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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 2021.

Best ASIC Regulated Forex Brokers in 2021

Scroll for more detailsPreviousNext
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
FP Markets
4.28 /5
Read Review
Visit Broker >
Your capital is at risk
286354
AUD 100
30:1
Excellent
0.10 pips
USD 7
0.10 pips
10084
60
IRESS
IG Markets
4.69 /5
Read Review
Visit Broker >
Your capital is at risk
220440
AUD 250
30:1
Excellent
0.60 pips
USD 6
0.85 pips
19295
80
L2 Dealer
ProRealTime
Pepperstone
4.61 /5
Read Review
Visit Broker >
Your capital is at risk
414530
AUD 100
30:1
Excellent
0.69 pips
USD 6.90
0.09 pips
1019
60
IC Markets
4.46 /5
Read Review
Visit Broker >
Your capital is at risk
335692
AUD 200
30:1
Excellent
0.10 pips
USD 8
0.02 pips
1723
64
Zulu Trade
Capital.com
4.68 /5
Read Review
Visit Broker >
Your capital is at risk
513393
AUD 20
30:1
Excellent
0.60 pips
USD 6
0.60 pips
4027
137
Capital.com
Markets.com
4.49 /5
Read Review
Visit Broker >
Your capital is at risk
424008
AUD 100
30:1
Excellent
0.70 pips
USD 7
0.60 pips
2235
67
AvaTrade
4.48 /5
Read Review
Visit Broker >
Your capital is at risk
406684
AUD 100
30:1
Excellent
0.90 pips
USD 9
0.90 pips
857
55
Avatrade Social
AvaOptions
ACY Securities
4.08 /5
Read Review
Visit Broker >
Your capital is at risk
403863
AUD 50
30:1
Standard
1.00 pips
USD 10
0.00 pips
1731
63
ThinkMarkets
4.18 /5
Read Review
Visit Broker >
Your capital is at risk
424700
AUD 5
30:1
Excellent
1.20 pips
USD 12
0.00 pips
1718
46
ThinkTrader
XM
4.25 /5
Read Review
Visit Broker >
Your capital is at risk
443670
AUD 5
30:1
Excellent
1.60 pips
USD 16
1.00 pips
1477
57

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


FP Markets – Best ASIC-Regulated Forex Broker

FP Markets (ASFL: 286354) is a leading ASIC-regulated CFD broker, with recognition for their competitively low trading costs, MT4 and MT5 platform options, excellent educational content for beginner traders and 24/7 customer support.

FP Markets offers competitive trading conditions on two live accounts, with spreads averaging at 1.2 pips (EUR/USD) on its commission-free Standard Account and 0.10 pips pips (EUR/USD) on its Raw Account in exchange for a 7 USD round turn commission.

The FP Markets ECN model provides the ideal conditions for experienced traders interested in scalping and those using Expert Advisors (EAs). In addition to low latency fast trade execution, it offers versions of the platforms for alternate operating systems, including Mac OS and WebTrader. Traders also have access to institutional-grade liquidity with no price manipulation, no dealing desk, and no requotes.

Pros
  • Well regulated
  • Tight spreads
  • Good range of accounts
  • Great customer support
Cons
  • Expensive withdrawals
AlertAccepts Australian Clients. Average spread EUR/USD 0.10 pips with 6 USD commission round turn on the 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.

IG Markets – Best Internationally Regulated ASIC Broker

IG Markets (ASFL: 220440) is one of the best internationally-regulated brokers with regulation ten regulating authorities, including ASIC, the FCA, MAS, and FINMA. At IG Markets, all funds are kept in separate trust accounts where the funds cannot be used to settle debts to other traders or finance the operations of the business. Furthermore, an audit of all client funds is performed daily to ensure the broker has the needed liquidity.

IG Markets offers tight spreads compared to other market maker brokers, starting at 0.60 pips on the EUR/USD and fast execution on a single live account. No commissions are charged, and Australian retail traders can leverage currency trades up to 30:1.

IG Markets offers support for MetaTrader4 and its proprietary L2Dealer platform, which offers direct market access and advanced order management.

Pros
  • Well regulated
  • Tight spreads
  • Great platform choice
  • Excellent education
  • Excellent market analysis
Cons
  • High minimum deposit
AlertAccepts Australian Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, ProRealTime and L2 Dealer platforms supported. IG Markets Group is regulated by FCA, ASIC, and the FSCA.

Pepperstone – Lowest Cost ECN Account

  • ASIC-Regulated (ASFL: 414530)
  • No Minimum Deposit
  • ECN Broker with Low Trading Costs
  • Supports All Popular Trading Platforms

Pepperstone (ASFL: 414530), regulated by ASIC since 2013, is the lowest cost ECN broker in Australia, which is uncommon for an ECN broker with no set minimum deposit amount. Pepperstone has excellent education materials, making it an attractive option for any serious beginner trader interested in ECN trading and keeping trading costs low.

Low-Cost ECN Broker

Pepperstone has two accounts: The Razor Account has spreads as low as 0 pips on the EUR/USD and a commission of 7 USD per trade. The Standard Account is one of the lowest-cost trading accounts with no commission and spreads average 0.09 pips pips on the EUR/USD. Most trades on Pepperstone are executed in less than 30ms, which is ideal for scalpers and experienced traders who use expert advisors.

No Minimum Deposit

Pepperstone doesn’t have a required minimum deposit for either of its trading accounts. Pepperstone does suggest that you open a trading account with at least 200 USD, but this is not a requirement.

3 Popular Trading Platforms

Traders need to use a trading platform to access the Forex market, and Pepperstone supports all three of the most popular trading platforms. MetaTrader 4 (MT4) is the most popular and is used by most traders, MetaTrader 5 (MT5) is a newer version and has more tools, like an embedded economic calendar and chat system. Finally, Pepperstone also lets traders use cTrader, which is easier for many beginners to learn but has all the sophisticated automation tools found in MT4 and MT5.

Pros
  • Well regulated
  • Tight spreads
  • Great platform choice
  • Wide range of assets
Cons
  • Limited market analysis
AlertAccepts Australian 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 30:1. Islamic account available. MT4, MT5 & cTrader platforms supported. Pepperstone is regulated by the FCA, ASIC, and the DFSA.

IC Markets – Best ASIC Broker for Beginners

IC Markets (ASFL: 335692) is a leading ASIC-regulated online retail Forex and CFD broker founded in 2007 trading in financial derivatives headquartered in Sydney. IC Markets offers a well-structured educational section developed by in-house experts showing their commitment to supporting the beginner trader.

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.

IC Markets is one of the few brokers to offer support for all three major cross-broker trading platforms, including MT4, MT5, and cTrader, alongside an array of trading tools including Autochartist, Trading Central, and a free VPS service. IC Markets strives to provide the lowest latency and fastest possible execution for its clients. And with over 25 liquidity providers, IC Markets offers the tightest average spread, at 0.02 pips pips on the EUR/USD, of any broker globally.

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

Capital.com – Best Research and Market Analysis

  • World-class market analysis
  • Low trading costs
  • No fees on deposits or withdrawals

Actionable Market Analysis

Regulated by ASIC since 2019, Capital.com’s Financial News and Features section provides exceptional value for beginner and experienced traders alike. The detailed and useful analysis of all markets is updated frequently all day and will give beginners a good understanding of what moves the financial markets and all clients ideas for trading opportunities. Video analysis is also available on the Capital.com TV platform.

Single Account with Low Trading Fees

Capital.com has a single trading account with no commission and very low costs compared to most other brokers, with spreads starting at 0.60 pips on the EUR/USD. Trading costs are also lowered elsewhere as Capital.com charges swap fees on the leverage only, not the trading position’s entire value. The single account provides trading on 138 Forex pairs, 3600+ share CFDs, 22 indices, 22 commodities, and over 200 cryptocurrencies.

No Fees on Deposits or Withdrawals

Continuing with the low-cost theme, Capital.com charges no fees for deposits or withdrawals from Australian banks or bank cards. Australian traders also have the option of using Apple Pay. All deposit and withdrawal methods are available from inside Capital.com’s trading platform. 

Pros
  • Tight spreads
  • Low minimum deposit
  • Excellent education
Cons
  • Limited account options
AlertAccepts Australian Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 30:1. Capital.com custom platform supported. Capital.com Group regulated by the FCA & CySEC. 73.81% of traders lose money with this provider.

Avatrade – Best Mobile Trading Experience

Avatrade is an ASIC regulated broker that provides a reliable, user-friendly trading environment on a range of platforms, including its innovative mobile app – AvaTradeGO.  Voted Best Forex Trading App by the Global Forex Awards, AvatradeGO allows traders to connect to global trading markets, create their own watchlists, and view live prices and charts.  Avatrade also offers free access to trading tools such as Autochartist, Duplitrade, and AvaProtect, its own state-of-the-art risk management system.

Avatrade provides some of the best trading conditions in the industry, with spreads starting at 0.9 pips (EUR/USD) on its single commission-free account, and a minimum deposit requirement of just 100 USD. Lastly, Avatrade’s award-winning customer service is available 24/5 and traders that deposit 1,000 USD or more are assigned a dedicated Account Manager to guide them in their first trades. 

Pros
  • Good for beginners
  • Well regulated
  • Low minimum deposit
Cons
  • Dealing desk
  • Limited market analysis
AlertAccepts Australian Clients. Average spread EUR/USD 0.90 pips. Minimum initial deposit 100 AUD. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. AvaTrade Group regulated by ASIC, FSCA, B.V.I FSC & FSA.

XM – Best Education

XM is an ASIC-regulated market maker broker with a comprehensive selection of educational and market analysis materials that cater to traders of all experience levels.  Included in the offering are educational videos, platform tutorials, Forex seminars, and live Q&A sessions available every hour from Monday to Friday 05:00 – 15:00 GMT.  XM also excels in market analysis, providing traders with a daily market overview, frequently updated news, trade ideas, technical summaries, a podcast, and regular research updates. 

All XM accounts feature maximum leverage of up to 30:1, negative balance protection, and minimum deposits starting at 5 USD.  XM’s spreads are wider than industry-average on its entry-level account, starting at 1.6 pips on the EUR/USD, but tighten to 0.6 pips on its Ultra-Low Account.  XM also has a strict no requote policy, and as such, all trades are filled at the expected price and are executed in less than one second. 

Pros
  • Well regulated
  • Excellent education
  • Wide range of assets
  • Fast and free withdrawals
Cons
  • Dealing desk
AlertLeverage limitations apply to all the EU regulated entities of the group.

Is Forex Trading Legal in Australia?

Yes. Forex trading is legal in Australia. Before brokers can legally accept clients resident in Australia, they must attain an Australian financial services (AFS) license from ASIC.

How do I start trading forex in Australia?

Forex trading starts with selecting a Forex broker. A Forex broker is the link between you and the Forex market. While there are many different forex brokers, each has its individual trading costs, educational material, trading conditions and trading platform selection. It is strongly recommended that Australian residents register with ASIC regulated brokers.

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 broker 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 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.

List of ASIC-Regulated Brokers

This is our list of all ASIC-regulated brokers that we have reviewed, ordered by their overall score. The broker that scores highest overall is at the top of the list.

Scroll for more detailsPreviousNext
Broker
Overall Rating
ASIC License
Regulators
Min. Deposit
Max. Leverage (Forex)
Beginner Friendly
Cost of Trading
Trading Platforms
Total # CFDs
No. of FX Pairs
Trading Commission
Compare
IG Markets
4.69 /5
Read Review
220440
ASIC Regulated Forex Brokers
Bundesanstalt für Finanzdienstleistungsaufsicht
Best Forex Brokers in Singapore
Commodity Futures Trading Association
AUD 250
30:1
Excellent
USD 6
L2 Dealer
ProRealTime
19295
80
Fees Included in Spread
Capital.com
4.68 /5
Read Review
513393
FCA Regulated Brokers
CySEC Regulated Brokers
ASIC Regulated Forex Brokers
AUD 20
30:1
Excellent
USD 6
Capital.com
4027
137
Fees Included in Spread
Pepperstone
4.61 /5
Read Review
414530
FCA Regulated Brokers
ASIC Regulated Forex Brokers
CySEC Regulated Brokers
Dubai Financial Services Authority
AUD 100
30:1
Excellent
USD 6.90
1019
60
From 7 USD / lot - Razor Account
CMC Markets
4.59 /5
Read Review
238054
ASIC Regulated Forex Brokers
FCA Regulated Brokers
Best Forex Brokers in Singapore
FMA Regulated Forex Brokers
AUD 5
30:1
Excellent
USD 7
CMCmarkets
9646
350
Fees Included in Spread
Markets.com
4.49 /5
Read Review
424008
FCA Regulated Brokers
CySEC Regulated Brokers
ASIC Regulated Forex Brokers
Financial Services Conduct Authority
AUD 100
30:1
Excellent
USD 7
2235
67
Fees Included in Spread
AvaTrade
4.48 /5
Read Review
406684
ASIC Regulated Forex Brokers
British Virgin Islands Financial Services Commission
CySEC Regulated Brokers
Central Bank of Ireland
AUD 100
30:1
Excellent
USD 9
Avatrade Social
AvaOptions
857
55
Fees Included in Spread
IC Markets
4.46 /5
Read Review
335692
CySEC Regulated Brokers
ASIC Regulated Forex Brokers
The Seychelles Financial Services Authority
AUD 200
30:1
Excellent
USD 8
Zulu Trade
1723
64
7 USD / lot - Raw Spread Account
Axi
4.34 /5
Read Review
318232
FCA Regulated Brokers
ASIC Regulated Forex Brokers
Dubai Financial Services Authority
AUD 5
30:1
Excellent
USD 12
183
70
7 USD / lot - PRO account
FP Markets
4.28 /5
Read Review
286354
ASIC Regulated Forex Brokers
CySEC Regulated Brokers
AUD 100
30:1
Excellent
USD 7
IRESS
10084
60
6 USD / lot - RAW Accounts
XM
4.25 /5
Read Review
443670
CySEC Regulated Brokers
ASIC Regulated Forex Brokers
FCA Regulated Brokers
International Financial Services Commission
AUD 5
30:1
Excellent
USD 16
1477
57
7 USD / lot - XM Zero Account
Admiral Markets
4.24 /5
Read Review
410681
ASIC Regulated Forex Brokers
CySEC Regulated Brokers
FCA Regulated Brokers
AUD 100
30:1
Excellent
USD 5
MT Supreme
3818
50
1.8 - 3 USD per lot
FXCM
4.24 /5
Read Review
286354
FCA Regulated Brokers
ASIC Regulated Forex Brokers
CySEC Regulated Brokers
Bermuda Monetary Authority
AUD 50
30:1
Standard
USD 13
NinjaTrader
TradeStation
306
45
None
Global Prime
4.19 /5
Read Review
385620
ASIC Regulated Forex Brokers
The Seychelles Financial Services Authority
Vanuatu
AUD 0
30:1
Excellent
USD 8
TraderEvolution
205
49
7 USD / lot
Fortrade
4.18 /5
Read Review
493520
FCA Regulated Brokers
ASIC Regulated Forex Brokers
Investment Industry Regulatory Organization of Canada
AUD 100
30:1
Excellent
USD 20
402
50
Fees Included in Spread
ThinkMarkets
4.18 /5
Read Review
424700
Financial Services Conduct Authority
FCA Regulated Brokers
ASIC Regulated Forex Brokers
Bermuda Monetary Authority
AUD 5
30:1
Excellent
USD 12
ThinkTrader
1718
46
7 USD / lot - ThinkZero Account
Eightcap
4.13 /5
Read Review
391441
ASIC Regulated Forex Brokers
Vanuatu
Securities Commission of the Bahamas
AUD 100
30:1
Excellent
USD 7
570
45
7 USD / lot
Go Markets
4.10 /5
Read Review
254963
ASIC Regulated Forex Brokers
CySEC Regulated Brokers
Financial Services Agency
Financial Services Commission
AUD 200
30:1
Standard
USD 10
570
49
6 USD / lot - GoPlus+
Plus500
4.09 /5
Read Review
417727
FCA Regulated Brokers
CySEC Regulated Brokers
ASIC Regulated Forex Brokers
Best Forex Brokers in Singapore
AUD 200
30:1
Standard
USD 8
Plus500
2638
70
Fees Included in Spread
ACY Securities
4.08 /5
Read Review
403863
ASIC Regulated Forex Brokers
Vanuatu
AUD 50
30:1
Standard
USD 10
1731
63
Fees Included in Spread
Trade Nation
4.05 /5
Read Review
422661
FCA Regulated Brokers
ASIC Regulated Forex Brokers
Financial Services Conduct Authority
Securities Commission of the Bahamas
AUD 5
30:1
Standard
USD 6
Cloud Trade
1185
33
Fees Included in Spread
easyMarkets
3.98 /5
Read Review
246566
CySEC Regulated Brokers
ASIC Regulated Forex Brokers
The Seychelles Financial Services Authority
AUD 200
30:1
Standard
USD 20
211
103
Fees Included in Spread
MultiBank
3.93 /5
Read Review
416279
Financial Services Commission
ASIC Regulated Forex Brokers
AUD 50
30:1
Standard
USD 14
20093
41
3 USD / lot
IronFX
3.74 /5
Read Review
417482
CySEC Regulated Brokers
FCA Regulated Brokers
ASIC Regulated Forex Brokers
Financial Services Conduct Authority
USD 50
30:1
Standard
USD 11
285
83
From USD 13.5 / lot - Zero Accounts
Trade360
3.70 /5
Read Review
439907
CySEC Regulated Brokers
ASIC Regulated Forex Brokers
Finansinspektionen
Bundesanstalt für Finanzdienstleistungsaufsicht
AUD 500
30:1
Standard
USD 40
Sirix
602
48
Fees Included in Spread
eToro
3.69 /5
Read Review
491139
CySEC Regulated Brokers
FCA Regulated Brokers
ASIC Regulated Forex Brokers
AUD 50
30:1
Standard
USD 10
etoro
2454
60
Fees Included in Spread
Vantage FX
3.63 /5
Read Review
428901
FCA Regulated Brokers
ASIC Regulated Forex Brokers
Cayman Islands Monetary Authority
Vanuatu
AUD 200
30:1
Standard
USD 10
ProTrader
318
46
4 USD / lot - ECN Accounts

Is Forex trading tax free in Australia?

Forex gains are not tax-free income, and all profits are taxable, even if your brokerage and capital are overseas. Australians are expected to declare taxes just as with any other income – regardless of if you are trading as an individual or a company.

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 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.

In early 2020, ASIC conducted a further study, just as the Covid-19 pandemic began to spread across the world. 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 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.

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 result 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

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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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