The Australian regulator has warned that some online brokers are offering complex investment products to retail investors without adequately explaining the risks or conducting appropriate onboarding checks.
The Australian Securities and Investments Commission (ASIC) has raised concerns about the way some online brokers market complex and high-risk investment products to retail investors, following a targeted review of nine firms offering short-dated exchange traded options (ETOs), futures and fractional shares. ASIC noted products such as short-dated options and futures use leverage, which can amplify losses The review found that some providers were encouraging trading through incentives