January 5, 2020 | AtoZ Markets – The Forex market is the world’s largest trading market, where nearly $5 trillion traded daily. It is a legitimate trading market where the world’s currencies are traded.
While Forex is not a scam in itself, there are many scam Forex brokers in the market. Before we show you the top five ASIC Forex brokers in 2021, let's first understand what ASIC is and why you should choose ASIC regulated Forex brokers.
What is ASIC?
The Australian Securities and Investments Commission (ASIC) is one of the oldest regulators in the market, having started off its journey as the Australian Securities Commission (ASC) in 1989. Over the years, the agency witnessed a host of changes in the way they operate by adding multiple industries under its regulatory oversight and was renamed in 1998 as the Australian Securities and Investments Commission.
The ASIC is responsible for overseeing the activities of a wide range of industries ranging from insurance companies, corporate governance, securities and investments, fund management, credit organizations, and other financial services.
ASIC regulated brokers are now considered to be one of the best in the industry due to the advanced regulatory oversight and several reforms that enabled ASIC to become a highly preferred regulatory agency. In its latest avatar, the ASIC is responsible for regulating the Australian Stock Exchange and acts as an independent regulatory organization for all market participants, including brokers as well as investors.
That said, why should you choose ASIC regulated Forex brokers?
Why should you trade with ASIC Forex brokers?
There are few genuinely strong regulators in the world; the UK’s Financial Conduct Authority is one, the Cyprus Securities and Exchange Commission is another, and most would agree that ASIC is also a member of this group. ASIC has already built a reputation for guaranteeing trader security and dealing harshly with bad brokers, but recent reports show that ASIC is planning an even stricter regulatory environment in the coming months. We will talk about what that environment might look like in more detail below, but first, let’s look at the current benefits of trading with an ASIC-regulated broker.
- Segregated Accounts: Like most good regulators, ASIC ensures that all brokers keep client funds segregated from broker operational funds and in Tier 1 Australian banks.
- No Leverage Limit: There are currently no limits on maximum leverage offered by brokers, though this is likely to change in the next year. While leverage limits can protect traders, especially beginners, it can make scalping strategies more difficult.
- Dispute Resolution and Customer Satisfaction: The Australian Financial Complaints Authority (AFCA) handles all disputes between traders and brokers and are known for efficiency and fairness. Importantly, brokers are responsible for the cost of the resolution and not the trader – this provides an incentive for brokers to respond quickly and fairly to all customer complaints. Unsurprisingly, ASIC Forex brokers are consistently rated very highly for customer satisfaction.
- No Conflict of Interest: ASIC has banned all Forex brokers from being a counterparty to their client’s trades, furthermore all brokers are required to offer a fast and efficient platform with no broker interference. It is perhaps as a result of these restrictions that Australia hosts many of the world’s best ECN brokers.
How to choose ASIC regulated Forex brokers?
All ASIC Forex brokers are safe due to the strict regulatory environment in which they operate, and most of them are very strong all-round. But it is essential to look at the detail of each broker to find out what differentiates them from each other. When looking for an ASIC-regulated Forex broker, it is important to judge them on the following areas:
- Broker Type: Most brokers are either ECN/STP or Market Makers, but some can be a combination of both. You will find that many brokers will provide an ECN/STP service on their higher-deposit account types while acting as a Market Maker for their Cent and Standard accounts. Many of the best ASIC regulated brokers are ECN/STPs.
- Trading Conditions: This includes what kind of spreads are available, how much leverage is offered, and how many currency pairs are available. These factors will directly impact your profit or loss, so you don’t want any surprises.
- Trading Platform: MetaTrader 4 is still the industry standard, but many brokers offer MetaTrader 5 and/or their proprietary platforms. ECN/STP brokers will often support cTrader as it is built specifically for market execution and only allows for minimal broker interference.
- Minimum Deposit: This changes by account type for many brokers, with higher minimum deposits often linked to better trading conditions. We will always highlight the minimum deposit available regardless of the account type.
- Deposit and Withdrawal Methods: All brokers accept traditional payment types such as debit/credit cards and bank transfers, many accept online payments through Skrill and Neteller and some will also accept Bitcoin. Always check for deposit and withdrawal fees, a few brokers charge a percentage fee for some withdrawals methods, making large drawdowns very expensive.
Now we know more about the Australian financial watchdog, its functions, and benefits. Who, then, are the top 5 ASIC Forex brokers in 2021?
Top 5 ASIC Forex brokers in 2021
The brokerage firms below are AtoZ Markets' top picks for the best ASIC regulated Forex brokers in 2021. They are:
- Vantage FX
- Moneta Markets
Pepperstone is an Australian Forex broker established in 2010 which has enjoyed a remarkable growth rate since its founding. In less than a decade, it grew its client base to over 57,000, with an average daily transaction size of $12.55 billion.
Tight spreads and fast execution speeds make this broker an excellent choice for scalpers and automated trading solutions. Over 150 assets are available from three trading platforms, regulated by industry heavyweights- ASIC in Australia, the FCA in the U.K., and the DFSA in Dubai. With numerous global awards, this broker possesses the proper fundamentals to further increase its market share. Pepperstone will achieve this through the noted scale of a fintech company and the agility of a startup.
- Leverage available for both forex and cryptocurrency trading
- Fast and fully digital account opening
- Seamless and free deposit and withdrawal
- Excellent customer service
- Wide range of educational tools and courses that both experts and beginners
- Not currently available to U.S. traders
- No investor protection for clients outside the EU & UK
Open Pepperstone Live Account
Founded in 2007, Axi (previously known as AxiTrader) is an award-winning, ASIC regulated Forex broker. Axi is a wholly-owned subsidiary of AxiCorp Financial Services Pty LTD, based in Australia. They offer tight spreads, low commissions, good execution, and a range of different markets. Advanced platforms and trading tools add to the overall online trading experience.
Axi has signed a multi-year global sponsorship as the ‘Official Online Trading Partner’ of the English Premier League club Manchester City FC, a move the brand hopes will increase brand awareness for the company's new name.
- Low forex fees and no inactivity fee
- No withdrawal and deposit fees
- Segregated client funds
- Fully digital account opening
- No US clients
- Restricted leverage for EU clients
- 24/5 customer service
Open Axi Live Account
Royal is a brokerage company established in 2006 by a team of trading professionals to offer optimal trading conditions, tailored services, and support. This broker has made a name in Australia with the ASIC license to offer services using the latest technological advances, and contemporary methods.
Originally, the broker headquarters in Lebanon, but due to the rapid spread in the world, the company also established an office in Cyprus, while fully complying with applicable regulations.
- Fast account opening
- Regulated by ASIC and CySEC
- Negative Balance Protection applied
- Cross border licenses and global coverage
- The demo account is for 30 days only
Open Royal Live Account
4# Vantage FX
Vantage FX is a leader among Australian Forex brokers and gives traders the ability to access the Forex markets, Cryptocurrencies, Indices, Commodities, and Shares CFDs.
The company has received consistent recognition as a secure, safe forex broker that provides highly transparent access to the markets.
Vantage FX was founded back in 2009 with the founders consisting of a highly specialized team with experience in technology, forex, and finance. The goal behind Vantage FX was to assist clients with pursuing financial goals by providing powerful trading platforms, transparent forex market access, award-winning customer service, and exceptional execution speed.
Vantage FX pros
- Strict regulation
- Low fees
- Super fast account opening
- Segregated client funds
- Seamless deposit and withdrawal
Vantage FX cons
- No US clients
- Restricted leverage for EU clients
Open Vantage FX Live Account
5# Moneta Markets
Launched in 2019, Moneta Markets is a trade name of Vantage International Group Limited which is authorized and regulated by ASIC as well as the Cayman Islands Monetary Authority (CIMA).
The broker offers access to more than 300 tradable instruments including FX currency pairs, stock indices, commodities, and Share CFDs. This brokerage firm also offers investor protection by holding client funds in segregated accounts with the National Australia Bank and by offering facilities to help clients avoid negative balance in certain situations.
Moneta Markets pros
- A regulated Forex and CFD broker
- High leverage ratio of up to 1:500
- Free demo account
- User friendly trading platform
- Low trading fees
- Swap-free trading account is available
Moneta Markets cons
- No US clients
- No MetaTrader platform
- Demo account expires in 30 days
Open Moneta Markets Live Account
Now that we understand that the ASIC is an important global regulatory agency that gives out licenses and protects the Forex traders, you can go ahead and select one of these recommended top 5 ASIC Forex brokers in 2021 and start trading safely because they protect your interests on the highest level.
However, what can you do in case of a complaint against ASIC regulated Forex brokers?
ASIC entertains complaints clients of regulated Forex brokers through the various Federal agencies and also encourages companies to resolve issues at the broker level. In case the investor is unable to obtain a favorable response, he/she can also approach the Financial Ombudsman service or contact a higher authority such as the Court for resolution of the matter.
Nevertheless, Australian Forex brokers are highly proactive in their approach and usually, resolve customer issues by working with their clients on finding a good resolution. The ASIC guidelines have indeed helped in achieving low levels of scams, which help traders to enjoy absolute peace of mind while dealing with ASIC regulated FX brokers.
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