The Australian Securities and Investments Commission (ASIC) is Australia’s integrated corporate, markets and financial services regulator. It licenses and supervises forex and CFD brokers under the Australian Financial Services (AFS) licensing regime and is regarded as a tier-one regulator globally.
What ASIC regulation means for traders
Brokers holding an AFS licence must meet substantial obligations:
- Client money rules: retail client funds are held in segregated trust accounts.
- Leverage caps: since 2021, retail leverage is capped at 30:1 on major FX pairs, with lower limits on other assets.
- Negative balance protection: retail clients cannot lose more than they deposit.
- Conduct and disclosure standards: clear risk warnings and fair-dealing requirements.
How to verify an ASIC broker
Every licensed firm appears on ASIC’s public registers with an AFS licence number. You can search ASIC Connect on the official ASIC website to confirm a broker’s licence status and authorised activities. Note that some brokers operate multiple entities — the protections you receive depend on which entity holds your account, so check the specific entity you are onboarded with.
In short
ASIC regulation places a broker under one of the most respected supervisory frameworks in the Asia-Pacific region. It raises the bar on client-fund safety and conduct, though it never removes the inherent risk of leveraged trading. Compare ASIC-regulated brokers in our broker reviews.