Ranked by our disclosed methodology, shown here only because each one's own disclosed regulatory footprint confirms a licence from ASIC (Australian Securities & Investments Commission) specifically -- with brokers actually headquartered here called out below. This is a direct licensing match, not an EU-passporting inference: a broker appears on this page only if ASIC is confirmed in its own disclosed regulatory footprint, not because it merely holds some other licence elsewhere. That's still not a guarantee every broker below is actively onboarding Australia retail clients today under that licence -- confirm directly with the broker. See our full reviews for brokers not licensed in Australia.
Australia regulates CFDs and margin forex directly through ASIC rather than via any EU framework -- a firm needs its own Australian Financial Services licence, not a passported EU one, to serve Australian retail clients.
ASIC's 2021 CFD product intervention order brought Australian retail leverage caps roughly in line with the EU's own ESMA limits, after years of Australian retail accounts being able to reach far higher leverage than their EU counterparts.
Base currency: AUD · Local regulator: ASIC (Australian Securities & Investments Commission)
Any firm offering CFDs to Australian retail clients needs an Australian Financial Services (AFS) licence from ASIC authorising it to deal in and/or advise on CFDs. Since 29 March 2021, ASIC's CFD product intervention order has applied on top of the licence: leverage caps by asset class (below), standardised margin close-out rules designed to automatically close a losing position before a client's account is wiped out, and a ban on trading inducements such as account-opening or deposit rebates. The order followed near-identical UK and EU measures, prompted partly by heavy retail CFD losses during 2020's COVID-19 volatility. Whether the order (originally time-limited) has since been made permanent or renewed wasn't independently confirmed from the sources checked for this page -- see ASIC's own CFD product intervention page for its current status.
Australia has no CFD/forex-specific investor compensation scheme comparable to Cyprus's ICF or the UK's FSCS. The Australian Financial Complaints Authority (AFCA) can hear complaints against AFS licensees and order compensation, but only case-by-case on a complaint it upholds -- it isn't a standing fund that automatically pays out if a broker becomes insolvent. Not independently confirmed here: whether any indemnity-insurance requirement attached to an AFS licence would itself cover client losses from a broker failure.
ASIC's order caps retail CFD leverage by underlying asset: 30:1 on major currency pairs, 20:1 on minor currency pairs, gold, and major stock indices, 10:1 on other commodities and minor stock indices, 5:1 on shares, and 2:1 on crypto-asset CFDs -- a steep cut from the leverage of up to 500:1 some retail accounts reportedly reached beforehand. A client who qualifies as a "wholesale" investor (Australia's rough equivalent of "professional") can apply for higher leverage, but gives up the retail protections that come with the cap.
Not independently confirmed in the depth this page would need -- in general, the ATO tends to treat gains from speculative CFD/forex trading as assessable income (and losses as deductible) under ordinary income-tax rules rather than the capital-gains discount that applies to long-term investment assets, but your own treatment depends on whether the ATO views your activity as a "business" of trading. Consult a registered Australian tax agent for your specific position.
General overview only, not tax advice -- rules change and depend on your personal circumstances (including whether you're classified as trading as a business). Confirm your specific position with a local tax advisor.
Not independently confirmed broker-by-broker for this page -- Australian clients are typically offered bank transfer (including BPAY/PayID where a broker supports it), debit/credit card, and e-wallets such as Skrill/Neteller, but confirmed support varies by broker.
Beyond the leverage caps above, ASIC's order restricts specific sales practices, including a ban on inducements to trade. Contravention carries penalties of up to 5 years' imprisonment for individuals and substantial civil penalties for corporations, and a client harmed by a breach may be able to recover losses through AFCA or the courts.
Confirmed below (marked "Headquartered in Australia") based on each broker's own disclosed headquarters -- not a branch, not a marketing claim, and not the same as where its regulated entity happens to be licensed. Every other broker in this ranking is included on the strength of its ASIC licence, with no confirmed local office.
Ranked using our disclosed overall broker score (nine weighted categories, led by regulation & client protection and trading costs) -- every broker here has a confirmed ASIC licence in its own disclosed regulatory footprint, a direct match rather than an EU-passporting inference. We don't have independent country-level trading-volume or market-share data, so this reflects broker quality and confirmed licensing, not measured local popularity. See our comparison tool to compare any two directly.
Is CFD trading legal in Australia?
Yes, if offered by an ASIC-licensed AFS holder complying with ASIC's CFD product intervention order -- leverage caps and standardised margin close-out rules in force since March 2021.
What leverage can I get as a retail CFD trader in Australia?
ASIC caps it by asset class: 30:1 on major FX pairs down to 2:1 on crypto-asset CFDs. Classifying as a "wholesale" investor can unlock higher leverage but removes the retail protections that come with the cap.
Australia: ASIC (Australian Securities & Investments Commission) (official site)