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

Fusion Markets is a forex and CFD broker offering online trading services to traders and investors worldwide. The broker provides a diverse range of trading instruments, including Forex, Energy, Precious metals, Equity Indices, US Share CFDs, Crypto. It also supports multiple trading platforms and tools such as MT4, MT5, MetaTrader Webtrader.

Although Fusion Markets is regulated by several authoritative bodies, including ASIC, VFSC, and FSA, it is not regulated by the FCA (Financial Conduct Authority). In this article, we will explore Fusion Markets’s regulatory framework, its features, and provide a list of alternative brokers that are regulated by the FCA

Does Fusion Markets Operate Under FCA?

No, Fusion Markets does not operate under FCA (Financial Conduct Authority) regulations. The broker is regulated by several other reputable financial authorities, including the ASIC, VFSC, and FSA. These regulatory bodies ensure compliance with various standards for financial stability, transparency, and investor protection, though they do not provide the specific protections offered by the FCA in the UK.

What Other Regulations Does Fusion Markets Have?

ASIC :

Fusion Markets is regulated by ASIC. Founded in July 1998, the Australian Securities & Investments Commission (ASIC) is Australia’s national corporate regulator, overseeing corporations, markets, and financial services in accordance with the Australian Securities and Investments Commission Act 2001. Being based in Australia, ASIC regulation ensures that the broker complies with Australian laws on financial services, including responsible conduct, risk management, and financial reporting. Client money is kept in segregated accounts, and there is an emphasis on risk disclosure and trader protection.

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.

Best FCA Regulated Forex Brokers: Alternatives to Fusion Markets

Fusion Markets is one of the leading forex and CFD brokers. The broker is not regulated by FCA. It is regulated by other top-tier regulators including ASIC, CySEC,  FSA, FSCA, SVG. There are several FCA regulated brokers that can serve as alternatives to Fusion Markets. These brokers include: 

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

How Can I Verify If My Broker is FCA Regulated?

To verify if your broker, such as Fusion Markets, is regulated by the FCA, follow these steps:

1. Find the Broker’s Reference Number or Name: Obtain this information from the broker’s website.
2. Search the FCA Register: Visit the FCA Financial Services Register and enter the broker’s reference number or name.
3. Check the Broker’s Authorization: Ensure that the broker is authorized to provide “Rolling spot forex contract” services to retail customers in the UK.
4. Match Firm Details: Verify that the details on the FCA website, such as the broker’s website and email, match those provided by the broker. Any discrepancies might indicate an unauthorized broker, and you should avoid trading with them.

Frequently Asked Questions ( FAQs)

What is Fusion Markets?

Phil Horner founded Fusion Markets in 2017 in Melbourne, Australia with the vision of providing low-cost, modern technology and friendly support. The broker allows the trading of forex and CFDs on its cTrader, MT4, and MT5 platforms. Social traders can use DupliTrade, AutoTrade, or Fusion+ platforms. Free VPS, Market buzz, analyst views, etc are provided.

Is Fusion Markets Considered Safe?

Yes, Fusion Markets is considered safe. The broker is regulated by multiple top-tier regulatory authorities, including ASIC, VFSC, and FSA. It offers negative balance protection and holds client funds in segregated bank accounts. Additionally, Fusion Markets provides an investor protection scheme for clients regulated under ASIC, VFSC, and FSA, making it a reliable and trustworthy broker.

Does Fusion Markets Offer Negative Balance Protection?

Yes, Fusion Markets offers negative balance protection. All FCA-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.

Is Fusion Markets Regulated in the UK?

No, Fusion Markets is not regulated in the UK. However, the broker accepts clients under its global entity, (Fusion Markets LLC). Fusion Markets is regulated by other top-tier authorities, such as ASIC, CySEC, and FSCA, ensuring a high standard of compliance and investor protection.

Does Fusion Markets Offer an Investor Protection Scheme?

Yes, Fusion Markets offers an investor protection scheme for clients under the ASIC, VFSC, and FSA jurisdictions. This protection covers eligible investors in case of broker insolvency or other issues. ASIC-regulated clients benefit from stringent Australian financial laws, while CySEC offers protection in line with European Union regulations, ensuring added security for traders within these regions.

Is Fusion Markets Regulated in the EU?

Yes, Fusion Markets is regulated in the EU through its license with CySEC (the Cyprus Securities and Exchange Commission). Since CySEC is an EU regulator, Fusion Markets follows the European Union’s strict standards, including client fund protection and transparency. It also complies with MiFID II regulations, ensuring a high level of oversight and security for European traders.