Complete List of New Zealand Forex Brokers – FMA Regulated

Finding the right New Zealand forex broker can be a daunting task for kiwi traders. Since forex trading or “foreign exchange trading”  has become quite popular in New Zealand, the local financial watchdog FMA had to step in.

As a result of this each and every forex broker who wants to solicit New Zealand forex traders must be licensed by the Financial Markets Authority. During this broker test we compared features like minimum deposit, customer service, forex spreads and fees and online forex trading platforms of all FMA regulated New Zealand forex brokers.
fma financial market authority new zealand

List of New Zealand Forex Brokers (Regulated by FMA):

  1. BlackBull Markets
  2. HFT Trading
  3. CMC Markets
  4. Rockfort Markets
  5. Jarden Securities
  6. Saxo Bank
  7. Trademax Markets
  8. IG Markets
  9. Plus500

What to consider when searching for a New Zealand forex broker

One of the first things when selecting a New Zealand forex broker is that it should be regulated and licensed with the FMA – Financial Markets Authority. A fully regulated broker will be indicated as active on the regulator’s list of authorized providers.

Some of the New Zealand forex brokers like BlackBull Markets are fully regulated in multiple jurisdictions including the UK and Australia, which adds to the legitimacy score. So that you can open your forex trading account with any of them.

However, traders should know that unless a broker is fully registered and regulated in New Zealand by the FMA, it doesn’t matter if they have regulations elsewhere. Therefore, regulation by the FMA NZ is important when sifting through the web to find a forex broker in New Zealand. But that is not the only factor that matters. There are more.

1. Brokerage fees

Many forex brokers claim that they do not charge service fees to the clients. However, this only applies to market makers who make money by adding some premium on the Bid-Ask spread.

All non-dealing desk (NDD) brokers must charge some fees of some kind to facilitate the process of brokering transactions between traders and liquidity providers. Some NDD brokers may opt against charging a small fee for adding a small mark up on the quoted Ask/Bid price. 

2. Trading platforms

Every trader wants to have the best experience when trading forex. As such, having a variety of trading platforms can play a crucial role in attracting different types of traders. As a trader, you also want to have the freedom to choose from one forex trading platform to another and possibly switch as circumstances dictate.

The most popular trading platforms are the MT4, the MT5, cTrader, and the various versions of WebTrader platforms. Some regulated forex brokers in NZ  also choose to offer additional trading tools and features such as custom indicators, Expert Adviser systems, and research resources. It is also good to keep in mind the availability of mobile trading platforms for those who seek simplicity and dynamism.

2. Leverage

This is another essential factor to consider when looking for a forex broker in New Zealand. Some countries like the US have restrictions on leverage provision. In New Zealand, traders can choose a leverage of as high as 500:1. Some brokers offer higher figures, but a top limit of 500:1 is conventional for currencies. Different assets attract different leverage limits. For instance, some brokers offer a top limit of 200:1 for commodities. It is good to note that the higher the leverage the higher the risk. As such, it is important to find a middle ground based on the risk-reward trade-offs.

3. Risk Management

This is usually an ongoing process once a trader begins trading on foreign exchange. But before choosing the NZ forex broker of your choice. Be sure to check whether the broker keeps client funds in segregated accounts to avoid a conflict of interest. Traders can also check to see the risk protection features offered by the broker, such as a minimum account balance protection which protects clients from losing more than what is in the trading account. Other features include guaranteed stops, slippage protection, etc.

However, when you decide that you really want to trade forex, bear in mind that you should have plenty of spare money in your pocket to cover the losses. It would be a very bad decision if you decided to take a risk you can’t afford to take.


New Zealand Regulation of Finance Markets

Forex brokers located in New Zealand are regulated by local Financial Markets Authority FMA.

What is FMA (Financial Markets Authority)

Financial Markets Authority (FMA) is the body responsible for regulating brokers in New Zealand. A broker must be fully registered with the FMA for its operations in the country to be legal. 

Many international forex brokers have targeted New Zealand to try to capitalize on its growing forex trading marketplace. But not all brokers that want to offer their services to New Zealand forex traders gain registration from the industry regulator, the Financial Markets Authority (FMA).

The FMA has several classifications under which a financial entity may be registered and regulated. For forex brokers looking to conduct business in New Zealand, their services are covered under the derivatives issuers category. 

The FMA website has used Blackbull Group Limited as an example. New Zealand Financial Markets Conduct Act of 2013 stipulates that an entity must be licensed to make a regulated offer of derivatives.

The Act describes a derivative as a transaction where a party to the agreement must or may be required to provide some form of consideration in the future to an entity or person.

The amount of consideration is dependent on the part or whole of something else, in this case, an underlying asset, including stocks, currency exchange rates, interest rates, indices, and commodities among others.

The act also covers open transactions already entered into, which may include futures contracts, swaps, and contract for difference (CFDs), among others.


NZD the national currency of New Zealand

NZD or the New Zealand dollar is the official currency and legal tender.

The reserve bank of New Zealand is the central bank. 

Though not ranked among the major currency pairs, the NZD/USD supports this view as it is one of the most popular currency pairs in the world. It is categorized as a commodity currency pair because of the NZD’s ties to commodity prices.

Is forex trading legal in New Zealand?

Yes forex trading is legal in New Zealand, as long as the broker you are using is registered with the Financial Markets Authority (FMA). The FMA is the financial regulator in New Zealand and is responsible for overseeing all financial markets and financial services providers in the country. All financial markets and services providers must be registered with the FMA, and this includes forex brokers.

Risk disclaimer: Trading forex and Trading CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Maximum retail investor accounts or retail CFD accounts lose money when trading forex and CFDs in the market.

Information provided on this website is not investment advice! You should consider whether you understand forex trading, how forex trading works, and whether you can afford to take the high risk of losing your money.