Top ASIC Regulated Forex Brokers
|Broker||Min. Deposit||Regulated by||Next Step|
|$ 250||ASIC Regulated.||Sign Up|
|$ 100||ASIC Regulated.||Sign Up|
|$ 5||ASIC Regulated.||Sign Up|
|$ 100||ASIC Regulated.||Sign Up|
ASIC’s Role In FOREX Trading & Brokers
ASIC requires that all FOREX brokers obtain a valid Australian Financial Services License (AFSL). An AFSL means that they are in full compliance with all extant ASIC regulations.
These include the Corporations Act (2001) of the Australian legislature, which makes sure that all laws are correctly applied according to the intention of the Government to ensure the proper functioning of the markets.
They also incorporate the guidelines set forth in the Insurance Contracts Act (1984) and the National Consumer Credit Protection Act (2009). All of which govern various aspects of a FOREX trading brokerage’s business model.
In addition to offering traders protection in the form of enforcing regulatory compliance, ASIC gives Australians the ability to seek redress for any infractions of the law by an ASIC registered company.
Even if you aren’t in Australia, trading with an ASIC registered broker is a good idea, as they have shown they are willing to play by the financial rules in a highly regulated nation.
The modern ASIC was created on July 1st, 1998 as a result of recommendations by the Wallis Inquiry and ASIC’s authority is derived from the Australian Securities and Investments Commission Act of 2001
The original organization that would become ASIC was called the Australian Securities Commission (ASC). It was created a little over seven years before ASIC, on January 1st, 1991 by the ASC Act of 1989.
The initial purpose of ASC was to bring all of the corporate regulators in Australia together under one umbrella, by dissolving the National Companies, Securities Commission and Corporate Affairs offices that had existed in the states and territories.
When the ASC became ASIC on July 1st, 1998, it took on responsibility for consumer protection in superannuation, insurance, and bank deposits. Its scope of responsibilities have grown since its foundation; in 2002 ASIC became responsible for overseeing for credit, and in 2009 it assumed responsibility for regulating the Australian Stock Exchange (ASX).
How ASIC is Structured
Because ASIC has wide-ranging regulatory responsibilities at both the national and state level, its structure is complex.
If you would like to learn more about how ASIC is organized, have a look at this informative graphic from their website.
Key Responsibilities of ASIC
ASIC has a wide range of responsibilities, and today they regulate most financial products in Australian markets, in addition to the ASX.
ASIC’s areas of responsibility include:
- Financial Services
- Securities and Derivatives
- Consumer Protection
- Financial Literacy
- Corporate Governance
In addition to all of the above mentions areas, ASIC interfaces with the general public via its www.moneysmart.gov.au website. This debuted on March 15th, 2011, and integrated ASIC’s two previous consumer websites into one portal.
If you have any questions about a FOREX broker, and their current legal standing in Australia, the MoneySmart website is the place to turn for answers.
FOREX trading with an ASIC registered broker is a good idea, no matter what goals you have in the market.
While Australians can choose to trade with any broker they choose, making sure that your broker is compliant with ASIC’s extensive regulations will help you avoid dishonest practices, and give you legal recourse in the event of any problems.