Choosing the right Forex broker can be the difference between getting scammed and having a good start in your Forex trading journey. Especially in the world of Forex, where financial scams are abound – from fly-by-night operators to brokers trading against their clients and profiting through their losses.
You can safeguard yourself by either choosing ASIC Regulated Forex brokers, or international brokers that are being regulated by the same standard of ASIC, if not better.
Today, I’ll be covering what ASIC is about, how they can protect you, and finally giving you my takes on the best Forex platforms you can begin your trading journey as an Australian trader.
Read: Forex Trading In Australia
Overview of ASIC
Australian Securities and Investments Commission (ASIC) operates as an independent Australian Government body to regulate corporate markets, consumer credit, and financial services in Australia. ASIC was inaugurated by the ASIC act of 2001 in line with the regulations of the Corporations Act.
Before 2001, ASIC was in operation as ASC (Australian Securities Commission). It assumed the name ASIC in 1998 and took up the responsibility of protecting consumer insurance, retirement, and deposit. Its functions and powers were later revised by the ASIC Act of 2001, which led to the full operations with additional responsibilities.
Following the Act, the ASIC is responsible for regulating all financial entities, promoting informed consumer participation, and enforcing the law for all financial operations in Australia. Forex brokers registered under ASIC are mandated to level services for its traders and consumers.
With constant monitoring, strict licensing requirements, rigorous audit, and compliance procedures. ASIC is considered one of the most stringent regulatory authorities in the world. Its goal is to ensure that there is strict compliance with procedures along with high reliability for both brokers and consumers alike.
ASIC’s consumer-friendly attitude protects you as a trader looking for safe Forex trading in Australia.
How Does ASIC Protect Australian Traders?
As mentioned above, ASIC has some of the best-regulated financial institutions for traders and consumers. Due to its high regulatory standard, it promotes fairness and transparency in the operations.
ASIC maintains a high level of trust, safety, and security for public consumers. Hence, you are protected against potential misconducts from any brokerage platforms under their supervision.
The following are the various functions of ASIC grouped under regulatory, developmental, protective, and monetary policy.
- ASIC regulates and supervises all financial companies in Australia through strict guidelines provided by the ASIC Act.
- All Forex brokers, corporate markets, consumer credits, investment schemes, and financial services are registered and licensed by ASIC.
- It maintains and improves the services of all financial systems and entities that are registered.
- The commission also regulates audits via constant scrutinizing to ensure the viability of the Forex brokers.
- ASIC takes on two roles as the market regulator and financial services regulator.
- The board mandates that all brokers provide a local agent in Australia.
- The commission allows high leveraging trading.
- ASIC investigates all illegal financial services and demands legal penalties for them.In some aspects, the ASIC Act provides high restriction and prosecution functions.
- The body also addresses all forms of harm in insurance by protecting vulnerable consumers.
- ASIC provides the public with the list of an unregistered Forex broker to avoid.
Monetary Policy Functions
- Illegal financial dealings are not allowed.
- ASIC creates a safety procedure for clients’ funds through a segregated account.
Also, ASIC offers educational resources and materials on investments, borrowing, risk scams to the public.
Protect Yourself With Regulated International Brokers
ASIC registered brokers expected to follow its rules and regulation. ASIC is strict in enforcing these rules. If a registered broker goes against any of these rules, it may lead to penalties, fines, and loss of license.
You can complain about any regulated broker’s misconduct on the body’s online portal. Complaints of misconduct are dealt with immediately by the ASIC. When you submit a complaint on the online portal, you may expect it to be resolved within 28 days. Afterward, the body will conduct an investigation and files a report against the company.
If the broker has violated any of the rules, ASIC will deal with them immediately. Punishment may range from hefty fines to jail terms if the breach is consequential.
To ensure you are protected at all times when trading, I would recommend you to trade with international forex brokers. Trading with international forex brokers also offers you some additional benefits. Below are some of the few I selected after careful research and testing.
Trusted International Forex Brokers
See below for the 5 best forex brokers in Australia:
Plus500 is regulated by top international regulatory outfits in the UK, Sydney, Singapore, and Cyprus hence, it comes recommendable for Australian brokers. The broker was established in 2008. It provides more than 2,000 CFDs for traders, and its platform is friendly especially if you are a new trader.
What do you gain with Plus500?
- Best platform for amateurs.
- A low minimum deposit of $100.
- User-friendly interface.
- Leverage up to 1:300
- Demo account.
- Mobile-friendly platform.
Read: Plus500 Review
FXCM was established in 1999 and is licensed by FCA and ASIC. It is one of the top-rated and trusted ASIC regulated brokers. FXCM provides a wide variety of market choices. It is a top-notch trading platform for expert forex traders. FXCM offers customer support via email, phone, or live chat.
Why should you choose FXCM?
- A minimum deposit of $50.
- Demo accounts.
- Wide variety of account types.
- Several deposit and withdrawal methods.
- FXCM deposits are free,
- Additional fees are available on FXCM.
Read: FXCM Review
FPM was established in 2005, it is a top Australian broker. The broker is well-regulated by famous forex trading regulatory agencies like the FCA. Since its inception, this forex broker has become the leading direct market access (DMA) CFD broker in Australia.
Features of FPM
- A minimum deposit of $100.
- FPM has numerous deposits and withdrawal means for traders.
- Deposit fees are not charged on FPM.
- Perfect for stock trading.
- Leverage up to 1:500
- 10% credit bonus for three types of promotions.
- They have very low spreads and competitive commissions.
- Premium research content and news grid.
- 24/5 customer service through live chat, email, or phone call.
Read: FP Markets Review
IG was founded in 1974. It started as the world’s first spread betting firm. The broker is regulated by ASIC. It is rated as the best Forex broker with advanced features.
Benefits of trading with IG
- Demo account with reduced risk
- Mobile-friendly app and web trading are available.
- Available customer service.
- Extensive range of offerings and commissions.
- Training and research content for users.
- A minimum deposit of $0.
Read: IG Trading Review
City Index AU
City Index was founded in 1983. It is regulated by FCA, ASIC, and others. City Index AU is highly rated for its high research content. Australian investors seeking competitive spreads and premium research tolls can trade on this platform.
Benefits of trading with city Index AU
- Thousands of stocks available for trading
- Various trading instruments.
- A wide selection of CFDs.
- Minimum deposit rate of $10.
- The withdrawal rate is also minimum.
- Customer service is available 24 hours every weekday.
Read: City Index Review
There are several fraudulent brokers in Australia with fake licenses ready to swindle you. Protect your funds by trading with trusted and reliable brokers. More importantly, do your research and be sure that the broker is registered and regulated.
To save yourself from that stress, I would recommend choosing one of the five international Forex brokers I featured above. As those are the ones I have researched and tested to ensure they are reliable and trustworthy.
For starters, begin your trading journey with Plus500 as they have some incredible benefits waiting for you on the platform.