Getting started and identifying the best forex trading platforms can always be a challenge in itself. This applies whether you are a forex trader in New Zealand or any other country around the world.
We recognize the difficulty this can pose and so, with our experience in the forex trading industry, have decided to share some of what we think are the key tips and a collection of the best forex brokers NZ has to offer.
Is Forex Trading legal in New Zealand?
Forex trading in New Zealand is completely legal so you have nothing to worry about there. The only thing that must happen is from the broker side and that is, if they want to offer financial services in New Zealand, they must be authorized to do so by the FMA (Financial Markets Authority). This is in fact to your benefit in finding a trusted forex broker.
How to trade forex in New Zealand
Considering the fact that each broker available in New Zealand should be regulated by the FMA then there are just a few general rules in place that you should follow when starting out in forex trading in NZ.
These are that you provide both proof of your identity and proof of residence in order to validate your account before funding and trading forex markets.
Top 6 Best Forex Brokers in New Zealand
Getting to the brokers, here are 6 of the best we have chosen for forex trading in New Zealand:
First on our list of top NZ broker is Plus500. They are well-regulated by the FMA under the registration number FSP486026 that you can verify. They are also regulated by ASIC. They offer excellent negative balance protection and are great for keeping many things fee-free.
As a forex trader here you will find one account type with a full accompanying demo account available and minimum deposits that range from just 200 NZD by credit card or eWallet to 500 NZD if you deposit by wire transfer. You can deposit through these methods with both NZD deposits and base currency catered for.
Spreads with Plus500 start from 1 pip on forex currency pairs and a max leverage of 500:1 is facilitated for trading on their proprietary platform with a first deposit bonus starting from 400NZD available up to a maximum of 100,000 NZD.
2. CMC Markets
Our next top New Zealand broker is CMC Markets. They are FMA regulated with the license number FSP41187 that you can check. They are also ASIC regulated. They are known for their extensive range of assets at over 9500 with 300 or more forex pairs and competitive spreads.
Both a CFD and MT4 account are available with a full demo account to try out and no minimum deposit to worry about. With deposits, you can use wire transfer, credit, or debit cards to fund your account and these are fee-free in the most part. NZD deposits may be available from local bank transfers and it is supported as a base currency alongside the USD and HKD.
Spreads with this forex broker begin from 0.3 pips on major forex pairs with a maximum leverage in some markets of 500:1 and trading offered through MT4 and their proprietary platform.
3. IG Markets
IG Markets is the next top NZ broker featured and they are also FMA regulated with the registration number FSP18923 that you can quickly check out. They also offer a huge asset range with more than 16,000 CFDs and 80 forex pairs to choose from.
When it comes to account types, both a DMA and CFD account are available and you can choose between having a standard trading account or a limited risk account that includes negative balance protection. A full demo account to trade with is also available and the minimum deposit here is $450.
You can fund your account through wire transfer, credit or debit cards, and eWallets. The majority of these methods are fee-free and NZD deposits may be available alongside AUD, USD, and EUR. Spreads here start from a competitive 0.6 pips on forex and trading through MT4 and the brokers proprietary platform is available.
Next on the list of top NZ brokers is AxiTrader with more than 140 CFDs and 60 forex currency pairs to choose from. Their regulation also comes from the FMA under registration number FSP518226 for your verification.
Both an MT4 Standard and an MT4 Pro Account are available with demo accounts to try before you commit and both account types featuring no minimum deposit at all. Thinking of deposits, you can fund your account through wire transfer, credit/debit cards, or eWallets and without fees in most cases. NZD deposits are also available as well as a base currency in NZD, AUD, HKD, USD, EUR, and more.
The spread on forex trading here is also top notch and starts from 0 pips with a maximum leverage of 400:1 on many and trading through MT4. Finally, you can get a first deposit bonus starting from deposits of 400 NZD up to a maximum deposit amount of 100,000 NZD with a higher deposit netting a bigger bonus.
Next on our list of top NZ brokers is Rockfort Markets who are regulated by the FMA under number FSP509766 that you can check with ease. They also offer more than 2500 trading assets, more than 50 of which are forex pairs.
Here you will find Mini, Standard, and Pro accounts available to open with a minimum deposit ranging through $1 for a mini, $500 for Standard, and $20,000 for a pro account. Demo accounts that are fully functioning are also available.
You can fund your account here through bank transfer, credit cards, or PolyPay and this is free in most cases. Both NZD deposits and base currencies are catered for as well as a USD base currency. Trading is done through the MT4 platform with spreads starting at 0.9 pips on forex and leverage reaching 400:1 possible.
Last but not least on our listing of top NZ brokers is Hantec Markets who are registered with the FMA under registration number FSP539286 and provide over 100 assets for trading with at least 50 being currency pairs.
Here you will find both Standard and Pro accounts available and a minimum deposit of $50 in action on both account types as well as a fully functioning demo account for you to try out first.
You can fund your forex trading account through bank transfer, credit cards, and eWallet methods. Most of these are fee-free in nature. Although no NZD deposits are catered for, USD, EUR, GBP, and AED deposits all are. These four are also available as base currencies. Trading spreads start from a competitive 0.2 pips on forex with trading through MT4 and a leverage that can reach 500:1.
New Zealander trader? Here’s what to look for in a forex broker
As with forex trading in every country, there are always a few nuances to look out for. This is the same with trading forex in NZ. With that said, you will become aware that there are not really too many restrictions on trading in New Zealand and the maximum leverage is a generous 500:1 in most cases.
Here are three key tips to ensure you can choose the best available forex broker.
1. Look for brokers regulated within New Zealand
Of course, as a trader in any country will tell you, finding a regulated broker should always be top of the list. This means they should always be regulated by the FMA. If for some reason you do decide to step outside this, then try to go with other top global regulators in the forex market such as CySEC, FCA, and ASIC.
2. Look for a broker that keeps the costs low
Costs will always be key in forex trading. To that end, you need to make sure your broker’s spread is as low as possible and that they also keep their non-trading fees to a minimum. You should also try to deal with a broker that will facilitate NZD deposits and base currencies as this can work to limit any conversion costs you may incur.
3. If you’re a beginner, look for a Negative Balance Protection broker
Keeping yourself protected is vital in the forex market. Within Europe due to ESMA regulations, all brokers have to apply negative balance protection. This is not the case in New Zealand and you could find that a big market swing may leave you with a negative balance.
Keeping a broker that provides negative balance protection will stop this from happening as your position will be automatically closed once your balance reaches zero. It can provide excellent peace of mind to you as a forex trader.
How to verify if a forex broker is regulated in New Zealand
Understandably you may want to verify that the regulation your broker says they have is true and official at some point. This should be relatively easy to do in NZ since brokers should be FMA regulated.
In order to do this you should go to the official website and look for the list of licensed providers from the FMA. You should just have to type in your brokers name and it should appear under the business name of the broker that you can often find at the bottom of their homepage.
Once you have done this, simply read the description and it will inform you about the current regulatory status of that broker.
Is forex trading taxable in New Zealand?
The simple answer here is yes, forex trading in New Zealand is taxable. Capital Gains Tax will be applied on your profits and this amount depends on the bracket within which it falls but this can be anything from 10.5% up to 33%.
- We are not professional tax advisors, thus we strongly suggest you contacting local authorities if you don’t know how to manage this aspect
InvestinGoal.com may receive a monetary compensations from the brokerage companies listed above.