ASIC Cuts Retail CFD Broker Levy as Australia Maintains Strict Forex Oversight

Australias financial regulator will lower the annual supervision levy for retail contract-for-difference (CFD) issuers in the 2025-26 financial year, although oversight of the sector remains unchanged.

The Australian Securities and Investments Commission (ASIC) estimates that retail CFD and forex brokers will pay an average levy of A$128,388 per firm, around 23% lower than the previous years A$166,679.

The figures were published in ASICs 2025-26 Cost Recovery Implementation Statement, which outlines how the regulator plans to recover supervision costs from different parts of the financial industry.

Retail CFD Sector Faces Lower Levy Allocation

ASIC expects to recover approximately A$400.52 million from regulated entities across 52 industry subsectors during the 2025-26 financial year, higher than the A$337.57 million collected in the previous period.

However, the increase is not evenly distributed across all sectors.

The subsector covering retail OTC derivatives, including many CFD and forex brokers, will see its allocated regulatory cost fall from A$12.11 million to A$9.32 million.

The number of firms included in the category remains broadly stable at around 73 entities, resulting in a lower average charge per company.

Lower Fees Do Not Mean Reduced Supervision

Although the levy has declined, ASICs approach toward retail CFD providers remains strict.

The regulator has continued monitoring risks related to leveraged trading products, particularly around retail client protections and compliance with leverage restrictions.

ASIC previously introduced retail CFD intervention measures in 2021, including limits on leverage levels and other protections for retail investors. These measures have remained in place as part of Australias broader framework for controlling risks associated with high-leverage products.

Recent enforcement actions also show that regulatory attention on the sector remains active. ASIC has required several CFD providers to compensate retail clients for breaches related to leverage rules, with millions of Australian dollars returned to affected customers.

Regulatory Costs Rise Across Other Areas

While CFD-related costs declined, other parts of the financial sector recorded higher allocations.

ASIC said overall cost increases were mainly linked to regulatory supervision, enforcement activities, and operational requirements.

The financial advice sector, insurance industry, and corporate sector accounted for larger increases in regulatory costs, while the market intermediaries category, which includes brokers and dealers, recorded a relatively limited rise.

Final Levy Amounts Will Be Confirmed Later

ASIC emphasized that the current figures are estimates rather than final invoices.

The regulator will confirm final levy amounts in December 2026, with payments expected to be issued between January and March 2027. The final figures may change depending on actual regulatory costs during the year.

For forex and CFD brokers operating in Australia, the lower levy provides some reduction in compliance costs, but it does not represent a relaxation of regulatory expectations.

ASIC continues to focus on areas including client protection, reporting obligations, and risk management as part of its supervision of the retail trading industry.

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