  Dormant accounts will, however, be closed after three months of account dormancy. Overall, this is a welcome development in an industry in which fees are charged on almost every transaction. 

Pros
  • Tight spreads
  • Excellent education
Cons
  • No swap-free account option
AlertAccepts Nigerian Clients. Average spread EUR/USD 0.10 pips on trading account with lowest minimum deposit. Max leverage 100:1. Global Prime offers support for the MT4 and TraderEvolution platforms. Global Prime is regulated by ASIC, the VFSC, and the FSA (Seychelles).

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 recent reports show that ASIC is planning an even stricter regulatory environment in the coming months. We will talk about what that environment might look 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.
  • No Leverage Limit: There are currently no limits on maximum leverage offered by brokers, though this is likely to change in the next year. While leverage limits can protect traders, especially beginners, it can make scalping strategies more difficult.
  • 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.

How To Choose an ASIC Regulated Broker?

All ASIC brokers are 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 looking for an ASIC-regulated Forex broker, it is important to judge them on the following areas:

  • Broker Type: Most brokers are either ECN/STP or Market Makers, but some can be a combination of both. You will find that many brokers will provide an ECN/STP service on their higher-deposit account types while acting as a Market Maker for their Cent and Standard accounts. Many of the best ASIC regulated brokers are ECN/STPs.
  • Trading Conditions: This includes what kind of spreads are available, how much leverage is offered, and how many currency pairs are available. These factors will directly impact your profit or loss, so you don’t want any surprises.
  • Trading Platform: MetaTrader 4 is still the industry standard, but many brokers offer MetaTrader 5 and/or 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.
  • Minimum Deposit: This changes by account type for many brokers, with higher minimum deposits often linked to better trading conditions. We will always highlight the minimum deposit available regardless of the account type.
  • Deposit and Withdrawal Methods: All brokers accept traditional payment types such as debit/credit cards and bank transfers, many accept online payments through Skrill and Neteller and some will also accept Bitcoin. Always check for deposit and withdrawal fees, a few brokers charge a percentage fee for some withdrawals methods, making large drawdowns very expensive. 

Changes in ASIC Regulation

The Australian Securities and Investments Commission (ASIC) released its annual report for the 2018/19 fiscal year on October 17th, 2019 against the backdrop of its highly critical review of the CFD sector in August.

The August review of the Australian OTC retail derivative market 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 the majority of customers are known to lose money.

ASIC-Complaints-1

As a response to this damning set of data, and citing the 2018 tightening of regulation in Europe by ESMA, ASIC has laid out a new set of regulations for CFD brokers operating under its jurisdiction:

  • A complete ban on binary options
  • Varying leverage restrictions for all CFDs: 20:1 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 brokers must place visible and honest risk warnings showing the percentage of traders who lose money on their platform
  • 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

Though these restrictions have not yet been made into law, ASIC made it very clear that they expect the new set of rules to be on the books within the next few months – ASIC further reinforced this stance at the launch of the annual review, stating that:

“We continue to respond to a high incidence of misconduct in the retail OTC derivatives sector, involving large client losses.”

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.

Overall, we can expect significant changes in the Forex industry in Australia, and across the Asia-Pacific region, in the next few months. 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 results 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

References

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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