Australian CFD & FX Forum Aims and Objectives
Developing and implementing standards to enhance the efficient operation, transparency, and overall investor confidence in CFDs & FX and the CFD & FX industry. In doing so, provide additional consumer benefits and consumer protection through addressing CFD industry issues and consumer concerns not covered by current legislation;
Promoting the best interests of members to regulators, investors, government, the media and other key stakeholders. This involves being a consistent and strong voice in communicating key practices and processes as well as maintaining dialogue and responding to papers issued by regulators in relation to CFDs & FX;
Building consensus on the approach to resolving ongoing issues with CFDs & FX, in support of the sustainability and future growth of the Australian CFD & FX industry;
Educating investors on CFDs and FX and client money protection so they can make informed decisions when choosing a provider.
Lobbying relevant legislative bodies and regulators where relevant to further the objectives of Members and the CFD & FX industry;
CFD & FX Forum members provide full client money protection
Invest with certainty that your money won’t be used by others.
The CFD & FX Forum believes that reform of client money segregation and protection is urgently required, relatively simply executed and consistent with the Governments’ objective of providing straightforward and global best practice financial services regulation.
What traders need to know
CFD and Forex traders may not be aware that providers in Australia are legally allowed to use client money with third parties for hedging purposes.
While regulations requires CFD providers to segregate client money from company funds, this doesn’t include money that the CFD provider might use for hedging. So providers can still withdraw client money from this account to use for their own hedging purposes.
CFD providers that are members of the CFD & FX Forum never use client money; however using client funds for hedging is common practise at other Australian CFD and Forex providers.
Why there is a CFD & FX Forum
Members of the CFD & FX Forum are committed to setting high CFD industry service and client protection standards. We all voluntarily adhere to 16 standards, including the complete segregation of client money and other standards that support client protection and provide best practice guidelines and benchmarks in client service.
The Forum and its standards have received ACCC approval and we believe our standards should be adopted across the entire industry. The CFD & FX Forum is calling for absolute transparency within the industry, with an urgent need for Australian law reform.