What is ASIC?

The Australian Securities and Investments Commission (ASIC) is the premier corporate regulator in Australia. For forex and CFD traders, finding a broker regulated by ASIC is often a top priority.

Strict Capital Requirements

ASIC requires financial services companies to hold a minimum of 1 million AUD in operating capital. This ensures that the broker has a solid financial foundation and is not a fly-by-night operation.

Segregated Client Funds

By law, ASIC-regulated brokers must keep client funds in segregated trust accounts at top-tier Australian banks (like NAB, Commonwealth). This means your money cannot be used for the broker's operational expenses or hedging purposes.

The Drawback

In recent years, ASIC has tightened its rules, limiting extreme leverage for retail clients (down to 1:30 for major forex pairs) to protect casual traders from rapid losses. However, professional traders can still apply for higher leverage if they meet the criteria.