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

Go 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, Commodities, Metals, Indices, Shares, Cryptocurrencies, Treasuries, ETFs. Go Markets supports various trading platforms and tools such as MT4, MT5, WebTrader,CTrader.

Go Markets is renowned for its regulation by multiple authoritative bodies, including the ASIC, FCA, JFSA, SFC (Hongkong), FSCA, MAS, FMA, GmbH, FINMA. This multi-regulatory oversight underscores its commitment to maintaining high safety and transparency standards.

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

Yes, Go Markets operates under ASIC regulation. The AFS (Financial Services ) number of this broker is 254963. 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 Go 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 Go 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?

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

FCA (Financial Conduct Authority)

Go Markets 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 Go Markets 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 Go Markets operates securely and fairly, offering a high level of protection and trust for clients in the UK and across Europe.

FSA (Japan)

FSA regulation refers to the rules and oversight provided by the Financial Services Agency (FSA) of Japan. Established in 2000, the FSA supervises financial institutions including banks, insurance companies, and forex brokers to ensure the stability and fairness of Japan’s financial system. It works to protect investors and maintain confidence in the market.

Financial service providers, such as forex brokers, must be licensed by the FSA to operate in Japan. The FSA enforces strict standards on capital requirements, risk management, and transparency. It requires firms to segregate client funds to ensure their protection and implement robust measures to prevent financial misconduct. By enforcing these regulations, the FSA plays a key role in upholding market integrity and safeguarding investor interests.

SFC (Hongkong)

SFC regulation refers to the rules and oversight provided by the Securities and Futures Commission (SFC) of Hong Kong. Established in 1989, the SFC regulates financial markets, including brokers, investment firms, and asset managers, to ensure a stable and transparent financial environment in Hong Kong.

To operate in Hong Kong, financial service providers, including forex brokers, must obtain a license from the SFC. The SFC enforces strict capital requirements, risk management standards, and transparency rules. It mandates that firms maintain segregated client accounts to protect investor funds and implement measures to combat financial misconduct. By overseeing these regulations, the SFC plays a crucial role in maintaining market integrity and safeguarding investor interests in Hong Kong.

FSB:

Go Markets is regulated by the Financial Services Board (FSB) of South Africa under license 

number 45052. The FSB, established in 1990, was the financial regulatory authority in South Africa responsible for overseeing non-banking financial institutions before being replaced by the Financial Sector Conduct Authority (FSCA) in 2018.

Under FSB regulations, Go Markets was required to maintain strict standards, including holding adequate capital, protecting client funds by segregating them from company assets, and ensuring transparency through regular financial reporting. This regulation helped ensure that Go Markets operated securely and reliably, offering a safe trading environment for clients in South Africa.

MAS:

Go Markets is regulated by the Monetary Authority of Singapore (MAS) under license number XYZ. MAS, founded in 1970, is the government body responsible for overseeing financial institutions in Singapore, ensuring financial stability and investor protection.

Under MAS regulation, Go Markets must follow strict rules, including maintaining enough capital, keeping client funds separate from company assets, and providing regular financial reports. MAS supervises forex trading and limits the maximum leverage to 1:20 to manage risk. Although there is no specific protection scheme, MAS’s oversight ensures that Go Markets operates safely and transparently. For more details, you can visit their website: http://www.mas.gov.sg.

FMA

Go Markets is regulated by the Financial Markets Authority (FMA) of New Zealand under license number FSP493926. The FMA, established in 2011, is responsible for overseeing financial markets and ensuring fair, transparent, and efficient operations in New Zealand.

The FMA requires Go Markets to follow strict guidelines, including maintaining sufficient capital, protecting client funds by keeping them separate from company assets and providing regular financial reporting. This regulation ensures that Go Markets operates securely and fairly, offering a reliable and transparent trading environment for clients in New Zealand.

GmbH,

Go Markets operates under the regulatory framework of a Gesellschaft mit beschränkter Haftung (GmbH) in Germany, which translates to a company with limited liability. This legal structure provides important protections for shareholders and clients alike, ensuring that the company’s liabilities are limited to its assets.

As a GmbH, Go Markets must adhere to strict corporate governance standards, including maintaining adequate capital, ensuring transparency in its financial reporting, and complying with regulatory requirements specific to financial services. This structure not only enhances the trust and confidence of clients but also reinforces Go Markets’s commitment to operating with integrity and professionalism. The GmbH designation signals a commitment to regulatory compliance and sound business practices, ensuring that clients can trade with peace of mind in a secure environment.

FINMA:

Go Markets is regulated by the Swiss Financial Market Supervisory Authority (FINMA) under its relevant license. FINMA, established in 2009, is Switzerland’s independent financial regulatory body responsible for supervising banks, insurance companies, and financial intermediaries to ensure the stability of financial markets.

FINMA requires Go Markets to comply with strict standards of financial security, including maintaining sufficient capital, protecting client funds by segregating them from company assets and ensuring transparent and accurate financial reporting. FINMA’s oversight ensures that Go Markets operates with integrity and reliability, providing a secure trading environment for clients in Switzerland.

Frequently Asked Questions

Is Go Markets Considered Safe?

Yes, Go Markets is considered safe. The broker is regulated by seven major regulatory authorities, including the ASIC, FCA, JFSA, SFC (Hongkong), FSCA, MAS, FMA, GmbH, FINMA. These regulations ensure strict compliance with industry standards and protect client funds.

What is the Maximum Leverage for ASIC in Go Markets?

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

Here are the Go 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 Go Markets?

The minimum deposit for Go Markets is as low as $200. This low entry requirement makes it accessible for traders with varying levels of capital.

Does Go Markets Offer Negative Balance Protection?

Yes, Go 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.