Eightcap ASIC Regulation 2024: Supervision, Investor Protections, and More

Eightcap is a forex and CFD broker that provides online trading services to traders and investors worldwide. It offers a wide range of trading instruments, including Forex, commodity, crypto, index, share. Eightcap supports various trading platforms and tools such as MT4, MT5, TradingView.

Eightcap is renowned for its regulation by multiple authoritative bodies, including the CMA, CySEC, FSA-Seychelles, CBCS, FSC in BVI, FSCA, FSC in Mauritius,. This multi-regulatory oversight underscores its commitment to maintaining high safety and transparency standards.

In this article, we will explore Eightcap’s ASIC regulation, its significance, the investor protection scheme, and negative balance protection. Additionally, we will provide information on other brokers regulated by the ASIC.

Does Eightcap Operate Under ASIC Regulation?

Yes, Eightcap operates under ASIC regulation. The AFS (Financial Services ) number of this broker is 391441. This regulation ensures that the broker adheres to the high standards set by the ASIC, providing a layer of security and trust for its clients. Being ASIC-regulated means that Eightcap must follow strict guidelines to protect client funds, ensure transparency, and maintain the integrity of its operations.

What is ASIC?

ASIC regulation refers to the rules and oversight provided by the Australian Securities and Investments Commission. ASIC, Australia’s national corporate regulator, was established in July 1998. It oversees companies and financial services, including banks, credit unions, and mortgage and finance brokers. 

ASIC enforces laws to protect Australian consumers, investors, and creditors, aiming to create a fair and equitable financial market. It ensures compliance with the Australian Securities and Investments Commission Act 2001. Financial service providers, including forex brokers, must hold an Australian Financial Services (AFS) license to operate. ASIC enforces strict standards on risk management, prohibits certain bonuses, and focuses on consumer protection to maintain market fairness

Why do we trust ASIC regulation?

We trust ASIC regulation for several reasons:

1. Established Authority: Founded in 1998, ASIC is Australia’s national corporate regulator, overseeing corporations, financial markets, and financial services under the Australian Securities and Investments Commission Act 2001.
2. Stringent Licensing Requirements: Financial service providers, including forex brokers, must hold an Australian Financial Services (AFS) license, ensuring they meet high standards for operation.
3. Safety of Client Funds: ASIC mandates that brokers must keep client funds in segregated accounts at tier 1 banks, protecting clients’ money from misuse.
4. Initial Capital Requirements: Forex brokers are required to maintain a minimum operational fund of 1 million USD, ensuring they have sufficient financial stability.
5. Comprehensive Reporting: Brokers must submit detailed reports including annual audit reports, monthly income statements, balance sheets, and daily, monthly, and annual customer transaction reports.
6. Physical Presence: ASIC requires brokers to have a physical office in Australia that clients can visit, adding a layer of transparency and accountability.
7. Strict Regulations: ASIC enforces rules on risk management, prohibits bonuses to avoid conflicts of interest, and focuses on consumer education.
8. Global Recognition: ASIC’s rigorous standards and effective oversight have earned it recognition as one of the most competent regulatory bodies worldwide.

How Can I Verify If My Broker is ASIC-regulated?

To verify if your broker, such as Eightcap, is regulated by the ASIC, follow these steps:

Step 1: Find Broker Information:

First, get the Australian Financial Services License (AFSL) number or the name of your broker. This info should be available on their website. The AFSL number is important because it tells you whether the broker is officially regulated by ASIC.

Step 2: Search ASIC’s Registers:

Next, head to the ASIC Professional Registers page. Type in the broker’s AFSL number or name in the search bar. Make sure you select ‘Australian Financial Services Licensee’ and set the status to ‘All’. This will pull up the broker’s registration details and confirm if they’re regulated by ASIC.

Step 3: Check Authorization:

Once you find the broker’s details on ASIC’s site, look for ‘Licence Authorisation Conditions’. This tells you if the broker is allowed to offer forex contracts or derivatives to retail clients. If they’re not authorized for these services, it means they can’t legally offer forex trading, and you should be cautious.

Step 4: Verify Dispute Resolution Membership:

Look for the broker’s ‘Membership Number’ for External Dispute Resolution on the ASIC page. Then, go to the AFCA website and use the ‘Find a Financial Firm’ tool. Enter the broker’s AFCA Member number or name to check their profile. This ensures the broker is part of a recognized dispute resolution scheme.

Step 5: Match Firm Details:

Finally, double-check that the details on both ASIC and AFCA websites match what the broker provides, like their website and contact information. If there are any inconsistencies, it could be a red flag. If things don’t match up, it’s safer to avoid trading with them to protect your funds

ASIC.-Regulated Forex Brokers: Who Else Is on the List?

Eightcap is one of the well-known ASIC-regulated forex brokers. However, other ASIC-regulated forex and CFD brokers can serve as alternatives to Eightcap. These alternatives include:

These brokers operate under ASIC regulation. According to ASIC rules, they offer leverage up to 30:1 and provide investor protection and negative balance protection for retail traders. To learn more about ASIC-regulated forex brokers, you can read our content on the best ASIC-regulated forex brokers.

What Other Regulations Does Eightcap Have?

FCA (Financial Conduct Authority)

Eightcap is regulated by the Financial Conduct Authority (FCA) in the UK. The FCA, established in 2013, is responsible for regulating financial markets and firms in the United Kingdom.

The FCA requires Eightcap to adhere to strict guidelines for financial conduct, including maintaining adequate capital, safeguarding client funds, and ensuring transparency in its operations. This includes keeping client money separate from company funds and providing regular financial reports. FCA regulation helps ensure that Eightcap operates securely and fairly, offering a high level of protection and trust for clients in the UK and across Europe.

FSA-Seychelles

Eightcap is regulated by the Financial Services Authority (FSA) of Seychelles. The FSA, established in 2013, oversees the financial services sector in Seychelles to ensure compliance with regulatory standards and to protect investors.

The FSA requires Eightcap to adhere to guidelines for managing client funds, which include keeping client money separate from company funds and providing regular financial reports. This regulation helps ensure that Eightcap operates securely and transparently, particularly for clients in Seychelles, and maintains a trustworthy trading environment.

CBCS

Eightcap is regulated by the Centrale Bank van Curaçao en Sint Maarten (CBCS). The CBCS, established in 1828, is the central bank for Curaçao and Sint Maarten, overseeing financial institutions and maintaining financial stability in the region.

The CBCS requires Eightcap to adhere to regulations that ensure financial stability and investor protection. This includes maintaining adequate capital, safeguarding client funds by keeping them separate from company assets, and providing regular financial reports. CBCS regulation helps ensure that Eightcap operates securely and transparently, offering a reliable trading environment for clients in Curaçao, Sint Maarten, and beyond.

FSC in BVI

Eightcap is regulated by the Financial Services Commission (FSC) in the British Virgin Islands (BVI). The FSC, established in 2001, is the regulatory authority overseeing financial services and institutions in the BVI.

The FSC requires Eightcap to comply with strict regulations, including maintaining adequate capital, protecting client funds by keeping them separate from company assets and ensuring transparent financial reporting. This regulation helps ensure that Eightcap operates securely and reliably, providing a trustworthy trading environment for clients in the BVI and internationally.

FSC in Mauritius

Eightcap is regulated by the Financial Services Commission (FSC) of Mauritius. The FSC, established in 2001, is the regulatory authority overseeing non-bank financial services in Mauritius.

The FSC requires Eightcap to adhere to strict regulations, including maintaining adequate capital reserves, safeguarding client funds by keeping them separate from the company’s assets, and providing regular financial reports. These requirements help ensure that Eightcap operates transparently and securely, offering a reliable trading environment for clients in Mauritius and beyond.

CMA

Eightcap is licensed and regulated by the CMA in Kenya. Founded in 1989, The CMA of Kenya regulates the Kenyan capital markets, including forex trading. The CMA allows a maximum leverage of 1:400 and ensures that financial institutions adhere to standards for transparency, fairness, and investor protection. It is operated by the Kenyan government. For more information, visit the CMA website.

Frequently Asked Questions

Is Eightcap Considered Safe?

Yes, Eightcap is considered safe. The broker is regulated by seven major regulatory authorities, including the CMA, CySEC, FSA-Seychelles, CBCS, FSC in BVI, FSCA, FSC in Mauritius,. These regulations ensure strict compliance with industry standards and protect client funds.

What is the Maximum Leverage for ASIC in Eightcap?

The maximum leverage offered by Eightcap under ASIC regulation is 30:1 for retail traders. However, leverage may vary based on the tradable assets.

Here are the Eightcap leverage limits under ASIC  regulation:

• Major currency pairs CFDs: 30:1
• Minor currency pairs CFDs: 20:1
• Gold CFDs: 20:1
• Commodity CFDs other than gold: 10:1
• Major stock market index CFDs: 10:1
• Minor stock market index CFDs and other asset CFDs: 5:1
• Crypto asset CFDs: 2:1

What is the Minimum Deposit for Eightcap?

The minimum deposit for Eightcap is as low as $100. This low entry requirement makes it accessible for traders with low levels of capital.

Does Eightcap Offer Negative Balance Protection?

Yes, Eightcap offers negative balance protection. All ASIC-regulated brokers must offer negative balance protection. Negative balance protection means that traders are protected from losing more money than they have in their trading accounts. If a trade results in losses that exceed the amount of funds in the account, negative balance protection ensures that the trader’s balance cannot go below zero. This prevents the trader from owing the broker any additional money.