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Huzefa Hamid
The Australian Securities & Investments Commission (ASIC) is a well-known and trusted regulator. It is known for its consumer-friendly engagement, education, and policing of the Australian financial system. It also ranks among the more active Forex broker regulators.
I have conducted an in-depth review of ASIC Forex brokers and compiled a list of the most competitive ones with a trustworthy reputation and clean regulatory track record. Read on to view my broker shortlist, and to learn more about what ASIC does and how ASIC works to protect you as a Forex trader.
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
High level regulation in multiple jurisdictions
Impressive range of tradeable assets including vanilla options and gold options
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
FP Markets is among the cheapest ASIC Forex brokers in terms of trading fees charged, offering traders raw spreads from 0 pips for a commission of $6.00 per 1 standard lot. Deep liquidity, fast order execution, no requotes, and a no dealing desk (NDD) execution model make it ideal for high-frequency traders and scalpers. FP Markets upgrades the out of the box MT4/MT5 trading platforms offered with twelve plugins. It also offers a proprietary mobile trading app and an in-house copy trading service, complementing the embedded MT4/MT5 solutions and Myfxbook Autotrade.
The minimum deposit is $100, ensuring relative accessibility, but the maximum leverage of 1:500 is only available through its St. Vincent and the Grenadines subsidiary, while the ASIC-regulated brokerage restricts it to 1:30.
Pros
Choice of trading platforms and auxiliary trading tools
Very competitive cost structure and excellent asset selection
Low minimum deposit requirement and leverage of up to 1:500
Highly regulated, choice of fixed or floating spreads
AvaTrade is one of the ASIC Forex brokers with the widest choice of trading platforms. Besides offering both the well-known MT4 and MT5 trading platforms, it offers a proprietary web-based trading platform for manual traders, its mobile app AvaTradeGO, and its dedicated options platform AvaOptions. AvaTrade has also established itself as a popular choice for social traders, with services from DupliTrade, ZuluTrade, and its in-house social trading platform Ava Social.
The commission-free cost structure is not especially cheap but is still competitively positioned, and the minimum deposit is only $100. Traders are offered maximum Forex leverage through ASIC of 1:30. A hidden gem available at AvaTrade is its educational unit SharpTrader, where over 40 lessons and more than 200 videos await beginner traders.
Pros
High-quality educational offering via SharpTrader
Excellent choice of trading platforms catering to various trading needs
Broad asset selection and cross-asset diversification opportunities
Well-regulated and trusted broker with oversight from a central bank
Plus500 is a global Forex broker founded in 2008. It maintains an excellent regulatory environment provided by the FCA in the UK, the CySEC in Cyprus, the ASIC in Australia, the FMA in New Zealand, the FSCA in South Africa, the FSA in Seychelles, and the MAS in Singapore. Plus500 offers traders a choice of more than 2,800 assets to trade, including nearly 900 options contracts, in a commission-free trading environment. This extremely wide range of choice can make Plus500 an appropriate choice for traders looking to pursue wide diversification of assets. Plus500 is licensed to offer CFDs through ASIC (AFSL #417727), and through the FMA (FSP #486026), for licensed CFDs in New Zealand. Plus500 trading services are also available in South Africa (Authorised Financial Services Provider #47546).
Pros
Well-regulated globally
Broad asset selection in equities and options
Guaranteed stop-loss order
Fast and
reliable order execution
Cons
Sub-standard trading platform without support for automated or social trading
Best broker for social traders and crypto traders : 78% of retail CFD accounts lose money
eToro was founded in the early days of the online retail Forex era, in 2007 – this broker occupies a unique space as the king of social and copy trading. eToro has a long track record and unique reputation to protect, although this image is more focused on its copy trading model than on any other individual feature, except maybe its special relationship with cryptocurrencies.eToro is regulated in Cyprus, the U.K., Australia, and the United States although its U.S. offering is firmly differentiated from its offering to the rest of the world. eToro is a leading cryptocurrencies CFD broker. Following its 2019 acquisition of Danish blockchain company Firmo and Belgian crypto portfolio tracker application Delta, it released its cryptocurrency wallet for mobile devices.
eToro Pros & Cons
Pros
Active investment community ideal for social trading
Dedicated tools for social trading
Broad cryptocurrency selection
Expanding educational offering for beginner traders
Cons
Internal withdrawal fees
Low retail leverage and higher minimum deposits, but within a reasonable range
The establishment of the Australian Securities and Investments Commission (ASIC) in 1998 followed the recommendations from the Wallis Inquiry. It regulates the Australian financial system, including Forex and CFD brokers, and enforces laws to protect consumers, investors, and creditors. The ASIC reports to the Treasurer of Australia, a senior minister of the Crown in the Commonwealth Government.
ASIC was at the forefront of regulatory moves to shutter the now-defunct binary options sector, which was filled with scams, fraud, and a business model always favoring brokers over traders. ASIC was also instrumental in uncovering the massive fraud by disreputable Forex brokers outside Australia claiming ECN execution via multiple liquidity providers while routing orders via their international subsidiaries.
What are the responsibilities of ASIC?
ASIC’s core day-to-day activities are:
Promoting and growing the Australian financial market
Policing Australian regulated (ASIC approved) Forex brokers and other licensed institutions
Educating and protecting consumers by administering and enforcing rules and regulations
Engaging with the public and provide quality information
Maintaining the integrity of and trust in the Australian financial system
How does ASIC regulation protect Forex traders?
ASIC regulated Forex brokers must have a license and adhere to strict rules and regulations which are monitored and enforced by ASIC
ASIC enforces maximum Forex leverage of 1:30, which goes some way to protecting Forex traders from being overleveraged
ASIC publishes reports about investigations, maintaining transparency, and enhancing trust in the Australian financial system
ASIC provides educational content and Money Smart, its online portal, to help educate the public about important aspects of the Australian financial system
ASIC assists consumers with deposit recovery in the event of institutional default
ASIC works to ensure that the Forex and CFD brokers it regulates offer traders what they advertise and promise
What are the most essential ASIC Forex broker guidelines?
ASIC Forex brokers must maintain minimum operating capital of A$1 million
Segregation of client deposits with Tier 1 Australian banks
Maintain an AFC license
Conduct in-depth risk management for broker and client
Operate under best business practices
Offer conflict resolution to clients
Legislative basis of ASIC enforcement
Australian Securities and Investments Commission Act 2001 (ASIC Act)
Business Names Registration Act 2011
Corporations Act 2001 (Corporations Act)
Insurance Contracts Act 1984
National Consumer Credit Protection Act 2009 (National Credit Act)
Banking Act 1959
Life Insurance Act 1995
Medical Indemnity (Prudential Supervision and Product Standards) Act 2003
Retirement Savings Accounts Act 1997
Superannuation (Resolution of Complaints) Act 1993
Superannuation Industry (Supervision) Act 1993 (SIS Act).
Final Thoughts
Forex / CFD traders in Australia may choose between locally regulated or international brokers, but ASIC regulated brokers attract clients from all over the world due to Australia’s well-deserved reputation as an excellent retail Forex hub. This means that Australian resident traders mostly open accounts with ASIC-regulated brokers and have little reason to look beyond Australia unless they are seeking a broker offering extremely high leverage. Until recently ASIC allowed its regulated brokers to offer much higher maximum leverage to retail traders, but ASIC has implemented new regulations which put maximum leverage in line with what can be offered in the European Union. Despite this, ASIC is still seen as a more flexible and practical regulator than is typically found within the European Union.
Forex / CFD traders looking for an ASIC-regulated broker will face mostly the same considerations as traders anywhere in the world in selecting the best Forex broker:
broker regulation and reputation
minimum deposit
a suitable selection of assets
a fee structure which suits the intended trading style
For example, day traders will be more focused on competitive spreads while longer-term traders who typically hold positions open overnight will need to pay closer attention to whether overnight swap rates offered are competitive.
FAQs
Who is the best Forex broker for Forex trading in Australia?
The best Forex brokers offer low trading costs, deep liquidity, and ultra-fast order execution. They will also offer at least one trading platform which supports algorithmic and social trading and be well-regulated.
What is ASIC in Forex trading?
ASIC is the Australian regulator responsible for policing Australian financial institutions, including Forex and CFD brokers.
Is Forex regulated in Australia?
Yes, Forex brokers are regulated in Australia, by the Australian Securities & Investments Commission (ASIC).
I’m a trader and manage my own capital. I trade the major Forex pairs, some Futures contracts, and I rely entirely on Technical Analysis to place my trades. Today, I am also a Senior Analyst for DailyForex.com. I began trading the markets in the early 1990s, at the age of sixteen. I had a few hundred British pounds saved up (I grew up in England), with which I was able to open a small account with some help from my Dad. I started my trading journey by buying UK equities that I had read about in the business sections of newspapers. The 1990s were a bull market, so naturally, I made money. I was fortunate enough in my early twenties to have a friend that recommended a Technical Analysis course run by a British trader who emphasized raw chart analysis without indicators. Having this first-principles approach to charts influences how I trade to this day.
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