Fusion Markets ASIC Regulation 2024: Supervision, Investor Protections, and More

Fusion Markets 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, Energy, Precious metals, Equity Indices, US Share CFDs, Crypto. Fusion Markets supports various trading platforms and tools such as MT4, MT5, MetaTrader Webtrader.

Fusion Markets is renowned for its regulation by multiple authoritative bodies, including the ASIC, VFSC, and FSA. This multi-regulatory oversight underscores its commitment to maintaining high safety and transparency standards.

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

Yes, Fusion Markets operates under ASIC regulation. The AFS (Financial Services ) number of this broker is 385620. 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 Fusion Markets 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 Fusion Markets, 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?

Fusion Markets is one of the well-known ASIC-regulated forex brokers. However, other ASIC-regulated forex and CFD brokers can serve as alternatives to Fusion Markets. 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 Fusion Markets Have?

FSA- Seychelles

Fusion Markets is regulated by the Financial Services Authority (FSA) of Seychelles under license number SD039. 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 Fusion Markets 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 Fusion Markets operates securely and transparently, particularly for clients in Seychelles, and maintains a trustworthy trading environment.

VFSA

Fusion Markets is regulated by the Vanuatu Financial Services Authority (VFSA), which oversees financial services in Vanuatu. The VFSA is dedicated to promoting a secure and transparent financial environment, ensuring that financial firms operate in compliance with established regulations.

As a regulated entity under the VFSA, Fusion Markets must adhere to specific guidelines that include maintaining adequate capital reserves, safeguarding client funds, and ensuring transparency in its operations. The VFSA requires the segregation of client funds from the company’s assets, providing an additional layer of protection for clients’ investments. By complying with these regulatory standards, Fusion Markets offers clients confidence in its operations, reinforcing its commitment to security and integrity in the forex trading space. This oversight helps foster trust among clients in Vanuatu and beyond, ensuring a reliable trading experience.

Frequently Asked Questions

Is Fusion Markets Considered Safe?

Yes, Fusion Markets is considered safe. The broker is regulated by seven major regulatory authorities, including the ASIC, VFSC, and FSA. These regulations ensure strict compliance with industry standards and protect client funds.

What is the Maximum Leverage for ASIC in Fusion Markets?

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

Here are the Fusion Markets 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 Fusion Markets?

The Minimum Deposit on Fusion Markets is $1. 

Does Fusion Markets Offer Negative Balance Protection?

Yes, Fusion Markets 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.