ASIC -- Australia
ASIC completed its review of the 2021 CFD product intervention order in late 2024 and has maintained its leverage caps of 1:30 for major forex pairs for retail clients. The review found that the measures reduced average retail client losses and that removing them was not in the public interest.
ASIC also introduced enhanced requirements for how brokers communicate trading risks. From March 2025, all ASIC-regulated brokers must display real-time percentage-of-clients-who-lost-money data on their websites, updated quarterly. This is among the most transparent disclosure requirements of any major regulator.
FCA -- United Kingdom
The FCA has continued its Consumer Duty framework implementation, requiring forex brokers to demonstrate their products deliver good outcomes for retail customers. In practice this means improved fee transparency, clearer risk warnings, and better complaint resolution processes. Several smaller FCA-regulated brokers that struggled to meet Consumer Duty requirements have exited the UK retail market.
The FCA also published an update to its CASS (Client Assets Sourcebook) rules, tightening requirements around client money segregation. For traders this means all FCA-regulated brokers must now hold retail client funds in dedicated, ring-fenced accounts separate from company operational funds.
FCA Register check: Always verify a broker's FCA authorisation status at register.fca.org.uk before depositing. Clone firm fraud -- where scammers impersonate legitimate FCA-regulated firms -- remains one of the most common forms of retail trading fraud in the UK.
DFSA -- UAE Growing as a Regional Hub
The DFSA has continued to attract major international brokers to establish regulated entities in the Dubai International Financial Centre. Pepperstone, AvaTrade, and Saxo Bank all hold DFSA licences, making Dubai a credible regulated hub for Middle East and South Asia-based traders. DFSA leverage limits for retail clients are aligned with international norms at 1:30 for major pairs.
Red Flags -- What to Watch For in 2025
Unregulated offshore brokers continue to proliferate, particularly targeting retail traders in Africa, South Asia, and Southeast Asia through social media. Common red flags include promises of guaranteed returns, very high leverage (1:1000 or above), pressure tactics around time-limited bonuses, and regulators in obscure jurisdictions such as Saint Vincent and the Grenadines, Vanuatu, or the Marshall Islands -- which offer name-only registration with zero investor protection.