While forex is a growing market around the world, some people have been asking if trading forex is legal in Australia. This article will answer that question and explain to you what you need to know about that country’s market. For any trader around the world, it’s good to know where forex is legal and how to work within that country’s regulations to profit from its currency.
Forex Trading Guide in Australia
The forex market in Australia is alive and growing. The country offers a liberal, although cautious, view of the government’s role in foreign exchange brokers and providers. Even though Australia has been home to some very successful forex platforms, it was only in 2015 that the market really blossomed. That is when the Swiss franc rose by a large margin and the local media broadcast several stories of successful traders.
There has been a process of deregulation that was geared to simplifying the entire Australian financial system. Where forex trading is involved, the government has managed to ensure the protection and safety of customers while not being prohibitive with unnecessary regulations. Other than adhering to tax obligations, there is no current legislation that will stop you from trading forex using brokers in Australia.
Regulating Forex Brokers in Australia
Just like in any other country, Australia has its own regulatory bodies. As a part of the government, the regulations are put into place to protect both sides of the market. The laws are there to protect the trader as well as the broker. In Australia, this protective body is called the Australian Securities and Investments Commission, otherwise known as the ASIC. It is the primary governing body for Australian markets, financial services and financial platforms. If any agent or broker in Australia wants to get a license to operate, an application must be made to the ASIC. Through the ASIC, the personal data of traders and brokers is protected. When opening an account, they limit deposits made by credit card to $1,000. There is also the Reserve Bank of Australia, which delegates control of dealers in foreign currency as well as dealers in the money market to the Australian Securities and Investments Commission. Ultimately, they are the ones who oversee these transactions.
The Australian Prudential Regulator Authority, or the APRA, has a degree of control over licensing procedures and can take action in certain areas. It also has supervision over the authorized deposit–taking institutions, or the ADIs. If there are financial disputes by people trading in the Australian forex market, the APRA might be the governing wing to approach. The Australian Competition Consumer Commission is in charge of controlling and stopping behaviors of Australian forex brokers that are deemed as anti-competitive. Although the commission is independent, it has authority over many of the forex brokers. Between the Australian Prudential Regulator Authority, the Australian Competition Consumer Commission and the Australian Competition Consumer Commission, there is a three-fold regulatory body governing forex brokers in Australia.