What is the Australian Retail OTC Derivative Association (ARODA)?

The Australian Retail OTC Derivative Association is an industry body, established by Australia’s leading CFD providers, to continually raise industry standards. The idea of the CFD forum started after conversing with ASIC who were keen for self-regulation to occur in key areas of the industry. The general premise is for industry members to work closely together to raise standards and offer greater investor protection, as well as increasing their understanding of who they’re dealing with and the risks in trading CFDs.

What is its purpose?

The forum is designed to offer investors greater protection while educating them on risk mitigation.

The CFD Forum has established Best Practice Standards with the purpose of:

  • continuously improving existing CFD industry standards and addressing specific CFD industry issues and investor concerns that are not covered by legislation;
  • building upon existing legislation to deliver additional benefits and raised standards to investors; and
  • elevating investor perception and understanding in dealing in CFDs.

How many members make up the Australian Retail OTC Derivative Association?

There are five members currently in the Association who have agreed to the sixteen Standards, representing over 60% of the CFD industry by market share. The Forum was incorporated as a forum in August 2013 and we are speaking with potential new members currently.

Not all providers are part of the ARODA, however, we are working to encourage more to join regardless of business model or size. We are keen to grow membership numbers and establish the Forum’s standards, so the industry can self-regulate and increase investor confidence.

What are the advantages of using a broker who is a member of the CFD Forum?

Members of the CFD Forum are required to meet Best Practice Standards (link) and agree to incorporate a statement of compliance regarding these Standards in their Product Disclosure Statements.

This means that these providers hold themselves to higher standards, including those based on client money and education, than strictly required by legislation.  They also push for tougher legislation in the industry to improve investor confidence and its reputation as a whole.

Questions to ask your broker

Questions to ask include:

  • Are you a member of the CFD Forum?
  • Do you (the broker) use your own funds for hedging?
  • How much of your own funds do you have on hand for hedging?
  • Do you segregate client funds deposited, including net running profits?
  • Does your PDS allow you to use client money for hedging?


How to Join

Click on the “Apply Now” button to access the form you are required to complete.  This form will be assessed by the members of the CFD Forum who will be in contact with you regarding the outcome.

Advantages of Joining the CFD and FX Forum

  • Become a more trusted Member of the CFD and Margin FX community;
  • Elevate the perception of products and services in the industry;
  • Advance the protection of client money to meet international standards;
  • Raise industry standards and promote greater investor confidence;
  • Have a stronger voice in the industry; and
  • Encourage industry “best practice”

Each Member of the CFD Forum contractually agrees to comply with the Best Practice Standards (link) as well as to promulgate and administer these Standards in consultation with other Members of the CFD Forum.