Australian Securities and Investments Commission (ASIC)
Tier 1Australia's strict, well-established markets regulator.
Is ASIC regulation safe? Quick verdict
Short answer: yes, ASIC is a full, top-tier regulator. Australian Securities and Investments Commission (Australia) is widely regarded as one of the strictest authorities in the world, so a genuine ASIC-licensed broker is about as safe as retail trading gets. The catch is "genuine" — fraudsters routinely fake an ASIC licence, so the verdict only holds once you have verified the licence number yourself.
How to check a broker's ASIC licence
The single best defence against a fake ASIC broker is a 60-second register check. Do this before you deposit:
- 1Find the broker's licence/registration number — it is usually in the website footer or "Legal" / "About" page, alongside the legal entity name.
- 2Open the official ASIC register at https://connectonline.asic.gov.au/ and search that number (or the company name) directly — never click a "regulated by ASIC" badge on the broker's own site.
- 3Confirm the name, website and status on the register match the broker you are about to fund. If the entity is flagged, expired, or the domain doesn't match, walk away.
4 protections an ASIC licence gives retail traders
Here is what ASIC regulation actually means for your money — the parts that matter when something goes wrong:
Segregated client funds
ASIC-licensed brokers must keep client money in segregated accounts at reputable banks, separate from the firm's own operating capital. If the broker fails, your funds are ring-fenced and should not be used to pay the company's creditors.
Investor compensation
There is no statutory investor-compensation scheme under ASIC. If the broker becomes insolvent and client money is missing, there is no government-backed fund to reimburse you — a major difference versus the FCA (£85,000) or CySEC (€20,000). This alone is a reason not to keep large balances here.
Negative balance protection
Retail clients are protected against owing more than they deposit: if a violent market move pushes an account negative, the broker absorbs the shortfall. You cannot be chased for a debt beyond your balance.
Leverage capped at 1:30
ASIC caps retail leverage at 1:30 on major currency pairs (and lower on volatile assets such as minor pairs, indices and crypto). This is a deliberate brake on risk. It is also a useful tell: any "ASIC-regulated" broker advertising 1:500 leverage to retail EU clients is lying about its licence.
ASIC-regulated brokers we track
Hover a broker to see the share of retail accounts that lose money. CFDs are high-risk.
Typical ASIC scams to watch for
An ASIC badge is exactly what fraudsters imitate. These are the patterns we see most often:
⚠The clone-broker trick
Fraudsters copy the real licence number and legal name of a clean ASIC broker, then build a near-identical website on a slightly different domain. The licence "checks out" — but it belongs to the legitimate firm, not the clone. Always confirm the exact website/domain on the ASIC register, not just the number.
⚠The bonus trap
Deposit and trading bonuses to retail clients are banned under ESMA/MiFID conduct rules. If a broker claims to be ASIC-regulated while advertising a "100% deposit bonus" or guaranteed returns, it is almost certainly not genuinely regulated by ASIC — or is steering you to an unregulated offshore entity.
⚠Registered address, but no real licence
Many offshore brokers use a mailbox address in Australia to look locally regulated without holding a real ASIC licence — or they hold a licence for a different, unregulated activity. Being based in Australia is not the same as being authorised by ASIC. Check that the specific entity and activity are licensed.
Verdict: should you trust an ASIC broker?
A genuine ASIC-licensed broker offers strong, top-tier protection. The single most important step is to verify the licence number yourself on the official register before you deposit a cent.
Below are the 12 ASIC-regulated brokers we currently track. If you are unsure whether your broker really plays by the rules, read our reviews or compare verified, safe alternatives.
Frequently asked questions
Is ASIC regulation safe?+
Yes — a ASIC licence is a top-tier sign of safety, provided you confirm the broker genuinely holds it. Client funds are segregated, though there is no statutory compensation scheme.
How do I check a broker's ASIC licence?+
Find the broker's licence number on its website, then search it on the official ASIC register (https://connectonline.asic.gov.au/). Confirm the company name, website and "authorised" status all match. Never rely on a badge or a link supplied by the broker itself.
What happens if a ASIC broker goes bankrupt?+
Client money should be segregated and returned to you, but ASIC has no statutory compensation fund. If client money is missing, there is no government-backed scheme to reimburse you — one reason to keep balances modest under this regulator.
Why is leverage limited to 1:30?+
ASIC caps retail leverage at 1:30 on major pairs to stop small accounts being wiped out by normal market moves. It is a protection, not a restriction to work around — and any "ASIC" broker offering far higher leverage to retail clients is misrepresenting its licence.