ASIC-licensed CFD brokers must cap retail leverage, close out positions at 50% of margin, stop your balance going below zero, keep client money segregated, publish a TMD and belong to AFCA. Pepperstone Group Limited (AFSL 414530) meets all of these from Melbourne, but none of them protects you from trading losses, and Australia has no compensation fund for CFD client money.
Short answer: ASIC's rules limit how much you can lose and give you a free complaints route; they don't make trading safe.
ASIC's product intervention order has applied to retail CFDs since 29 March 2021.
Retail leverage caps: 30:1 major forex, 20:1 minor forex, gold and major indices, 10:1 other commodities and minor indices, 5:1 shares, 2:1 crypto.
Brokers must close out positions when equity falls below 50% of the margin required, and give negative balance protection.
Retail client money sits in segregated accounts under the Corporations Act; if a firm fails, costs may be deducted and full return isn't guaranteed.
Unresolved complaints go to AFCA for free; Pepperstone's AFCA membership number is 28689.
The complaints path at Pepperstone
Pepperstone's PDS sets it out: complain first to support@pepperstone.com or 03 9020 0155, then escalate to its compliance team at compliance.au@pepperstone.com. If the matter isn't resolved and 30 days have passed, you can go to AFCA on 1800 931 678 or afca.org.au, which costs you nothing.
Pepperstone also lists no cooling-off period on its CFDs, so once a trade is placed you can't undo it.
ASIC-licensed since founding
Pepperstone Group Limited, AFSL 414530, keeps retail money in segregated tier-1 bank accounts, gives negative balance protection and belongs to AFCA.
Pepperstone's Australian site does not publish a retail-loss percentage. Its AU risk warning: "Trading CFDs and margin FX is risky. It isn't suitable for everyone."
ASIC-licensed alternative
Capital Com Australia Pty Ltd holds AFSL 513393, segregates client money at regulated banks and offers guaranteed stops.
Capital.com's Australian site does not publish a retail-loss percentage. Its AU risk line: "Most traders lose money."
Pepperstone, Capital.com and XS are our partners. We may earn a commission if you open an account through our links. That does not change the facts on this page.
Your questions, answered
How can you tell if an online broker is truly regulated?
Find the licence number on the broker's website footer and look it up yourself on ASIC's professional register rather than following a link. Check three things: the licensee's name matches the company on the PDS you'd sign, the licence authorises dealing in derivatives for retail clients, and the website address matches the one ASIC lists. Clone sites often copy real licence numbers.
Which regulators offer the strongest investor protection?
For retail CFD traders, ASIC and the UK's FCA apply similar leverage caps, close-out rules and negative balance protection. The main gap is compensation: the UK's FSCS covers up to £85,000 if a firm fails, while Australia has no equivalent scheme for CFD client money. Offshore regulators often impose none of these limits, which is why the same brand's offshore arm can offer 1:1000 leverage.
What protections matter most when choosing a broker?
In order: segregated client money, so your cash isn't mixed with the broker's; negative balance protection, so you can't owe more than you deposited; a free external complaints scheme such as AFCA; and clear margin and close-out rules. After that, look at how the broker handles orders in fast markets and whether it publishes its hedging policy.
What red flags should traders avoid when choosing a broker?
Walk away from anyone who promises returns, offers to trade your account for you, pushes you to deposit more, asks you to pay through a third party or delays withdrawals with new fees. Deposit bonuses are a sign you may be on an offshore entity: IC Markets' Seychelles-regulated site advertises one, while its ASIC-licensed Australian site doesn't.
Which brokers are safest during market stress?
No broker can make a market crash safe for you, but some features help. Look for strong capital and segregated client money, a published hedging policy, negative balance protection and, if you want a fixed exit, guaranteed stops. Pepperstone's deposits page says it does not use retail client money to hedge trades with its counterparties. Capital.com offers guaranteed stops; Pepperstone doesn't.
is pepperstone safe
Pepperstone is licensed and supervised by ASIC through Pepperstone Group Limited, AFSL 414530, founded in Melbourne in 2010, and is a member of AFCA. It keeps retail money in segregated accounts with tier-1 banks, offers 2FA and holds ISO 27001 certification for data security. That makes it a regulated firm, not a safe investment: you can still lose all your money trading its CFDs.
Best ASIC regulated CFD brokers in Australia
Our ranking: Pepperstone (AFSL 414530) for pricing and platforms; Capital.com (AFSL 513393) for guaranteed stops without commission; Fusion Markets (AFSL 385620) for the lowest raw commission; IC Markets (ASIC licence 335692) for raw accounts and cTrader; CMC Markets (AFSL 238054) and IG Australia (AFSL 515106) for the widest market lists; Totality (AFSL 280372) for CFDs alongside shares, bonds and options.
How do I check a broker holds an AFSL?
Go to asic.gov.au and search the professional register for the firm's name or AFSL number. The result shows whether the licence is current, the licensee's legal name and address, and what it is authorised to do. If the broker gives you an authorised representative number instead of an AFSL, check who the licensee behind it is, and confirm that firm will be your counterparty.
What are the ASIC leverage caps for retail CFD traders?
Under ASIC's product intervention order, retail leverage is capped at 30:1 on major currency pairs, 20:1 on minor pairs, gold and major stock indices, 10:1 on other commodities and minor indices, 5:1 on shares and other assets, and 2:1 on crypto. In margin terms that is 3.33%, 5%, 10%, 20% and 50% of the position. Professional clients aren't covered.
Do Australian brokers offer negative balance protection?
Yes, all ASIC-licensed CFD issuers must provide it to retail clients, so you can't lose more than the money in your account. If a gap takes a Pepperstone retail account below zero, Pepperstone resets it to zero. Professional clients lose this protection, except for a one-time cover of up to USD 100,000 that Pepperstone gives Pro clients.
What is the margin close-out level for Australian retail clients?
50%. When your equity falls below half of the margin your open positions need, the broker must start closing positions. Pepperstone's example: a AUD 1,000 account with a AUD 200 margin requirement is closed out once equity falls below AUD 100. Pepperstone's MetaTrader accounts warn at 90% first, but the close-out can happen before you see the warning in a fast market.
Are client funds segregated at Australian CFD brokers?
Yes. ASIC-licensed firms must hold retail client money in segregated trust accounts, separate from their own funds. Pepperstone holds it at tier-one banks, and Capital.com at regulated banks. If a firm goes into liquidation, segregated money is handled under the Corporations Act; Pepperstone notes that costs may be deducted and there's no guarantee all funds come back.
Published 2026-10-21. Informational only, not investment advice. CFDs are leveraged products and most retail accounts lose money.
ASIC-licensed since founding
ASIC-licensed alternative