ASIC Regulated Brokers
ASIC is a regulator for forex brokers located in Australia. Brokers licensed and recognized as Financial Service Providers (FSPs) in Australia must be registered with ASIC and comply with the Corporate Plan of 2018-2022. Just like forex regulators in general, ASIC's basic task is to oversee forex brokers carry out their company's activities fairly and pay attention to the safety of client funds.
The establishment of ASIC departs from the 2015 SNB incident which shook the futures trading industry. This incident caused the bankruptcy of 2 brokers and caused hundreds of brokers big losses. The surviving Australian brokers are proven to have better risk management. From these problems, emerged an idea to revise the broker's regulatory mechanism in handling market challenges. Since then, ASIC has become one of the most competent broker regulation standards worldwide.
Therefore, ASIC has quite strict requirements, including:
- Risk limitation
- Bonus Prohibition
- Consumer Enlightenment.
The risk management protocol at ASIC regulated brokers includes a minimum operational fund of 1 Million USD, a segregated account at a tier 1 bank, and has a physical office that can be visited in Australia. Bonuses are also not allowed because these promotions are often misused to attract new clients without a clear TnC. ASIC also provides an online portal titled MONEYSMART, so prospective traders can first understand the ins and outs of trading. This is an anticipation that the public understands the risks of forex trading and is not trapped in a scam.
Here is a list of ASIC regulated brokers:
| Broker | Regulation | Max Leverage | Min Deposit | General Rating | |
|---|---|---|---|---|---|
| Axi Australia 2007 |
ASIC, 318232 DFSA (Dubai) 2758 FCA (UK), 509746 FSCL (New Zealand), FSP518226 | 1:400 | $1 | Review | |
| Interactive Brokers Australia 1977 |
ASIC, 453554 Central Bank of Ireland 23.12.2020 CFTC/NFA, 0258600 FCA (UK), 208159 Hungarian National Bank, H-EN-III-623/2020 Monetary Authority of Singapore, CMS100917 SEC (US), 8-47257 | 1:100 | $10000 | Review | |
| FP Markets Australia 2005 |
ASIC, 286354 CySEC, 371/18 | 1:500 | $100 | Review | |
| Vantage FX Australia 2006 |
ASIC, #ACN 140 903 886 Cayman Islands Monetary Authority 1383491 FCA (UK), 501057 Vanuatu Financial Services Commission, 700271 | 1:500 | $200 | Review | |
| Pepperstone Australia 2010 |
ASIC, 414530 BaFin 151148 Capital Markets Authority of Kenya, 128 CySEC, 388/20 DFSA (Dubai), F004356 | 1:500 | $200 | Review | |
| easyMarkets Australia 2001 |
ASIC, 246566 CySEC, 079/07 FSA (Seychelles) 19.09.2020 FSC (BVI), 15.20.2020 | 1:400 | $100 | Review | |
| IC Markets Australia 2007 |
ASIC, ACN 123 289 109 CySEC, 362/18 Securities Commission of The Bahamas SIA-F214 The Financial Commission, 25.11.2021 | 1:500 | $200 | Review | |
| Admirals Argentina 2001 |
ASIC, 28381 CySEC, 201/13 FCA (UK), 595450 FSA (Estonia), 10932555 FSA (Seychelles), 8426894-1 Jordan Securities Commission 57026 | 1:500 | $100 | Review | |
| AvaTrade Australia 2006 |
ASIC, 406668 Central Bank of Ireland, C53877 Financial Futures Association (Japan) 1574 Financial Services Regulatory Authority (Abu Dhabi), 190018 FSA (Japan), 1662 FSC (BVI), 2013-07-30 FSCA (South Africa), 45984 IS | 1:400 | $100 | Review | |
| GOMarkets Australia 2008 |
ASIC, ACN081864039 CySEC, 322/17 DMCC (Dubai) 18.07.2020 | 1:500 | $200 | Review | |
| ThinkMarkets Australia 2010 |
ASIC, 424700 FCA (UK), 629628 FSCA (South Africa) FSP No 49835 | 1:500 | $1 | Review | |
| Plus500 Australia 2008 |
ASIC, 417727 CySEC, 250/14 FCA (UK) 509909 FSCA (South Africa), 47546 ISA (Israel), 5 Monetary Authority of Singapore, 2017-12-11 | 1:300 | $100 | Review | |
| eToro China 2007 |
ASIC, 491139 CySEC 109/10 FCA (UK), FRN 583263 FINRA, 298361/SEC#: 8-70212 | 1:400 | $200 | Review | |
| Saxo Bank China 1992 |
ASIC, 109605610 Banque de France 483632501 CySEC, 163/12 FCA (UK), FC026688 FSA (Denmark), 1149 SFC (Hong Kong), 1395901 ESMA | 1:200 | $2000 | Review | |
| FXOpen Australia 2003 |
ASIC, 412871 FCA (UK), 579202 | 1:500 | $1 | Review | |
| IronFX Australia 2010 |
ASIC, 417482 CySEC, 125/10 FCA (UK), 585561 FSCA (South Africa), 45276 | 1:30 | $100 | Review | |
| XM Australia 2009 |
ASIC, 443670 BaFin, 124161 CNMV (Spain) 2010157773 CONSOB (Italy), 3046 CySEC, 120/10 FCA (UK), 538324 FSP (New Zealand), FSP235905 ESMA | 1:888 | $5 | Review | |
| FXCM Australia 1999 | ASIC 309763 CONSOB (Italy), 76 CySEC, 392/20 DMCC (Dubai), 31171 FCA (UK), 217689 ISA (Israel), 2 SFC (Hong Kong), AIM232 ESMA | 1:400 | $1 | Review | |
| FBS China 2009 |
ASIC, 426359 CySEC, 331/17 IFSC (Belize) IFSC/60/230/TS/12 | 1:3000 | $1 | Review | |
| GKFX Chile 2009 |
ASIC, 424122 BaFin, 130602 CONSOB (Italy) 2915 Czech National Bank, 256/2004 DMCC (Dubai), 32142 FCA (UK), 501320 Finansinspektionen (Sweden), 556873-1326 FINRA, 16.06.2021 SFC (Hong Kong), AZJ874 ESMA | 1:30 | $200 | Review | |
| Xtrade Cyprus 2010 |
ASIC, 342628 CySEC, 108/10 IFSC (Belize), IFSC/60/383/TS/15 NAFD (Russia) A | 1:400 | $100 | Review | |
| Royal Australia 2008 |
ASIC, 420268 CySEC, 312/16 | 1:30 | $50 | Review | |
| Eightcap Australia 2009 |
ASIC, 391441 Vanuatu Financial Services Commission 40377 | 1:500 | $100 | Review | |
| City Index United Arab Emirates 2001 |
ASIC, ACN 141 774 727, AFSL 345646 FCA (UK), 113942 Monetary Authority of Singapore 200400922K | 1:30 | $250 | Review | |
| Trade360 Cyprus 2013 |
ASIC, 439907 CySEC, 202/13 | 1:200 | $500 | Review | |
| Ingot Brokers Australia 2004 |
ASIC, 428015 FSA (St. Vincent & the Grenadines), 24172 FSP (New Zealand) FSP157304 | 1:400 | $100 | Review | |
| Velocity Trade New Zealand 1999 | AFM (Netherlands) 29.05.2020 ASIC, 329813 FCA (UK), 497263 Financial Dispute Resolution (NZ), FM0279 FMA (New Zealand), FSP20003 FSCA (South Africa), 43295 ESMA | 1:200 | $1000 | Review | |
| Advanced Markets United States 2006 |
ASIC, 444649 | 1:50 | $2500 | Review | |
| MARKETSX Cyprus 2006 |
AFM (Netherlands), 0900-5400 540 ASIC, 424008 BaFin, 122798 CySEC, 092/08 FCA (UK), 607305 FSA (Denmark), 6729 FSCA (South Africa), 46860 ESMA | 1:300 | $100 | Review | |
| PhillipCapital Australia 1975 |
ASIC, AFSL 246827 FCA (UK), 169760 | 1:200 | $200 | Review | |
| Core Liquidity Markets Australia 2013 |
ASIC, 164994049 | 1:500 | $100 | Review | |
| Capital.com Australia 2017 |
ASIC, 513393 CySEC, 319/17 FCA (UK), 793714 NBRB (Belarus) 193225654 | 1:30 | $100 | Review | |
| VT Markets Austria 2016 |
ASIC, 428901 Cayman Islands Monetary Authority, 1383491 FCA (UK), 590299 | 1:500 | $200 | Review | |
| AETOS Australia 2007 |
ASIC, 313016 FCA (UK), 592778 Vanuatu Financial Services Commission, 700450 | 1:200 | $250 | Review | |
| TMGM Australia 2013 |
ASIC, 436416 FSP (New Zealand), 569807 Vanuatu Financial Services Commission, 40356 | 1:500 | $100 | Review | |
| TOP1Markets Australia 2018 |
ASIC, 488340/001276870 Vanuatu Financial Services Commission, 40436 | 1:100 | $100 | Review | |
| Fusion Markets Australia 2018 |
ASIC, 226199 Vanuatu Financial Services Commission, 40256 | 1:500 | $1 | Review | |
| HFTrading New Zealand 2019 |
ASIC, 414198 FSP (New Zealand), FSP197465 | 1:400 | $300 | Review | |
| MultiBank Australia 2005 |
ASIC, 416279 BaFin, 73406 DFSA (Dubai), CL3989 FCA (UK), 481068 FSC (BVI) SIBA/L/14/1068 Ras Al Khaimah Free Trade Zone, IC/2993/10 | 1:500 | $50 | Review | |
| Synergy Markets Australia 2011 |
ASIC, AFSL 403863 | 1:500 | $100 | Review | |
| CLMarkets Australia 2013 |
ASIC, 164994049 | 1:500 | $100 | Review | |
| Blueberry Markets Australia 2016 |
ASIC, 391441 | 1:500 | $100 | Review | |
| ACY Securities Australia 2013 |
ASIC, 403863 | 1:500 | $100 | Review | |
| Boston Merchant Financial Australia 1988 |
ASIC, 379035 FCA (UK), 563348 FFMS 1220 FSC (Bulgaria), RG-03-220 FSP (New Zealand), FSP328066 ESMA | 1:400 | $50 | Review | |
| ETO Markets Australia 2013 |
ASIC, 420224 | 1:30 | $200 | Review | |
| Global Prime Australia 2010 |
ASIC, 385620 FSA (Seychelles), SD057 Vanuatu Financial Services Commission, 40256 | 1:200 | $200 | Review | |
| Fortrade United Kingdom 2013 |
ASIC, 493520 CySEC, 385/20. FCA (UK), 609970 IIROC 20-0021 NBRB (Belarus), 193075810 | 1:100 | $500 | Review | |
| Invast Financial Services Australia 1960 |
ASIC, 438283 | 1:400 | $100 | Review | |
| Anzo Capital Australia 2015 |
ASIC, AFSL 514425 FSA (St. Vincent & the Grenadines), 308 LLC 2020 IFSC (Belize), 000331/48 | 1:1000 | $100 | Review | |
| Vantage Australia 2006 |
ASIC, #ACN 140 903 886 Cayman Islands Monetary Authority, 1383491 FCA (UK), 501057 Vanuatu Financial Services Commission, 700271 | 1:500 | $200 | Review |
Advantages and Disadvantages of Trading in ASIC Regulated Brokers
Despite having basic requirements equivalent to the UK and US, ASIC regulated brokers are more flexible in managing their trading conditions. Unlike FCA which limits maximum leverage to only 1:30, ASIC regulated brokers can provide leverage up to 1: 100 or above. Also, ASIC-regulated forex brokers allow hedging strategies without First-In-First-Out regulations. Many ASIC regulated brokers also offer trading on ECN accounts, with the application of the FIX API. The trading technology allows traders to experience faster and transparent transactions.
It should be noted, since 2019, ASIC has issued a regulation that its brokers can only accept domestic clients and compensation funds apply to traders within Australia. This becomes both a deficiency and an excess. Since most ASIC regulated brokerage clients come from the Asia Pacific region, it is not surprising that these brokers have alternative regulations other than ASIC. That way, traders can get services from companies whose work systems have been recognized by ASIC, but still under the trading conditions required by these alternative regulations.
FAQ
What does ASIC regulated mean?
Being regulated by ASIC means operating under the standards of Australian financial regulator. Brokers licensed and recognized as Financial Service Providers (FSPs) in Australia must be registered with ASIC and comply with the Corporate Plan of 2018-2022.
What are the ASIC rules?
In general, ASIC rules are strictly applied to cover risk limitation, bonus prohibition, and consumer enlightenment. The risk management protocol at ASIC regulated brokers includes:
- A minimum operational fund of 1 Million USD,
- a segregated account at a tier 1 bank, and
- a physical office that can be visited in Australia.
Bonuses are also not allowed due to the risks of misusing them to attract new clients without a clear terms and conditions.
ASIC-regulated forex brokers allow hedging strategies without First-In-First-Out regulations. Most of them offer trading on ECN accounts with the application of the FIX API. But it should also be noted that as of 2019, ASIC has issued a regulation that brokers under its regulation can only accept domestic clients. In this case, the compensation funds would only apply to traders within Australia.
What is the main purpose of ASIC?
Just like other forex regulators in general, ASIC's basic task is to oversee forex brokers carry out their company's activities fairly and pay attention to the safety of client funds.
If you are interested to open an account in one of the brokers in the list above, make sure to try the forex demo account before proceeding to register in the live account.
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