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Brokers that deal in, advise on or make a market in derivatives and foreign exchange for Australian clients hold this licence, from a regulator that publishes its service targets and results each year.
Selected engagements from more than 250 licences obtained since 2013, for payment, e-money and cryptoasset firms.
Volkswagen
Payment InstitutionObtained Nexpay’s FCA Authorised Payment Institution licence.
Electronic Money InstitutionObtained Dzing Finance’s FCA Authorised Electronic Money Institution licence.
Obtained Orbital’s FCA Authorised Payment Institution licence.
Our realistic timeline from submission to decision.
Client money and liquidity provider accounts opened alongside the application, so you trade on authorisation.
We assemble your team: two responsible managers and company officers.
The licence, the requirements, the cost and the timing for your business.
You will need at least two responsible managers, senior people with three to five years’ relevant experience who together cover every service you are licensed for.
One programme, from scoping to launch. Speak to an expert about this licence.
Requirements, capital, timing, fees and common questions, drawn from the regulator’s own publications.
Any person carrying on a financial services business in Australia needs an AFS licence under Chapter 7 of the Corporations Act 2001: issuing or trading financial products for clients, advising on them, or making a market by routinely quoting prices at which others may buy or sell. Derivatives and foreign exchange contracts are financial products, so forex and CFD brokers serving Australian clients hold an AFS licence with dealing and market-making authorisations for derivatives and foreign exchange contracts, for retail or wholesale clients. A foreign regulated firm serving wholesale clients only may apply for a foreign AFS licence under ASIC Instrument 2020/198 instead. Retail CFD offers are subject to the ASIC product intervention order, in force to 23 May 2027, with a ten-year extension under consultation.
One licence carries the authorisations selected: by client type (retail or wholesale), by service (deal, advise, make a market) and by product (derivatives, foreign exchange contracts, securities and others); derivative and foreign exchange authorisations may be limited to hedging only. The applicant may be a body corporate, a natural person, a partnership or multiple trustees; a trust may not hold a licence. ASIC classifies each application as low or high complexity and retail or wholesale, which sets the fee.
| Applicant | Online fee | Notes |
|---|---|---|
| Body corporate, retail clients, high complexity | A$7,537 | A$11,305 on paper |
| Body corporate, retail clients, low complexity | A$3,721 | Calculated by the portal from the authorisations selected |
| Body corporate, wholesale clients, high complexity | A$5,025 | GST-free, from 1 July 2024 |
| Body corporate, wholesale clients, low complexity | A$2,233 | GST-free, from 1 July 2024 |
| Individual applicants | A$1,488 to A$5,025 | Online |
| Requirement | Amount |
|---|---|
| Retail OTC derivative issuers: net tangible assets | Greater of A$1,000,000 and 10% of average revenue |
| Composition of net tangible assets | 50% in cash or cash equivalents, 50% in liquid assets |
| Cash-flow projections | Quarterly, covering at least 12 months, certified reasonable by the directors |
| Client money holders | A$50,000 surplus liquid funds where client money or property exceeds A$100,000 |
| All licensees | Positive net assets, solvency and a cash needs projection of at least three months |
The net tangible assets requirement under ASIC Instrument 2022/705 replaces the adjusted surplus liquid funds requirement for retail OTC derivative issuers, with a tailored audit requirement under Regulatory Guide 166.
| Figure | Value | Source |
|---|---|---|
| Statutory decision period | No statutory decision period | Corporations Act 2001, Chapter 7 |
| Regulator’s published figure | 70% of complete applications within 150 days, about 5 months, and 90% within 240 days, about 8 months; 77% and 91% achieved in 2024-25 | ASIC service charter and Report 825 |
| Application preparation | 6 to 8 weeks | From instruction to submission, including banking in parallel |
| Our realistic timeline | 5 to 8 months after submission | Our own figure, from the regulator’s published data and our applications |
Regulator figures are quoted as published and converted to months. Our realistic timeline assumes a complete, well-prepared application.
| Item | Amount | Notes |
|---|---|---|
| Application fee | A$2,233 to A$7,537 | Body corporate online, by client type and complexity; paid at lodgement, not refunded on withdrawal; paper applications cost more |
| Variation of licence | A$2,470 | Body corporate online; A$3,704 on paper |
| Annual industry funding levy, retail OTC derivatives issuers | A$166,679 | 2024-25 actual levy for a full year per entity: A$12.105 million recovered from 75 entities by days authorised |
| Annual levy, OTC traders (wholesale) | A$1,000 minimum | Plus A$5,351 per full-time equivalent engaged in OTC trading, 2024-25 |
| Annual levy, securities dealers | A$1,000 minimum | Plus A$38.24 per A$1 million of annual transaction turnover, 2024-25 |
| Professional indemnity insurance | A$2 million per claim | Minimum for retail clients where retail revenue is A$2 million or less |
| Professional fees | Fixed | Quoted after scoping |
The licence covers Australia only; there is no passport. A firm regulated abroad that serves Australian wholesale clients only may hold a foreign AFS licence under ASIC Instrument 2020/198 and Regulatory Guide 176 instead of a full licence. Groups serving Australia alongside Europe hold a Cyprus investment firm licence or an FCA authorisation as well; we obtain each.
ASIC publishes what delays or ends an application. The 150-day and 240-day clocks run from a complete application; ASIC may request further information after accepting an application for assessment, and slow responses lead to deemed withdrawal under written notice, with no refund and no appeal. Offline applications take considerably longer. An in-principle offer may be withdrawn where professional indemnity insurance or AFCA membership is outstanding. ASIC must not grant a licence where it believes the applicant is likely to contravene its obligations, and refuses under section 913B where competence or resources are lacking, with a right to be heard. In 2024-25 ASIC received 447 new AFS applications, approved 290 and did not approve 129; 42% of approvals carried an additional outcome, most often a key-person condition.
A licensee needs section 981B client money trust accounts with Australian deposit-taking institutions, an operating account and settlement accounts in the currencies it quotes, and liquidity provider or prime-of-prime relationships before it trades. Banks and liquidity providers review the authorisations, the net tangible assets position, the client money reporting arrangements and the financial crime framework before onboarding. We open each alongside the application, so you trade on grant. See banking and payment processing.
ASIC’s service charter targets 70% of complete applications within 150 days, about five months, and 90% within 240 days, about eight months; it achieved 77% and 91% in 2024-25. We plan for five to eight months after submission.
Net tangible assets of the greater of A$1,000,000 and 10% of average revenue, half in cash or cash equivalents and half in liquid assets, with 12-month cash-flow projections, for retail OTC derivative issuers.
The individuals ASIC relies on for the licensee’s competence: at least two, directly responsible for significant day-to-day decisions and together covering every authorisation, each with relevant qualifications and three to five years’ recent experience.
The ASIC industry funding levy, set each year from actual regulatory costs: A$166,679 per retail OTC derivatives issuer for 2024-25, and A$1,000 plus A$5,351 per trading employee for wholesale OTC traders.
Wholesale clients only, under a foreign AFS licence for foreign financial services providers. Retail clients require a full AFS licence, with the CFD product intervention order applying leverage limits, margin close-out and negative balance protection.
A regulatory advisory firm to payment, e-money and cryptoasset companies since 2013, with more than 250 licences obtained in more than 60 countries. The firm builds licensed payment, e-money, crypto and stablecoin businesses: the licence, the team, the technology, the bank accounts and card issuing.
This guide is general information, not legal advice. Requirements and fees change, and the regulator’s own publications take precedence.
The licence, your team, banking and technology, delivered as one programme.