Australian Securities and Investments Commission (ASIC)
The Australian Securities and Investments Commission (ASIC) is the national corporate regulator responsible for overseeing financial services, including forex brokers, in Australia. ASIC ensures that brokers operate transparently and fairly while protecting retail traders through strict compliance obligations and legal frameworks.
The Australian Securities and Investments Commission (ASIC) ensures a stable and transparent forex trading environment by enforcing rigorous standards. When trading in Australia, always choose an ASIC-regulated broker to ensure legal protection, proper fund handling, and reduced risk.
- 30:1 for major currency pairs
- 20:1 for minor currency pairs, gold, and major indices
- 10:1 for commodities (excluding gold) and minor indices
- 5:1 for equities
- 2:1 for cryptocurrencies
- Licensing and monitoring of financial services providers including forex brokers
- Enforcing rules on capital adequacy, client fund protection, and financial conduct
- Setting leverage caps for retail clients to mitigate trading risks
- Investigating misconduct and issuing penalties for violations
- Visit the ASIC Connect Register
- Enter the broker’s name or AFSL number
- Review their license details, status, and authorized activities
- AFSL Licensing: Brokers must hold an Australian Financial Services Licence
- Minimum Capital Requirements: Financial stability standards must be met
- Client Fund Segregation: Client money must be held separately from company funds
- Leverage Caps & Margin Requirements: Strict limits on retail trading risk
- Prohibition on Bonuses: Incentives for CFD products are banned
- Disclosure & Risk Warnings: Brokers must provide Product Disclosure Statements (PDS)
Advantages
- Strong consumer protection and transparency
- Clearly defined legal framework with severe penalties for misconduct
- ASIC has authority to ban firms, freeze funds, and prosecute fraud
- Well-regarded globally for stability and oversight
Limitations
- Strict limits on leverage reduce high-risk strategies
- No compensation scheme like FSCS (UK) or ICF (EU)
- High compliance costs mean fewer local brokers compared to offshore markets
Country
Australia
Established
1998
Contact
+61 1300 300 630
Complaint bodies
Australian Securities and Investments Commission (ASIC) Australian Financial Complaints Authority (AFCA) – independent dispute resolution service
Hotline
1300 300 630
Last updated on: March 26, 2025
High Risk Warning : Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.