Australian AFSL License Application for Brokers and CFD Brokers: A Complete Guide by Zitadelle AG

Are you planning to launch a forex or CFD brokerage in Australia? Obtaining an Australian Financial Services License (AFSL) from the Australian Securities and Investments Commission (ASIC) is a regulatory must. At Zitadelle AG, we specialize in end-to-end assistance for broker-dealers and fintech firms applying for an AFSL, particularly those operating as CFD brokers, STP brokers, and forex platforms.

In this guide, we’ll walk you through the key requirements, costs, and considerations for an AFSL application—so you can plan your launch in Australia with full regulatory clarity.

What Is an AFSL and Why It Matters for Brokers?

The Australian Financial Services License (AFSL) is a regulatory authorization required to legally provide financial services to Australian clients. If your business involves offering Securities, Investment Advice, Portfolio Management, Derivatives such as Contracts for Difference (CFDs), margin FX, or other over-the-counter (OTC) derivatives, an AFSL is mandatory.

For STP (Straight-Through Processing) CFD brokers, it is important to note that ASIC expects such firms to include the “make a market” authorisation in their AFSL application, even if the business model passes trades to a liquidity provider. This is due to the nature of how CFD products are structured under Australian law.

Cost of Applying for an AFSL: Key Figures to Know

Client are expected to bear costs that start from as low as $60,000, depending on complexity. However, the total cost of launching an AFSL-regulated CFD brokerage will include several additional components:

• Company setup in Australia

• Responsible Managers (RMs): At least two RMs are typically required. Their monthly compensation usually ranges from $3,000 to $5,000 per RM, resulting in a total of $6,000–$10,000 per month.

• Professional Indemnity (PI) Insurance: A regulatory requirement, renewed annually.

• AFCA Membership Fee: Required to join the Australian Financial Complaints Authority, typically a few hundred dollars per year.

• ASIC Application Fee: Varies, but expect several thousand AUD.

• Legal Drafting: Additional documents like RM agreements, third-party contracts, and compliance manuals may incur further legal costs.

At Zitadelle AG, we provide a transparent cost breakdown during the onboarding phase, so our clients know exactly what to budget. However, do not expect a cheap application since Australia is an expensive jurisdiction with high costs for employees, professionals, government fees and the entry requirements are quite high.

What ASIC Looks for in a CFD Brokerage License Application

A strong AFSL application is more than paperwork. ASIC expects a detailed and credible business plan, covering all aspects of the broker’s operations. This includes:

• Business model & financial forecasts

• Risk management and compliance policies

• Liquidity provider agreements

• Platform provider contracts

• IT infrastructure and technical support agreements

• Client onboarding and operational setup

• Responsible Manager qualifications and experience

Zitadelle AG works closely with your team to prepare and compile these supporting documents, ensuring alignment with ASIC's regulatory expectations.

Why Work with Zitadelle AG for Your AFSL Application?

Zitadelle AG is a trusted regulatory advisory firm, helping fintechs and brokers secure licenses in multiple jurisdictions—including Australia, Labuan, Mauritius, and Vanuatu. With our in-depth knowledge of ASIC requirements and our network of vetted Responsible Managers, we fast-track your application while reducing regulatory risk.

Our services include:

• AFSL scoping and structuring advice

• Preparation of all required documents and compliance manuals

• Sourcing qualified Responsible Managers

• Legal drafting of RM contracts, LP agreements, and more

• End-to-end project management until license issuance

Ready to Apply for Your AFSL?

Whether you're setting up a new CFD brokerage or expanding into the Australian market, Zitadelle AG offers the regulatory expertise to ensure your AFSL application is compliant, complete, and strategically structured.

📞 Contact us today to schedule a free consultation and begin your AFSL journey with confidence.