Australian Securities and Investment Commission (ASIC)
In recent years, Australia has become one of the major forex hubs in the world. This can be attributed to its suitable Forex and CFD brokerage conditions, as well as its flexible regulations, which make it possible for brokers to offer favorable trading conditions to traders. With the increasing number of international brokers opening offices there, the country’s forex market is bound to grow.
When we say “flexible regulation”, it doesn’t mean that traders are free to do as they please. On the contrary, the Australian Securities and Investments Commission (ASIC) which is the local financial regulator closely regulates and supervises financial services, consumer protection, securities and derivatives among others.
One of the key duties of the ASIC is to regulate and enforce laws related to company and financial services in an effort to protect Australian investors, creditors, and consumers. In order to protect investors from unforeseen and unfavorable events, ASIC raised the minimum net capital required by brokers from AUD 50,000 to AUD 500,000. It was expected that the amount will be increased to about AUD 1,000,000 in the next year.
When it comes to strategy, restrictions are few. As such, traders using Australian brokerage services are free to scalp and hedge as they desire. In addition, there is no required maximum leverage and the First In First Out (FIFO) rule is not applicable.