Australian forex licence and prop firms: ASIC, AFSL, cost.

A prop firm sells evaluations on simulated accounts and pays rewards from simulated results; an Australian financial services licensee deals in, advises on or issues real financial products. Most forex prop firms simulate CFD trading, which is why ASIC's view of CFD distribution is the lens a lawyer will use. Our guide are prop firms legal in Australia answers the short question; this page covers the licence, the company and the website.

For the launch order across platform, CRM, payments and website, start at the start-a-prop-firm hub and how to start a forex prop firm.

What has ASIC said about prop firms?

In August 2024 ASIC told Finance Magnates that it "is monitoring the emergence of 'prop trading' firms or services relating to CFD trading", and listed "the distribution of CFDs by issuers via emerging channels, such as 'prop trading' services" among future areas of focus. It did not say whether evaluation firms need a licence, and we found no ASIC regulatory guide, Moneysmart page or consultation about prop firms as of 12 October 2026.

There has been one reported intervention. Finance Magnates wrote in July 2024 that ASIC "ceased all activities" of an Australian firm called The Prop Trading in December 2022 and forced it to take its website down, and that the company "denied any wrongdoing". We could not find a matching ASIC media release, so treat it as press reporting. Around it sits a heavy CFD enforcement record: nearly AUD 40 million in refunds after a review of 52 CFD issuers, a record AUD 300.2 million in court penalties against CFD operators in 2026, and the suspension of a CFD issuer's licence for client money and reporting failures in July 2026.

When does a prop firm need an Australian forex licence (AFSL)?

When it provides a financial service in Australia. ASIC says that "if you want to run a financial services business, you generally need to be authorised under an AFS licence", and its RG 121 explains that offshore firms can need one if they induce people in Australia to use their services. A firm that only sells simulated evaluations does not deal in real derivatives, but that changes if it issues CFDs, routes funded traders to a broker for a share of revenue, copies their trades into live accounts or gives personal advice.

The costs of the licence route are published. ASIC's online application fee for a company is AUD 7,537 for retail clients and high-complexity products such as derivatives (AUD 3,721 for low complexity), and ASIC aims to decide 70% of complete applications within 150 days and 90% within 240. A retail OTC derivative issuer must also hold net tangible assets of at least AUD 1 million or 10% of average revenue, whichever is greater, before staff, compliance and audit. Our forex broker licence guide compares the route with other countries.

How do the CFD order and DDO affect a prop firm?

ASIC's CFD product intervention order has limited retail leverage since 29 March 2021: 30:1 for major currency pairs, 20:1 for minor pairs, gold and major indices, 10:1 for other commodities and minor indices, 5:1 for shares and 2:1 for crypto-assets, with negative balance protection and standardised margin close-out. It was extended to 23 May 2027, and on 12 October 2026 ASIC proposed extending it to 2037 and widening it to CFDs settled in digital assets, with feedback due by 9 November 2026.

The order applies to issuers of real CFDs, not to simulated accounts. But a prop firm whose rules offer far higher simulated leverage to Australians, while a related broker issues the live product, invites the "emerging channels" question ASIC raised in 2024. The design and distribution obligations, in force since 5 October 2021, add a second layer for licensees: a target market determination for each product and reporting of significant dealings outside it. Document your leverage and risk rules with that in mind.

How do you set up an Australian company for a prop firm?

Most founders use a proprietary limited company. ASIC charges AUD 636 to register a company with share capital and AUD 342 for the annual review of a proprietary company, from 1 July 2026. ASIC states that "proprietary companies must have at least one director who normally lives in Australia" and that "directors must apply for a director ID before they are appointed". The ABR does not charge for an ABN. Compare formation costs across places in prop firm company formation cost.

• Choose a name and register the company with ASIC (AUD 636).
• Make sure at least one director normally lives in Australia and every director has a director ID.
• Apply for a free ABN and register for GST once turnover reaches AUD 75,000.
• Pay the AUD 342 annual review fee each year and keep registers current.
• If you will hold an AFSL, budget for responsible managers, compliance, audit and the capital requirement.

What are the tax points to raise with an adviser?

The ATO sets company tax at 25% for base rate entities, those with aggregated turnover under AUD 50 million and no more than 80% of income from investment-type sources (the ATO test), and 30% for other companies. GST registration is required within 21 days of reaching the AUD 75,000 turnover threshold, and non-resident businesses selling digital products to Australian consumers must register once they meet it too, which matters if you sell evaluations into Australia from offshore. Ask a registered tax agent how evaluation fees, refunds and rewards paid to traders are treated.

What must an Australian prop firm's website show?

Australian Consumer Law gives customers guarantees that a warranty or terms cannot remove, including a refund for the unused portion of a service after a major failure. The Spam Act requires consent, sender identification and an unsubscribe actioned within five working days. The Privacy Act generally covers businesses with turnover above AUD 3 million, with exceptions, so most firms publish a full privacy policy from launch.

• Entity disclosure: company name, ACN or ABN and address in the footer and terms.
• A simulated-trading notice and a statement that the firm does not hold an AFS licence (unless it does); draft it with the disclaimer generator.
• Refund and cancellation terms that respect the consumer guarantees; see prop firm terms and conditions.
• No income claims in ads or affiliate content; see marketing claims.
• Consent-based email capture with a working unsubscribe, and a privacy policy.
• A restricted-countries list enforced at checkout and KYC; see restricted countries.

When should you not choose Australia?

• If your business depends on issuing CFDs or linking traders to a broker you control: budget for the AFSL route, its capital and up to 240 days.
• If no director lives in Australia: you will need a resident director for a proprietary company.
• If you want a light-touch regulator: ASIC's 2026 CFD enforcement record points the other way.
• If you mainly sell outside Australia: compare the UK, Dubai and Labuan on the jurisdictions index.

Launch steps, in order

1. Map the product against AFSL triggersAsk an Australian lawyer whether your evaluation, rewards, leverage and any broker relationship amount to dealing, advice or issuing CFDs.
2. Register the companyRegister a proprietary company with ASIC (AUD 636) with a resident director who holds a director ID.
3. Get an ABN and plan GSTApply for a free ABN and register for GST within 21 days of reaching AUD 75,000 turnover.
4. Decide whether you need an AFSLIf yes, prepare the application (AUD 7,537 online for retail high complexity) and capital, and allow up to 240 days.
5. Set up payments and payoutsCombine an operating account, a high-risk card route and crypto checkout; see payment processing fees.
6. Choose platform, CRM and KYCPick a platform and back office; see prop firm CRM and KYC and AML software.
7. Publish a compliant websiteLaunch with entity disclosure, simulated notices, ACL-compliant refund terms and Spam Act-compliant forms.

Providers worth a look

From our dataset of prop-firm technology vendors, each fact checked on the vendor’s own site. Listed for fit, not ranked.

Your website, whatever platform you choose

Every route on this page still needs a marketing website: the pricing table, rules, payouts, FAQ, legal pages and the checkout hand-off to your platform. Platforms and white labels run the dashboard; they don’t build that site. PipValley does, for any platform, from $1,490 (pricing, launch service, what the site includes).

Questions

Sources

1. ASIC: Do you need an AFS licence? checked 12 Oct 2026
2. ASIC RG 121: Doing financial services business in Australia checked 12 Oct 2026
3. Finance Magnates: ASIC is monitoring the emergence of prop trading firms (14 Aug 2024) checked 12 Oct 2026
4. Finance Magnates: Prop trading chaos, SI World shuts down while The Prop Trading AU teases comeback (5 Jul 2024) checked 12 Oct 2026
5. ASIC 26-004MR: Nearly $40 million in refunds after CFD sector falls short checked 12 Oct 2026
6. ASIC 26-117MR: Federal Court orders record $300 million penalties in Union Standard case checked 12 Oct 2026
7. ASIC 26-183MR: ASIC suspends AFS licence of CFD issuer GFA Capital Markets checked 12 Oct 2026
8. ASIC 26-239MR: ASIC moves to extend and strengthen CFD consumer protections (12 Oct 2026) checked 12 Oct 2026
9. ASIC 20-254MR: Product intervention order strengthens CFD protections checked 12 Oct 2026
10. ASIC 22-081MR: CFD product intervention order extended for five years checked 12 Oct 2026
11. ASIC 22-166MR: Consultation on remaking the class order on financial requirements for retail OTC derivative issuers checked 12 Oct 2026
12. ASIC: Fees for commonly lodged documents (fee data effective 1 Jul 2026) checked 12 Oct 2026
13. ASIC: Service charter checked 12 Oct 2026
14. ASIC: Company officeholders, directors and secretaries checked 12 Oct 2026
15. ASIC RG 274: Product design and distribution obligations (10 Sep 2024) checked 12 Oct 2026
16. ATO: Company tax rates 2025–26 checked 12 Oct 2026
17. ATO: Registering for GST checked 12 Oct 2026
18. ATO: How Australian GST works for non-resident businesses checked 12 Oct 2026
19. Australian Business Register: ABN basics checked 12 Oct 2026
20. ACCC: Repair, replace, refund, cancel checked 12 Oct 2026
21. ACMA: Avoid sending spam checked 12 Oct 2026
22. OAIC: Rights and responsibilities under the Privacy Act checked 12 Oct 2026