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:

  1. Risk limitation
  2. Bonus Prohibition
  3. 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 Max Leverage Min Deposit
Axi
Australia 2007

1:500 $1 Review
Interactive Brokers
Australia 1977

  • ASIC
  • Central Bank of Ireland 23.12.2020
  • CFTC/NFA
  • FCA (UK)
  • Hungarian National Bank
  • Monetary Authority of Singapore
  • SEC (US)
1:100 $10000 Review
FP Markets
Australia 2005

  • ASIC
  • CySEC
1:500 $100 Review
Vantage
Australia 2006

1:500 $200 Review
Pepperstone
Australia 2010

  • ASIC
  • BaFin 151148
  • Capital Markets Authority of Kenya
  • CySEC
  • DFSA (Dubai)
  • FCA 684312
  • SCB SIA-F217
1:30 $200 Review
easyMarkets
Australia 2001

1:400 $25 Review
IC Markets
Australia 2007

1:500 $200 Review
Admirals
Argentina 2001

  • ASIC
  • CySEC
  • FCA (UK)
  • FSA (Estonia)
  • FSA (Seychelles)
  • FSCA (South Africa)
  • IIROC 29.04.2022
  • Jordan Securities Commission
1:500 $100 Review
AvaTrade
Australia 2006

1:400 $100 Review
GOMarkets
Australia 2008

1:500 $200 Review
ThinkMarkets
Australia 2010

  • ASIC
  • FCA (UK)
  • FSA (Japan)
  • FSCA (South Africa)
1:500 $1 Review
Plus500
Australia 2008

  • ASIC
  • CySEC
  • FCA (UK) 509909
  • FSA (Estonia)
  • FSCA (South Africa)
  • ISA (Israel)
  • Monetary Authority of Singapore
1:300 $100 Review
TMGM
Australia 2013

  • ASIC
  • FSP (New Zealand)
  • Vanuatu Financial Services Commission
1:500 $100 Review
eToro
China 2007

  • ASIC
  • CySEC 109/10
  • FCA (UK)
  • FINRA
1:400 $200 Review
Saxo Bank
China 1992

1:200 $2000 Review
Blueberry Markets
Australia 2016

  • ASIC
1:500 $100 Review
FXOpen
Australia 2003

1:500 $1 Review
OANDA
British Virgin Islands 1996

  • CFTC/NFA 0325821
  • FCA (UK)
  • FSA (Japan)
  • FSC (BVI)
  • Kanto Local Finance Bureau (Japan)
  • MFSA
  • Monetary Authority of Singapore
  • ASIC
1:20 $1 Review
IronFX
Australia 2010

  • ASIC
  • CySEC
  • FCA (UK)
  • FSCA (South Africa)
1:30 $100 Review
XM
Australia 2009

  • ASIC
  • BaFin
  • CNMV (Spain) 2010157773
  • CONSOB (Italy)
  • CySEC
  • FCA (UK)
  • FSP (New Zealand)
  • IFSC (Belize)
  • ESMA
1:888 $5 Review
FXCM
Australia 1999

  • ASIC 309763
  • CONSOB (Italy)
  • CySEC
  • DMCC (Dubai)
  • FCA (UK)
  • ISA (Israel)
  • SFC (Hong Kong)
  • ESMA
1:400 $1 Review
FBS
China 2009

1:3000 $1 Review
GKFX
Chile 2009

  • ASIC
  • BaFin
  • CONSOB (Italy) 2915
  • Czech National Bank
  • DMCC (Dubai)
  • FCA (UK)
  • Finansinspektionen (Sweden)
  • FINRA
  • SFC (Hong Kong)
  • ESMA
1:30 $200 Review
Xtrade
Cyprus 2010

1:400 $100 Review
Velocity Trade
New Zealand 1999
  • AFM (Netherlands) 29.05.2020
  • ASIC
  • FCA (UK)
  • Financial Dispute Resolution (NZ)
  • FMA (New Zealand)
  • FSCA (South Africa)
  • ESMA
1:200 $1000 Review
Eightcap
Australia 2009
1:500 $100 Review
City Index
United Arab Emirates 2001
1:30 $250 Review
Ingot Brokers
Australia 2004
1:400 $100 Review
Advanced Markets
Bermuda 2006
  • ASIC
  • FCA (UK)
1:50 $1000 Review
Royal
Australia 2008
  • ASIC
  • CySEC
1:30 $50 Review
PhillipCapital
Australia 1975
  • ASIC
  • FCA (UK)
1:200 $200 Review
Synergy Markets
Australia 2011
  • ASIC
1:500 $100 Review
OffersFX
Cyprus 2010
  • ASIC
  • CySEC
  • IFSC (Belize)
1:400 $200 Review
Capital.com
Australia 2017
1:30 $20 Review
VT Markets
Austria 2016
  • ASIC
  • Cayman Islands Monetary Authority
  • FCA (UK)
1:500 $200 Review
AETOS
Australia 2007
  • ASIC
  • FCA (UK)
  • Vanuatu Financial Services Commission
1:200 $250 Review
TOP1Markets
Australia 2018
  • ASIC
  • Vanuatu Financial Services Commission
1:100 $100 Review
Fusion Markets
Australia 2018
  • ASIC
  • FSA (Seychelles)
  • Vanuatu Financial Services Commission
1:500 $1 Review
HFTrading
New Zealand 2019
  • ASIC
  • FSP (New Zealand)
1:400 $300 Review
CLMarkets
Australia 2013
  • ASIC
1:500 $100 Review
MARKETSX
Cyprus 2006
  • AFM (Netherlands)
  • ASIC
  • BaFin
  • CySEC
  • FCA (UK)
  • FSA (Denmark)
  • FSCA (South Africa)
  • ESMA
1:300 $100 Review
Anzo Capital
Australia 2015
  • ASIC
  • FSA (St. Vincent & the Grenadines)
  • IFSC (Belize)
1:1000 $100 Review
ACY Securities
Australia 2013
  • ASIC
  • Vanuatu Financial Services Commission
1:500 $50 Review
Boston Merchant Financial
Australia 1988
  • ASIC
  • FCA (UK)
  • FFMS 1220
  • FSC (Bulgaria)
  • FSP (New Zealand)
  • ESMA
1:400 $50 Review
ETO Markets
Australia 2013
  • ASIC
1:30 $200 Review
Global Prime
Australia 2010
  • ASIC
  • FSA (Seychelles)
  • Vanuatu Financial Services Commission
1:200 $200 Review
Fortrade
United Kingdom 2013
1:100 $500 Review
Invast Financial Services
Australia 1960
  • ASIC
1:400 $100 Review
Core Liquidity Markets
Australia 2013
  • ASIC
1:500 $100 Review
VPFX
Malaysia 2020
1:500 $100 Review
Markets.com
Cyprus 2006
  • AFM (Netherlands)
  • ASIC
  • BaFin
  • CySEC
  • FCA (UK)
  • FSA (Denmark)
  • FSCA (South Africa)
  • ESMA
1:300 $100 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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