Checking a broker in the local register
What you learn in 3 minutesThis lesson is about checking a broker in the register before any money moves. The register is a public list kept by ASIC, the Australian regulator, and it answers one question: is this business allowed to offer you this product? A licence number on a website is not proof. The register is.
One pip on a standard lot at 0.6640
| Step | Amount | Note |
|---|---|---|
| Standard lot size | 100,000 AUD | the contract size for one standard lot |
| One pip in the quote currency | 10 USD | 100,000 x 0.0001 |
| Conversion at the current rate | A$15.06 | 10 divided by 0.6640 |
| Register check | licence number and what it covers | typed into the ASIC register search |
The broker may round the conversion, add a spread or a commission on top, and quote a different rate at the moment your order fills. The register result also depends on the exact legal name, not the brand name on the website.
The mistake people make here
The common mistake is to see a licence number in the footer of a website and treat the check as finished. The register can show a licence that exists but does not cover the product you were offered, or covers a different legal entity from the one holding your money. Read the entry itself, not the number. If the covered products do not include the one on offer, stop and ask the broker in writing which entity and which licence applies.Check yourself
A broker quotes AUD/USD at 0.6640. What is one pip worth in A$ on one standard lot?
One pip is 10 USD (100,000 x 0.0001). At 0.6640 that is 10 / 0.6640 = A$15.06, before any spread or commission.
The register shows a licence but the covered products list does not include the product you were offered. What does that mean?
It means the licence does not cover what you were offered. The business may be allowed to do something else, but not this. Do not send money until the broker explains, in writing, which entity and which licence covers the product.
In Australia
- Regulator
- ASIC
- Register
- the public register on the ASIC website
- Money
- Australian dollars, written A$
- Payment methods
- PayID, BPAY and cards
- Instrument in examples
- AUD/USD near 0.6640