Is Fusion Markets Safe?

Fusion Markets is a reasonably safe broker, but proceed with awareness of its limitations. It holds a single Tier 1 licence from ASIC, which is genuine and provides strong protections for Australian clients. Beyond that, the regulatory picture is thin. The other two licences are from Tier 3 jurisdictions: FSA Seychelles and VFSC Vanuatu. Fusion Markets scores 68 out of 100 in our Regulation & Trust category, placing it in the lower third of brokers we review. Safety is not the reason to choose this broker. Cost is.

Regulatory Standing

Fusion Markets holds three licences:

The ASIC licence (385620) is the sole strong credential. ASIC requires segregated client funds, minimum capital reserves, and regular compliance reviews. Australian-based traders get the full benefits of one of the world's top financial regulators.

But that's where the strong regulation ends. The FSA Seychelles and VFSC Vanuatu are both Tier 3. These regulators have minimal enforcement budgets, limited staffing, and function primarily as licensing jurisdictions rather than active supervisory bodies. The VFSC in particular has been criticised within the industry for its light-touch approach. Several problematic brokers have operated under VFSC licences, which isn't a good look for the regulator's due diligence.

No FCA licence. No CySEC licence. No DFSA, no FSCA, no CFTC. For a broker targeting international clients, the absence of any Tier 2 regulation alongside ASIC is a notable gap. Most competitors in Fusion Markets' price range hold at least an FCA or CySEC licence alongside their Tier 1 credential. IC Markets has ASIC plus CySEC. Pepperstone has ASIC plus FCA plus CySEC. Tickmill has FCA plus CySEC. Fusion Markets has ASIC plus two Tier 3 offshore licences.

International clients who aren't based in Australia will almost certainly trade through the Seychelles or Vanuatu entity, where protections are minimal. This is the core regulatory trade-off with Fusion Markets: Australian residents get strong coverage, everyone else gets the bare minimum.

Fund Protection Assessment

Segregated client funds: Yes, through the ASIC entity. Client funds are held in segregated accounts with Australian banks. The offshore entities also claim fund segregation, but without strong regulatory enforcement, the assurance is weaker. Segregation is only as reliable as the regulator that enforces it.

Negative balance protection: Yes, available across all entities. Your account can't go below zero, which protects against worst-case scenarios during volatile market events.

Investor compensation: No. This is the single biggest safety concern with Fusion Markets. There is no investor compensation scheme at any entity. No FSCS (UK scheme), no ICF (EU scheme), no equivalent. If Fusion Markets went insolvent and couldn't return client funds, there is no guarantee fund to make you whole.

The absence of investor compensation is a material gap. To understand what this means in practice: if you had GBP 50,000 with Pepperstone's FCA entity and it went bankrupt, the FSCS would reimburse you up to GBP 85,000. If you had the same amount with Fusion Markets and it went bankrupt, you'd be relying entirely on the insolvency process to recover funds from segregated accounts. That process can take months or years, and recovery isn't guaranteed.

Australia doesn't have a forex-specific compensation scheme (unlike the UK and EU), so even the ASIC entity doesn't provide compensation coverage. This is a structural limitation that Fusion Markets can't easily fix without obtaining an FCA or CySEC licence.

Company Background

Fusion Markets was founded in 2017 in Melbourne, Australia. The company is privately held under FMGP Trading Group Pty Ltd and is not listed on any stock exchange.

Nine years of operation is short by industry standards. IG has been running for over 50 years, CMC Markets for 37, OANDA for 30. Even relatively newer entrants like IC Markets (2007) and Pepperstone (2010) have significantly more history. A shorter track record means less data on how Fusion Markets handles market stress events, regulatory changes, or periods of financial strain.

Nine years is clean, though. No regulatory actions, no licence revocations, no public controversies. The company has operated without incident.

Fusion Markets has built its entire brand around being the cheapest broker in the market. The $4.50 per lot round-turn commission on the Zero account undercuts virtually every competitor. For context: IC Markets charges $6-7/lot, Pepperstone charges $7/lot, and Tickmill charges $6/lot. Fusion Markets is roughly 35% cheaper on commission than the next cheapest competitor.

The instrument range is limited to about 250 products. That's the smallest of any broker in our review except Errante (150). This reflects the smaller scale of the operation and a focus on core forex pairs and major CFDs rather than a broad product catalog.

Withdrawal Reliability

All deposits and withdrawals are free. No inactivity fee, which is a genuine positive. You won't be charged for dormancy.

Base currencies: USD, EUR, GBP, AUD, NZD, SGD, JPY, CAD, HKD, CHF. Ten options is generous and matches the likes of IC Markets and Pepperstone.

No systemic withdrawal complaints. Fusion Markets processes payments reliably based on available public data. The smaller client base means the sample of publicly available reviews is smaller than for major brokers, so the data is thinner.

How Fusion Markets Compares on Safety

Fusion Markets scores 68, which is in the lower range:

Significantly safer: Every broker scoring 70 or above, which includes 17 of the 20 brokers in our review. IG (98), OANDA (95), CMC Markets (92), Pepperstone (90), XTB (88), Eightcap (85), IC Markets (82), and many others all offer substantially stronger regulatory coverage.

Close to Fusion Markets: BlackBull Markets (70) sits just above. Like Fusion Markets, BlackBull has limited Tier 1/2 regulation and no investor compensation.

Below Fusion Markets: Moneta Markets (65) and Errante (62).

Fusion Markets' single Tier 1 licence, no investor compensation, two Tier 3 offshore licences, and shorter operating history combine to place it near the bottom for safety. The broker competes on cost, not trust.

Our Safety Verdict

Fusion Markets is safe enough for traders who understand the limitations and prioritise trading costs above all else. The ASIC licence is genuine, funds are segregated, and negative balance protection applies. For Australian residents trading under the ASIC entity, the protections are adequate.

For international clients on the Seychelles or Vanuatu entities, the protections are thin. No compensation fund, Tier 3 oversight, and a relatively short company history. If you're depositing a large amount of capital, these gaps matter more than commission savings.

Our recommendation: Fusion Markets is best suited to experienced, cost-focused forex traders who want the absolute lowest commissions available and accept the trade-off of weaker regulation. If you want similar raw-spread pricing with better regulatory coverage, look at IC Markets (ASIC + CySEC, $6/lot), Tickmill (FCA + CySEC, $6/lot), or Pepperstone (FCA + ASIC, $7/lot). The extra $1.50-2.50 per lot buys you meaningfully stronger safety protections.

Regulation & Trust Score: 68 / 100

Read our full Fusion Markets review | Compare broker safety scores