Australian FX Market Growth for March
The month of February for the Australian Forex Market was exceptional. However, data revealed from C-Pattern indicates that March saw massive improvements in trading valuations for the country. The average trader increased their deposit by $205, while this can be considered small growth for some; it is massive when you account for the thousands of traders and retail clients operating in Australia.
This could be the result of the Australian market profiting off the backs of European Brokers, who have been listing lower performances as a result of the European Securities and Market Authority implementing new product intervention measures. Subsequently, numerous brokers and retail clients from the European Union have moved their trading efforts over to Australia.
The higher deposits aren’t the only good news for the country down under. The Australian FX Market has also seen increased first-time deposits and withdraws when compared to March of 2018. The average deposit increased by more than 77% for new traders and retail clients. First-time deposits on average now vary between $1,870.00 and $1,875.00.
Australia Prepping for Changes
How long this positive market trend remains active in Australia remains a mystery. The Australian government has passed new product intervention measures that are reminiscent of that implemented by the European Securities and Markets Authority last year. However, the firms currently operating in Australia have another year before these measures are implemented.
It’s not surprising to see that the ASIC is planning to regulate the FX and Forex industries like the ESMA. The business world of data is all about data analytics and online trading. The government wants to guarantee its footprint in the market space before regulating would damage the market, just as with what happened in Europe. However, brokers still have one more year of the Wild West Australian FX Market. Analysts suspect that once these new product measures are implemented, many brokers and retail clients will move towards the South African unregulated FX Market.
ASIC Blacklists Offshore Brokers & Clone Website
Furthermore, the Australian Securities and Investments Commission has blacklisted five more brokers that they deemed to be unsafe. Two of these brokers operated clone websites. The first resembled the website maintained by CySEC, one of the most notable regulators for brokers worldwide. Vanuatu UFX ran the second site; they copied the Cyprus Securities and Exchange Commission’s website. This stupid decision has now resulted in its business operations being terminated in Australia.
The Australian Securities and Investments Commission has also sent out a warning about RIM Markets. This offshore broker is associated with the Marshal Islands, where their headquarters is established. Furthermore, there have been additional warnings sent out for brokers “Golden Day Profit”, “Liberty Global Partners” and “MRT Markets”. All these brokers have now been deemed to operate untrustworthy financial businesses.
ASIC made a public statement that reads, “Many scams come from companies based overseas, these scammers target Australians because ASIC does not have international jurisdiction to investigate and prosecute them.”