ASIC — Australian Securities and Investments Commission

Frequently asked

How do I verify a broker is ASIC-regulated?

Search the AFSL register at connectonline.asic.gov.au using the licence number or firm name. Each record shows status, authorised activities (look for "deal in derivatives" or "issue derivatives" for FX/CFD providers) and any conditions or licence restrictions.

Is there a compensation scheme for Australian retail clients?

No statutory deposit-insurance scheme equivalent to FSCS. Client funds must be segregated in trust accounts at APRA-regulated banks under client-money rules. AFCA can award up to AUD 500,000 binding on the firm in dispute resolution, but fund recovery from a failed firm depends on segregation and trust-account integrity.

What changed after the 2021 ASIC product-intervention order?

Effective 29 March 2021, retail leverage was capped (1:30 majors, down from typical 1:500), negative balance protection became mandatory, marketing inducements for retail account opening were banned, and ASIC gained a 5-year intervention power renewed in 2022. The order is currently extended to 2027.

Can ASIC-licensed brokers serve non-Australian clients?

Yes, an AFSL can support international onboarding, but most large groups use offshore entities (Vanuatu, Bahamas, Saint Vincent) to escape ASIC retail leverage caps for non-Australian clients. Verify which entity actually onboards you when opening an account — the Australian entity has stronger consumer protections.

What's on ASIC's Investor Alert List?

ASIC maintains a public list of unlicensed companies that have solicited Australian residents. The list focuses on cold-call scams, unregistered offshore forex providers and clone firms impersonating legitimate ASIC licensees. ASIC actively investigates and obtains injunctions against the most active offenders.