Which treasury and bond CFD broker is best in Australia?
IG Markets is the best treasury and bond CFD broker in Australia because it lists the most government bond markets of the brokers on this page, covering the AU 10-year, US Treasuries from two to thirty years, the German Bund, UK Gilt and Italian BTP. A bond CFD is a rates trade, not a bond investment. You never own the instrument or receive a coupon; you take a position on the yield moving and pay financing for as long as the position stays open. That makes it poorly suited to the buy-and-hold use most people associate with government bonds, and reasonably suited to hedging duration risk or trading a central bank decision over days rather than months.
- IG Markets: AU 10-year, US 2 to 30-year Treasuries, Bund, Gilt and BTP.
- CMC Markets: AU 10-year, US T-Note, Bund, Gilt and Long Gilt.
- Interactive Brokers: the underlying cash bond market, not CFDs.
- Totality: 5,200+ direct government and corporate bonds, October 2026.
- OANDA: US Treasury CFDs with a research suite.
- FP Markets: selected sovereign bond CFDs plus IRESS.
- IC Markets: limited bond CFDs on a low-cost RAW account.
- Forex.com: core global bond CFDs, StoneX-backed.
- Vantage: major government bond CFDs with TradingView.
- AvaTrade: a small bond CFD list beside AvaOptions.
Bond CFDs are a niche corner of the Australian retail market, and the shortlist is genuinely short. What each broker actually tracks matters more than the count, and I would argue the underlying liquidity of the contract matters more than the broker’s name.
Several forex-focused brokers (Pepperstone, Eightcap, Fusion Markets, Global Prime) do not carry treasury CFDs in any meaningful form. If a broad, multi-country bond CFD range is what matters, IG and CMC remain the two to beat, and my view is the contest between them turns on platform preference. Beyond bonds, our top forex brokers in Australia guide ranks every ASIC broker we cover on cost and platform.
Government bond CFDs sit at 5:1 retail leverage, the “shares and other assets” tier under ASIC Corporations (Product Intervention Order - Contracts for Difference) Instrument 2020/986, extended to 23 May 2027. The practical effect for you is that a bond CFD requires the same margin as a single-stock CFD, which I find strangely conservative given the lower volatility. Wholesale clients can request higher.
AU treasury CFD brokers compared
| # | Broker | Bond CFDs offered | Max retail leverage | Platforms | Min deposit | Visit broker | More details |
|---|---|---|---|---|---|---|---|
| 1 | #1 Top bond CFD pick IG MarketsAFSL 515106 | AU 10-year, US 2/5/10/30-year, German Bund + Schatz, UK Gilt, Italian BTP | 5:1 | IG web platform MT4ProRealTime TradingView+1 more platforms, listed in this broker's detailsIG web platform, MT4, ProRealTime, L2 Dealer, TradingView | $100 | Visit IG Markets | |
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| 2 |  CMC MarketsAFSL 238054 | AU 10-year, US T-Note, German Bund, UK Gilt, Long Gilt | 5:1 | Next GenerationMT4 | $0 | Visit CMC Markets | |
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| 3 |  Interactive BrokersAFSL 453554 | Direct access to underlying bonds (not CFDs) | n/a (cash bond market) | TWSClient PortalIBKR Mobile | $0 | Visit Interactive Brokers | |
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| 4 |  Totality5,200+ direct government and corporate bonds, October 2026AFSL 280372 | 5,200+ direct bonds (underlying, not CFDs; 1 October 2026) | n/a (direct bond market) | Totality EdgeTotality Apex | $0 | Visit Totality | |
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| 5 |  OANDAAFSL 412981 | Limited range incl US Treasuries | 5:1 | OANDA TradeMT4 MT5TradingView | $0 | Visit OANDA | |
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| 6 |  FP MarketsAFSL 286354 | Selected sovereign bond CFDs | 5:1 | MT4MT5 cTraderTradingView+1 more platforms, listed in this broker's detailsMT4, MT5, cTrader, TradingView, IRESS | $0 | Visit FP Markets | |
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| 7 |  IC Marketslimited bond CFDs on a low-cost RAW accountAFSL 335692 | Limited selection | 5:1 | MT4MT5cTrader | US$200 | Visit IC Markets | |
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| 8 |  FOREX.comcore global bond CFDs, StoneX-backedAFSL 345646 | US T-Notes, German Bund, UK Gilts | 5:1 | FOREX.com Web TraderMT4TradingView | $150 | Visit FOREX.com | |
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| 9 |  VantageAFSL 428901 | Selected major government bonds | 5:1 | MT4MT5TradingView | $50 | Visit Vantage | |
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| 10 |  AvaTradeAFSL 406684 | Limited range | 5:1 | MT4MT5AvaTradeGOAvaOptions | $100 | Visit AvaTrade | |
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Bond CFD lineups change with liquidity. The Italian BTP and the short-dated US Treasuries at IG move on and off the market schedule, so check the broker’s current product list before funding an account. Availability for OANDA, FP Markets, Vantage and AvaTrade is drawn from our broker reviews and was not reconfirmed against each current PDS for this update, so confirm the live product list before funding.
CMC Markets and IG are bound by ASIC’s Product Intervention Order on retail bond CFDs: 5:1 leverage cap, mandatory negative balance protection, margin close-out at 50% of initial margin. Interactive Brokers’ AU offering on bonds is the underlying instrument, not a CFD, so the PIO doesn’t apply in the same way (different product class, different rules), and I would say that distinction is the single most important one on this page for you to absorb before choosing.
Risk warning: CFDs are leveraged products and carry a high risk of loss. Most retail CFD accounts lose money. Review the broker's PDS and TMD before trading.
Direct bond access with Interactive Brokers
Interactive Brokers offers underlying access rather than CFDs
Interactive Brokers is one of two brokers here offering the underlying bonds rather than CFDs. Government, corporate and municipal bonds trade across major markets through Trader Workstation, and holdings sit in true multi-currency accounts alongside shares, options and futures. There is no minimum deposit. For investors who want actual fixed-income exposure rather than a leveraged price contract, this is the deeper route, and I would not call the CFD alternative a substitute. Interactive Brokers Australia has held AFSL 453554 since 2016.
Average spread
Not measured (bond CFDs)
Trading platforms
TWS, IBKR Desktop, IBKR Mobile, GlobalTrader, Client Portal, native TradingView
Minimum deposit
A$0
Regulation
ASIC AFSL 453554
Why higher here? The 88 is a Bond Access Fit, not a bond CFD score, because Interactive Brokers offers no bond CFDs: its Australian clients buy the bonds themselves. The score is the equal-weight average of its published sub-scores Range of Markets 10, Trading Costs 10, Trust 10 and Trading Platform 5 (8.75 of 10). See the ranking method ↓
Broker's Detail
Founded in 1978 and NASDAQ-listed (IBKR), Interactive Brokers operates the AU entity under AFSL 453554. The group holds licences across every major financial market and is one of the very few brokers offering direct exchange access alongside CFDs, which, for me, is the reason IBKR stands apart on a page otherwise dominated by pure CFD providers. If you want the underlying instrument rather than a synthetic wrapper, that distinction should shape your choice of account, and I'd weigh it before you compare spreads alone.
IBKR's pricing model is volume-tiered with very low headline commissions. Interactive Brokers runs spot forex through its IDEAL FX venue on commission, from 0.20 basis points of trade value with a US$2 minimum. Our spread capture across the full month of October 2026 did not include it, so we have no measured spread to quote. The platform stack is built around Trader Workstation (TWS), which is feature-dense and built for professionals, plus IBKR Desktop, the lighter IBKR Mobile, GlobalTrader and the Client Portal web platform; I would want to spend a long time in the demo before trading live, because TWS rewards familiarity in a way the simpler platforms do not.
A$0 minimum deposit with fee-free AU funding via PayID, EFT bank transfer, Wise Balance transfer, BPAY or wire. Retail leverage follows ASIC's product intervention order caps. AFCA dispute coverage and negative balance protection standard. Inactivity fees are zero here, so parking the account for a quiet quarter costs you nothing.
What a treasury CFD tracks
A treasury CFD is a contract for difference on a government bond futures price. You’re not buying the bond or lending money to the government; you’re trading the price of the underlying futures contract on a margined account. I would add that the “government bond” label can make this product sound safer than it is, and the distinction you just read is the one that keeps it firmly in speculative territory.
Most CFD brokers track the front-month futures contract on the relevant bond:
- AU 10-year Treasury Bond CFD typically tracks the ASX 10-year bond futures (XT contract on the SFE)
- US 10-Year T-Note CFD tracks the CBOT 10-Year Treasury Note futures (ZN)
- German Bund CFD tracks the Eurex Bund futures (FGBL)
- UK Gilt CFD tracks the ICE Long Gilt futures
What this means in practice: when the RBA hikes the cash rate and AU 10-year yields rise, the AU 10-year Treasury Bond futures price falls. Your long bond CFD goes against you, your short bond CFD goes with you, and bonds and yields move inversely. For me, the part worth internalising is that you are exposed to the yield move itself. When a rate move lands, I’d translate it straight through that inverse link to where your bond CFD sits.
The CFD tracks the futures price directly. There’s a daily rollover where the contract moves between expiry months. This can produce a small adjustment in your position that’s often invisible to the user but worth understanding before placing a multi-month trade, because a series of small debits on your statement is the kind of thing I would want to recognise rather than dispute.
1. IG Markets covers the most government bond markets on this page
IG Markets lists the most government bond markets of the brokers we cover on this page: the Australian 10-year, US Treasuries from two to thirty years, the German Bund, UK Gilt and Italian BTP. Positions trade on the IG web platform or MT4, with ProRealTime charting free for active clients. The minimum deposit is A$100 by card (A$10 by BPAY). I cannot think of another ASIC broker where you can trade the Italian government bond as a CFD, and that breadth is the page's headline differentiator. IG has operated in Australia since 2002, and IG Australia Pty Ltd holds AFSL 515106.
Average spread
Not measured (bond CFDs)
Trading platforms
MT4, IG Web Platform, IG Mobile App, TradingView
Minimum deposit
A$100
Regulation
ASIC AFSL 515106
Why higher here? Bond CFD Fit weights bond CFD coverage and pricing transparency, which lifts IG Markets above its #15 sitewide position. See the ranking method ↓
Broker's Detail
IG is one of the oldest brokers in the industry, founded in 1974, and its parent IG Group Holdings Plc is a FTSE 100 constituent listed on the London Stock Exchange. In Australia it has operated since 2002; new Australian CFD accounts are issued by IG Australia Pty Ltd under AFSL 515106. Our review did not extend to verifying IG's overseas group entities on their home registers.
On 27 September 2026, IG's Australian site listed 11,000+ Australian and international share CFDs plus 36 global indices. Forex coverage spans 90+ pairs. On the IG Markets MT4 CFD standard account, Noam's October 2026 capture over 22 trading days measured EUR/USD at 0.76 pips, with no commission charged; Forex Direct instead adds a volume-tiered commission billed in US dollars per US$1 million of notional, so your total cost depends on whether you value a flat spread or a lower spread plus a separate line item. I'd weigh that flat spread against the lower spread plus commission before choosing between the two accounts.
The minimum first deposit is A$100 by card, Apple Pay or PayPal, A$10 by BPAY and A$450 for EFT with proof of payment; credit Mastercard costs 0.5%, credit Visa 1% and PayPal 0.5%, while debit card, PayID, BPAY and EFT stay free, and the PayPal option is the detail I notice because it is absent at several of the brokers below. Platforms include MT4, the IG Web Platform and the IG Mobile App. Retail leverage follows ASIC's product intervention order caps. Negative balance protection and AFCA dispute coverage standard.
2. CMC Markets runs a proprietary platform with broad bond coverage
CMC Markets is the closest alternative to IG, carrying the Australian 10-year bond, US T-Notes, German Bund and UK Gilts as CFDs on its Next Generation platform. Treasury positions share a login with 12,000+ other CFD instruments, the Standard account is spread only with no commission or minimum deposit, and Morningstar and Reuters research feeds are built in. For chart-driven bond traders, Next Generation's pattern recognition and client sentiment tools carry across to the treasury book, and I would argue those tools close the gap on IG's raw product count. CMC Markets Asia Pacific has held AFSL 238054 since 2004.
Average spread
Not measured (bond CFDs)
Trading platforms
Next Generation, MT4, TradingView
Minimum deposit
A$0
Regulation
ASIC AFSL 238054
Why higher here? Bond CFD Fit weights curve coverage and charting. CMC covers five government bond markets on Next Generation and MT4 (AU 10-year, US 10-Year T-Note, German Bund, UK Gilt and Long Gilt), which lifts it above its #25 sitewide position. See the ranking method ↓
Broker's Detail
Founded in London in 1989 and operating in Australia since 2002, CMC Markets is one of the longest-tenured CFD brokers in the AU market. The AU entity holds AFSL 238054. The group is LSE-listed and also holds FCA (UK), BaFin (Germany), MAS (Singapore) and CIRO (Canada) licences; for me, the LSE listing and the BaFin licence together carry more weight than a marketing claim about longevity.
We measured CMC's FX Active account at 0.11 pips on EUR/USD and 0.61 pips across eight pairs in our 5 to 9 October 2026 capture, charged alongside commission of 0.0025% of notional per side, with the Standard account commission-free. CMC also runs a separate stockbroking service, CMC Invest (CMC Markets Stockbroking Limited, AFSL 246381), where your ASX holdings are CHESS-sponsored under your own HIN. Bond CFDs are issued by CMC Markets Asia Pacific Pty Ltd (AFSL 238054) and are never registered on a HIN, so the two sit side by side rather than under one number. The Next Generation platform pairs with MT4 (no MT5 or cTrader on the AU entity). If you're choosing between the two accounts, I'd set the FX Active figures beside the Standard account's commission-free pricing and let your own cost comparison settle it.
A$0 minimum deposit and fee-free AU funding via bank transfer, PayID and PayPal. Retail leverage follows ASIC's product intervention order caps. Negative balance protection and AFCA dispute coverage standard. Customer support runs 24/5 by live chat, email and phone; I would call the absence of weekend support a minor gap on a platform that holds your Treasury positions through Friday night.
3. OANDA offers US Treasury CFDs with a rates-desk pedigree
OANDA keeps a limited bond CFD list that includes US Treasuries, traded on its OANDA Trade platform, MT4, MT5 or natively inside TradingView. Guaranteed stop-loss orders are available on OANDA Trade, and a guaranteed stop caps your loss at the stop level for a premium. For a cautious bond CFD trader, that known worst-case exit is the appeal. There is no minimum deposit on the Standard account, and an unlimited demo with virtual funds suits testing bond CFD sizing first. AFSL 412981 sits with OANDA Australia Pty Ltd, current since 26 March 2012, on the ASIC register as read on 16 July 2026.
Average spread
Not measured (bond CFDs)
Trading platforms
OANDA Trade, MT4, MT5, TradingView
Minimum deposit
A$0
Regulation
ASIC AFSL 412981
Pros & Cons
Pros
- Bond CFD range includes US Treasuries, on an account carrying the economic calendar and API access for yield-curve data
- ASIC regulation through AFSL 412981 held by OANDA Australia Pty Ltd, an AFCA member (the group's US entity OANDA Corporation holds the CFTC registration, which does not cover Australian accounts), a top-tier trust profile
- A$0 minimum deposit with spread-only Standard pricing
Cons
- Bond range is limited against IG's multi-country lineup
- Bond CFD availability is drawn from our OANDA review, not reconfirmed against the current PDS for this update
Broker's Detail
Founded in 1996, OANDA operates its Australian entity as OANDA Australia Pty Ltd under AFSL 412981, with the US arm holding CFTC registration. The platform stack spans OANDA Trade, MT4, MT5 and TradingView, so rate traders can chart yields where they already work, and I would pick TradingView for bond yield overlays over any proprietary charting package on this page. Retail leverage follows ASIC's product intervention order caps. Negative balance protection and AFCA dispute coverage are standard.
4. FP Markets offers sovereign bond CFDs on the all-rounder account
FP Markets carries selected sovereign bond CFDs within its multi-asset range, a narrower book than IG's or CMC's but enough for traders who want occasional government bond exposure beside forex and shares. Accounts run on MT4, MT5, cTrader and TradingView with Raw or Standard pricing, there is no minimum deposit, per FP Markets' Australian FAQ, read 9 October 2026, and no inactivity fee applies. The same relationship reaches ASX share CFDs priced through IRESS direct market access, so bond CFDs can complement a share-CFD position, and I would say the IRESS access is the feature that makes the narrower bond book acceptable. First Prudential Markets has held AFSL 286354 since 2005.
Average spread
Not measured (bond CFDs)
Trading platforms
MT4, MT5, cTrader, TradingView, IRESS
Minimum deposit
A$0 (Standard and Raw)
Regulation
ASIC AFSL 286354
Pros & Cons
Pros
- Selected sovereign bond CFDs on the same Raw account as its forex and index pricing
- Six platforms including IRESS and Mottai for Level 2 depth on ASX share CFDs
- ASIC AFSL 286354 since 2005, Sydney-headquartered
Cons
- Bond CFD coverage is selected sovereigns, not the broad multi-country range IG offers
- Bond CFD availability is drawn from our FP Markets review, not reconfirmed against the current PDS for this update
Broker's Detail
First Prudential Markets Pty Ltd trades as FP Markets under AFSL 286354, operating from Sydney since 2005. The account reaches six platforms, MT4, MT5, cTrader, TradingView, IRESS and Mottai, with IRESS and Mottai both giving DMA execution and Level 2 depth on ASX share CFDs. For me, the IRESS integration is what lifts FP Markets out of a crowded tier of MT4/MT5 brokers. Retail leverage follows ASIC's product intervention order caps. Negative balance protection and AFCA dispute coverage are standard.
5. Vantage offers government bond CFDs with TradingView charting
Vantage lists selected major government bond CFDs beside its forex, index and commodity range, on MT4, MT5, native TradingView and the Vantage App. It suits traders adding modest treasury exposure to an existing multi-asset account rather than fixed-income specialists, with an A$50 minimum deposit and fee-free funding across PayID, BPAY, PayPal, Apple Pay and Google Pay. One caution is the inactivity fee, US$25 a month after 90 days dormant, which I would call the harshest dormancy window on this page. Vantage Global Prime has held AFSL 428901 since 2012 and is an AFCA member.
Average spread
Not measured (bond CFDs)
Trading platforms
MT4, MT5, TradingView
Minimum deposit
A$50
Regulation
ASIC AFSL 428901
Why higher here? Bond CFD Fit weights bond CFD coverage and pricing transparency, which lifts Vantage above its #17 sitewide position. See the ranking method ↓
Pros & Cons
Pros
- Selected major government bond CFDs on MT4 and MT5 with native TradingView charting
- AUD 50 minimum deposit, against six brokers on this page that list A$0
- ASIC AFSL 428901
Cons
- USD 25 per month inactivity fee applies after 90 days
- Bond CFD range is undisclosed and was not reconfirmed against the current PDS for this update
Broker's Detail
Vantage Global Prime Pty Ltd holds AFSL 428901, current since 2012. The platform choice covers MT4, MT5 and native TradingView, so yield charting and order entry share one environment; for me, that integration is a genuine workflow advantage. Retail leverage follows ASIC's product intervention order caps. Negative balance protection and AFCA dispute coverage are standard.
6. AvaTrade offers bond CFDs plus a vanilla options desk
AvaTrade closes the list with a bond range its own review describes as limited next to CMC or IG, so confirm the current instrument list covers the specific treasury you want before relying on it. Pricing is spread only with no commission on the single retail account, on MT4, MT5 or AvaTradeGO, and the minimum deposit is A$100. Dormancy fees start after three months, the shortest window in our coverage, and I could not recommend this broker for a bond CFD account you intend to trade infrequently. Ava Capital Markets Australia has held AFSL 406684 since 2011.
Average spread
Not measured (bond CFDs)
Trading platforms
MT4, MT5, AvaTradeGO, AvaOptions
Minimum deposit
A$100
Regulation
ASIC AFSL 406684
Why higher here? Bond CFD Fit weights bond CFD coverage and pricing transparency, which lifts AvaTrade above its #22 sitewide position. See the ranking method ↓
Pros & Cons
Pros
- Bond CFD coverage alongside AvaOptions vanilla FX options, the only options desk on this page
- ASIC AFSL 406684
- MT4, MT5, AvaTradeGO and AvaOptions in one account
Cons
- Bond CFD range is narrow against CMC and IG
- The most aggressive inactivity fee structure on this site
- Bond CFD availability is drawn from our AvaTrade review, not reconfirmed against the current PDS for this update
Broker's Detail
Ava Capital Markets Australia Pty Ltd trades as AvaTrade under AFSL 406684, part of a group founded in 2006. The platform range covers MT4, MT5, AvaTradeGO and the AvaOptions vanilla-options terminal. I would use AvaOptions as a sandbox for working through option structures on bond positions before committing real capital, even if the bond CFD range itself stays thin. Retail leverage follows ASIC's product intervention order caps. Negative balance protection and AFCA dispute coverage are standard.
ASIC leverage cap on bond CFDs
ASIC classifies government bond CFDs under “shares and other assets”, the 5:1 retail leverage tier of ASIC Corporations (Product Intervention Order - Contracts for Difference) Instrument 2020/986, extended to 23 May 2027. Bonds do not share the 20:1 tier that covers major indices and gold; I find that classification hard to defend on volatility grounds, but it is the rule your margin calculation must follow.
For a retail client, that means:
- AUD 10,000 notional bond CFD position requires AUD 2,000 in margin
- Negative balance protection is mandatory
- Margin close-out triggers at 50% of initial margin
- No bonuses or inducements allowed
Wholesale clients can be offered higher leverage at the broker’s discretion. Typical wholesale bond leverage runs to 100:1 or higher because of the low absolute volatility of major government bond futures, and for you, the wholesale route changes the margin maths entirely; I would want to confirm the broker’s specific wholesale bond leverage before trading.
Compare this to the 30:1 cap on major forex pairs. Bond CFDs sit in the 5:1 tier despite being lower-volatility instruments than most forex pairs. The classification is conservative, and I cannot reconcile a 5:1 bond cap with a 30:1 forex cap on any measure of daily range. Our ASIC regulation guide sets out the full leverage ladder across every asset class.
Margin on a bond CFD is the position value divided by that 5:1 cap, the same tier as single stocks despite the lower volatility of bond futures. The calculator below restates both the margin and the 50% close-out level in dollars, which is the number that decides when your broker has to act; I would want those dollar figures in front of me before placing a trade, because the percentage rules sound abstract until your position approaches the line.
It does not cover the cost of holding. Financing accrues daily on an open position, and neither that charge nor any roll cost appears below. I would treat the calculator’s output as the entry cost and nothing more, because the funding drag on a multi-month bond CFD position is the expense your account statement will surface first.
Use cases for treasury CFDs
Bond CFDs aren’t a beginner instrument. Most retail traders never touch them. The traders who do typically fall into one of three buckets, and I would only open a bond CFD if your strategy fits one of them squarely.
Yield curve trading. Buying the 2-year and shorting the 10-year (or vice versa) to express a view on the slope of the yield curve. The classic 2s/10s steepener was a popular trade through 2024 and 2025 as central banks debated cuts. CFD platforms make this easier than direct futures because position sizing can be flexible and margin requirements are typically lower than exchange-traded futures, and I would want the two legs on the same platform for a single margin calculation.
Central bank policy speculation. Trading the AU 10-year before and after RBA cash rate decisions. Trading the US 10-year T-Note around FOMC meetings. The bond CFD captures the price reaction without the liquidity demands of the underlying futures contract, and for you the advantage is that your position size is not constrained by a standardised futures lot.
Macro hedging. A trader running a long equity book might short bond CFDs as a hedge against rising rates compressing equity valuations. This works imperfectly but the correlation is real over long windows. I would still test the correlation on your specific equity book because the relationship breaks down often enough to matter.
If your strategy doesn’t fit one of these three buckets, bond CFDs are probably the wrong instrument. The volatility is low, the spreads in tick terms can look small but are large in percentage of daily range, and the funding cost on overnight positions adds up. I would want you to see the spread as a percentage of the daily move before you put capital behind a bond CFD, because the number that looks tiny in basis points can consume a meaningful slice of your expected return.
Bond CFDs in an Australian context
The Australian government bond market is small by global standards. Total ACGB (Australian Commonwealth Government Bonds) outstanding sat around AUD 1 trillion as of mid-2025, against a US Treasury market north of USD 27 trillion. The AU 10-year futures contract is liquid, but nothing like the depth of the US 10-Year T-Note, and your AU bond CFD spread will reflect that thinner order book. When you compare spreads across the two markets, I’d keep that difference in depth front of mind for your AU bond CFD choices.
What this means for the AU trader:
- The AU 10-year CFD will track its futures contract closely during ASX hours
- After the SFE close, the AU 10-year CFD can drift and spreads widen
- Major moves in AU bond prices typically follow US Treasury moves overnight, not the other way around
- RBA cash rate decisions have a localised impact but the AU curve is partly driven by US flows
For traders specifically focused on the AU rates market, the better alternative is often direct ACGB exposure through Interactive Brokers or via ASX-listed bond ETFs. The CFD is a margined trading product. The cash market is an investment product. My view is that if you cannot articulate why you need leverage on an Australian government bond, you probably want the ETF.
Tax treatment for AU treasury CFD traders
Bond CFD profits and losses are generally treated by the ATO as assessable income under TR 2005/15, the same regime that applies to forex CFDs. The trade is treated as a trading activity rather than an investment in a fixed-interest security, and I would want you to understand that distinction before you assume any capital gains discount applies.
Direct bond ownership produces a different mix:
- Coupon income is assessable as interest income
- Capital movements may be CGT events
- Foreign bond income may attract withholding tax
The two regimes can produce very different outcomes on the same dollar of profit or loss. Don’t assume the treatment without checking, because the difference between trading income and a capital gain is not something you want to discover after lodgement.
Tax advice is something we are not licensed to provide. Speak to a registered tax agent about your circumstances before assuming any tax treatment for CFD or bond positions. What I would flag is that the trading-versus-investment question above is the one your accountant will need answered.
Treasury CFD broker FAQs
Which Australian broker has the most bond CFDs?
What's the leverage cap on bond CFDs in Australia?
Do Pepperstone, IC Markets and Eightcap offer bond CFDs?
Can I buy actual Australian government bonds through a CFD broker?
Are bond CFD profits taxed as CGT in Australia?
What's the spread on the AU 10-year Treasury Bond CFD?
Why do bond CFDs use 5:1 leverage when bonds are low-volatility?
CFD broker and trading cost guides
- Best CFD brokers in Australia
Government bond CFD lineups, including the Bund, Gilt, and BTP, can be compared across the wider CFD broker field.
About Justin Grossbard
Justin co-founded CompareForexBrokers in 2014 and has traded forex since 1998. Based in Melbourne, he leads the site's research, and has written for Forbes, Kiplinger and Finance Magnates, while the Australian Financial Review has cited CompareForexBrokers research. He holds a Bachelor of Commerce (Honours) and a Master of Marketing from Monash University. Justin is the co-founder and CEO of CompareForexBrokers.