If you’re looking to escape the clutches of ESMA’s leverage cap by going with an ASIC regulated broker and taking your trading offshore here are a few things you need to know.
ASIC regulated brokers
- Pepperstone is the largest Aussie broker by far.
- City Index, is a well established UK broker also regulated by ASIC
- Forex.com is one of the largest global forex brokers
- IG, regulated by ASIC and New Zealand
- Plus 500, pretty much regulated everywhere…
- TradeDirect365 is a smaller ASIC only regulated broker
However, if a broker is also regulated by the FCA, then they may not let you have an account with their APAC subsidiary…
The disadvantages of moving to an ASIC regulated broker?
- Protection – You’ll lose FSCS protection from the FCA. This is a big deal if your broker goes bust.
- Customer Service – Whilst all brokers are global brands the separately regulated subsidiaries are different. Meaning that the UK office may not be able to deal with any account issues. The big time difference will mean there could be problems dealing with errors quickly.
- Asset Class Limitation – ASIC may not enable you to trade as many products as you can in the UK.
The advantages of trading with an ASIC regulated broker?
- Leverage – ASIC has yet to put restrictions on margin meaning you can still get high leverage rates
- Language – Aussies still English so there should be minimal language barriers
- Safety – compared to other offshore regions like Cyprus, Australia and ASIC provide a relatively safe environment for traders and investors.
For more information on ASIC you can view their website here or search their register for regulated companies here.
Always do your own research before sending any money offshore and be aware that the FCA offers some of the best protection for UK investors and traders.
So it’s worth considering if you should upgrade your CFD or FOREX account to professional status and keep trading with a UK regulated broker.
This of course all depends on your experience and risk appetite, and you should always seek independent financial advice from a local expert.
Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.
Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.
Richard’s contributions and expertise have been recognized by respected publications such as BusinessInsider, Yahoo Finance, BusinessNews.org.uk, Master Investor, Wealth Briefing, iNews, and The FT, among many others.
Under Richard’s leadership, the Good Money Guide has evolved into a valuable destination for comprehensive information and expert guidance, specialising in trading, investment, and currency exchange. His commitment to delivering high-quality insights has solidified the Good Money Guide’s standing as a well-respected resource for both customers and industry colleagues.
