ASIC regulated forex brokers in Australia
Company | Country | Rating | Min. Deposit | Website |
UK, Cyprus, Australia, Singapore | /5 | €100 | Read the review | |
Australia | /5 | $450 | Read the review |
ASIC is considered one of the top non-EU/US regulatory agency of Forex brokers. It applies severe guidelines to both existing brokerage firms and to those companies that wish to hold a license. Brokers regulated under the Australian watch dog are immediately embedded with a sense of respect and security.
The agency is an independent government-tied body, which gives it the right to enforce local laws when conducting its practices, including the Consumer Protection law for investments and the Corporations Law. The watchdog is set under the Australian Securities and Investments Commission Act 2001 which is the principal legislation that governs companies based in Australia.
The main duties of ASIC are straightforward, but in the modern world of forex are increasingly challenging, burdened even more by the growing interest in Australia as a major global financial hub. These duties include, but are not limited to maintaining and constantly improving the financial system of the country and its beneficiaries, to attract both brokers and investors to participate in said system, to make public the information concerning financial institutions including unlicensed brokers that pose a risk to users, and many more functions.
From regulated companies ASIC is no less strict, demanding a capital requirement of AUD 1 million per licensed broker, insisting that all traders’ money is kept in separate segregated bank accounts away from the brokers’ funds, and asking companies to follow internal procedures like staff training and risk management. These are just the tip of the iceberg.
Many brokers and traders look towards Australian brokers for the simple reason that there is no ban on a leverage maximum set by ASIC or any other government-run administration. Whereas in the UK and EU the leverage is restricted by ESMA to 1:30, many Australia brokers, like FP Markets and Rakuten Securities AU, have leverages that goes up to 1:500 and 1:400 respectively.
However, please be reminded that ASIC regulated brokers are not covered by a compensation scheme. So if a broker becomes insolvent, or for any reason is unable to pay back the trader, there is no compensation fund that covers the losses.