Harsher rules expected for Australian brokers for margin FX and CFDs

Having an Australian Financial Services licence continues to be an attractive proposition, but they’re hard to get

DLT
Tougher regulation: “The AFS licence for online CFD brokers is harder to get now,” says Kevin Wong

Australia is no longer such a favourable place for retail foreign exchange brokers, as the Australian Securities and Investments Commission (Asic) is cracking down on those offering contracts-for-difference (CFDs) to overseas investors.

Just last month, Asic warned some over-the-counter derivatives brokers may be breaking overseas laws by providing unauthorised services in other jurisdictions. The products include offering binary options, margin FX and other CFDs, the Australian regulator said.

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