Best Forex Brokers with ASIC regulation
ASIC is the Australian Securities and Investments Commission, which is the financial regulator in Australia. ASIC regulation requires brokers to meet certain standards of financial stability, customer protection, and conduct. This means that investors can be confident that their money is safe with a broker that ASIC regulates. In addition, ASIC-regulated forex brokers must provide clients with access to a dispute resolution process. This gives investors another layer of protection if they have problems with their broker.
For these reasons, it is generally advisable to choose a forex broker that ASIC regulates. This article will look at the Top Forex brokers with ASIC regulations. All of the brokers on our list are licensed by ASIC and have a proven track record of providing excellent customer service and offering a wide range of tradable assets.
Warning:
There is a high level of risk involved when trading leveraged products such as Forex/CFDs. Between 65% and 82% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
What Is ASIC Regulation?
ASIC is an independent Commonwealth government body that regulates financial markets and services. ASIC's role is to enforce and uphold the law to protect consumers, investors, and creditors. ASIC also promotes confident and informed participation in the financial system by encouraging fair dealing and preventing fraud and rogue traders.
All financial service providers, including brokers, must comply with ASIC regulations. For retail clients of a broker, this means that the broker must hold an Australian Financial Services Licence (AFSL), which ASIC issues.
The AFSL imposes obligations on the licensee, including requirements to maintain minimum capital levels, have adequate risk management systems, and meet certain standards of conduct. It has the power to take action against companies that engage in misleading or deceptive conduct or that breach their obligations under the Corporations Act or other laws.
In addition, licensees are required to disclose material information about their products and services. ASIC regulation of brokers, therefore, helps to ensure the liability of these providers by holding them to high standards of conduct and disclosure. This, in turn, provides greater protection for investors, who can be confident that their broker is meeting its obligations under Australian law.
Top 10 ASIC-Regulated Brokers
Choosing ASIC brokers is one of the most important steps for Australians that want to start trading forex, CFDs, or any other asset. This is why we have prepared a rating of the best ASIC-regulated brokers based on such criteria as trustability, low fees, big trading volumes, supported assets, trading platform, and extra trading software. All these factors are important when choosing an ASIC-regulated broker, and we believe our list reflects the best.
IC Markets
IC Markets Trading Company was founded in 2007 in Sydney, Australia. The broker is licensed under the Australian Financial Services License (AFSL) Financial Services Authority (FSA) and the Australian Securities and Investment Commission (ASIC). The broker is also a member of the Australian Financial Complaint Authority (AFCA), the governing body that sets the industry standard for the resolution of disputes between consumers and financial service providers, and regularly undertakes audits.
XM
XM Broker was founded in 2009. Initially, the company covered a narrow niche of the trader market, specializing exclusively in intermediary services at the foreign exchange market. It has since experienced considerable success and growth. XM is reliable and safe. It has diversified and is now an international broker operating in almost 190 countries around the world. For over a decade XM Broker has attracted more than 5 million traders, offering unique technological solutions. The company is now being recognised as the Fastest Growing Broker, the Best Forex Service Provider and various other contributing achievements. The team at XM Broker is committed to continually working hard to improve the quality of the services provided every year as they are committed to continually providing the best service to their traders.
Admiral Markets
The Admiral Markets broker company commenced operations in 2001. The broker’s activities are registered and licensed by the Australian Securities and Investments Commission (ASIC). Admiral Markets now operates in more than 40 countries with a cash cycle of up to USD 40 billion. Access to the FX+Project as one of their specific features. In 2002 Admiral Markets was awarded the “Forex 2012” (“Best of the Best”) by The New Europe Magazine.
Tickmill
Tickmill brokerage introduces a new standard in the provision of brokerage services. The focus on innovation is what the company is proud of and why traders choose it. The trading conditions of the broker are appreciated by fans of scalping and passive trading with the help of robots because Tickmill provides minimal spreads. The company has earned many awards. Thus, for two years in a row (2018 and 2019), it was awarded the “Best Execution Broker” title, and it also won the “Most Transparent Broker” title in 2019.
Pepperstone
Pepperstone (Pepperstone.com) was founded in 2010 in Melbourne, Australia, by professional traders who were not satisfied with the quality of services provided by most brokers. The founders decided to avoid many of the disadvantages of competitors, including high commissions, delayed execution of orders, etc. They also focused on improving the technical component. The company has set itself the goal of changing the “rules of the game” and setting the bar high for online trading. Today, the broker provides clients all over the world with some of the best technological solutions and favorable trading conditions. The company also provides professional tools that help not only master trading as a type of activity, but also significantly increase the efficiency of trades. Pepperstone is regulated by seven regulatory authorities, amongst which ASIC (Australian Securities and Investments Commission) and FCA (UK Financial Conduct Authority). Clients' assets are held in aggregated accounts with major banks. These facts confirm the reliability of the company and guarantee the safety of the client's capital.
eToro
The eToro broker was founded in 2007. The company promotes itself as a social trading platform working with traders from over 140 countries. The broker has several divisions operating under different jurisdictions and licensed by different regulators. The broker has a representative office in Australia and the USA.
Eightcap
Eightcap is regulated by the Australian Securities and Investment Commission (AFSL 443670) and by the Vanuatu Financial Services Commission (reg. no. 40377). Eightcap was incorporated in Melbourne, Australia, and offers its services as an online financial trading organization. Eightcap's line of business is Forex and CFD trading services offered to both retail and institutional clients. Eightcap gives access to one of the most popular trading platforms – MetaTrader 4.
FP Markets
FP Markets has provided clients with access to trading on the Forex market since 2005. More than 10,000 trading instruments are available to traders. The broker is attractive due to its favorable trading conditions, super-fast order execution, popular trading terminals, and low spreads. FP Markets is monitored by respected regulators that inspire customer confidence. The transparency and reliability of the company is guaranteed by the supervision of the Australian Securities and Investments Commission - ASIC (license number 286354) and the Cyprus Securities and Exchange Commission - CySEC (license number 371/18). The company also has a registration and an office in the state of Saint Vincent and the Grenadines (SVG FSA). The FP Markets official website contains a lot of useful information about the company, Forex trading, training, analytics, answers to frequently asked questions, a trader's blog, and much more. This training treasure trove will help you improve your level of expertise.
FBS
FBS (fbs.com) is an international broker operating in 190 countries. The brokerage company has been on the market for over 10 years, and during this time it has earned about 40 international awards. It is regulated by the CySEC under license number 331/17, ASIC and FSCA. The broker provides flexible conditions for Forex trading. In addition to classic currency pairs, the company's clients can trade indices, futures contracts, exotic currencies, and metals. FBS is especially popular in Asian countries such as India, Malaysia and Indonesia.
Oanda
The name OANDA is an acronym for “Olsen & Associates” or “Olsen AND Associates”. It is registered in the United States and provides its clients with a wide range of financial services in most countries of the world. The company was founded in 1996 and is currently regulated in four jurisdictions. The company has several significant awards to its credit, including a victory in the category "Best Forex Trading Technologies" from the UK Forex Awards, "Best Trading Platform" from FX Week, as well as "Best Customer Service" from the US Foreign Exchange Report.
AvaTrade
AvaTrade was founded in 2006 in Dublin, Ireland. The company has offices in 10 countries. It currently has over 300, 000 registered users and processes more than 2 million transactions every month. These factors contribute to AvaTrade being a reliable and trusted broker. They are accredited across five continents and are one of the market leaders. The broker is regulated by the Australian Securities and Investment Commission (ASIC), the Japanese FSA, and the South African FSCA. AvaTrade holds accreditation by the Central Irish Bank, the Abu Dhabi Financial Services Regulatory Authority, and the British Virgin Islands Financial Services Commission. AvaTrade allows traders to trade stocks, securities, indices, cryptocurrencies, and currency pairs. In total, the offer more than 1,200 tools to customers.
Capital.com
Capital.com (Capital) is a British Forex broker that provides its services to traders and investors worldwide. The company's activities are regulated by two bodies: CySEC — the Cyprus Securities and Exchange Commission, and the FCA — the UK Financial Conduct Authority. The company is audited by Deloitte and cooperates with two large European banks (Raiffeisen, RBS).
Capital is ready to cooperate with active traders regardless of their experience, as well as with active investors who use shares of various companies for their work.
How To Check ASIC Regulations for Brokers
There are a few different ways to check ASIC regulations. One way is to use an information broker. Information brokers can help you access ASIC's registers, giving you a wealth of information about brokers regulated by ASIC. Another way to check ASIC regulations is to go directly to the ASIC website and use its search function.
Additionally, many brokers will list their ASIC regulation number on their websites. For this example, we’ll use the broker IС Markets. When you visit their website, scroll down to the "Regulation" section. You’ll find links to their regulatory bodies and the broker's license number here. If you cannot find this information easily, you may consider another broker.
ASIC (Australia) Regulated Brokers Trading Limitations
Tangible Assets: Only a Forex broker with at least 10% of its revenue as net tangible assets (NTA) is allowed to operate in Australia. Of that, at least 50% in cash or cash equivalent. The NTA limit is calculated after applying all the outstanding liabilities of the license, including any forex contracts and options.
Must Have a Physical Office: A broker should compulsorily have a physical office in Australia. The office must be adequately staffed and resourced to handle client inquiries and complaints.
Segregated accounts: ASIC brokers can't use client money as working capital. They must maintain segregated accounts for clients' money and ensure that these funds are only used for the purpose for which they were received and held in a trust.
Must be a Member of AFCA: All ASIC-regulated forex brokers must become members of the Australian Financial Complaints Authority (AFCA). This independent body resolves disputes between financial services providers and their clients.
Cybersecurity Mitigation: ASIC also places importance on cybersecurity risks when it comes to investing. Licensees are expected to have systems and controls in place to protect client data from unauthorized access or disclosure and to prevent cyberattacks that could jeopardize the stability of markets or fair dealing with clients.
Lower Leverages: As part of its efforts to protect retail investors, ASIC has placed strict limitations on the amount of leverage brokers can offer. Under the new rules, brokers can only offer a maximum leverage of 30:1 for major currency pairs and 20:1 for exotic and minor currency pairs.
Best high leverage (up to 1:2000) Forex brokersNo Promotional and Joining Bonuses: ASIC has prohibited brokers from offering any rewards, gifts, rebates, or discounts to induce customers to open or fund a trading account. These changes are designed to help protect retail investors from taking on more risk than they can handle and losing money in the process.
How to Choose an ASIC Regulated-Broker?
When it comes to online trading, choosing a broker is one of your most important decisions. After all, your broker will be responsible for executing your trades and managing your account. With so many brokers to choose from, it can be difficult to know where to start. However, by considering a few key factors, you can narrow down your options and find the best ASIC regulated brokers.
Regulation
One crucial factor to consider is regulation. When ASIC regulates a broker, it means they have met certain standards and are subject to strict oversight. This provides a higher level of protection for traders. Check customer reviews to gauge their credibility and what traders have to say about them. You'll get an insight into their customer services, deposit and withdrawal issues, and whether they have a solid track record.
Forex License Types - Best Forex Trading RegulatorsFees
Another important factor to consider is fees. While all brokers charge fees for their services, the amount can vary significantly from one broker to another. Be sure to compare the fees charged for different types of trades, as well as any account maintenance or inactivity fees.
Brokerage Fees And Commissions ExplainedSupported Assets
When it comes to supported assets, you’ll want to ensure that your broker offers access to the markets you are interested in trading. For example, if you are interested in forex trading, be sure to choose a broker that offers currency pairs that meet your needs. In addition, some brokers offer additional features, such as CFD trading, so be sure to check what is available before making your decision.
Trading Platform
The trading platform is another key consideration. Most brokers offer a web-based platform that can be accessed from any internet-connected device. However, some also offer mobile apps or desktop software for those who prefer a more traditional trading experience. Be sure to test out the platform before committing to a particular broker.
Your Options
Last but not least, be sure to consider your options when it comes to customer service and education. Some brokers offer 24/7 support, while others have more limited hours. In addition, some brokers offer educational resources such as market analysis and trading tutorials, which can be helpful for those who are new to online trading. Considering all these factors, you can narrow down your options and find an ASIC-regulated broker that best meets your needs.
Conclusion
ASIC regulation is important for Australian forex brokers because it provides traders with peace of mind knowing that a reputable authority is monitoring their broker. ASIC-regulated brokers must adhere to strict financial and operational standards, which helps to protect traders from fraud and other risks.
Moreover, ASIC-regulated forex brokers must maintain segregated client funds, further protecting traders' funds. Overall, choosing an ASIC-regulated broker is one of the best ways to ensure a safe and secure trading experience.
FAQ
What is ASIC?
ASIC is the Australian Securities and Investments Commission, which is the financial regulator in Australia.
Why do I need an ASIC-regulated forex broker?
If you want to trade Forex in Australia, you’ll need to open an account with a broker that ASIC regulates. This is because ASIC regulates all financial services providers in Australia, including Forex brokers.
What are the benefits of trading with an ASIC-regulated broker?
First, you can be sure that your broker is supervised and monitored by a reputable regulator. This means they’ll be required to adhere to strict financial regulations, which gives you peace of mind that your funds are safe.
Secondly, ASIC-regulated forex brokers are usually large, well-established brokers that offer a range of features and services. This means you can find a broker that suits your needs and provides you with the best possible trading experience.
How do I know if a broker is regulated by ASIC?
You can check this information on the broker's website by searching the ASIC website or checking information brokers.
Methodology for compiling our ratings of Forex brokers
Traders Union applies a rigorous methodology to evaluate brokers using over 100 quantitative and qualitative criteria. Multiple parameters are given individual scores that feed into an overall rating.
Key aspects of the assessment include:
Regulation and safety. Brokers are evaluated based on the level/reputation of licenses and regulations they operate under.
User reviews. Client reviews and feedback are analyzed to determine customer satisfaction levels. Reviews are fact-checked and verified.
Trading instruments. Brokers are evaluated on the range of assets offered, as well as the breadth and depth of available markets.
Fees and commissions. All trading fees and commissions are analyzed comprehensively to determine overall costs for clients.
Trading platforms. Brokers are assessed based on the variety, quality, and features of platforms offered to clients.
Other factors like brand popularity, client support, and educational resources are also evaluated.
Find out more about the unique broker assessment methodology developed by Traders Union specialists.
Team that worked on the article
Oleg Tkachenko is an economic analyst and risk manager having more than 14 years of experience in working with systemically important banks, investment companies, and analytical platforms. He has been a Traders Union analyst since 2018. His primary specialties are analysis and prediction of price tendencies in the Forex, stock, commodity, and cryptocurrency markets, as well as the development of trading strategies and individual risk management systems. He also analyzes nonstandard investing markets and studies trading psychology.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.
Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.