How to Get an Australia Forex License? – A Step by Step Guide to ASIC Forex Regulation
FX Broker Regulation in Australia – Key Takeaways
- Australia is the most reputable jurisdiction in Oceania
- License officially classified as an Australian Financial Services License (AFSL)
- The Australia Securities and Exchange Commission (ASIC) regulates forex activity in Australia
- Forex leverage restricted to 20:1 due to product intervention
- 3 major permission types: Market Making, STP and Advisory
- License can also be used by cryptocurrency exchanges
Establishing a Forex Broker License in Australia – How Does It Work?
- To start the process, our team will perform an initial assessment of your brokerage in order to determine if Australia will be the right fit. At a minimum we’ll require a business plan, general overview and introduction to all firm directors.
- Upon receiving all the requested details, we’ll then provide an outline of the application process, covering each milestone in detail.
- To begin the application process, the first step is to select a business name so we can incorporate a local entity in Australia.
- After successful company registration, we’ll then proceed with the formal application with ASIC.
- Note that this is a lengthy process, however, our team will keep you informed of updates and changes as soon as they are received.
- Upon successful approval of the license, we’ll then assist in establishing a bank account.
Important Facts Related to a Forex Broker License in Australia
- License officially classified as an Australian Financial Services License (AFSL)
- Paid up capital is set at $1 million Australian dollars
- A physical office and local directors are a strict requirement
- In order to receive ASIC approval, the applicant must demonstrate a commitment and focus in Australia
- Professional indemnity insurance is required
- Leverage capped at 30:1 on major currency pairs; 20:1 for exotic pairs and other products
- The application process is lengthy and will take a minimum of 6 months
Why Apply for ASIC Regulation in Australia?
Atomiq Consulting – Your Partner for AFSL Forex Licensing in Australia
Founded in 2014, Atomiq Consulting has been helping both new and established FX brokers obtain regulation in a variety of jurisdictions around the globe.
If you are strongly considering a forex broker license in Australia, we are the ideal partner to assist you with all steps of the process. Due to our positive track record, attention to detail, and industry knowledge, brokers around the globe recognize Atomiq Consulting as the ideal choice for guidance in establishing a forex broker license.
Learn About ASIC’s Product Intervention In Our YouTube Channel:
Get a Quote on an AFSL Forex Broker License Today!
To learn more about the set up process, fees, and other questions pertaining to a forex broker license in Australia, don’t hesitate to contact our team of consultants today!
Australia Forex Broker License FAQ
Are there any AFSL licenses currently for sale?
In addition to forex broker license consultation services, we can also assist you in acquiring an existing ASIC licensed forex broker. Because our offers vary based on availability in the market, it is best to contact us directly to discuss our current offers.
After the license has been issued, does Atomiq Consulting also assist with establishing a local bank account?
Yes, as part of our consultation services we will also assist your newly licensed broker with establishing a bank account in Australia.
What is ASIC in forex trading?
ASIC stands for The Australian Securities and Investments Commission and is the regulatory body which issues licenses in Australia for forex trading.
Is forex trading legal in Australia?
Yes. Forex trading is regulated by The Australian Securities and Investments Commission (ASIC). Forex brokers which receive a financial license from ASIC are licensed to legally offer forex trading services.
ASIC has chosen to change leverage requirements for all forex brokers licensed in Australia, when will this change in regulation take place?
In late October of 2020, ASIC announced a product intervention which calls for the reduction of leverage for all forex & CFD products. The changes will go into effect starting on March 29, 2021. In addition to a reduction in leverage, ASIC licensed brokerages must also offer negative balance protection before the March deadline.
Who regulates forex trading in Australia?
The Australian Securities and Investments Commission (ASIC) is the regulatory body that regulates FX trading in Australia.
Does an ASIC forex broker license also apply to investors from New Zealand?
New Zealand has its own financial regulatory body, the New Zealand Financial Markets Authority (FMA). Although traders from New Zealand are able to open an account with an ASIC licensed brokerage, any forex broker that specifically wishes to target investors residing in New Zealand should apply for an FMA forex broker license in New Zealand.
Can Atomiq Consulting assist in receiving authorised representative (AR) approval in Australia?
Yes, if your broker is interested in becoming an Authorised Representative in Australia, we are more than happy to assist you further.
Can I use MetaTrader in Australia?
Yes. The majority of regulated brokers in Australia offer MetaTrader; there are no restrictions for its use in Australia.
Is there a list of ASIC regulated forex brokers?
Yes. Simply visit ASIC Connect to find a list of regulated forex brokers in Australia.
Which regulatory jurisdictions are similar to Australia?
Forex brokers interested in establishing a presence in Oceania should also consider applying for an FX broker license in New Zealand. An additional jurisdiction to consider would be a forex broker license in Labuan, Malaysia.
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