Best New Zealand Forex Brokers for 2023 [Updated]
Respectively to the major currencies traded on the forex market, New Zealand Dollar (NZD) ranks as the 10th most traded. In 2021 NZD pursued to be crisis resistant and even regarded as a safe haven currency given the high FX turnover to GDP, and the ability of the New Zealand government to sustain a positive outlook on key metrics. NZD's trading frequency is unusually high relative to New Zealand's economy. According to the Reserve bank of New Zealand, Trading in FX markets reached $6.6 trillion per day in April 2019 according to BIS figures, up from $5.1 trillion three years earlier.
New Zealand Financial Market Authority (FMA) is the main regulator of brokerages in the country, including other financial institutions that may be licensed by others but under certain FMA regulations. All foreign exchange providers must register under the Financial Service Providers Register (FSPR) and have an FMA license. The FMA, requires all financial service providers to belong to either an approved dispute resolution scheme (DRS) or the reserve scheme established by the government.
FMA brokerage registration used to be very lenient. After a series of scams where brokers robbed clients and just dropped their DRS and FMA registrations, the rules were made much tighter. There are so few FMA registered brokers that the list below includes both Australian ASIC and New Zealand FMA registered brokers
How to check if a New Zealand broker is legit?
Financial Service Providers Register holds all NZD brokerage licenses. Their web portal has a search page for the license in question. Legitimate brokers usually present the license number on their website and if you encounter it is missing you are probably looking at a scam site. Check the footer of the broker's website first, where the license link or number is usually displayed. Note that many worldwide brokers also hold a license for New Zealand clients under FSPR. Under the results also check which authority is assigned as a Dispute Resolution Scheme. Note that you can also search by broker name.
How to file a dispute with a New Zealand registered broker?
First, try to resolve the dispute with the broker. If that fails, FMA licensed brokers are required to be registered with a DRS according to the New Zealand laws, you will find which one is assigned using the FSRP search page results. Under the "Financial Services" tab you will find a web link to the dispute resolution, usually Financial Services Complaints Limited. From there you will be able to file a complaint form.
Good or bad, don't forget to leave a review for your forex broker once you've spent some time trading live with the company. If you encounter a serious problem, you can also open a thread about the issue in the Scam Alerts folder of the FPA's forums.
Can a New Zealand resident trade with an overseas broker?
At this time, the answer seems to be yes. If you do trade with an overseas broker, make certain to check what regulators the broker is registered with. Also, make certain you know which regulator will be the one to talk to if there is a major problem with the broker's handling of your account. You should also check the broker's reputation in the FPA's Reviews before opening an account.