How To Find Licensed and Regulated Australian Forex Brokers

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There are so many Australian Forex brokers today that finding out which one is legit and trustworthy to trade with can prove to be a daunting task. Moreover, there are hundreds of Forex brokerage companies out there which are only scams stealing funds from their clients. So to avoid unnecessary headaches and problems, it’s better to trade with Forex brokers that are licensed and regulated. If you’re not familiar with regulated Forex brokers, they are actually brokers that are under the supervision of a trustworthy and legitimate regulatory body. Regulatory agencies or bodies serve to protect the clients from exploitation, hoax, and dishonest trade practices. They are tasked with monitoring the functioning of Forex brokerage companies to ensure that all rules are strictly followed. In case a dispute arises between a broker and their clients, these regulatory agencies intervene to try to resolve those issues.

Is Regulation the Same as Licensing ?

Licensed and Regulated Australian Forex BrokersTraders shouldn’t mistake being regulated as the same as being licensed. These two are completely different from each other. While a Forex broker’s license may provide clients with some sense of guarantee or security, it still has little protection when compared to regulated body’s approval. Licensing agencies are not tasked to perform the same supervision and directorial functions as a regulatory body, nor does it possess the same enforcement power. Conversely, a regulatory body has been given the authority to intervene in case a broker-trader dispute arises or when there are some trading practices that need to be reviewed in favor of the clients.

Recently, licenses have become a very popular tool for Forex scammers due to their low requirements. You can get actually get a license with a few thousands of dollars meaning that anyone can become a broker. So if you’re looking for a legit Forex broker Australia, ensure that they are both licensed and regulated

5 Best Forex and CFDs Brokers Regulated By ASIC Australia

BrokerInfoBonusOpen Account
xm best forex broker Min Deposit: $5
Spread: From 0 Pips
Leverage: 888:1 “*This leverage does not apply to all the entities of XM group.”
Regulation: ASIC, CySEC, IFSC Belize
“50% +20% deposit bonus up to $5,000, Loyalty Program Bonus “*Clients registered under the EU regulated entity of the Group are not eligible for the bonus and the Loyalty Program”Visit Broker Gain Capital review USA Min Deposit: $100
Spread: Starting 0 Pips
Leverage: up to 400:1
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Pepperstone review best forex broker in Australia Min Deposit: $200
Spread: Starting 0 Pips
Leverage: 500:1
Regulation: ASIC Australia, FCA UK
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OANDA Logo USA Min Deposit: no minimum deposit
Spread: 1.2 pips
Leverage: 50:1
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City Index forex broker Min Deposit: $100
Spread: Starting 0 Pips
Leverage: up to 500:1
Regulation: FCA UK, ASIC Australia, MAS Singapore
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ThinkMarkets Forex Broker regulated by ASIC and FCA UK Min Deposit: $250
Spread: as low as 0.1 pips
Leverage: up to 400:1
Regulation: ASIC Australia and FCA UK
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plus500 best forex broker review Min Deposit: €100
Spread: The Spread can be as low as 0.01%” (0.01% = spread for EUR/USD)
Leverage: 1:294
Regulation: ASIC, CySEC, FCA (UK)
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avatrade forex cfd broker Min Deposit: $100
Spread: Starting From 0.9 pips
Leverage: 400:1
Regulation: MIFID, FSB & ASIC
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How to Check if an Australian Forex Broker is Licensed and Regulated

In order to ensure the security of your funds, it’s highly recommended that you deal only with a Forex brokerage company that is not only licensed but also regulated. Finding out if a Forex brokerage company is regulated is very straightforward. Most broker companies in Australia (and other countries) list the regulatory policies somewhere on their websites. This information is in most cases found on their “About Us” page or similar pages. If you don’t find this info on the broker’s official website, then you’ll need to search for it in other resources or consider choosing another broker. A good Forex broker will clearly provide this information on their website for potential clients to see, so the absence of it should be a red flag.

After getting this information, it’s imperative to confirm if the broker is really registered with the right regulatory body. In Australia, it’s the Australian Securities and Investments Commission(ASIC) that has been tasked with licensing and regulating all Forex Brokers based in Australia. The duties of this commission include ensuring each broker has an Australian Financial Services Licence (AFS) and remains compliant with a stringent code of conduct. The commission also ensures that all Foreign Exchange Contracts and Derivatives are fair to traders and more importantly legal.

Any Forex Brokerage company that has been licensed to operate by the ASIC should have their current license number available on their website. This number will often link to ASIC official website where additional registration information, as well as their previous disciplinary history, will be displayed. If the broker doesn’t have their licensing information on their website, you can do this by going to the ASIC website and do a search or request a report about the particular Forex broker. From there, you should be able to access all the broker registration information.

If you experience any problems when trading with any Australian licensed Brokers, then you can contact the Australian Financial Service and seek help and assistance by filing a complaint.

In Conclusion

There are plenty of Forex brokers in Australia, but not all of them are legit and trustworthy. It’s your responsibility as a trader to find out whether a particular broker is legit or not. Make sure that the broker you want to register with is licensed and regulated by the right regulatory body – which is the ASIC.

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