Best Prop Firms for Australian Traders

Eligibility for Australian traders

Each prop firm decides which countries it serves and publishes the countries it excludes in its terms. The firms listed above do not name Australia on their restricted countries lists at present. Some firms, including some programmes linked to brokers, do exclude Australian residents, and lists change from time to time, so confirm that Australia is accepted at checkout and in the current terms on the day you buy. The name and address on your account should match your identity documents, because the checks before a funded account or first payout will test them.

Paying fees and receiving payouts

Challenge prices are often set in US dollars, so an Australian card may add an international transaction fee on top of the exchange rate. Firms commonly take cards for fees, and many also take crypto. Payouts reach Australian traders by international transfer, through payment platforms such as Rise, or in stablecoins, depending on the firm. A US dollar payout is converted into Australian dollars at your bank's or provider's rate, and a stablecoin payout has to be sold on an exchange first. Compare the minimums, fees and timing of each method open to Australian residents before you buy. Prop firm payout methods compares the main routes.

How prop firm payouts are commonly taxed in Australia

This is general information, not tax advice. The ATO says a business generally involves continuous and repeated activities carried out to make a profit, and that even if you are not in business you may still need to declare some payments as assessable income, such as income from providing services. Payouts are paid by the firm under a contract, so they are commonly declared as income rather than capital gains. As an Australian resident for tax purposes you must declare foreign income, so a payout from an overseas firm belongs in your return. The income year runs from 1 July to 30 June, and a return you lodge yourself is due by 31 October. Whether you are in business affects which costs, such as evaluation fees, you can claim. Convert each payout to Australian dollars and keep the rate, and check your position with the ATO or a registered tax agent. Prop firm income and tax covers Australia in more detail.

What ASIC says

ASIC's Moneysmart site says that companies or people offering investments in Australia must hold an Australian financial services licence or be authorised by someone who does. It adds that a licence does not mean ASIC endorses the company. Many prop firms describe their evaluations as simulated trading rather than an investment and do not claim a licence, so read what the firm says about its own status, and if it claims a licence, check the licence holder's name and number on ASIC's professional registers. Are prop firms legit covers the wider checks.

Trading hours from Australia

The Asian session lines up with the Australian business day. On the east coast, London opens at about 5pm in the Australian winter and about 7pm in summer, and US stock markets open at 11:30pm or 1:30am, because Australia and the northern hemisphere move their clocks in opposite directions. In Perth, which does not use daylight saving, London opens at about 3pm or 4pm and US stocks at 9:30pm or 10:30pm, and Queensland also stays on standard time all year. The London and New York overlap, usually the busiest period for major pairs and US indices, therefore runs from the evening into the early hours. A daily reset at 5pm New York time lands between about 7am and 9am on the east coast, so check which trades count towards which day.

What to check before you buy

• Australian eligibility. Confirm that Australia is accepted at checkout and in the current terms, not only in older reviews.
• Currency and card fees. Check the currency of the price and what your card charges on international transactions.
• Payout route. Find out which payout methods are open to Australian residents, with their minimums, fees and timing.
• Contracting company. Read which company you contract with, where it is based and what it says about regulation.
• Daily reset time. Convert the daily loss reset to your own state, allowing for daylight saving at both ends.
• Tax records. Keep a log of every fee and payout in Australian dollars from your first purchase.

Each firm's profile lists its programmes and restricted countries, and the comparison table can be filtered by country. The guide to prop firms for Australian traders covers the local picture in more depth, the prop firm directory covers every firm on the site, and other best prop firm lists group firms by platform and rules.