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Regulator profile · Australia

ASIC: is it a good forex regulator?

Australian Securities & Investments Commission

Tier 1 · Top-tier onshoreGovernanceExcellentTrading flexibilityLow
Tier 1 · Top-tier onshore

ASIC · Australia

Australian Securities & Investments Commission

A rigorous onshore regulator that tightened retail CFD rules sharply in 2021 and has kept them in place.

Retail leverage
Retail CFDs capped from 30:1 down to 2:1 under a product intervention order in force since March 2021 and extended to May 2027, with negative balance protection.
Compensation
No dedicated compensation fund for CFD clients. Disputes go to the Australian Financial Complaints Authority (AFCA).
Capital
Licensees must meet ASIC financial requirements under their Australian Financial Services Licence.
Supervision & substance
Australian Financial Services Licence with local responsible managers, ongoing reporting, and active enforcement.
Stocks, futures & crypto
ASIC also oversees share trading and futures under the same licensing system. Crypto CFDs are capped at 2:1 for retail clients, and laws bringing crypto platforms under financial services licensing are progressing.
Trade-off
Many Australian groups also run offshore entities to offer higher leverage. Check which one you are signing with.

What it means for you: Strong protection for retail clients of the Australian entity. Do not assume an Australian brand means an Australian account.

Common questions about ASIC

Is ASIC a good regulator for forex brokers?

In our view, ASIC is a top-tier regulator (Tier 1 · Top-tier onshore). A rigorous onshore regulator that tightened retail CFD rules sharply in 2021 and has kept them in place. Strong protection for retail clients of the Australian entity. Do not assume an Australian brand means an Australian account.

What leverage can brokers regulated by ASIC offer retail clients?

Retail CFDs capped from 30:1 down to 2:1 under a product intervention order in force since March 2021 and extended to May 2027, with negative balance protection.

Is there a compensation scheme if a broker regulated by ASIC fails?

No dedicated compensation fund for CFD clients. Disputes go to the Australian Financial Complaints Authority (AFCA).

Does ASIC regulate stocks, futures, or crypto?

ASIC also oversees share trading and futures under the same licensing system. Crypto CFDs are capped at 2:1 for retail clients, and laws bringing crypto platforms under financial services licensing are progressing.

A licence only protects you if your account is with the entity that holds it. Many broker groups hold several licences and onboard clients through an offshore entity. Check your client agreement, and verify the licence on the regulator's own register.

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Tiers and ratings are M1 Strategic's own assessment, based on public sources listed in our regulator guide. Rules change: always verify with the regulator directly. Not financial advice.