It is usual for any leading Forex broker to choose ASIC as their preferred regulator. There is a huge potential market of investors and traders in Australia, with ASIC working hard to safeguard their interests. If brokers want to take advantage of this market, then they are legally required to register with ASIC, and they will then enjoy an enviable position. There is, therefore, a fabulous selection of reliable and honest brokers operating in Australia, thanks to the improved new ASIC regulations.
Who Exactly Are ASIC?
ASIC is the Australian Securities and Investments Commission. They operate as an independent Commonwealth Government body which regulates across a broad sector of financial services and markets. Their overall aim is to ensure fair, transparent and efficient business systems, change behaviours, and help Australians to control their own financial lives.
Their Primary Responsibilities
ASIC strives to ensure fair trading practices and monitors any service provider within the finance industry. They regulate Australian financial companies, markets, agencies, and also investment advisers and dealers. In simple terms they:
Administer and implement the law effectively
Provide information to promote innovation and develop market activity
Control the storage, use, and management of relevant information
Collate and share information on all companies, with easy public access
Change behaviours to facilitate better investor and consumer outcomes
Maintain and hold firms to account
Develop industry integrity by taking action against any misconduct
How ASIC Protects You As A Trader
If you are considering Forex trading, then regulation should be the number one consideration when selecting your broker. The protection offered by ASIC regulation ensures your safety and security in the financial arena, together with the reliability of the broker. They ensure that the broker delivers what is promised and operates within the law when providing services.
Forex brokers who are licensed by ASIC are renowned for their compliance procedures and regular, strict audits. They are also required to work only with tier-1 banks and keep client funds in a separate account, which can not be accessed for any other purpose. ASIC also ensure that you are covered for compensation should your broker become insolvent for any reason.
With any broker who is not regulated, there are no controls, and you have no way of knowing their business ethics. Any money you deposit or invest may not be secure or directly under your trading control. You may also find it difficult to withdraw any profits. For these reasons and many more, it is vitally important to only invest with brokers who are fully and correctly registered and regulated.
Your Trading Relationship With ASIC
ASIC provides a vast scope of trader services, from protecting you from financial scams to informing you about all the codes of practice you need to be aware of before commencing Forex trading.
ASIC also works to improve traders knowledge and protect them from market volatility and has introduced a considerable selection of education programmes to help investors with ways to maximise returns. You can contact ASIC with any complaints which will always be investigated thoroughly. They also independently investigate tip-offs and misconduct to ensure that Australian financial markets are protected from abuse and retain their integrity.
How To Choose Your ASIC Broker
ASIC has attracted some of the most prominent leading FX brokers in the industry, so you are spoilt for choice in Australia. As a trader, it is your responsibility to ensure the safety of your money by checking out the broker before you start trading with them. Many brokers today both misrepresent facts about regulations and take part in fraudulent activities. So your priority must always be to check that they hold an AFSL license and are regulated by ASIC. Brokers should display a unique AFSL number, which you can verify on the ASIC website. Here you can also find information on each broker on their database, allowing you to learn more before you open an account. If any broker is not entirely transparent about this information, you should think twice about dealing with them.