If you're interested in trading Forex in Australia, you probably want to know whether or not it is legal for you to do so. After all, with your capital at risk, the last thing you want is trouble with the law. Lucky for you, we've researched the legislation, and found that it is 100% legal and safe for you to trade Forex in Australia.
Trading Forex in Australia is supervised by the Australian Securities & Investments Commission (ASIC). In August 2010 this organization assumed responsiblity for:
"... supervising domestic licensed markets and participants of licensed markets. This is in addition to our role of supervising compliance by market participants and market operators with other provisions of the Corporations Act 2001 (Corporations Act), including the Australian financial services (AFS) licensing provisions."1
As stated, the "Corporations Act 2001" is the important piece of legislation for those who want to know the legality of trading Forex in Australia. The ASIC has "general administration" of the Act.2 According to the ASIC, market operators, or trading platforms, "must have an Australian financial services (AFS) licence to conduct a financial services business."3
There are operators we have reviewed here which have their AFS license. Some of those that do not have blocked Australian registrations, while others will allow you to register despite not having the required license. If you choose to trade with an unregulated operator, you should not face any punishment for it, but you won't be protected in the case of a dispute. If you're unsure of whether an operator is regulated, you can search for their company name in the ASIC database.4
Now that you have a better understanding of the legality of trading Forex in Australia, it's time for you to choose a trading platform to make an investment with. We have created a list of the top Forex trading brokers for Australia. Have look at that, and feel free to contact if you have any questions or concerns.
Sources:
1. Regulatry Guide RG 241 Electronic Trading (page 4)
2. Corporations Act 2001 (page 7)
3. ASIC Website - AFS licensees
4. ASIC Website - Search ASIC Registers
Last updated: 05/30/2017 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
