Autu Securities (autu.finance) is a Contract for Difference (CFD) broker registered in Australia, established on August 19, 2024. The company primarily offers investment services in CFD trading markets including stock indices, commodity futures, energy, precious metals, global stocks, cryptocurrencies, and forex. However, it does not provide services to jurisdictions where it might violate local laws or regulations, including but not limited to the United States, the Islamic Republic of Iran, and Canada.

Company Registration and Regulatory Status

Public information on the Autu Securities (autu.finance) official website shows that the operating entities of this broker include AUTU MARKETS PTY LIMITED (AFS Authorized Representative Number: 001311215) and Autu Securities International Inc (VFSC Registration Number 700682).

According to publicly available information from its website:

AUTU MARKETS PTY LIMITED was registered in Australia on August 19, 2024, with the company registration number 680 032 428. The company was authorized by WHOLESALE INVESTOR SERVICES PTY LTD on September 1, 2024, becoming its authorized representative with AFS AR license number 001311215. Its authorized scope of operations includes:

Providing financial product advice
Trading financial products/issuing, applying for, acquiring, varying, or disposing of financial products
Trading financial products/applying for, acquiring, varying, or disposing of financial products on behalf of others

Additionally, Autu Securities International Inc, with registration number 700682, was not found in the August 16, 2024 edition of the Vanuatu Financial Services Commission (VFSC) list of licensed financial dealers.

Furthermore, the four legal documents on the broker's website, namely "Risk Acknowledgement, AML & CTF Policy, Interest Conflicts Policy, Execution Policy," contain no content and redirect to the homepage. The Client Agreement and Privacy Agreement documents are rather simplistic and do not specify the jurisdictional legal compliance in case of issues.

Trading Instruments

Autu Securities claims to offer trading in a variety of financial derivatives, including stock indices, commodity futures, energy, precious metals, global stocks, cryptocurrencies, and forex.

Stock Indices: Represent the aggregated performance of a specified set of stocks within a market or market sector. Common indices include the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite.
Commodity Futures: These involve futures contracts for agricultural products (e.g., wheat, corn, soybeans) and industrial commodities (e.g., copper, aluminum). Traders use these contracts for hedging risks or speculation.
Energy: Includes spot and futures trading mainly for oil and natural gas. Energy markets are influenced by factors like supply and demand, geopolitical events, and climate change.
Precious Metals: Such as gold, silver, platinum, and palladium, often viewed as safe-haven assets, especially during economic uncertainty.
Global Stocks: Refers to shares of companies from various countries including Europe, Japan, Canada, and emerging markets. Investors use global stocks to diversify their risk.
Cryptocurrencies: Digital or virtual currencies like Bitcoin and Ethereum, which utilize blockchain technology for decentralized management and trading.
Forex: The trading of different countries' currencies, such as USD/EUR or GBP/JPY. The forex market is the largest and most liquid financial market globally.

Account Opening Process

The steps to open an account with Autu Securities are as follows:

Visit their website and click the "Open Account" button on the homepage to enter the account registration page.
Fill in the details including your name, phone number, email address, and login password, then complete the KYC verification and submit a detailed account application.
After submission, upon approval, you can log into your account to make a deposit and begin trading.

Account Types

Autu Securities' website does not disclose information regarding spreads, trading leverage, margin call/stop-out levels, account types, trading commissions, minimum/maximum trade sizes, maximum position/order sizes, or minimum price increments.

Trading Platform and Deposits/Withdrawals

Autu Securities claims to offer the cTrader trading platform, available on both desktop and mobile. However, the broker does not explicitly disclose the supported deposit and withdrawal methods, fees, or minimum deposit/withdrawal amounts on its website.

Risk Warning

The AFS AR (Australian Financial Services Authorized Representative) license issued by the Australian Securities and Investments Commission (ASIC) carries the following risks and concerns:

Regulatory Arbitrage: Some firms may use the AFS AR license for regulatory arbitrage. Even if a firm holds an AR license, the level of authorization and regulatory oversight may be less stringent compared to a full AFS licensed firm, creating potential regulatory blind spots.
Compliance Risks: Companies holding an AR license may not fully comply with all regulatory requirements, especially in areas such as client fund handling, information disclosure, and anti-money laundering, increasing the risk to client funds and data security.
Fraud and Misleading Behavior: Some firms may use the AFS AR license as a mark of compliance and credibility while engaging in fraudulent or misleading activities, such as exaggerating investment returns or hiding risks, causing investors to suffer losses.
Limited Compensation Ability: In Australia, companies with an AFS license typically participate in professional indemnity insurance to cover potential claims. However, the compensation ability of AFS AR license holders may be relatively limited, particularly if the representing firm is smaller or has insufficient funds, affecting investors' compensation rights in the event of disputes or losses.
Operational and Management Risks: Some AFS AR license holders may lack internal control, risk management, and corporate governance capabilities, leading to operational errors or poor management, further increasing investor risk.
Misuse of Licence: Some companies with an AFS AR license may use the license for unauthorized business activities or misuse the Australian regulatory license internationally to gain illegal profits, causing potential legal risks and customer losses.
License Continuity: Licensed companies may lose their license if they fail to meet ongoing ASIC compliance requirements (e.g., financial reporting, compliance reviews). For investors, this means that the stability of their chosen financial service provider may be at risk.
International Regulatory Differences: While the AFS AR license is recognized in Australia, it may not be considered legal or sufficient financial services licensing in other countries or regions. These regulatory differences can pose risks for cross-border transactions and the protection of international investors' rights.
Authorized Representative Relationship Risks: AFS AR license holders typically act as authorized representatives of a principal licensee, potentially creating conflicts of interest and management risks, especially if there are discrepancies between the interests of the representative and the principal licensee.

Therefore, investors should conduct thorough due diligence when choosing to work with companies holding an AFS AR license and understand the potential risks and issues to ensure the safety of their investments.

Conclusion

Traderknows alerts investors that Autu Securities (autu.finance) has been granted an AFS AR license by the Australian Securities and Investments Commission (ASIC), but there are some concerns and potential risks associated with this license. Additionally, the broker has been established for a short period, and there are several questionable aspects on its website. Investors are advised to choose brokers that are transparent, strictly regulated, and reputable to avoid unnecessary financial losses.

Currently, this broker is marked as "Suspected Fraud" on Traderknows.