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. Following an in-depth review of ASIC Forex brokers and a list of the most competitive ones with a trustworthy reputation, you may view my broker shortlist.
Best ASIC Brokers Comparison
| | | | | |
Regulators | ASIC, CySEC, FSCA | ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID | ASIC, CySEC, FCA, SCB | ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB | ASIC, CySEC, FCA, FSA |
Year Established | 2005 | 2006 | 2009 | 2010 | 2007 |
Execution Type(s) | ECN/STP | Market Maker | ECN/STP, Market Maker | No Dealing Desk, NDD | Market Maker |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | 1.1 pips | 0.9 pips | 1.0 pips | 1.1 pips | 1.0 pips |
Average Trading Cost GBP/USD | 1.4 pips | 1.5 pips | 1.2 pips | 1.6 pips | 2.2 pips |
Average Trading Cost Gold | $0.21 | $0.29 | $0.12 | $0.20 | $0.45 |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | Other, MetaTrader 4, MetaTrader 5, Web-based+ | MetaTrader 4, MetaTrader 5, Trading View | MetaTrader 4, MetaTrader 5, cTrader, Trading View | Proprietary platform |
Islamic Account | |||||
Negative Balance Protection | N/A | ||||
| Visit Website | Visit Website | Visit Website | Visit Website | Get Started Visit Website74% of retail CFD accounts lose money |
FP Markets
In Summary ECN trading with leverage up to 1:500FP 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 & Cons
- 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
- Availability of Iress geographically restricted
AvaTrade
In Summary Highly regulated, choice of fixed or floating spreadsAvaTrade 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 & Cons
- 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
- Trading costs competitive but nothing special
Eightcap
In Summary Competitive pricing + excellent daily videosEightcap established itself among the best Forex brokers due to its superb trading infrastructure, excellent order execution amid deep liquidity, competitive fees, and cutting-edge trading tools. Manual traders get a well-designed AI-powered economic calendar, and Eightcap upgrades MT4 via Capitalise AI, which enables algorithmic trading in a code-free environment. MT5 traders benefit from Flash Trader, while the dedicated cryptocurrency solution Crypto Crusher caters to cryptocurrency traders.
Copy traders get the embedded MT4/MT5 services, and Eightcap connects social traders to the active TradingView community. Beginner traders get an outstanding educational and research offering via Eightcap Labs and Eightcap Trade Zone.
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
- Limited leverage in some areas
Pepperstone
In Summary Great ECN execution on MT4 platformPepperstone is one of the most competitive ASIC Forex brokers. It offers upgraded core MT4/MT5 trading platforms through its 28 plugin Smart Trader Tools package. Traders can also opt to trade with the leading ECN platform, cTrader. All three trading platforms offered by Pepperstone have embedded copy trading services, and Myfxbook Autotrade and DupliTrade are also offered.
Pepperstone lists an industry-leading fourteen currency pairs with raw spreads from 0 pips and a commission of $6.00 per round lot, while the Active Trader Program lowers trading costs still further for high-frequency traders.
Pepperstone’s minimum deposit is $200, a bit higher than the industry average, but certainly justified by the trading conditions on offer. Through ASIC, a maximum leverage of 1:30 is available on Forex currency pairs. Pepperstone’s Bahamas subsidiary goes as high as 1:500 on Forex leverage.
Pros & Cons
- Excellent choice of trading platforms consisting of MT4/MT5, and cTrader
- Market-leading MT4/MT5 upgrade package, Autochartist, and API trading
- Social trading support via Myfxbook, MetaTrader Signals, and DupliTrade
- Leverage of up to 1:30 and superb trade execution
- Demo accounts have 30-day time limits
eToro
In Summary Best broker for social traders and crypto traders : 74% of retail CFD accounts lose moneyeToro 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.CFD crypto is not available for users in the US and under FCA regulation.
Pros & Cons
- Active investment community ideal for social trading
- Dedicated tools for social trading
- Broad cryptocurrency selection
- Expanding educational offering for beginner traders
- Internal withdrawal fees
Understanding What ASIC Does
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.
You might also be interested in reviewing the below top brokers:
