Key facts
- Australia's federal court imposed a record A$300.2 million ($211.37 million) fine on collapsed foreign exchange broker Union Standard and its representatives.
- The court ordered A$156.7 million in penalties against Union Standard, A$114.1 million against EuropeFX, and A$29.4 million against TradeFred.
- The misconduct involved targeting inexperienced and vulnerable investors between 2018 and 2020.
- Customers of EuropeFX and TradeFred lost more than A$83 million.
- In 2024, 68% of retail contracts for difference (CFD) investors in Australia lost money, totaling more than A$458 million.
Australia's federal court has imposed a record A$300.2 million ($211.37 million) fine on collapsed foreign exchange broker Union Standard and its representatives for misconduct that left customers with millions of dollars in losses. The Australian Securities and Investments Commission (ASIC) announced the penalties on Friday.
Union Standard International, along with its representatives Maxi EFX Global AU and BrightAU Capital, targeted inexperienced and vulnerable investors between 2018 and 2020. The firms pressured these investors to deposit more funds and profited from their subsequent losses, according to the ASIC.
The court ordered A$156.7 million in penalties against Union Standard, A$114.1 million against EuropeFX, and A$29.4 million against TradeFred. ASIC Chair Sarah Court stated that these penalties were the highest ever secured in connection with an ASIC matter and would send a strong message of deterrence.
In 2024 alone, 68% of retail contracts for difference (CFD) investors in Australia lost money, accumulating over A$458 million in losses, which included A$73 million in fees. Customers of EuropeFX and TradeFred specifically lost more than A$83 million.