ASIC Regulated Forex Brokers, are fx brokers that are fully regulated by the Australian Securities and Investments Commission and have a physical presence in the Australia.
Here is a list of ASIC Regulated Forex Brokers
MAS, JFSA, DIFC
What is the ASIC Regulation?
The Australian Securities and Investments Commission (ASIC) is one of the oldest regulatory bodies for financial services, that supervises the securities and investment market in Australia. It is a standalone government organization that was first introduced back in 1998. ASIC nowadays oversees the operations of some of the top forex brokers in Australia, as the country’s financial sector has been growing for the past decade. ASIC is also responsible to oversee the operations of the Australian Stock Exchange. It acts as an independent regulatory organization for both the brokers and the investors.
How does an ASIC regulation protects the trader
So what does it mean trading with an ASIC regulated forex broker? As ASIC is considered to be one of the most strict and efficient regulators in the world, many traders prefer to trade with brokers regulated by this body as they feel more safe.
ASIC enforces the following rules and safeguards that protect traders and investors:
- All brokers are required to keep client funds in segregated accounts
- ASIC requires that all trading on a brokers platform needs to be seamless and there should be no interference with any clients positions.
- Forex Brokers need to maintain at least one million dollars in operating capital in order to get their ASIC license.
- All Brokers are required to hold an AFC license as well (Australian Financial Securities License). This license enables brokers to conduct trading legally in the region.
ASIC also has a few advantages for forex traders:
- ASIC does not enforce a FIFO rule. This means traders can close any position they want regardless of when they opened it
- ASIC does not enforce a no hedging rule. Traders can hedge their trades if the broker supports this option.
- ASIC does not enforce a leverage limit for any kind of traders