How do I check if a CFD broker is legitimate?
Verdict
- Check the licence, not the brand: find the AFSL number and company name on the broker's site, confirm them on ASIC's professional register, and make sure your account opens with that licensed company. Pepperstone passes every step and is our pick.
- Pepperstone's Australian site names Pepperstone Group Limited, ACN 147 055 703, AFSL 414530, at 727 Collins Street, Melbourne.
- A brand can own several companies with different regulators; the one on your client agreement and PDS is the one that protects you.
- Then test the practical side: a small deposit, a small withdrawal back to the same method, and a reply from support.
Most scams and most disappointments come from the same gap: the website shows a respected regulator, but the account is opened with a different company. These checks close that gap in about fifteen minutes, before you send money.
The quick answer, using Pepperstone as the worked example
Scroll to the footer of pepperstone.com/en-au and you will find the issuer, Pepperstone Group Limited, with its ACN 147 055 703, its Australian Financial Services Licence 414530 and its Melbourne address. Search that AFSL on ASIC's professional register and the names should match. The risk warning points you to its Product Disclosure Statement, dated August 2026, and its Target Market Determination; check that both name the same company. That chain, from website to register to the documents you sign, is what a legitimate Australian CFD broker looks like, and it is why Pepperstone is our recommendation.
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How can you tell if an online broker is truly regulated?
Work through these in order and stop at the first failure:
- Find the licence number and full company name on the broker's website, usually in the footer or legal pages.
- Search ASIC's professional register for that AFSL and check the company name and ACN match exactly; clone firms copy real numbers but change contact details.
- Confirm the licence authorises dealing in derivatives and foreign exchange for retail clients.
- Read who issues the PDS and client agreement: it must be the ASIC-licensed company, not an offshore sister company.
- Check that payment details point to an account in that company's name.
- Make a small deposit and withdraw part of it before trading larger amounts.
Why the entity matters more than the logo
Big brands run several companies. Pepperstone's international site belongs to a Bahamas company whose terms say its products are not meant for residents of Australia, so an Australian should always land with the ASIC company. Fusion Markets holds an ASIC licence for 'Australian Clients Only' and serves others from Seychelles and Vanuatu. Capital.com serves Australians through Capital Com Australia Pty Ltd, AFSL 513393. The protections you get, such as ASIC leverage caps and negative balance protection, attach to the company you contract with.
| Broker | Australian company | AFSL |
|---|---|---|
| Pepperstone | Pepperstone Group Limited (ACN 147 055 703) | 414530 |
| Capital.com | Capital Com Australia Pty Ltd (ABN 47 625 601 489) | 513393 |
| IC Markets | International Capital Markets Pty Ltd | 335692 |
| Fusion Markets | FMGP Trading Group Pty Ltd (ABN 74 146 086 017) | 385620 |
Red flags that override any licence claim
- Pressure to deposit quickly, bonuses tied to deposits, or 'account managers' who trade for you.
- A licence number that leads to a different company name or a different website on the register.
- Requests to pay a third party, or withdrawals that need a 'release fee'.
- No PDS or TMD available before you apply.
Sources
Is an AFSL enough to prove a broker is safe?
It proves the company is licensed and supervised. It does not guarantee your money: Pepperstone, for example, notes there is no guarantee all segregated funds would be returned if it were liquidated.
Does Pepperstone hold licences outside Australia?
Yes. Its group companies are regulated by the FCA, CySEC, BaFin, the DFSA and the Securities Commission of The Bahamas, among others.
What if a broker is licensed overseas but not in Australia?
You would not have an ASIC-licensed counterparty or ASIC's retail protections. Prefer a broker that onboards Australians to its ASIC company.
CFDs carry a high risk of losing money quickly because of leverage, even with a legitimate, licensed provider. Check the PDS and TMD and decide whether the product suits you. Nothing here is investment advice.