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

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FBS 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, forex exotic, metals, indices, energies, Stocks. FBS supports various trading platforms and tools such as MT5, WebTrader, FBS Trader.

FBS is renowned for its regulation by multiple authoritative bodies, including the Cysec, ASIC, FSC-Belize. This multi-regulatory oversight underscores its commitment to maintaining high safety and transparency standards.

In this article, we will explore FBS’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 FBS Operate Under ASIC Regulation?

Yes, FBS operates under ASIC regulation. The AFS (Financial Services ) number of this broker is 426359. 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 FBS 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 FBS, 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?

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

Pepperstone

Pepperstone

  • Founded In:  2010
  • Minimum Deposit: $0, Recommended: $200
  • Maximum Leverage: $200:1 for retail traders, 500:1 for professional traders. 
  • Regulations: FCA, ASIC, CySEC, SCB, FSA
  • Trading Platforms : MT4, MT5, cTrader, DupliTrade, TradingView
  • Trading Instruments: Forex, CFD, Crypto CFD, and More
FP Markets

FP Markets

  • Founded In:  2005
  • Minimum Deposit: 100 AUD or equivalent.
  • Maximum Leverage: 500:1
  • Regulations : ASIC, CySEC, FSCA, FSA
  • Trading Platforms : MT4, MT5, Ctrader 
  • Trading Instruments:Forex,Shares,Metals,Commodities,Indice,Digital Currencies,Bonds,ETFs
Eightcap

Eightcap

  • Founded In:  2009
  • Minimum Deposit: $100
  • Maximum Leverage: 1:1000
  • Regulations : ASIC,FCA, CySEC, SCB
  • Trading Platforms : MT4, MT5, TradingView, Webtrader
  • Trading Instruments: Forex,Commodities,Indices,Shares,Crypto
AvaTrade

AvaTrade

  • Founded In:  2006
  • Minimum Deposit: $100
  • Maximum Leverage: 30:1
  • Regulations : ASIC, CBI, FFAJ, FSA, FSCA
  • Trading Platforms : MT4, MT5, Webtrader, Automated Trading
  • Trading Instruments:Forex, Stocks, Commodities, Indices, Crypto CFDs, Bonds, ETFs
AxiTrader

AxiTrader

  • Founded In:  2007
  • Minimum Deposit: None 
  • Maximum Leverage: 500:1
  • Regulations: ASIC, SVG, FSA, DFSA,FCA. 
  • Trading Platforms : MT4, WebTrader, AxiTrading Platform, Copy Trading App
  • Trading Instruments: Forex, Shares, IPOs, Indices, Commodities, Cryptocurrencies 

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 FBS Have?

CySEC (Cyprus Securities and Exchange Commission):

FBS is regulated by CySEC. Established in 2001, Cysec is Cyprus’s financial regulator. Since Cyprus joined the European Union in 2004, CySEC’s regulations align with the MiFID directive, ensuring compliance with EU-wide financial standards and investor protection. This regulation allows the broker to offer services across the European Economic Area (EEA) under the MiFID II directive, ensuring investor protection and transparency. CySEC regulation requires brokers to follow strict guidelines for handling client funds, including segregation and periodic reporting.

FSC-Belize

FBS is regulated by the Financial Services Commission (FSC) of Belize. The FSC, established in 1999, is the government agency that oversees financial services in Belize.

FBS must adhere to FSC regulations, including maintaining adequate capital, keeping client funds separate from its own, and providing regular financial updates. The FSC supervises forex trading to ensure transparency and security, although it does not specify a maximum leverage limit. For more details, you can visit their website: https://www.belizefsc.org.bz/.

Frequently Asked Questions

Is FBS Considered Safe?

Yes, FBS is considered safe. The broker is regulated by seven major regulatory authorities, including Cysec, ASIC, FSC-Belize. These regulations ensure strict compliance with industry standards and protect client funds.

What is the Maximum Leverage for ASIC in FBS?

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

Here are the FBS 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 FBS?

The Minimum Deposit on FBS is $5. 

Does FBS Offer Negative Balance Protection?

Yes, FBS 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.

Written by

Jason Paine is a forex trader, researcher, and tech enthusiast. He is passionate about financial markets and cutting-edge technology. With a dynamic 16-year trading career, he's on a mission to guide fellow traders. Having navigated diverse forex brokers, Jason shares his insights at Brokersway to bridge the gap between traders and the right brokerage.

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