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.
High floating leverage + fast execution
Daily market research and Autochartist access
High level regulation in multiple jurisdictions
Impressive range of tradeable assets including vanilla options and gold options
Solid broker for scalping and hedging
Institutional-style trading opportunities for retail traders
Trade 1,000+ financial instruments
Experience low, competitive spreads
Multiple funding and swift withdrawal options
5.0/5 in this category
Best all-around broker with high floating leverage and fast execution
We have made FXTM one of our top-rated brokers because in addition to its lengthy track record, it enjoys a very high level of regulation and reputation, and it offers a highly competitive fee structure which tends to keep down the cost of trading.
Excellent commission-based Forex pricing environment and transparency
Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app
Quality market research and educational content for beginner traders
Proprietary copy trading platform, low minimum deposit, and high leverage
5.0/5 in this category
ECN trading with leverage up to 1:500.
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.
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
Well-regulated and trustworthy
5.0/5 in this category
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.
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
4.5/5 in this category
Best ECN trading environment, with scalping and hedging
BlackBull Markets was founded in 2014 in New Zealand. Like many antipodean Forex brokers, BlackBull Markets is an ECN broker, offering raw spreads and commissions. They are regulated in New Zealand by the Financial Services Providers Register (FSPR) and offer a maximum leverage on some Forex currency pairs as high as 500 to 1. In addition to their global headquarters in New Zealand, BlackBull Markets also has presences in the form of branch offices in New York and Malaysia. BlackBull Markets offers a relatively tight range of tradable assets: 27 Forex currency pairs and crosses, gold, silver, crude oil, natural gas, and 6 major equity indices. That should be sufficient for those traders with more focused strategies not requiring wide diversification.
BlackBull Markets Pros & Cons
ECN/NDD execution model with deep liquidity
Institution-grade pricing for retail traders via proprietary price aggregation
ZuluTrade and Myfxbook for social trading
Leverage of up to 1:500
4.5/5 in this category
Competitive pricing + excellent daily videos
Eightcap Pros & Cons
Low minimum deposit and high leverage of up to 1:500
Competitive cost structure
Excellent technology infrastructure and seasoned management team
Daily research and quality educational content
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.
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
- 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
- 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
- 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).
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.
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).