Best ASIC Regulated Forex Brokers 2019
Did you know one of the biggest factors affecting a trader’s decision to use a broker is where they are regulated? The Australian Securities & Investments Commission (ASIC) offers a high level of regulatory oversight including the requirement to keep client funds in segregated accounts in the biggest banks in Australia, among other trader friendly rules.
The brokers below represent the best ASIC Regulated Forex Brokers.
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By 11 User Reviews
cTrader, MT5, Zulutrade
By 5 User Reviews
IRESS, MT4, MT5
By 14 User Reviews
ASIC, CySEC, FCA, MiFID
No dealing desk, STP
By 7 User Reviews
ECN, Market Maker, No dealing desk, STP
cTrader, Mirror Trader, MT4, MT5, Zulutrade
Bank, DMA, ECN, No dealing desk, STP
By 15 User Reviews
MT4, MT5, myFXbook, Zulutrade
IC Markets was founded in Sydney, Australia in 2007 and is regulated by the Australian Securities and Investments Commission (ASIC), as well as the Seychelles Financial Services Authority (FSA). According to the broker’s website, they processed $646 billion worth of trading volume in April 2019 alone.
While the broker offers services and features designed for both beginner and professional traders, the company promote themselves as the ‘go to’ choice for high volume traders, scalpers and trading algos due to their New York Equinix NY4 data centre – processing over 500,000 trades per day.
FP Markets is the brokerage arm of First Prudential Markets Pty Ltd, an Australian firm which was established in 2005. In over 14 years of brokerage operations, FP Markets has grown to become a foremost online forex and CFD broker.
The Head Office is located in Sydney, Australia. The brand has won multiple industry awards in areas like; customer service, trader education and trade execution. Here are some advantages of trading with FP Markets:
- Over 10,000 trading instruments to choose from.
- Modern trading platforms.
- Low spreads on forex currency pairs.
- Regulated brokerage conditions.
- Multilingual and efficient customer support
Admiral Markets is an online forex and CFD trading and investment services provider. Admiral Markets is the brand name of the Admiral Markets Group which was founded in 2001. The company has offices in London (UK), Tallin (Estonia), Nicosia (Cyprus) and Sydney, Australia.
Here are some features when trading with Admiral Markets:
- Variety of platforms and technologies available across multiple devices.
- Multiple licenses from different Financial Regulators.
- Expert tools and analysis to guide the traders.
- Educational training materials and videos.
- Over 7,000 trading instruments available.
GO Markets Pty Ltd an ASIC regulated broker has been in operation since 2006. The head office is located in Melbourne, Australia. With over a decade of experience, GO Markets has grown to become a leading broker with a huge client base from over 150 countries. GO Markets offers forex, share CFDs, indices, metals and commodities for trading on the MT4 and MT5 trading platforms.
Pepperstone was founded in 2010 in Melbourne, Australia, and is regulated by the Australian Securities and Investments Commission (ASIC), as well as the UK’s Financial Conduct Authority (FCA). According to the broker’s website, they process an average of $12.55 billion trades every day with over 73,000 traders around the world.
*Pepperstone has a beginner educational content in its YouTube channel. In addition, a new educational content section is expected to be ready on Pepperstone’s website.
Vantage FX was founded in 2009 in Australia and is the brand name of the Vantage International Group which is regulated by the Cayman Islands Monetary Authority (CIMA) and advertises the segregation of client funds which are held with Australia’s AA rated National Australia Bank (NAB).
The broker offers services that are designed for both beginner and professional traders with access to Forex ECN trading, as well as CFD trading on Indices, Commodities and U.S and Hong Kong Shares on the MetaTrader 4 and MetaTrader 5 trading platforms for Mac, PC, iOS and Android as well as social trading platforms such as MyFXbook and Zulutrade.
Clients of Vantage FX have access to an impressive range of educational materials and research tools including MT4 SmartTrader Tools, a wide variety of promotional trading offers and rebate programs, as well as access to accounts with 500:1 leverage.
Introduction to ASIC Regulation
The Australian Securities & Investments Commission (ASIC) is a leading regulatory agency which supervises the securities and investment market in Australia. In other words, the organization takes on the roles of the markets regulator and the financial services regulator. It is a standalone governmental organization that was first introduced in 1998. However, in recent years the ASIC began implementing new and advanced regulatory guidelines to ensure all businesses trading in financial markets are adhering to the strict rules put in place by global regulatory standards. So, in 2009, the Australian Stock Exchange was put under ASIC regulation due to the organizations operation under the Corporations Act (2001).
By working under all this legislation, ASIC is able to ensure that the companies supervised under them, will abide by the laws put in place by the government to preserve integrity in the markets. That being said, the ASIC overlooks some of the best regulated Forex broker companies in Australia.
The primary objective of the ASIC is to provide fair trading standards between the businesses it monitors and the investors they provide their services too. This agency strives to be the best protector and leading regulator in the Australian financial market. To do this, the ASIC must monitor Australian companies, financial markets, investment dealers and advisers, financial services agencies, insurance companies and credits.
That being said, the main goals and responsibilities the ASIC must achieve, are as follows:
- Maintain, and hold to account the firms that make up the finance industry
- Provide valuable information and security, to promote and grow activity in the market.
- Administer the law effectively.
- Implement the law in an effective way.
- Articulate storage and management of information.
- Provide quality information on companies which can be easily accessed by the public.
A broad sense of the areas of responsibility include:
- Corporate governance
- Financial services
- Securities and derivatives
- Consumer protection
- Financial literacy
Basically, the ASIC is responsible in providing experienced investors and consumers safe and secure financial markets to trade. They do this by implementing their rules and regulations on the brokers under their supervision, ensuring they have only reputable and safe companies attached to their organization. They seem to be achieving these responsibilities and goals, for they are considered one of the most highly reputable agencies in the market that deal with maintaining and protecting the investors’ interests.
How ASIC Regulation Can Protect You
Regulation is of the upmost importance in today’s financial trading market. The regulation offered by ASIC provides safety, reliability, and security when trading in the financial arena. Without regulation, there is no control over the ethics businesses might follow. The money you invest may not be secure or under your control. Profits made might be difficult to withdraw. Everything could be at risk. For these reasons, its important to invest in companies who are regulated.
The ASIC protects you- the investor, by offering you investor compensation on your deposit should the broker you are trading with become insolvent. So you can trade knowing that your deposit is protected. They make sure you receive what is promised from your brokers. But investors are not the only ones who benefit from regulation. The broker companies benefit as well by getting more clients based on the trust factor that the license brings to potential clients.
Another way the ASIC protects you is that they provide the public with online reports and work with the public in any investigation done by ASIC. This is a great form of communication, and shows they care about the individual investor. They will work with anyone to help hold the fraudsters of the Australian Financial realm to account.
They also provide a lot of free online resources geared towards informing investors about the financial and trading markets. They educate consumers about the ins and outs of investing in the financial market. This shows through their free and informative financial portal known as MONEYSMART. ASIC has a strong commitment to being a consumer-friendly organization, which helps protect consumers with the power of knowledge.
Another important piece of protection provided by ASIC is the assistance to investors who have money trapped in insolvent companies.
Lastly, the ASIC protects investors and consumers through their extensive rules, regulations, and guidelines to ensure companies follow best practices and deter them from any scams. They enforce this by monitoring all of their licensed member firms and are quick to act on any alleged deviations from their regulatory guidelines.
Guidelines for ASIC Regulated Brokers
ASIC has implemented the global standards of Forex broker regulation, and because of this, brokers must be capitalized to the tune of at least $1 million in operating funds. In addition to this, the brokerage firms must work with only tier 1 banks for segregating their clients’ funds from their own corporate accounts. This means that the broker may never access or use the funds for their own purposes.
In addition to this the ASIC requires all brokers to hold an AFC licence (Australian Financial Securities Licence). This license enables brokers to conduct trading legally in the region.
Furthermore, regulated brokers are required to follow the guidelines of the AFC. These include; sufficient capitalization, following ample risk management standards to protect them and their clients from unnecessary risks, to provide conflict resolution between the company and their clients and to put in place compensation arrangements.
As we have seen ASIC as a regulator is important in protecting its investors. As such Australian traders are spoiled for choice when it comes to the quality of their brokers. As a result of the wide choice, it can be hard to know who to trade with and that’s why FXEmpire are here to help. Here is the FXEmpire recommended brokers with ASIC regulation.