ASIC stands for Australian Securities and Investment Commission which is a financial regulatory institution in Australia that supervises all Australian financial markets, including the settlement and clearing of all securities in the country.
When looking for the best forex brokers regulated by ASIC, the one you choose is as crucial as how you trade, so you need to choose wisely. Every forex broker listed below accommodates Australian clients. However, forex traders based in Australia will usually select an ASIC-regulated provider to deal with for their protection. A few of the things to remember when looking for an ASIC-regulated forex broker include the leverage a trader can use, the allowed assets to be traded, and the trading software options, to name a few.
In This Guide
ASIC, CBI, BVI, FSCA, IIROC, FFAJ, JFSA, ADGM FRSA
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FCA, ASIC, CIMA, SIBL
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VFSC, FSC, IBFC
Interactive Brokers is a leading US-based online broker founded in 1977. This provider allows you to trade over 120 world markets, such as stocks listed on the ASX or Australian Stock Exchange. Besides forex pairs, the broker also allows its clients to trade futures, options futures, stocks, funds, and bonds.
They may be a US-based broker, but they also accept traders from Australia through its subsidiary Interactive Brokers Australia Pty Ltd., which ASIC regulates. Some traders might find the broker’s commission schedule a bit complex, but its fees are reasonable for high-volume trading.
Pepperstone is another leading forex broker regulated by ASIC. The company was established in Melbourne in 2010. One of the broker’s most significant advantages is the capability for clients to do Forex trading at a low trading cost. Large currency pairs like USD/EUR, USD/GBP, and JPY/USD can be treated with very low spreads starting from 0 pips.
In terms of exclusive benefits, Pepperstone has an Active Trader Program which gears towards premium clients. Also, the company provides rebates for Australian clients but will depend on the trading volume generated every month. To simply put it, the more trades, the higher the commission discount clients will receive.
If you are new to forex and opt to explore the industry; AvaTrade is for you. This company is one of the ASIC-regulated forex brokers that also caters to beginners. It’s the leading Forex and CFD regulated on five continents, where offices are stationed in nine countries.
AvaTrade is ideal for new traders because it offers a comprehensive and extensive educational section on the website. The broker provides a well-curated guide on trading with everything beginners need to know to trade CFDs and Forex confidently. With excellent educational resources, AvaTrade’s MT4 software solution is easy to navigate, accessible, flexible, and responsive with various analytic tools, allowing micro lot trading and assuring complete data security and back-up.
Australian traders who are cost-conscious and opt for low-commission trading choose the Fusion Markets. The brokers claim to provide the lowest Forex trading commissions compared to other ASIC-regulated forex brokers, having a commission rate of nearly 36% lower.
Fusion Markets also has a more extensive range of Forex pairs than other ASIC forex brokers, with over 90 pairs traded with a leverage of up to 1:30 without the need to deal with desk execution. For deposits and withdrawals, Fusion Markets do not implement any fees for any payment options.
You can add IG Markets to the list of the best-regulated forex brokers in the world. Besides the ASIC regulation, it’s also overseen by the FCA, FINMA, and MAS. It is even on the London Stock Exchange list. The broker implements strict rules on internal processes where funds are kept in a separate trust account. In these trust accounts, the funds cannot be used to pay debts to other clients of fund business operations.
IG Markets provides tight spreads starting at 0.6 pips on the USD/EUR and fast execution on one live account. The commissions are not charged, and the clients are allowed to access leverage of up to 30:1.
As you read this article, you are sure how regulators play a big part in forex trading. Regulators and overseers like ASIC give peace of mind to traders that what they invest is secured and that they are trading through brokers regulated by reputable agencies. This also prevents trade and online scams that can affect your forex trading experience if you are not meticulous enough to choose your broker.
Yes. Forex trading in Australia is legal. However, brokers need to secure an Australian financial services license (AFS) from ASIC to accept traders who are residents in Australia legally.
ASIC is one of the many global regulators in the trading industry. This overseer has also built a reputation for assuring trading security and harshly dealing with bad brokers. In March 2021, the agency implemented an even secured regulatory environment, including segregated accounts, negative balance protection, customer satisfaction, and dispute resolution, among others.
As you may know, Australian brokers need to be licensed before they can accept clients. Along with having a license is complying with the regulations set by ASIC. This includes the availability of information to traders when they need it. With this, traders can gather enough information about the broker before making trades.
The first thing you need to do is select a Forex broker. It will serve as your bridge between you, the trader, and the Forex market. As you explore different forex brokers, remember that they all vary in various aspects. Each has trading conditions, individual educational material and trading costs, and a selection of trading platforms. Remember to select those brokers regulated by the ASIC.
Even if your capital and brokerage are overseas, all profits from forex trading are taxable. Australians need to declare taxes the same as any other income, regardless of trading as a company or an individual.