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Fusion Markets regulation: what happens if the firm fails

The licence is what decides where your money sits and who is obliged to do something about it. Here is who licenses Fusion Markets and what the protections are.

Facts last checked . Read the full Fusion Markets review.

Regulation and safety

Regulated by
ASIC (AFSL 385620); Seychelles FSA (SD096); Vanuatu VFSC (40256)
Regulator tier
Tier 1
Register entry
ASIC Professional Registers, AFSL 385620
Client money segregated
Yes
Held at
National Australia Bank (NAB)
Negative balance protection
Yes
Compensation scheme
No statutory investor compensation scheme
Audited by
Not prominently disclosed
Not available to
Afghanistan, Congo, Iran, Iraq, Japan, Myanmar, New Zealand, North Korea, Ontario (Canada), Palestine, Russia, Spain, Somalia, Sudan, Syria, Ukraine, Yemen, United States and US territories

Check the licence yourself: ASIC Connect, the Seychelles FSA list of regulated entities.

What this means

The licence is what decides where your money sits and who is obliged to do something about it.

Fusion Markets holds a tier-one authorisation from ASIC. That matters more than any headline spread: it determines your leverage cap, whether losses can exceed your deposit, and what happens to your money if the firm fails.

It also operates an offshore entity (VFSC and FSA). Which one you are onboarded to depends on where you live, and the two carry very different protections - worth confirming before you deposit.

ASIC caps retail leverage at 1:30, requires negative balance protection, and obliges the broker to hold client money in a separate trust account.

Vanuatu's VFSC is an offshore licence with limited oversight and no compensation scheme. It is often the entity that offers the highest leverage.

An FSA licence here is usually the Seychelles authorisation - an offshore entity, with lighter obligations than a tier-one regulator.

Client money is held separately from the firm's own money, at National Australia Bank (NAB). That separation is what makes your balance recoverable if the company fails, rather than part of the pool its creditors divide up.

Negative balance protection applies, so a losing position cannot take the account below zero and leave you owing the broker money.

Covered by No statutory investor compensation scheme, which pays eligible clients up to its limit if the firm fails owing client money.

Questions about Fusion Markets regulation

Is client money segregated at Fusion Markets?

Yes. Fusion Markets holds client money separately from its own funds, at National Australia Bank (NAB).

Does Fusion Markets offer negative balance protection?

Yes. Fusion Markets offers negative balance protection, so a losing position cannot leave you owing the broker more than your account held.

Is there a compensation scheme at Fusion Markets?

Fusion Markets's compensation scheme is recorded as: No statutory investor compensation scheme. A scheme covers the broker failing, not losses on your trades.

Regulation at brokers under the same regulator

More about Fusion Markets