ASIC Regulated Forex Brokers - List of Best Picks

The Australian Securities and Investments Commission (ASIC) is widely regarded as one of the most reputable and stringent financial regulators globally. Based in Australia, ASIC ensures that its regulated brokers adhere to high standards of transparency, fairness, and financial security. It enforces strict compliance with its guidelines, providing traders with a safe and trustworthy trading environment. 

While ASIC regulation does not guarantee trading success, it offers a significant layer of protection for investors. In this detailed review, we will explore some of the best ASIC-regulated forex brokers, their unique features, and the benefits they provide. Additionally, we will provide a comprehensive list of ASIC-regulated brokers for your benefit.

Understanding ASIC Regulation

Established in 1998, the Australian Securities and Investments Commission (ASIC) is an independent regulatory body that oversees financial markets and investment practices in Australia. Its regulatory framework ensures that brokers operate transparently and ethically while protecting retail investors. Below are some of the key aspects of the ASIC’s regulation:

• Segregation of Client Funds: Brokers must keep client funds in separate accounts from their operational funds to ensure security.
• Capital Adequacy: ASIC requires brokers to maintain sufficient capital reserves to meet their financial obligations. Specifically, the ASIC requires brokers to maintain a minimum operating balance of at least AUD 1 million.
• Reporting Requirements: ASIC-regulated brokers are obligated to report client activity regularly, ensuring transparency in their operations.
• Dispute Resolution Mechanisms: ASIC provides efficient dispute resolution mechanisms for any issues arising between clients and brokers.

Benefits of Trading with ASIC-Regulated Forex Brokers

• Investor Protection - ASIC's strict regulations ensure that brokers operate in the best interests of their clients.
• Financial Security - Segregation of funds and mandatory capital requirements reduce the risk of financial misconduct.
• Regulatory Oversight - ASIC continuously monitors brokers to ensure compliance with its guidelines.
• Fair Trading Environment - ASIC prohibits deceptive practices and ensures that brokers maintain transparency.

Seeing this, it's no surprise that ASIC-regulated brokers are a preferred choice for many traders. Unfortunately, some brokers claim to be ASIC-regulated in an attempt to attract unsuspecting clients. To combat this, the ASIC provides an easy way for traders to look up whether a company is under its regulation using the ASIC Connect tool. Now let’s take a look at a list of some of the best ASIC-regulated forex brokers.

Pepperstone

Pepperstone is a leading Australian forex broker that is regulated by ASIC with the license number ACN 147 055 703 under the name, Pepperstone Group Limited. The broker also holds licenses from the FCA in the UK, the CySEC in Cyprus, the BaFin in Germany, and the DFSA in Dubai, among others. 

Pepperstone offers access to over 1,200 trading instruments, including CFDs on forex, indices, commodities, stocks, cryptocurrencies, and ETFs. There are various trading platforms available for traders to use including MetaTrader 4, MetaTrader 5, Pepperstone Trading Platform, cTrader, and TradingView. One of Pepperstone’s standout features is its ultra-fast execution speeds, making it one of the best brokers for scalping gold and other assets. On this broker site, most orders are executed in less than 30 milliseconds.

Moreover, Pepperstone provides traders with some of the lowest spreads in the market. Its Standard account has a spread from as low as 1.0 pips for major currency pairs with no commission required. In contrast, the razor account features a spread from as low as 0.0 pips but charges a commission depending on the trading platform a trader uses.

For MetaTrader 4 and MetaTrader 5, the commission is $3.5 or €2.6 per side per lot, based on the account's base currency. Similarly, TradingView applies a commission of $3.5 per side per lot. In comparison, cTrader offers a slightly lower commission of $3 per side per lot. For accounts with a base currency other than USD, TradingView and cTrader commissions are converted at the spot exchange rate to the account currency. The AUD is one of the account currencies supported alongside JPY, GBP, EUR, and NZD, among others.

Positively, Pepperstone does not have a minimum deposit requirement. This gives investors the flexibility to start with any amount they prefer. Additionally, it supports a wide range of payment methods, including Visa, Mastercard, bank transfer, BPay, and PayPal.

75.3% of retail CFD accounts lose money

FP Markets

FP Markets (First Prudential PTY LTD) is an Australian powerhouse that is regulated by the ASIC with the license number, ACN 112 600 352. On top of that, this broker is also under the regulation of other well-known organisations. In particular, FP Markets also holds regulatory licenses from the CySEC in Cyprus, the FSCA in South Africa, and the CMA in Kenya.

Positively, FP Markets provides Australian traders with a deep collection of market products. With this broker, investors have access to over 10,000 different market products including CFDs on forex, indices, metals, stocks, commodities, ETFs, cryptocurrencies, and bonds. This is always a welcomed feature on a forex broker as it allows traders to diversify their portfolios as they see fit. To trade the various assets, clients can choose from MetaTrader 4, MetaTrader 5, cTrader, TradingView, and Iress.

FP Markets provides competitive spreads designed to enhance trading profitability. Its Standard account boasts tight spreads starting from 1.0 pip on major currencies, with no commission fees. Alternatively, the Raw account provides ultra-low spreads from 0.0 pips but charges a commission of $3 per side per lot.

The minimum deposit accepted by this broker is AUD 100 (or equivalent in another currency) and the broker supports a variety of deposit methods. These include Credit/Debit Cards, Bank Transfers, Neteller, Skrill, PayTrust (Local Bank Transfer), Crypto Payments, and more. There are various base account currencies supported by this broker including AUD, EUR, USD, GBP, and NZD, among others.

72.44% of retail CFD accounts lose money

Forex.com

Forex.com is another reputable broker regulated in Australia by the ASIC that offers a deep collection of market products. With this broker, Australian investors gain access to over 5,500 different market instruments. These include CFDs on forex, stocks, indices, cryptocurrencies, commodities, and precious metals. To trade these various market products, the broker provides its traders with a variety of trading platforms including MetaTrader 4, MetaTrader 5, TradingView, and Forex.com Trader.

Further, Forex.com’s parent company, StoneX, holds a license from the ASIC in Australia under the license number, ACN 141 774 727. It also has regulations by the CySEC, the FCA, the ASIC, and the CFTC and the NFA in the US. Evidently, this is one of the most heavily regulated companies in the industry.

One of Forex.com’s key strengths is its competitive pricing. It offers tight spreads starting from as low as 0.8 pips on the standard account, while the MetaTrader account provides spreads from 1.0 pips. Both accounts are commission-free. Alternatively, the Raw account has a spread from 0.0 pips, with a commission of $5 per $100,000 traded.

The minimum deposit to start trading with this broker is $100 and there are a variety of funding options supported. These include credit/debit cards, bank transfers, Skrill, Neteller, and PayPal. The AUD is one of the supported currencies alongside the USD, the GBP, CAD, and the EUR, among others.

75-76% of retail investor accounts lose money when trading CFDs with this provider.

XM

XM is a well-established global broker with a strong presence in Australia. It has regulations by the ASIC under the license number ACN 164 367 113. On top of that, XM also holds licenses from other regulators. These include the CySEC, the FCA, and the FSC in Belize. 

Further, XM is popular for offering a wide range of trading products. XM provides access to over 1,000 financial instruments, including CFDs on forex, stocks, indices, energies, precious metals, and cryptocurrencies. Traders can use advanced platforms such as MetaTrader 4 and MetaTrader 5, which are equipped with user-friendly interfaces and powerful analytical tools. They can also use XM’s Trading Point App.

The broker offers competitive trading conditions with spreads as low as 1.6 pips on its Standard account with no commission fees. On the other hand, the XM Ultra Low account offers lower spreads from 0.8 pips on major currency pairs, also without a commission. Finally, the shares account charges a commission depending on the asset traded and the size of the position. 

The minimum deposit supported by this broker is attractive as it gives traders a low entry point into trading. XM features a minimum deposit of just $5 and traders can fund their accounts through multiple payment methods. These include Wire Transfers, Skrill, Neteller, Credit and Debit cards, and PayPal. Like the other brokers we have looked at, XM supports the Australian Dollar as an account base currency.

75.18% of retail investor accounts lose money when trading CFDs with this provider.

City Index

City Index is one of the largest forex brokers in Australia.The broker is part of the StoneX Group which also operates Forex.com and is regulated by the ASIC in Australia with the license number ACN 141 774 727. As part of the StoneX Group, City Index benefits from a strong global presence and an extensive regulatory framework.

City Index provides access to over 5,000 instruments. These are from various global markets including forex, indices, commodities, shares, and bonds. With such diversity, traders can spread the risk across the various markets. The broker offers advanced trading platforms, including TradingView, MetaTrader 4, WebTrader, and mobile trading apps.

Further, this broker offers two main accounts which include the standard and MT4 accounts. The standard account is accessible via the company’s web-based platform and TradingView. It has a low minimum spread of 0.8 pips for major currency pairs with no commission. In comparison, the MT4 account has spreads from as low as 0.5 pips with no commissions except on the shares market. As the name suggests, the MT4 account is accessible via MetaTrader 4.

City Index supports multiple payment methods, including credit/debit cards, bank transfers, and PayPal. The broker has no minimum deposit requirement, making it accessible to traders with varying budgets.

70% of retail investor accounts lose money when trading CFDs with this provider.

AvaTrade

AvaTrade is another broker operating in Australia under the regulation of the ASIC with the license number ACN 143 340 907. Additionally, AvaTrade has regulations by other authorities, including the CySEC, the Central Bank of Ireland, the FSCA, and the FSA in Japan, ensuring a high standard of compliance across its global operations.

AvaTrade provides access to a wide range of over 1,250 financial instruments. These include CFDs on forex, stocks, commodities, indices, cryptocurrencies, ETFs, and bonds. One of AvaTrade’s standout features is its fixed spreads, which offer transparency and consistency. Forex traders can enjoy fixed spreads starting from 0.9 pips on major currency pairs with no commission required. The trading platforms available for traders to use include AvaTradeGO, alongside MetaTrader 4 and MetaTrader 5.

The broker’s minimum deposit requirement is $100 and there are numerous funding options. These include credit/debit cards, bank transfers, Skrill, Neteller, and PayPal. To accommodate its Australian clientele, the broker supports the Australian Dollar as a base currency, among other options.

IC Markets

IC Markets is one of the top-tier ASIC-regulated brokers, operating under the license number ACN 123 289 109. This broker also has regulation by the CySEC, the FSCA, and the FSA in Seychelles. IC Markets provides traders with access to a wide array of over 2,000 financial instruments. These include CFDs on forex, cryptocurrencies, stocks, indices, commodities, and futures.

In terms of spreads, the broker provides two main accounts to choose from. The Standard Account has spreads starting at 0.8 pips for major currency pairs and no commissions. The Raw Spread Account has raw spreads starting at 0.0 pips but requires a commission based on the trading platform used. The Raw Spread Account on cTrader has a commission of $3 per $100,000 traded, while the Raw Spread Account on MetaTrader platforms has a commission of $3.5 per side per lot.

The minimum deposit to start trading with this broker is $200. Funding methods include credit/debit cards, bank transfers, PayPal, Neteller, and Skrill, among others. The broker supports multiple base currencies, including AUD, USD, EUR, and GBP, providing flexibility for its diverse clientele.

List of ASIC-Regulated Brokers

In addition to the brokers mentioned above, here is a comprehensive list of ASIC-regulated brokers:

• Admiral Markets Pty Ltd
• AETOS Capital Group Pty Ltd
• Axitrader Pty Ltd
• Blueberry Markets Pty Ltd
• City Index Australia Pty Ltd
• EasyMarkets Pty Ltd
• EightCap Pty Ltd
• Forex.com Australia Pty Ltd
• GO Markets Pty Ltd
• HFM (formerly HotForex) Pty Ltd
• IG Markets Limited
• OANDA Australia Pty Ltd
• Pepperstone Group Limited
• Plus500AU Pty Ltd
• Rakuten Securities Australia Pty Ltd
• Saxo Capital Markets Australia Pty Ltd
• ThinkMarkets Pty Ltd
• Vantage Markets Pty Ltd
• XM Australia Pty Ltd
• FP Markets Pty Ltd
• IC Markets Pty Ltd
• CMC Markets Asia Pacific Pty Ltd
• IG Australia Pty Ltd
• AvaTrade AU Pty Ltd
• Fusion Markets Pty Ltd
• Global Prime Pty Ltd
• FXOpen AU Pty Ltd
• GO Markets Pty Ltd
• ThinkMarkets Pty Ltd
• Vantage Global Prime Pty Ltd

Final Comments

ASIC is a highly respected financial regulator that enforces stringent guidelines to ensure a secure and transparent trading environment. Brokers regulated by ASIC adhere to high standards of financial security, operational transparency, and investor protection. The brokers highlighted in this review exemplify the quality and trustworthiness associated with ASIC regulation. 

While these brokers offer excellent features and services, this is not an exhaustive list. When choosing an ASIC-regulated broker, consider factors such as the instruments offered, trading platforms, spreads, and commissions. Remember, conducting thorough research and comparing different brokers is essential to find the one that best aligns with your individual needs and trading goals.