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Why Many UK Traders Prefer to Work with Australian (ASIC) Forex Brokers Now?

Why Many UK Traders Prefer to Work with Australian (ASIC) Forex Brokers Now

As a UK trader, you might think that the best way to do trading is to go for a Forex broker in your region, right? Well, you aren’t wrong – but there are some things you might want to consider. Indeed, working with a UK broker can be quite convenient and profitable if you are a trader from the UK. However, there are some perks of trading with ASIC Forex brokers that you’ll want to keep in mind. Here is why many UK traders prefer working with ASIC brokers instead.

 

  1. Licensed Brokers

 

In other places, you may come across brokers that operate based on knowledge – but without an actual license. In Australia, this cannot happen. In order for a trading company to function, the brokers must have an ASIC regulatory license. They also warn their clients about the negative sides of working with a non-licensed entity, and will also prevent the fraudulent company from continuing their work. Due to the multiple insurance policies that Australians have, their money is also protected.

 

  1. No Maximum Leverage Limits

 

Unlike brokers from the UK (or pretty much anywhere in the world), ASIC brokers generally don’t have any maximum leverage limits. You may leverage as much as you want when you make a trade. This is a good option for UK traders and scalpers that like trading in a high-risk environment. In the UK, their trading activity would have been limited, so they would not have been able to take the plunge that they wanted.

 

  1. No Conflicts of Interest

 

On average, ASIC brokers do not have conflicts of interest when it comes to their customers. Australian brokers typically work on an ECN protocol, most of them being the no desk dealing (NDD) type of broker.

These brokers are also very popular because they offer Direct Market Access (DMA) accounts – an option that typically removes any potential conflict of interest. This offers better access to potential liquidity providers, along with better trading costs as opposed to what they would usually find on the UK market.

 

  1. Updated Systems

 

An ASIC-regulated broker must always be updated on their systems and trading platforms. Their resources also need to be up to date so that they will benefit their client. Seeing as they are always striving to remain at the top of their game, ASIC brokers are typically the preferred choice for brokers from the United Kingdom.

Plus, Australian brokers are not allowed to train their clients or to meddle with their decisions. This leads to a stable partnership between the trader and the broker, preventing any conflict of interest.

 

  1. Effective Customer Support

 

With brokers in the UK, the regulations allow a little more liberty for the brokers. With that in mind, while not every broker is this way, there is a good chance that you’ll have to wait quite some time until you can reach customer support.

This is usually not the same with ASIC brokers, as their regulations require them to solve the problem as fast as they possibly can. Plus, every complaint is done anonymously, ensuring that potential requests of the customer do not put them at risk (i.e., reporting fraudulent activity).

 

  1. Safety Guarantee

 

ASIC brokers are very serious when it comes to safety. By law, they are required to keep the money safe, placing it in a separate account from the Australian leading brands. No shady sources can be chosen here, as it will make the client uncomfortable – and Australian brokers are all about transparency.

This activity ensures that the money doesn’t go into any offshore accounts, and also isn’t improperly mishandled by third-party operators and internal employees.

 

  1. The Money Is Insured

 

ASIC brokers using Australian trading platforms also offer protection to their clients. This takes the form of insurance schemes, along with other potential consumer protection plans. This way, if any broker-related problems may appear (i.e., bankruptcy or insolvency), Australian brokers cover you to a certain extent.

This will protect you against scams or any similar issues. It is also a benefit that you’ll rarely find so thorough in the UK brokers. So, there’s another reason why UK traders prefer the ASIC traders instead.

 

  1. Constant Audits

 

The thing about Australian brokers is that they are very serious about their laws and regulations. The brokers there are frequently audited by independent audit companies, and the reports are released periodically, to ensure that they comply with every regulation there. This gives a lot of peace of mind to UK traders, as the chances of being negatively influenced by their broker are limited significantly.

 

  1. Segregated Accounts

 

ASIC brokers also offer segregated accounts, another safety measure coveted by many United Kingdom residents. By segregating the accounts of their clients, multiple forms of financial discrepancies are prevented. The segregation rules in Australia say that every broker in the country has to keep the funds of the company separate from the capital of the client.

This ensures that the company will not use the client capital – whether it’s on purpose or by mistake. It allows the broker to differentiate between the company’s money and the client’s money. ASIC brokers have to offer proof of this account segregation if the authorities request it.

 

  1. Full Disclosure

 

When a new financial product is introduced on an Australian trading platform, the client will receive full disclosure. Surprises are not acceptable here, and the ASIC regulations take this kind of transparency very seriously.

If ASIC brokers do not respect this, they can expect some harsh penalties upon their audit. This type of transparency and openness to their clients is what caused UK traders to steer into the direction of Australian brokers in the first place.

 

The Bottom Line

 

Australian (ASIC) brokers have quite a few advantages that people from the UK enjoy. They are reliable, they keep your money safe, and they are open about everything. This ensures that the trades you make are correct, without being negatively influenced by a potentially errant broker.

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