ASIC Hits USGFX, EuropeFX and TradeFred with Record AU$300M Penalty

An Australian court has ordered three failed CFD brokers – USGFX, EuropeFX, and TradeFred – to pay a combined AU$300.2 million for “systemic unconscionable conduct” between 2018 and 2020. ASIC called it a record penalty.

USGFX (Union Standard) – AU$156.7 million

EuropeFX – AU$114.1 million

TradeFred – AU$29.4 million

The penalties are temporarily stayed until 13 July 2026.

EuropeFX and TradeFred were former representatives of Union Standard, which mainly targeted Chinese customers.

ASIC Chair Sarah Court said the brokers “deliberately targeted inexperienced and vulnerable people” with aggressive sales tactics.

EuropeFX was also ordered to return customer deposits and is permanently banned from offering financial services.

ASIC data shows 68% of Australian retail CFD traders lost money in 2024. EuropeFX and TradeFred profited from client losses in 95–99% of cases.

“Entities that profit from their clients’ losses will face serious consequences,” Court added.

Impact on Investors

Although the record penalties represent a major regulatory victory, they do not automatically mean that affected investors will recover all of their losses. For many former clients, the collapse of the brokers means that compensation and fund recovery remain uncertain, highlighting the importance of choosing well-regulated and financially stable brokers before investing.