HomeForex Regulation & Regulatory BodiesBest ASIC Regulated Forex Brokers In 2021

Best ASIC Regulated Forex Brokers In 2021

One of the most critical aspects when choosing a Forex broker is to check its license to operate. In other words, if it has the right to operate in the jurisdiction. Or, if it is legally regulated.

Who cares, you might ask? As a trader, you should care. Would you be comfortable knowing that some driving schools give out driving licenses to people in your city without those people actually earning them? Of course not. The same with trading – regulated brokers, offer a guarantee that the financial regulator oversees its activity and protects traders’ interests.

The list of ASIC Regulated Forex Brokers:

1
Min. Deposit
$50
Exclusive promotion
User Score
10
Leverage
30:1
New accounts
Spreads
1
PIPs
Regulations
CySEC, FCA
Forex Pairs
No Fee
Start Trading
Pros:
Join the Social Trading revolution. Connect with other traders, discuss trading strategies, and use our patented CopyTrader
eToro is the world’s leading social trading platform, offering a wide array of tools to invest in the capital markets
Largest number of currency pairs to trade
Payment Methods
Bank Transfer, Wire Transfer
Full regulations list:
CySEC, FCA
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro. Your capital is at risk.
2
Min. Deposit
$10
Exclusive promotion
User Score
9.3
Leverage
500:1
New accounts
Spreads
0.7
PIPs
Regulations
Forex Pairs
55+
No Fee
Start Trading
Pros:
Can fund with BTC
64 global companies including Netflix and Amazon
Free deposits and withdrawals
Payment Methods
Bitcoin, Credit Card, Debit Card, Wire Transfer
Full regulations list:
EagleFX offers leveraged trading on a range of assets within its platform. CFD and Spot Forex trading do carry a degree of risk which may result in you losing more than your initial investment. Please ensure you fully understand the risks involved with leveraged trading and ensure this is not detrimental to your personal or institution's financial well being.
3
Min. Deposit
$10
Exclusive promotion
User Score
8.7
Leverage
500:1
New accounts
Spreads
0.8
PIPs
Regulations
Forex Pairs
55+
No Fee
Start Trading
Pros:
55+ currency pairs available
Trade on a trusted platform
24/7 support via live chats, email or phone call
Payment Methods
Bitcoin, Credit Card, Debit Card, Visa
Full regulations list:
LonghornFX offers high-leverage trading on a wide variety of assets. Trading with leverage carries a degree of risk which may result in losing more than your investments. Clients should practise risk management to protect themselves from losing more than they can afford when trading with leverage.
4
Min. Deposit
$200
Exclusive promotion
User Score
8.5
Leverage
500:1
New accounts
Spreads
0.5
PIPs
Regulations
FMA New Zealand, FSPR
Forex Pairs
27+
No Fee
Start Trading
Pros:
BlackBull Markets’ unique feature lies in its stated goal of delivering an “institutional” trading experience to retail clients
No-Dealing Desk Broker (NDD), with Straight Through Processing (STP) all done on a true ECN
State of the art Equinix servers, based in New York (NY4), London (LD5) and Tokyo (TY3)
Payment Methods
Bank Transfer, FasaPay, Mastercard, UnionPay, Visa, neteller, skrill
Full regulations list:
FMA New Zealand, FSPR

Who is the ASIC?

The Australian Security and Investment Commission (ASIC) oversees financial activities in Australia to protect consumers, investors, and creditors. It has various roles and responsibilities in areas like corporate governance, financial services, consumer protection, or financial literacy.

It offers a high level of regulatory oversight and enforces brokers to adopt fair, consumer-oriented practices.

What is an ASIC Regulated Broker?

For a broker to operate in Australia, it must hold an ASIC license. It means it is regulated, and typically the license or registration number is publicly advertised on the broker’s website.

It’s in the broker’s interest to make regulation public to be considered reputable. To earn and keep a license to operate in Australia, one of the most important Forex trading hubs in the world, is no easy feat.

A regulated broker complies with rules set by ASIC, like maintaining a safe trading environment or proving financial sustainability. Moreover, it must maintain high operational standards and present constant audits.

How a Broker Becomes ASIC Regulated?

Proof of financial sustainability (minimum 1 million AUD) is one thing. Regular audits are another. Segregated accounts come to complete the most essential points.

An ASIC regulated broker must follow strict compliance, though the registration process is easy to understand and implement, the broker must meet all the points which vary.

ASIC is famous for its wide range of free online resources and transparency when it comes to the conditions to meet for becoming regulated.

How ASIC Regulation Protects You?

  • Funds safety – clients’ funds are kept in segregated accounts usually at a custodial bank that works with the broker
  • Local representative – ASIC regulated brokers must have an official representative in Australia and can’t operate from overseas
  • Audited books – regular audits ensure business viability, thus protecting its clients
  • Financial dealings transparency – open and honest financial marketplace, fair to all parties involved

Conclusion

ASIC regulated brokers operate in a safe environment under the regulator’s umbrella. Traders may feel safe that their interests are well represented, and the regulator oversees the financial health of each broker.

Funds deposited with ASIC regulated brokers are safe and guaranteed. Moreover, ASIC is one of the few regulators that allow high-leverage trading, unlike other regulators from different jurisdictions. It is no wonder traders favour ASIC brokers to enjoy both a safe trading environment and high-leverage availability. This may soon change however like the look to mirror global counterparts.

Regulating the Forex market ensures fair and ethical business between parties and we would always recommend that you choose a broker that is regulated by the overseeing body in your jurisdiction. It makes trading less one-sided and forces risk management to be put at the forefront of clients minds to help protect them.


FAQ’s

Do ASIC brokers impose the FIFO rule?

No. FIFO (First In First Out) rule means traders must close the open positions on the same currency pair in the order of their opening. ASIC doesn’t impose such a condition. Also, hedging is allowed under ASIC regulations.

Is my money safe with an ASIC regulated broker?

Yes. ASIC brokers must keep clients’ funds separately, in an Australian custodial bank, without using them for operating activities.

Is it true ASIC brokers offer 1:300 and 1:400 leverage?

Yes. ASIC allows high-leverage trading when compared with the US or European regulations. However, with high leverage, traders should emphasize strict money management rules to avoid unnecessary losses. There may however look to lower leverage to keep in tune with global standards.

Should I prefer an ASIC regulated broker in Australia?

Why not? Being regulated by a regulator like ASIC suggests credibility and safety for the retail trader. The broker must obey strict rules to earn and keep its license, and that represents a guarantee for the trader that the broker is legitimate.


For more regulated brokers by highly respected authorities see below:

 

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