ASIC record penalty reached AU$300.2 million after an Australian court ordered sanctions against USGFX, EuropeFX and TradeFred. The court said the three collapsed CFD brokers engaged in systemic unconscionable conduct from 2018 to 2020. However, the orders have been stayed until 13 July 2026.
Union Standard’s Australian entity, which operated as USGFX, received the largest penalty at AU$156.7 million. Meanwhile, EuropeFX was ordered to pay AU$114.1 million, and TradeFred must pay AU$29.4 million. EuropeFX and TradeFred had acted as authorised representatives of Union Standard.
ASIC Record Penalty Covers Three CFD Brokers
ASIC described the case as a record penalty in a regulatory matter. The regulator said Union Standard’s Australian business mainly offered CFDs to Chinese customers. Notably, the civil penalty against Union Standard was also the first for failing to make sure financial services were provided efficiently, honestly and fairly.
ASIC Chair Sarah Court said the three firms used business models that targeted inexperienced and vulnerable people. She said they used aggressive sales methods to push clients into highly risky CFD trading. Furthermore, Court said firms that profit from client losses will face serious consequences.
Court Adds Orders Against EuropeFX
The court also imposed extra orders on EuropeFX. It issued an adverse publicity order and a permanent restraint order that bars the firm from offering financial services. In addition, EuropeFX must return customer deposits.
Union Standard entered voluntary administration in mid-2020. After that, its Australian licence was cancelled and the regulator opened an investigation. The source also said the broker’s UK-regulated unit lost its licence a couple of years later.
According to ASIC data, 68 per cent of retail CFD traders in Australia lost money in the 2024 fiscal year. Those losses totalled more than AU$458 million, including AU$73 million in fees. Meanwhile, ASIC said EuropeFX and TradeFred profited from customer losses in 95 per cent to 99 per cent of cases.
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