So, you have decided to search for one of the best ASIC forex brokers on offer?
If that is the case, then you have come to the right place. Of course, ASIC is the regulatory body of Australia and extremely relevant if you are an Australian forex trader and you are looking for the best Australian forex brokers.
Not only that though, even if you are a forex trader based outside of Australia, you can take great comfort in dealing with the levels of trust and transparency that ASIC regulated brokers offer.
This extends through their whole operation, from offering the most legitimate trading platforms, to providing a range of measures to protect you as a trader. Let’s take a look at some further details around ASIC as a regulator, and some of the top ASIC regulated brokers that you can choose from.
Table of contents
What is ASIC?
ASIC is the Australian Securities and Investment Commission and they perform the role of market regulator for forex and the wider financial market within Australia. They have been around since 1991 and during this time, have steadily risen in reputation to become one of the foremost respected financial regulatory bodies in global finance.
In relation to forex brokers, any broker who wishes to offer trading services within Australia must register with ASIC. This will then entitle to broker to receive an Australian Financial Services license which is needed to conduct operations in the country.
Top 10 best ASIC Regulated Forex Brokers
Here is a collection of some top ASIC regulated brokers for your next move in forex trading:
How ASIC works
The primary functions of ASIC include some of the following:
- Promoting the growth of the Australian market
- Financial firms oversight
- Customer protection
Just as with any other regulatory body, the key role of ASIC is in the protection of customers and promotion of transparency within the financial market. This is something they have managed to do well in the Australian market since their inception.
Characteristics and benefits of ASIC
Under ASIC regulations, there are some areas for trading permitted which may not be the case with some other regulatory bodies. Among these areas are trading in binary options, spread betting, and CFDs trading. All of these are legal under ASIC regulation. Crypto trading is also permitted.
The amount of leverage usually used to be left at the discretion of ASIC brokers, with an increased maximum leverage of 500:1 being available although this is up to the broker. Since March 29th 2021, the new legislation has imposed that brokers under ASIC regulation need to provide a maximum leverage up to 30:1.
A final point here is to note that segregated accounts with top-tier banks are still required under ASIC as well as negative balance protection.
Prohibitions with ASIC
Under ASIC regulations there are restrictions to note, the main one being the possibility to offer new traders bonuses and prizes if they open a trading account with the broker.
With that said, each broker has a wide level of discretionary authority under the regulator and some may prohibit activities such as scalping and hedging.
If you’re interested in forex scalping or scalping in general, you may be interested in reading our top 10 best forex broker for scalping article.
Differences between ASIC Regulated and ASIC Licensed Brokers
The difference in these two terms is that an ASIC regulated broker must go through the full registration process and steps required by the regulator, while an ASIC licensed broker may be able to forego some of these steps but still offer trading services within Australia that comply with the local regulations.
How to check if a broker is ASIC regulated
Checking the broker you are with is regulated should be an easy and fast process. All you will have to do is head over to the ASIC official website. Once you are there, you can check the ASIC Register and search for the company name of the broker.
This process should take no more than a few minutes to verify, and you can usually find the business name of your broker at the bottom of their homepage.
How does ASIC intervene in cases of financial abuse?
If a broker does breach any of the regulations, then ASIC have a wide range of powers to implement a variety of restrictions. This is usually done through a system of broker fines or a ban.
As a recent example, Axicorp Limited (Axi) received a 3 month ban from the Australian market after being accused of not complying with financial services laws.
How ASIC can help you?
If you feel like you have experienced some problem with your broker that breaches ASIC regulations in any way, then you can easily and quickly contact them to pursue a complaint through the ASIC official website.