How do I set up a forex or derivatives business in Australia?

[Paul Derham]

Whether it’s direct money transfer, margin forex, CFD or bullion trading, or business-to-business spot forward and option forex, we get asked this question a lot. There are a few threshold issues that need to be overcome:

1. Do you need a licence? Normally, the answer is yes. Here is an article we wrote spelling out all the steps involved in applying for an Australian Financial Services Licence (AFSL).
2. Do you have the required experience? See our discussion about this under the heading “Comments” on this page “provide foreign exchange in Australia”. You should also read ASIC’s Regulatory Guide (RG) 105. Go to page 14 which is titled “The five options for demonstrating knowledge and skills.” Unless you’re a one-person business, you will usually need two people who meet one of those five options. One of those people needs to be based in Australia.
3. There is a bunch of legal documents you will need to prepare, that meet Australian legal requirements. They include a Product Disclosure Statement, Financial Services Guide, trading terms and conditions, Anti-Money Laundering and Counter-Terrorism Financing Program, employment agreements and more. You can download our 1-page checklist that includes 10 things you need to sort out if you want to set up a foreign exchange or derivatives trading business.

Note: You don’t need to log in or give us your details to read the documents that are linked to above.

I hope that helps! If you require further assistance, please don’t hesitate to contact our team.

Author: Paul Derham

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