Trading on the ASX will cost you 0.09%, while the US stock exchange charges 2 cents (min. USD$10.00). BlackBull Markets doesn’t skimp on tradable products, and New Zealand traders hoping to build a diverse portfolio across a range of markets will appreciate the diversity of financial instruments. To help you understand BlackBull’s competitiveness, the table below shows how BlackBull spreads are superior to other brokers for specific forex pairs. Please note spreads are updated monthly and sourced directly from brokers’ websites activ trades review to ensure accuracy. Opening a forex trading account in New Zealand is a relatively simple process that can be done online in a matter of minutes. You’ll first need to provide several personal details (such as your email address, full name and postal address), then you’ll need to select an account type (such as a live account or a demo account).
Forex Trading in New Zealand
We consider CMC Markets to be highly safe for traders residing in New Zealand. The broker also implements segregation of funds and negative balance protection. At FXEmpire, we strive to provide unbiased, thorough and accurate broker reviews by industry experts to help our users make smarter financial decisions. Regarding fees, our tests revealed that Plus500’s fee structure varies from average to competitive, depending on the specific instrument in question.
Founded in 2008, Plus500 offers trading in forex, commodities, stocks, indices, ETFs, and cryptocurrencies. The broker has multiple regulations, including CySEC, FCA, MAS, ASC, FMA, FSCA, EFSA, and FSA Seychelles. Founded in 2014, BlackBull offers trading in forex, indices, commodities, equities, and cryptocurrencies.
- IG Markets is one of the most highly regulated brokers in the forex brokerage space.
- Finally, forex brokers are not mandated to provide negative balance protection if you are a professional trader.
- I began trading the markets in the early 1990s, at the age of sixteen.
Our review process follows a thorough protocol that results in a score that is based on objective criteria and measurable data. As a result of our work, we publish comprehensive and unbiased reviews, which are meant to help traders choose the broker that best suits their needs. The choice of trading platform depends on personal preferences and trading experience.
Overview of the New Zealand Forex Trading Environment
Established in 1990, Hantec Markets is one of the big names in the Asia-Pacific region. It holds operating licenses from several regulators and offers excellent forex and CFD trading services. Forex brokers must be registered and authorized by the Financial Markets Authority (FMA) to operate in New Zealand. FMA was formed in May 2011 after New Zealand Parliament passed the Financial Markets Bill to streamline regulations in the financial services industry. The Edge account allows you to trade with spreads as low as 0 pips, however, you are charged a commission of $3.5 per lot per trade. The team of forex and CFD writers and editors at FX Empire is composed of trading industry professionals and seasoned financial journalists.
How to Check Whether a Broker is Regulated by the FMA?
There are lots of unlicensed brokers who lure unsuspecting traders with promises of huge returns with low investments. The forex market is very liquid and this liquidity has caused a lot of traders to throw caution to the wind and even become greedy. Traders sometimes trade derivative instruments such as currency futures and currency options to hedge against currency and interest rate fluctuation risk. When you go long (buy) on a currency pair, the base currency is being bought while the quote currency is being used to pay for the base currency. It is the other way round when you go short (sell) on a currency pair.
The standard account is designed for beginners with just a spread charged and no commissions. This more straightforward cost structure makes it easier to calculate trading costs for novice traders. In addition, because the broker charges no commissions on trades, spreads are typically wider than other account types. When it comes to forex trading, CMC Markets tops the list simply because of the number of currency pairs it is offering.
What is negative balance protection in forex trading?
Such platforms are usually focused on the needs of traders of varying levels of experience. Plus500 also offers CFDs on options, although I’d advise beginner traders to start their trading journey with less sophisticated instruments to minimize complexity. Traders have plenty of accounts to choose from, including two retail and three IRESS account types. Such diversity allows for a more personalized trading experience. TMGM also offers a substantial number of deposit and withdrawal methods, available in multiple currencies including USD, EUR, GBP, AUD, NZD, CAD, and CNY, adding to the overall convenience. Yes, New Zealand Forex brokers may offer Islamic accounts designed to be compliant with Sharia law.
If the previous two agencies have their own authorities to make something, to ban or to punish, Financial Markets Authority is the big leader among the three organizations. FMA can accept complaints, by the way, too, but it is also responsible for the right registration of the brokers. FSPR is the abbreviation behind Financial Service Providers Register.
BlackBull has a solid platform offering featuring multiple trading platforms such as MetaTrader 4, MetaTrader 5, TradingView, and Share Trading. These platforms are complemented by a wide range of tradable instruments and several account types, available in multiple base currencies. Clients who choose MetaTrader gain access to Autochartist, a valuable technical tool that identifies key support and resistance levels, chart patterns, and more. Additionally, the BlackBull Social platform enables traders to follow the strategies of traders from any MT4 or MT5-based broker, fostering a collaborative trading community. The best New Zealand forex brokers offer a combination of competitive trading costs, excellent trading conditions and a wide variety of assets to trade. We’ve chosen BlackBull Markets as the best forex broker for NZ traders due to its top execution speeds, high leverage and powerful trading tools.
BlackBull Markets is also authorized and regulated by the Financial Services Authority in Seychelles (“FSA”) under license number SD045 for the provision of investment services. Steven Hatzakis is the Global Director of Research for ForexBrokers.com. Steven previously served as an Editor for Finance Magnates, where he authored over 1,000 published articles about the online finance industry.
Remember, the pepperstone canada higher the traded volume, the larger the potential profit & loss. Commercial Banks make up the interbank market where they trade forex with other banks in very large volumes. These volumes are large enough to dictate the bid and ask prices for any currency. New Zealand Brokers Should use a broker regulated by the Financial Markets Authority (FMA) of New Zealand. This ensures the broker is legally able to offer their services to New Zealand residents and complies with the regulatory requirements of needed to offer financial services in the country.
This is a good faith deposit a trader must keep in his trading account to enable him to open a trade with leverage. It is expressed as a percentage and is inversely proportional to leverage. The Bid price is the highest price a forex trader is willing to pay to buy the base currency from the broker. The activities that take place in the forex market determine the exchange rate of any currency pair.
FBS offers quality education material, friendly trading conditions, and research tools. I am a well-rounded financial services professional experienced in fundamental and technical analysis, global macroeconomic research, foreign exchange and commodity markets and an independent trader. New Zealand does not have any special taxation rules for Forex traders.