ASIC Regulated Forex Brokers

Written by Miro Nikolov

Miro Nikolov

Miro Nikolov is the co-founder of TradingPedia.com and BestBrokers.com. His mission is to help people make profitable investments by giving them access to educational resources and analytics tools.

, | Updated: November 22, 2024

‹
• Jump to:
• Main Features of the Best ASIC Forex Brokers
• Compared By Leverage and Commission per Lot
• ASIC Forex Brokers by Spread
• ASIC
• ASIC’s Responsibilities
• Guidelines ASIC Brokers Need to Comply With
• Customer Protection
• ASIC Requirements for Professional Trading
›

With forex being one of the biggest financial markets in the world, it is important that it is properly regulated, ensuring fair and safe trading conditions for all participants in forex trades. One of the authorities classified as tier-1 forex regulators is the Australian Securities and Investments Commission (ASIC). It authorizes the operations of brokers who wish to cater to Australian traders, ensuring financial service providers follow strict guidelines for fair and safe trading.

1. 

   Fusion Markets

   Rating: 4.9

   74-89% of retail CFD accounts lose money

2. 

   FP Markets

   Rating: 4.8

   73.85% of retail investor accounts lose money

3. 

   Pepperstone

   Rating: 4.7

   75.5% of retail investor accounts lose money

4. 

   Global Prime

   Rating: 4.4

   74-89% of retail CFD accounts lose money

5. 

   eToro

   Rating: 4.2

   51% of retail investor accounts lose money

6. 

   Eightcap

   Rating: 4.2

   76.09% of retail investor accounts lose money

7. 

   Admirals

   Rating: 3.8

   73% of retail investor accounts lose money

8. 

   IG

   Rating: 3.6

   70% of retail client accounts lose money

9. 

   Vantage FX

   Rating: 3.3

10. 

    XM Group

    Rating: 2.2

    72.82% of retail investor accounts lose money

Main Features of the Best ASIC Forex Brokers

1. TRADE NOW READ REVIEW
   Fusion Markets

   Min Deposit

   $0

   Trading Instruments

   Forex, Commodities, Indices, Crypto, US Stocks

   Regulators

   ASIC, FSA (Seychelles), VFSC (Vanuatu)

   Trading Platforms

   MetaTrader4, MetaTrader5, cTrader, DupliTrade, Fusion+ Copy Trade

   Spread

   0.9 pips Classic; 0.0 pips Zero

   Leverage

   1:30

   Deposit Methods

   Visa, Mastercard, PayPal, Skrill, Neteller, Fasapay, Jeton Wallet, Perfect Money, Online Naira, Doku, Bitcoin, Ethereum, Litecoin, USDT, Tether, Ripple, bank wire

   Withdrawal Methods

   Visa, Mastercard, Bank Wire, Skrill, Neteller,Bitcoin, Ethereum, Litecoin, Tether, Ripple

   74-89% of retail CFD accounts lose money

   ASIC-licensed broker (no. 385620), offering 250+ tradable instruments to Aussie traders. Retail traders have access to negative balance protection. Maximum leverage capped at 1:30. Professional traders can increase leverage on major forex pairs to 1:500.

2. TRADE NOW READ REVIEW
   FP Markets

   Min Deposit

   $50 (AU$100)

   Trading Instruments

   Forex CFDs, Shares CFDs, Metals CFDs, Commodities CFDs, Indices CFDs, Crypto CFDs, ETF CFDs

   Regulators

   ASIC, CySEC, FSA (Seychelles), FSCA

   Trading Platforms

   MetaTrader4, MetaTrader5, WebTrader, IRESS

   Spread

   1.0 pips Standard; 0.0 pips Raw

   Leverage

   1:30

   Deposit Methods

   Visa, Mastercard, Neteller, Bank Transfer, Skill, Sticpay, Fasapay, Virtual Pay, Perfect Money, Pagsmile, Dragonpay, Crypto, Apple Pay, Google Pay, Online Banking, Broker to Broker

   Withdrawal Methods

   Visa, Mastercard, Bank Wire, Neteller, Skrill, Paytrust88, PayPal

   73.85% of retail investor accounts lose money

   Operates under ASIC license (no. 286354). Aussies can trade over 60 currency pairs and numerous CFD instruments. Tight spreads from 0.0 pips available to Raw Account users. Maximum leverage of 1:30 available to retail traders. Pro traders can access leverage of up to 1:500.

3. TRADE NOW READ REVIEW
   IG

   Min Deposit

   $50

   Trading Instruments

   CFDs on Indices, Forex, Shares, Crypto, Futures, Commodities, Options, Interest Rates, Sectors, Bonds, Knock-out trading

   Regulators

   ASIC, FCA, DFSA, CFTC, FMA, FINMA, BaFin, MAS, JFSA, FSCA, BMA (Bermuda)

   Trading Platforms

   MT4, L2 Dealer, ProRealTime, IG proprietary software

   Spread

   0.6 pips CFD trading; 0.165 pips DMA trading

   Leverage

   1:30

   Deposit Methods

   Visa, Mastercard, Bank Transfer, Wire Transfer, Visa Electron, Discover, PayPal

   Withdrawal Methods

   Visa, Visa Electron, Mastercard, Discover, Bank Transfer

   70% of retail client accounts lose money

   CFD and Share trading available to Australian traders. IG operations in Australia are authorized by an AFSL no. 515106. One can open a demo account with AU$20,000 of virtual funds. Retails traders can use various investor protections while Pro traders can access lower margins.

4. TRADE NOW READ REVIEW
   Pepperstone

   Min Deposit

   $0

   Trading Instruments

   Forex, Indices, Commodities, Cryptocurrencies, Share CFDs, ETFs

   Regulators

   UK FCA (No.684312), CySEC (No. 388/20), ASIC (No. 414530), BaFin (No.151148), DFSA, CMA

   Trading Platforms

   TradingView, MT5, MT4, cTrader

   Spread

   From 0.0 pips (Razor Accounts), 1 pip (Standard Accounts)

   Leverage

   1:30

   Deposit Methods

   Visa, Mastercard, PayPal, Bank Transfer

   Withdrawal Methods

   Visa, Mastercard, PayPal, Bank Transfer

   75.5% of retail investor accounts lose money

   Offers more than 1,200 CFD instruments to Aussie traders, with an ASIC license (no. 414530) ensuring best trading conditions. Retail traders can choose between Standard and Raw accounts, with maximum leverage of 1:30 available on major pairs. Pepperstone Pro grants access to higher leverage of up to 1:500.

5. TRADE NOW READ REVIEW
   Global Prime

   Min Deposit

   $0

   Trading Instruments

   Forex, Cryptocurrencies, Indices, Commodities, Bonds

   Regulators

   ASIC (No. 385620), VFSC (No. 40256)

   Trading Platforms

   MT4 Desktop, MT4 Webtrader, MT4 Android

   Spread

   0.9 pips Standard, 0.0 pips Raw

   Leverage

   1:500

   Deposit Methods

   Visa, Mastercard, PayPal, Skrill, Neteller, Gate8, Dragonpay, Fasapay, VNPay, Pagsmile, BPay, POLi, AstroPay, Bank Transfer, Interac, Perfect Money, PayID, Jeton, MiFinity, XPay, Crypto

   Withdrawal Methods

   Mastercard, Visa, Local Bank Transfer, Bank Wire Transfer, Skrill, Neteller, AstroPay, PayPal, Dragonpay, Perfect Money, Jeton, Interac, Cryptocurrencies

   74-89% of retail CFD accounts lose money

   ASIC-approved broker operating under AFSL no. 385620. Offers CFDs on forex pairs, commodities, cryptocurrencies and more, all available on MT4. Retail trader accounts come with negative balance protection and a cap on leverage of up to 1:30.

6. TRADE NOW READ REVIEW
   eToro

   Min Deposit

   $50 or $100 based on country ($10 for the UK)

   Trading Instruments

   Crypto, CFDs on Forex, Stocks, Commodities, Crypto, ETFs, and Indices

   Regulators

   FCA, CySEC, ASIC, MFSA, ADGM, FSA, FINRA/FinCEN

   Trading Platforms

   eToro Investing, eToro App, TradingView, eToro CopyTrader

   Spread

   1 pip

   Leverage

   1:30

   Deposit Methods

   eToro Money, Visa, Mastercard, Neteller, PayPal, Skrill, iDeal, Klarna, Bank Transfer, Trustly, Przelewy24

   Withdrawal Methods

   PayPal, Skrill, Visa, Mastercard, Neteller, Trustly, Bank Transfer

   51% of retail investor accounts lose money

   Australian traders can join the eToro entity licensed by ASIC (AFSL no. 491139). Proprietary platform with advanced trading tools allows access to multiple markets like Forex, Stocks, Commodities, and more. Maximum allowed leverage is capped at 1:30 on major pairs and 1:20 on minor pairs.

7. TRADE NOW READ REVIEW
   Vantage FX

   Min Deposit

   $50

   Trading Instruments

   Forex, Indices, Commodities, Shares CFD, ETFs, Bonds

   Regulators

   FCA (license no. FRN: 590299), VFSC (reg. No. 700271), ASIC (license no. no. 428901), FSCA (license no. 51268), CIMA (no. 1383491)

   Trading Platforms

   MetaTrader 4, MetaTrader 5, ProTrader, TradingView, Copy Trading

   Spread

   1.1 pips on Standard Account; 0.0 pips on Raw, Cent, and Pro Accounts

   Leverage

   1:30

   Deposit Methods

   Visa, Mastercard, Union Pay, Boleto, Bank Wire, Skrill, Neteller, Crypto

   Withdrawal Methods

   Visa, Mastercard, Union Pay, Bank Wire, Skrill, Neteller, Crypto

   Operations in Australia are conducted under ASIC license no. 428901. Tradable instruments include Forex, Indices, Share CFDs, RTFs, Commodities, and more. Negative balance protection and other risk-assessment tools available to retail traders. Pro accounts can bypass leverage cap of 1:30 and access leverage of up to 1:500.

8. TRADE NOW READ REVIEW
   Admirals

   Min Deposit

   $100 ($1 for Invest MT5 Account)

   Trading Instruments

   CFDs on Forex, Indices, Stocks, Commodities, Bonds, ETFs, Cryptocurrencies

   Regulators

   CySEC (No. 201/13), ASIC (No. 410681), FCA (No. 595450), JSC (No. 57026), FSCA (No. FSP51311)

   Trading Platforms

   MT4, MT5, WebTrader, MT Supreme Edition, StereoTrader

   Spread

   From 0.0 pips (Invest and Zero Accounts), 0.5 pips (Trade Accounts)

   Leverage

   1:30

   Deposit Methods

   Visa, Mastercard, Skrill, Klarna, Bank Transfer, PayPal, Neteller, iDeal, POLi, Perfect Money, Cryptocurrencies

   Withdrawal Methods

   Bank transfer, Visa, Mastercard, PayPal, Neteller, Skrill, Perfect Money

   73% of retail investor accounts lose money

   ASIC regulations (AFSL no. 410681) ensures safe forex and CFD trading. Negative balance policy adopted for all retail accounts, with stop out level set at 20% of the required margin. Maximum leverage on forex pairs is capped at 1:30 for retail clients and 1:500 for professionals.

9. TRADE NOW READ REVIEW
   Eightcap

   Min Deposit

   $100

   Trading Instruments

   Forex CFDs, Commodity CFDs, Shares CFD's, Index CFDs, Crypto CFD's

   Regulators

   SCB (No. SIA-F220), ASIC (No.391441), CySEC (No. 246/14), FCA (No. 921296)

   Trading Platforms

   MT4, MT5, WebTrader, TradingView

   Spread

   0.1 pips on Standard and TradingView Accounts; 0.0 pips Raw Accounts

   Leverage

   1:30

   Deposit Methods

   Visa, PayPal, Mastercard, Wire Transfer, Neteller, Skrill, Tether, Bitcoin, BPAY, Dragonpay, Fasapay, Interac, Pix

   Withdrawal Methods

   Mastercard, Visa, PayPal, Skrill, Neteller, Bitcoin, Tether, Wire Transfers, BPAY, Fasapay, Pix, Interac

   76.09% of retail investor accounts lose money

   Financial services provider licensed by ASIC (no. 391441). Over 800 CFD markets available to Aussies traders, with Raw Accounts offering spreads of 0.0 pips. Stop-out level is set at 50% for all account types. Professional traders can use leverage of up to 1:500 on major forex pairs.

10. TRADE NOW READ REVIEW
    XM Group

    Min Deposit

    $5

    Trading Instruments

    Forex, Stocks, Indices, Commodities, Thematic Indices

    Regulators

    FCA (ref. no. 705428), (ASIC) (ref. No. 443670), FSC (license no. 000261/397), DFSA (ref. no. F003484), CySEC (license no. 120/10), MiFID, CFTC

    Trading Platforms

    MetaTrader 4 and 5, MetaTrader 4 and 5 on mobile, MT4 WebTrader, MT5 WebTrader, MT$ Multiterminal

    Spread

    From 0.0 pips (Zero Account), 0.6 pips (Standard and Micro Accounts)

    Leverage

    1:30

    Deposit Methods

    Visa, Mastercard. Skrill, Bank Transfer, Neteller, Apple Pay, Google Pay, UnionPay, Maestro

    Withdrawal Methods

    Visa, Mastercard, China Union Pay, Skrill, Neteller, Bank Transfer

    72.82% of retail investor accounts lose money

    Australian traders can trade over 1,400 assets thanks to an ASIC license (no. 443670). Retail traders can use different customer protection tools like negative balance protection, stop-out level of 50% the margin, and leverage cap of 1:30 on major forex pairs.

ASIC Forex Brokers Compared By Leverage and Commission per Lot

ASIC Forex Brokers by Spread

Australian Securities and Investments Commission

Australia’s financial markets and the participants in these sectors are regulated by the Australian Securities and Investments Commission (ASIC). This independent Commonwealth Government body was established by the Australian Securities and Investments Commission Act, which was enacted in 2001.

A Chairperson and members comprise the Commission, which is responsible for the operations of ASIC. As the main regulator of the financial markets in Australia, ASIC also monitors companies and professionals that deal with superannuation, investments, credits, deposits, and other financial services, making sure they operate in accordance with the National Consumer Credit Protection Act of 2009.

Regulating forex brokers operating in Australia also falls under the remit of ASIC, ensuring that licensed financial service providers offer fair trading conditions to clients. The organization issues licenses to companies that wish to provide financial services to Australians, with an official register displaying all service providers that have been licensed.

Based on the strictness of regulations, ASIC ranks as a tier-1 forex regulator, ensuring licensed entities are fully compliant with operational guidelines imposed by the regulator. Even after granting a license to a forex broker or a different type of financial service provider, ASIC is responsible for monitoring the operations of licensees. Inflicting penalties as well as revocations of licenses are also included in the responsibilities of ASIC.

When it comes to the regulation of forex activities, ASIC is also strict about providing additional protection tools to traders, with a clear distinction between retail and professional traders. Those who are inexperienced and cannot afford to trade bigger volumes as professionals should have access to several customer protection tools as well as risk-assessment functionalities. As ASIC is strict about licensed brokers following said measures, a license from the Australian regulator indicates the high quality of the provided financial services and a safe and fair environment for everyone participating in the trading market.

ASIC’s Responsibilities

According to the ASIC Act of 2001, the official financial market regulator in Australia is required to monitor the performance of the country’s financial system and maintain its integrity and proper operations. The organization must enforce the respective regulatory framework and provide efficient financial market regulation. Any information provided to ASIC must be processed and stored in an efficient and timely manner. Whenever there is relevant information about a company or other financial service provider, ASIC is required to make that information available to the public as soon as possible.

According to ASIC, the responsibilities that fall under its remit include:

• Registering financial services providers operating in Australia
• Keeping registers available to the public
• Issuing licenses to companies providing financial services or credit products in Australia
• Taking proper measures to prevent the provision of defective products
• Introducing legislative framework to maintain the integrity of the financial market
• Granting relief from imposed legislation
• Conducting investigation of suspected breaches
• Issuing notices about any infringement of the law
• Inflicting penalties on financial service providers who have breached ASIC regulations
• Prosecuting offenders
• Enforcing bans on individual activities

Guidelines ASIC Brokers Need to Comply With

With ASIC being one of the strictest financial regulators on a global scale, forex brokers who wish to operate in Australia are required to meet a list of requirements in order to qualify for an ASIC license. Below, you can see the full list of steps required to apply for an AFSL – Australian Financial Services Licence.

1. Company Legal Registration – License applicants must first ensure they have registered their company as a legal Australian entity.
2. Authorized Capital – AFSL applicants must own at least 10% of their revenue or a minimum of AU$1 million in the form of net tangible assets (NTA). A minimum of 50% of a company’s NTA must be held in cash or cash equivalent.
3. Qualification of Management Personnel – Key employees and managers in the company are required to prove their competence through a proper qualification and experience in financial service management.
4. Tools for Risk Management and Internal Control – License applicants must implement effective systems for risk management and internal control. Key policies of the company must include management of components like conflict of interest, client funds, and complaints.
5. Detailed Business Plan – During the license application process, applicants must provide a detailed business plan that provides information on the financial services the company intends to provide, a risk management plan, strategies for development, and the company’s governance model.
6. Complaints and Consumer Rights – Applicants must provide an effective model for handling customer complaints and ensuring all consumer rights are respected
7. License Application and Annual Fees – Applicants must pay a license fee upon application as well as an annual fee for maintaining the active status of the license once it is granted. To be able to operate in Australia, forex brokers licensed by ASIC are required to abide by the regulator’s rules and meet the following criteria:
8. Impose Mandatory Leverage Limits – Retail traders cannot be offered leverage higher than 1:30 on major currency pairs and 1:20 on minor crosses. Higher leverage can be accessed only by professional Australian traders who must meet certain criteria to qualify for professional trading.
9. Guaranteed Margin Closeout – If margin levels are reduced to 50% of the required margin, ASIC brokers must close out the positions of their clients. This measure is introduced to minimize losses.
10. Negative Balance Protection – Retail clients must be guaranteed that their losses cannot exceed the deposited amount in their accounts.
11. Best Execution Policies and Fair Prices – ASIC-regulated brokers must implement the best policies for order executions, ensuring fair prices and easy market access.

Customer Protection

Forex brokers that seek ASIC’s stamp of approval are required to ensure fair and safe trading conditions, with the provision of additional customer protection tools also included in the requirements that brokers must meet in order to operate in Australia.

As mentioned earlier, a negative balance protection must be provided to retail Australian traders. That step requires brokers to ensure that traders’ losses cannot exceed the amount they have deposited in their accounts. That way, trading with leverage cannot lead to sharp losses that cause a negative balance, which may also lead to debts. It should be noted that this measure is typically offered only to retail traders as professionals agree on trading with a higher risk that may lead to significant losses.

ASIC Requirements for Professional Trading

As mentioned earlier, ASIC has introduced a clear differentiation between retail and professional traders. Due to the high risk of trading leveraged assets, the regulator has introduced mandatory customer protections that may help traders manage risk levels and minimize potential losses. However, restrictions like leverage cap and margin callouts may not be suitable for traders seeking higher profit resulting from leverage.

While ASIC-regulated brokers are required to impose a mandatory leverage cap of 1:30 on major forex pairs and 1:20 on minor pairs, they can offer higher leverage ratios to professional traders. In order to qualify for professional trading conditions, Aussies must meet several requirements. Below, we will provide the standard conditions that apply to professional trading with an ASIC-regulated broker:

1. Sufficient Balance: Professional trading requires a larger trading volume and traders who apply for professional accounts with ASIC brokers must provide proof of substantial trading amounts. For this purpose, traders must gain ownership over net assets of at least AU$2.5 million or annual gross income of $250,000 for the last two years, with these types of statements being verified with a certificate issued from a qualified accountant in the previous six months.
2. Substantial Trading Volumes: Traders applying for professional accounts may be asked to provide a trading statement that shows at least 20 large-volume trades made per quarter and a notional volume of AU$1,000,000 per quarter, generated in any four quarters in the last two years.
3. Relevant Experience: Professional traders who currently work or have working experience of at least one year in a relevant financial sector may also qualify for professional accounts with ASIC brokers. A certain type of evidence must be provided to verify the trader’s experience with forex and CFD trading.