Australian forex tax — is it capital gains or ordinary income in 2026?
How this answer was verified
- Cross-checked against broker-published fact sheets, regulator licensing databases, and ESMA product intervention notices.
- Reviewed by the FX-Brokers EU editorial desks (Markets, Platforms, Regulation). Desk structure disclosed at /about/editorial-desks.
- Refreshed quarterly. The most recent verification date is shown above. Read our methodology.
Broker mentioned in this answer
Pepperstone
9.4/10Pepperstone serves EU clients through its CySEC-regulated entity (part of a group also licensed by BaFin, the FCA and ASIC), offering razor-sharp spreads, zero minimum deposit, and excellent execution across MT4, MT5, cTrader, and TradingView.
73.7% of retail CFD accounts lose money.
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Related
What is the best forex broker in Australia?
Top Australian picks for 2026 are Pepperstone (9.3/10), IC Markets (9.0/10), and IG Markets Australia (9.0/10). All are ASIC-regulated. ASIC imposes a 30:1 retail leverage cap on majors (matched to ESMA). AUD-denominated accounts and PayID funding standard.
How is forex trading taxed in Europe?
Forex trading tax treatment varies significantly across EU countries. Germany taxes CFD profits at a flat 25% capital gains rate. France treats forex profits as commercial income (up to 45% marginal). The UK taxes most retail forex gains as capital gains (18-24% since 30 October 2024). Spread betting is tax-free in the UK and Ireland only.
What is ASIC and how does it regulate forex brokers?
ASIC (Australian Securities and Investments Commission) regulates Australian financial services. Forex brokers must hold an Australian Financial Services Licence (AFSL). ASIC caps retail FX leverage at 30:1, mandates negative balance protection, and requires segregated client funds and PI insurance.
Broker review: Pepperstone
Pepperstone serves EU clients through its CySEC-regulated entity (part of a group also licensed by BaFin, the FCA and ASIC), offering razor-sharp spreads, zero minimum deposit, and excellent execution across MT4, MT5, cTrader, and TradingView.
Broker review: IC Markets
IC Markets is an ASIC and CySEC-regulated true ECN broker offering one of the deepest cTrader integrations in the industry, with average EUR/USD spreads of 0.02 pips on Raw Spread.