Australian Securities and Investments Commission (ASIC) Brokers 2023
Brokers regulated by the Australian Securities and Investments Commission (ASIC) must abide by a range of measures to protect the interests of retail investors. This guide explains how the ASIC improves the financial system in Australia, alongside the agency’s history and safety protocols. Our team have also listed the leading ASIC-registered brokers.
Best ASIC Brokers
These 4 ASIC brokers are the best choices for traders from Australia based on our experts' tests and recommendations:
#1 - Kwakol Markets
Kwakol Markets is a Nigerian headquartered broker with strong regulatory oversight in Australia and Canada. A great selection of day trading assets are available, including synthetic products that simulate realistic market activity. Clients can trade on the MT4, MT5 and cTrader platforms, as well as a copy trading solution whereby a fee is only paid on profitable trades.
"Kwakol Markets is a good option for newer traders with a dedicated learning academy, copy trading and a choice of reliable charting platforms. New clients can also sign up and start trading in four straightforward steps."
- DayTrading Review Team
- Instruments: CFDs, Forex, Stocks, Indices, Commodities, Crypto
- Regulator: ASIC, FINTRAC
- Platforms: MT4, MT5, cTrader, AutoChartist
- Min. Deposit: $1
- Min. Trade: 0.01 Lots
- Leverage: 1:1000
Pros
- The MT4, MT5 and cTrader platforms offer a comprehensive charting environment for active day traders
- You can access 1000+ short-term investment, including cryptos and synthetic products
- There's a wide range of free learning resources for beginners, including an eBook, online courses and a Telegram community channel
Cons
- The only base currency available is USD
- There's a limited range of funding methods, with just bank transfers, card payments, and PayPal available
- You must deposit at least $10,000 to access the best trading conditions
#2 - IG Group
IG is an award-winning broker that has an excellent reputation globally. The brand-US offers spread betting, CFD and forex trading across a comprehensive suite of markets. IG is also multi-regulated, provides a great trading app and has 50 years experience.
"IG offers a superb all-round package. Beginners will appreciate the user-friendly web platform and secure trading environment while established investors will rate the 17,000+ markets and top-tier market research."
- DayTrading Review Team
- Instruments: CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting
- Regulator: FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA
- Platforms: MT4, AutoChartist, TradingCentral
- Min. Deposit: $0
- Min. Trade: 0.01 Lots
- Leverage: 1:30 (Retail), 1:250 (Pro)
Pros
- IG offers great educational materials including an extensive library of training and support on how to day trade successfully
- Opening an account takes less than 5 minutes
- Share dealing and ISAs are available for longer term investing
Cons
- Inactivity charge
- No copy trading platform
#3 - Moomoo
Moomoo is an SEC-regulated app-based investment platform that offers a straightforward and affordable way to invest in Chinese, Hong Kong, Singaporean, Australian and US stocks, ETFs and other assets. Margin trading is available and the brand offers a zero-deposit account as well as several bonuses.
"Moomoo is an excellent choice for new and intermediate stock traders who want to build a diverse investment portfolio. What really stands out is the broker's user-friendly app and the low trading fees."
- DayTrading Review Team
- Instruments: Stocks, Options, ETFs, ADRs, OTCs
- Regulator: SEC, FINRA, MAS, ASIC, SFC
- Platforms: Desktop Platform, Mobile App
- Min. Deposit: $0
- Min. Trade: $0
- Leverage: 1:2
Pros
- The broker offers access to extended pre-market trading hours
- There is no minimum deposit requirement which is excellent news for beginners
- It's also a Member of FINRA and the Securities Investor Protection Corporation (SIPC), adding another level of security for prospective clients
Cons
- It's a shame that there is no 2 factor authentication (2FA), despite the other security features on offer
- There is no negative balance protection, which is a common safety feature at top-tier-regulated brokers
- There is no phone or live chat support - common options at most other brokers
#4 - Nexo
Nexo is a crypto trading platform that also acts as a gateway to DeFi crypto functions such as staking, borrowing and lending. The platform supports 60+ crypto tokens, which can be purchased with a fiat on-ramp and traded in 500+ market pairs. The exchange operates a zero-fee policy allowing a set number of completely free withdrawals per month and fee-free trading.
"Nexo is good for traders who want a straightforward way to access DeFi crypto markets and earn interest on their digital assets."
- DayTrading Review Team
- Instruments: Cryptos
- Regulator: ASIC, FCEN
- Platforms: Own
- Min. Deposit: $10
- Min. Trade: $30
Pros
- High-yield interest savings
- Allows users to borrow against their crypto holdings
- Audited by Armanino
Cons
- High collateral requirement of 200% of the amount you wish to loan
- Limited free cryptocurrency withdrawals
- Native tokens are required for maximum interest rates
What is ASIC?
So before looking at basic rules and regulations on trading and of the markets in general, what precisely is the ASIC? They are an independent governmental and regulatory body. The purpose of the Australian Securities and Investment Commission is to protect Australian consumers and investors. Their role sees them responsible for the following duties:
- Implementing and enforcing the law
- Processing, storing and managing information efficiently
- Encouraging confident and informed investor participation
- Maintaining and improving the performance of Australia’s financial system
- Promptly making public relevant data and information about companies and bodies
The organisational structure of the Australian Securities and Investments Commission is relatively straightforward. The regulatory body reports to the treasurer, who is responsible for the administration of the subsequent legislation:
- Corporations Act, 2001
- Insurance Contracts Act, 1984
- National Consumer Credit Protection Act, 2009
ASIC Brokers
#1 - Kwakol Markets
Kwakol Markets is a Nigerian headquartered broker with strong regulatory oversight in Australia and Canada. A great selection of day trading assets are available, including synthetic products that simulate realistic market activity. Clients can trade on the MT4, MT5 and cTrader platforms, as well as a copy trading solution whereby a fee is only paid on profitable trades.
"Kwakol Markets is a good option for newer traders with a dedicated learning academy, copy trading and a choice of reliable charting platforms. New clients can also sign up and start trading in four straightforward steps."
- DayTrading Review Team
- Instruments: CFDs, Forex, Stocks, Indices, Commodities, Crypto
- Regulator: ASIC, FINTRAC
- Platforms: MT4, MT5, cTrader, AutoChartist
- Min. Deposit: $1
- Min. Trade: 0.01 Lots
- Leverage: 1:1000
Pros
- There are excellent market research tools available to support trading decisions, including the Acuity Expert Advisor and AutoChartist
- You can access 1000+ short-term investment, including cryptos and synthetic products
- There's a wide range of free learning resources for beginners, including an eBook, online courses and a Telegram community channel
Cons
- The only base currency available is USD
- There's a limited range of funding methods, with just bank transfers, card payments, and PayPal available
- You must deposit at least $10,000 to access the best trading conditions
#2 - IG Group
IG is an award-winning broker that has an excellent reputation globally. The brand-US offers spread betting, CFD and forex trading across a comprehensive suite of markets. IG is also multi-regulated, provides a great trading app and has 50 years experience.
"IG offers a superb all-round package. Beginners will appreciate the user-friendly web platform and secure trading environment while established investors will rate the 17,000+ markets and top-tier market research."
- DayTrading Review Team
- Instruments: CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting
- Regulator: FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA
- Platforms: MT4, AutoChartist, TradingCentral
- Min. Deposit: $0
- Min. Trade: 0.01 Lots
- Leverage: 1:30 (Retail), 1:250 (Pro)
Pros
- Users have access to a comprehensive range of charts, market news, client sentiment data, and analysis tools
- IG offers great educational materials including an extensive library of training and support on how to day trade successfully
- Share dealing and ISAs are available for longer term investing
Cons
- Inactivity charge
- No copy trading platform
#3 - Moomoo
Moomoo is an SEC-regulated app-based investment platform that offers a straightforward and affordable way to invest in Chinese, Hong Kong, Singaporean, Australian and US stocks, ETFs and other assets. Margin trading is available and the brand offers a zero-deposit account as well as several bonuses.
"Moomoo is an excellent choice for new and intermediate stock traders who want to build a diverse investment portfolio. What really stands out is the broker's user-friendly app and the low trading fees."
- DayTrading Review Team
- Instruments: Stocks, Options, ETFs, ADRs, OTCs
- Regulator: SEC, FINRA, MAS, ASIC, SFC
- Platforms: Desktop Platform, Mobile App
- Min. Deposit: $0
- Min. Trade: $0
- Leverage: 1:2
Pros
- It's also a Member of FINRA and the Securities Investor Protection Corporation (SIPC), adding another level of security for prospective clients
- The broker offers access to extended pre-market trading hours
- Moomoo has reduced options contract fees from $0.65 to $0
Cons
- There is no negative balance protection, which is a common safety feature at top-tier-regulated brokers
- There is no phone or live chat support - common options at most other brokers
- It's a shame that there is no 2 factor authentication (2FA), despite the other security features on offer
#4 - Nexo
Nexo is a crypto trading platform that also acts as a gateway to DeFi crypto functions such as staking, borrowing and lending. The platform supports 60+ crypto tokens, which can be purchased with a fiat on-ramp and traded in 500+ market pairs. The exchange operates a zero-fee policy allowing a set number of completely free withdrawals per month and fee-free trading.
"Nexo is good for traders who want a straightforward way to access DeFi crypto markets and earn interest on their digital assets."
- DayTrading Review Team
- Instruments: Cryptos
- Regulator: ASIC, FCEN
- Platforms: Own
- Min. Deposit: $10
- Min. Trade: $30
Pros
- OTC trading capabilities
- Referral program with $25 in BTC
- Audited by Armanino
Cons
- High collateral requirement of 200% of the amount you wish to loan
- Relatively small selection of crypto tokens which misses newer altcoins
- Native tokens are required for maximum interest rates
History
ASIC was originally the Australian Securities Commission (ASC) and came to life on January 1st, 1991 after the 1989 ASC Act. Initially, the idea was to unite regulators in Australia by replacing the National Companies and Securities Commission and the Corporate Affairs offices.
It wasn’t until July 1st, 1998 that the regulator became the Australian Securities & Investments Commission (ASIC). At this point, the website, databases and legislation also became concerned with consumer protection, insurance and deposit-taking.
The Australian Securities and Investment Commission 2001 regulations were a substantial stride towards effectively overseeing and improving the financial system. However, in its more recent history, ASIC has taken on responsibilities for:
- 2002 – Credit
- 2009 – The Australian Stock Exchange
- 2011 – Chi-X
It’s also worth mentioning that on March 15th, 2011, ASIC launched a consumer website called MoneySmart. Putting regulations to the side, this website aims to help individuals make smart financial decisions by providing a range of unbiased tools and information.
Powers
Day trading with brokers in line with ASIC regulations should afford you a certain degree of protection. However, they also enact responsive regulations and follow guides for enforcing their powers across a number of services. In fact, their regulatory and enforcement powers include:
- Issuing infringement notices when there is a breach of the law
- Seeking out penalties from courts and proceeding with prosecutions
- Creating and implementing rules that ensure the integrity of financial markets
- Banning and preventing people from participating in credit activities or offering financial services
- Investigating breaches of the law, including requiring suspects to produce books or undergo examination
Australian Market Regulation Feed
One service of particular importance is the Australian Market Regulation Feed. To monitor trading activity, brokers and market operators have to facilitate access to ASIC’s Integrated Market Surveillance System. This means brokers and other relevant bodies in the registry must allow daily access to:
- All orders, trades and quotes that are processed and circulated by the trading engine
- All messages related to trading sessions, product price and status
This is just one of the Australian Securities and Investments Commission’s services that helps to protect the interests of consumers and traders.
Criticisms
Despite the Australian Securities and Investments Commission undertaking many successful investigations and functions, it hasn’t all been without problems. For example:
- In recent years ASIC has faced criticism from consumers for inaction in protecting customers from larger financial institutions.
- 2015-2016 saw ASIC taken to court by those who suffered at the hands of the Storm Financial Collapse. It was thought ASIC’s inaction was enough to warrant malfeasance.
- ASIC failed to act against Australia’s Financial Ombudsman Service when they released misleading file notes during the discovery phase in a Victorian Supreme Court case.
- It took over five years of Australia’s major banks rigging interest rates before ASIC took action.
- The Australian Securities and Investments Commission registration process could be made simpler, while guidance on navigating the registry could be improved.
Why does this matter to day traders who are concerned with their specific market regulations? It’s important because it suggests ASIC may not be as effective and reliable as they claim to be. As a result, it could be argued that ASIC may fail to detect or act when ASIC regulated brokers breach rules and regulations.
Final Thoughts
ASIC regulations and rules around day trading are in place to protect consumers. Their extensive scope, in theory, allows them to keep brokers in check and traders somewhat secure from scams and fraudulent activities.
However, it’s also worth noting there have been criticisms levelled at ASIC in recent years, suggesting their regulations may not be quite as reliable and comprehensive as initially thought.