ASIC Stops CFD broker Trademax Australia from opening accounts for clients.

CFD and FX Broker, Trademax Australia Limited, has been forced by the Australian Securities and Investment Commission (ASIC) to stop opening trading accounts or dealing in CFDs or Margin Foreign Exchange Contracts (margin FX) to retail clients.


CFD and FX Broker, Trademax Australia Limited, has been forced by the Australian Securities and Investment Commission (ASIC) to stop opening trading accounts or dealing in CFDs or Margin Foreign Exchange Contracts (margin FX) to retail clients.

The Regulator cited concerns that:

  • Trademax failed to take reasonable steps likely to result in its retail product distribution conduct being consistent with two target market determinations.
  • Trademax’s reliance on an inadequate retail investor questionnaire for compliance with its obligations.
  • Trademax had a lack of other controls when onboarding client’s to assess whether clients are likely to be in its target markets.

The steps taken by ASIC against Trademax is most recent of 86 interim stop orders issued by ASIC against CFD and FX brokers including Mitrade Global Pty Ltd, Saxo Capital Markets and Interactive Brokers Australia Pty Ltd.

Trading in CFDs and margin FX involves significant risks with ASIC previously issuing a product intervention order for CFDs after finding that most retail clients lose money trading in CFDs.

If you have suffered losses trading CFDs or margin FX trading we encourage you to contact FD Legal to help you understand your rights to recover compensation.  FD Legal has previously assisted clients recovering compensation from CFD brokers who suffered lost substantial amounts trading CFDs and Margin FX contracts.  Contact FD Legal on 1300 433 533 or enquiry@fdlegal.com.au to discuss your circumstances on an obligation free basis.

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