ASIC Warns About Complex Products Offered by Online Brokers

ASIC’s 2026 surveillance identified sector-wide weaknesses involving short-dated options, futures and fractional shares. The findings were thematic and were not attributed to every named firm.

Key facts

• ASIC reviewed nine entities between March and June 2026.
• Products included short-dated exchange-traded options, futures and fractional shares.
• Findings covered target markets, onboarding and disclosures.
• Five entities improved practices, two paused some options onboarding and one exited Australia.

What ASIC said

ASIC warned that online brokers were offering complex or high-risk products without always providing clear risk disclosure or appropriate onboarding. The regulator focused on short-dated exchange-traded options, futures and fractional shares offered to Australian retail investors.

ASIC reported deficiencies in some target market determinations, repeated or unlimited attempts at onboarding questionnaires and unclear explanations of fractional ownership, costs and rights. It said five entities improved their practices, two paused onboarding for options while remediation continued, and one entity left the Australian market.

Who was reviewed — and what the notice does not say

The review covered Interactive Brokers Australia, Moomoo, Sharesies, Stakeshop, tastytrade Australia, Tiger Brokers Australia, Totality Wealth, Trading 212 Australia and Webull Australia.

ASIC explicitly stated that its findings were thematic, were not attributed to individual entities and did not apply to every entity reviewed. Naming a firm in the surveillance group is therefore not evidence that the firm committed every shortcoming described.

What readers should do now

ASIC’s questions are useful beyond Australia, but the official action applies to its jurisdiction.

• Identify whether the product is an option, future, CFD, fractional interest or underlying asset.
• Read the target-market or appropriateness information.
• Check ownership and custody for fractional assets.
• Do not treat fee-free trading or a reward as evidence of low risk.
• Verify the exact entity and regulator serving the account.

What this alert does not mean

The notice is not a finding that every reviewed firm breached the law, nor is it a ban on every product discussed. ASIC said it was still considering further action in relation to some concerns.

SafeGate should track later stop orders, licence changes or enforcement separately and update any broker review only when a primary notice identifies the entity and action.

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Sources and verification

• ASIC 26-193MR: online broker complex-products warning — published August 2026; jurisdiction: Australia; accessed August 25, 2026.

Last reviewed: August 25, 2026. Recheck dates, status, legal entities and live terms immediately before publication.

Image brief: Regulatory dossier showing onboarding, product governance and fractional ownership, with an Australia jurisdiction marker.

Disclosure

SafeGate Advisors is not a broker and does not accept deposits. This article is general information, not investment advice. SafeGate may receive compensation from some brokers through affiliate partnerships, but editorial assessments should follow the published methodology and verified evidence.