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

> When an Australian prop firm needs an AFS licence, ASIC fees (AUD 3,721–7,537), the CFD order, DDO, AUD 636 company setup and 25–30% tax. Oct 2026.

- Source: https://pipvalley.com/jurisdictions/australia
- Publisher: PipValley - web design studio for prop trading firms
- Updated: 2026-10-12

**Short answer:** Australia has no licence for simulated-evaluation prop firms, but ASIC said in Aug 2024 it is "monitoring the emergence of 'prop trading' firms" as a CFD channel. An AFS licence is needed to deal in or advise on financial products such as CFDs: ASIC's online fee is AUD 7,537 for a retail, high-complexity application by a company, and it aims to decide 70% within 150 days. A company costs AUD 636 to register.

## At a glance

- **Regulator:** ASIC: "If you want to run a financial services business, you generally need to be authorised under an AFS licence", covering dealing, advice and market making in financial products. [1]
- **Regulator stance (Aug 2024):** ASIC is "monitoring the emergence of 'prop trading' firms or services relating to CFD trading" and named CFD distribution "via emerging channels, such as 'prop trading' services" as a future focus. [3]
- **Reported action (2022):** Finance Magnates reported (Jul 2024) that ASIC "ceased all activities" of Australian firm The Prop Trading in Dec 2022 and had its website taken down; the company denied wrongdoing. [4]
- **CFD sector review (2026):** After reviewing 52 licensed CFD issuers, ASIC secured nearly AUD 40 million in refunds for more than 38,000 retail investors (26-004MR). [5]
- **AFSL application fee:** Company, online: AUD 3,721 retail low complexity; AUD 7,537 retail high complexity; AUD 2,233 / 5,025 wholesale (ASIC fee data, 2026). [12]
- **Licence timeline:** ASIC aims to decide 70% of complete AFS licence applications within 150 days and 90% within 240 days. [13]
- **CFD product intervention:** Leverage caps from 29 Mar 2021: 30:1 major FX, 20:1 minor FX/gold/major index, 2:1 crypto. Extended to 23 May 2027; on 12 Oct 2026 ASIC proposed extending it to 2037. [9][10][8]
- **Capital for CFD issuers:** Retail OTC derivative issuers must hold net tangible assets of the greater of AUD 1,000,000 or 10% of average revenue. [11]
- **Company and fees:** Proprietary company registration AUD 636 and annual review AUD 342 (from 1 Jul 2026); at least one director must normally live in Australia and hold a director ID. [12][14]
- **Tax and GST:** Company tax 25% for base rate entities (turnover under AUD 50m), 30% otherwise. GST registration at AUD 75,000 turnover, including non-residents selling digital products. [16][17][18]
- **Penalties (2026):** The Federal Court ordered a record AUD 300.2 million in penalties against CFD operators including Union Standard (26-117MR). [6]
- **Design and distribution:** Since 5 Oct 2021 issuers of financial products must publish a target market determination under the DDO regime (RG 274). [15]

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](https://pipvalley.com/guides/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](https://pipvalley.com/start-a-prop-firm) and [how to start a forex prop firm](https://pipvalley.com/start-a-prop-firm/forex).

> This page explains how things generally work and what ASIC, the ATO and the press have published. It isn't legal, tax or financial advice. Confirm every point with an Australian financial services lawyer and a registered tax agent before you act.

## 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](https://pipvalley.com/guides/forex-broker-license) compares the route with other countries.

**AFS licence: published ASIC fees and benchmarks (checked 12 Oct 2026)**

| Item | Figure | Source |
|---|---|---|
| Application, company, retail, high complexity (online) | AUD 7,537 | ASIC fees data |
| Application, company, retail, low complexity (online) | AUD 3,721 | ASIC fees data |
| Application, company, wholesale (low / high) | AUD 2,233 / AUD 5,025 | ASIC fees data |
| Decision time target | 70% in 150 days; 90% in 240 days | ASIC service charter |
| Net tangible assets, retail OTC derivative issuer | Greater of AUD 1m or 10% of average revenue | ASIC 22-166MR |
| Simulated evaluations only | No ASIC licence category | Company, tax, consumer and privacy law still apply |

## 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](https://pipvalley.com/guides/prop-firm-risk-management) 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](https://pipvalley.com/guides/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](https://pipvalley.com/tools/prop-firm-disclaimer-generator).
- Refund and cancellation terms that respect the consumer guarantees; see [prop firm terms and conditions](https://pipvalley.com/guides/prop-firm-terms-and-conditions).
- No income claims in ads or affiliate content; see [marketing claims](https://pipvalley.com/glossary/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](https://pipvalley.com/guides/prop-firm-sanctions-and-restricted-countries).

> PipValley builds prop firm websites with entity disclosures, simulated-trading notices, rules pages and restricted-country logic, on any platform. See [the launch service](https://pipvalley.com/services/launch-a-prop-firm).

## 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](https://pipvalley.com/jurisdictions/united-kingdom), [Dubai](https://pipvalley.com/jurisdictions/dubai) and [Labuan](https://pipvalley.com/jurisdictions/labuan) on the [jurisdictions index](https://pipvalley.com/jurisdictions).

## Launch steps

1. **Map the product against AFSL triggers:** Ask an Australian lawyer whether your evaluation, rewards, leverage and any broker relationship amount to dealing, advice or issuing CFDs.
2. **Register the company:** Register a proprietary company with ASIC (AUD 636) with a resident director who holds a director ID.
3. **Get an ABN and plan GST:** Apply for a free ABN and register for GST within 21 days of reaching AUD 75,000 turnover.
4. **Decide whether you need an AFSL:** If 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 payouts:** Combine an operating account, a high-risk card route and crypto checkout; see [payment processing fees](https://pipvalley.com/guides/prop-firm-payment-processing-fees).
6. **Choose platform, CRM and KYC:** Pick a platform and back office; see [prop firm CRM](https://pipvalley.com/guides/prop-firm-crm) and [KYC and AML software](https://pipvalley.com/guides/kyc-aml-software-for-prop-firms).
7. **Publish a compliant website:** Launch with entity disclosure, simulated notices, ACL-compliant refund terms and Spam Act-compliant forms.

## Providers worth a look

- **Sumsub**: KYC, AML screening and fraud prevention with a dedicated trading and broker solution.
- **Veriff**: Document, biometric and liveness checks on self-serve plans from USD 0.80 per verification.
- **Persona**: Configurable KYC, KYB and AML checks for firms that want to design their own flows.
- **Match-Trader**: Trading platform plus Prop CRM, sold as white label from USD 2,500 a month.
- **TradeLocker**: Web, mobile and desktop platform licensed to prop firms per active account, with a simulated live environment.
- **Paytiko**: Payment orchestration (cashier, routing, pay-ins, payouts) connecting to 500+ PSPs.
- **Rise**: Fiat and crypto contractor payroll marketed to prop firms for trader payouts.

## Your website

PipValley builds the marketing website for any platform or route: pricing table, rules, payouts, FAQ, legal pages and the checkout hand-off. Plan your launch: https://pipvalley.com/contact?src=launch-jurisdiction&place=australia

## Questions

### Do you need an AFSL to run a prop firm in Australia?

Not for simulated evaluations alone, on the public record: ASIC has no licence category for them. You generally need an AFS licence to deal in, advise on or issue financial products such as CFDs, so linking traders to a broker or issuing CFDs changes the answer. ASIC said in 2024 it is monitoring prop trading, so take Australian legal advice first.

### How much does an Australian forex licence cost?

ASIC's online application fee for a company is AUD 7,537 for a retail, high-complexity AFS licence such as derivatives, or AUD 3,721 for low complexity. A retail OTC derivative issuer also needs net tangible assets of at least AUD 1 million or 10% of average revenue. Legal, compliance and staffing costs come on top.

### How long does ASIC take to approve an AFS licence?

ASIC's service charter aims to decide 70% of complete AFS licence applications within 150 days and 90% within 240 days. Incomplete applications take longer. A simulated-evaluation firm that does not need a licence can launch once its company, payments and website are ready.

### What leverage can a prop firm offer Australian traders?

ASIC's CFD order caps leverage on real retail CFDs at 30:1 for major currency pairs down to 2:1 for crypto, and ASIC proposed on 12 October 2026 to extend it to 2037. It applies to CFD issuers, not simulated accounts, but ask a lawyer how your simulated leverage and any broker link will look to ASIC.

### What does it cost to register a company in Australia?

ASIC charges AUD 636 to register a proprietary company with share capital and AUD 342 for its annual review, from 1 July 2026. An ABN is free. At least one director must normally live in Australia, and every director needs a director ID before appointment.

### Has ASIC shut down a prop firm?

Finance Magnates reported that ASIC ceased the activities of an Australian firm, The Prop Trading, in December 2022, which the company disputed; we found no ASIC media release about it. As of 12 October 2026 we found no other ASIC action naming an evaluation-model prop firm.

## Sources

1. [ASIC: Do you need an AFS licence?](https://www.asic.gov.au/for-finance-professionals/afs-licensees/do-you-need-an-afs-licence) (checked 2026-10-12)
2. [ASIC RG 121: Doing financial services business in Australia](https://download.asic.gov.au/media/aqhnddyy/rg121-published-17-september-2024-20260409.pdf) (checked 2026-10-12)
3. [Finance Magnates: ASIC is monitoring the emergence of prop trading firms (14 Aug 2024)](https://www.financemagnates.com/executives/exclusive-asic-is-monitoring-the-emergence-of-prop-trading-firms/) (checked 2026-10-12)
4. [Finance Magnates: Prop trading chaos, SI World shuts down while The Prop Trading AU teases comeback (5 Jul 2024)](https://www.financemagnates.com/forex/prop-trading-chaos-si-world-shuts-down-while-the-prop-trading-au-teases-comeback/) (checked 2026-10-12)
5. [ASIC 26-004MR: Nearly $40 million in refunds after CFD sector falls short](https://www.asic.gov.au/about-asic/news-centre/find-a-media-release/2026-releases/26-004mr-asic-secures-nearly-40-million-in-refunds-to-investors-and-drives-change-after-cfd-sector-falls-short/) (checked 2026-10-12)
6. [ASIC 26-117MR: Federal Court orders record $300 million penalties in Union Standard case](https://www.asic.gov.au/about-asic/news-centre/find-a-media-release/2026-releases/26-117mr-federal-court-orders-record-300-million-penalties-in-asic-s-case-over-egregious-union-standard-and-cfd-operator-misconduct) (checked 2026-10-12)
7. [ASIC 26-183MR: ASIC suspends AFS licence of CFD issuer GFA Capital Markets](https://asic.gov.au/about-asic/news-centre/find-a-media-release/2026-releases/26-183mr-asic-suspends-afs-licence-of-cfd-issuer-gfa-capital-markets/) (checked 2026-10-12)
8. [ASIC 26-239MR: ASIC moves to extend and strengthen CFD consumer protections (12 Oct 2026)](https://www.asic.gov.au/about-asic/news-centre/find-a-media-release/2026-releases/26-239mr-asic-moves-to-extend-and-strengthen-cfd-consumer-protections) (checked 2026-10-12)
9. [ASIC 20-254MR: Product intervention order strengthens CFD protections](https://www.asic.gov.au/about-asic/news-centre/find-a-media-release/2020-releases/20-254mr-asic-product-intervention-order-strengthens-cfd-protections) (checked 2026-10-12)
10. [ASIC 22-081MR: CFD product intervention order extended for five years](https://asic.gov.au/about-asic/news-centre/find-a-media-release/2022-releases/22-081mr-asic-s-cfd-product-intervention-order-extended-for-five-years/) (checked 2026-10-12)
11. [ASIC 22-166MR: Consultation on remaking the class order on financial requirements for retail OTC derivative issuers](https://www.asic.gov.au/about-asic/news-centre/find-a-media-release/2022-releases/22-166mr-asic-consults-on-remaking-class-order-on-financial-requirements-for-retail-otc-derivative-issuers) (checked 2026-10-12)
12. [ASIC: Fees for commonly lodged documents (fee data effective 1 Jul 2026)](https://www.asic.gov.au/for-business-and-companies/forms-and-fees/all-fees/fees-for-commonly-lodged-documents) (checked 2026-10-12)
13. [ASIC: Service charter](https://asic.gov.au/servicecharter) (checked 2026-10-12)
14. [ASIC: Company officeholders, directors and secretaries](https://www.asic.gov.au/for-business-and-companies/companies/company-building-blocks/company-officeholders-directors-and-secretaries) (checked 2026-10-12)
15. [ASIC RG 274: Product design and distribution obligations (10 Sep 2024)](https://download.asic.gov.au/media/etgm1amc/rg274-published-10-september-2024.pdf) (checked 2026-10-12)
16. [ATO: Company tax rates 2025–26](https://www.ato.gov.au/tax-rates-and-codes/company-tax-rates/tax-rates-2025-26) (checked 2026-10-12)
17. [ATO: Registering for GST](https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/registering-for-gst) (checked 2026-10-12)
18. [ATO: How Australian GST works for non-resident businesses](https://www.ato.gov.au/businesses-and-organisations/international-tax-for-business/gst-for-non-resident-businesses/how-australian-gst-works) (checked 2026-10-12)
19. [Australian Business Register: ABN basics](https://abr.business.gov.au/FAQ/ABNBasics) (checked 2026-10-12)
20. [ACCC: Repair, replace, refund, cancel](https://www.accc.gov.au/consumers/problem-with-a-product-or-service-you-bought/repair-replace-refund-cancel) (checked 2026-10-12)
21. [ACMA: Avoid sending spam](https://www.acma.gov.au/avoid-sending-spam) (checked 2026-10-12)
22. [OAIC: Rights and responsibilities under the Privacy Act](https://oaic.gov.au/privacy-law/rights-and-responsibilities) (checked 2026-10-12)

_Not legal, tax or financial advice: rules differ by place and change often; speak to a qualified lawyer and tax adviser. Evaluation accounts are simulated; nothing here promises revenue, pass rates or payouts._