How we Reviewed the Best Brokers in New Zealand for 2023

At FXScouts, we have an experienced review team dedicated to evaluating Forex brokers, including FMA-regulated brokers that are headquartered in New Zealand. Our team of experts meticulously examines each broker, analysing over 200 individual metrics, enabling us to recommend only the top Forex brokers in New Zealand. 

We’ve selected the top FMA-regulated Forex brokers in the industry based on several factors:

• FMA Regulation: All brokers are regulated by the FMA, which ensures that they segregate client money from their operating funds, protecting client funds from broker mismanagement or default. These brokers offer negative balance protection, ensuring client losses can’t exceed the amount in the trading account. They must also provide client fund protection, including higher margin close-out percentages and belong to a compensation scheme that pays up to 200,000 NZD in case of broker bankruptcy. Unlike brokers in the UK or Australia that have a leverage limit of 30:1, Forex brokers regulated by the FMA can offer leverage of up to 500:1, further adding to their appeal. 
• Low Trading Fees: The FMA ensures that Forex brokers offer a fair and transparent trading environment. Better Forex brokers often have lower trading costs, meaning that spreads are tight and their minimum deposits are low. They also have lightning-fast execution with little or no intervention.  The brokers below are transparent with their fees, have some of the lowest trading costs in the industry, and have fast trade execution. 
• Great trading platforms and tools: Our selected brokers offer user-friendly, reliable platforms like MT4, MT5, cTrader, TradingView, or their own web-based platforms. They also offer a range of trading tools, including VPS services and various automated analysis tools such as Autochartist or Trading Central. 
• Excellent Educational Materials: The brokers selected below offer beginner traders a coherent and well-structured trading course alongside a demo account. They also supply detailed market analyses highlighting trading opportunities to provide a complete learning experience.
• Customer Service: A broker’s customer service should be responsive and available 24/7 via various channels.

You can find out more about our in-depth review process here.

These are the top FMA-regulated Forex brokers in New Zealand for 2023, as determined by our review process.

Is Forex Trading Legal in New Zealand?

Yes. Forex trading is legal in New Zealand. Though it is not illegal for New Zealanders to use an unregistered broker, it is illegal for an unregistered broker to offer services to New Zealand citizens. This is important to note because, while you can still use an unregistered broker, you should consider how trustworthy that broker is if they are willing to break the law in order to gain your business.

What is the New Zealand Financial Markets Authority (FMA)?

The FMA regulates New Zealand’s financial markets. Its main role is to supervise banks and insurance as well as other market participants, including Forex brokers. The FMA is also responsible for maintaining public trust and confidence in New Zealand’s financial system. 

To do so, it aligns its regulations with international standards, ensuring that New Zealand’s financial market operates at a level comparable to other major global markets. As a result, all Forex brokers operating in the country must be registered and licenced by the FMA and are closely monitored by the regulatory body.  The FMA also ensures that:

• Forex brokers provide fair trading conditions, accurate pricing, and transparent fee structures. 
• Brokers separate client funds from operational funds, ensuring traders’ money is not used for the broker’s business activities. This protects client funds even if the broker faces financial difficulties.
• Brokers provide all traders with negative balance protection, ensuring they cannot lose more than their initial deposit.
• Brokers must be completely transparent and are required to disclose pertinent information to traders, such as potential risks, fees, and any conflicts of interest.
• Brokers must undergo regular audits and assessments to ensure compliance with financial standards and operational integrity.

The FMA also regularly publishes consumer alerts regarding companies and purported representatives operating in New Zealand that are unlicensed. This database is fully searchable and very useful for new traders. It is also worthwhile checking your chosen broker against this database to be doubly sure that there are no outstanding warnings against them.

Can the FMA help me in a dispute with my broker?

It is important to note that the FMA will not provide assistance in the case of a dispute between a customer and a Forex broker.

However, Forex brokers regulated by the FMA must be members of the Financial Service Providers Register (FSPR), and all members of the FSPR must belong to a dispute resolution scheme (DRS). There are four approved dispute resolution schemes, and all Forex brokers will be members of one of the following:

1. Banking Ombudsman – mainly deals with disputes between banks and their customers but also deals with complaints about a range of non-banking financial service providers.
2. Insurance & Financial Services Ombudsman – mainly focused on insurance and savings providers but also provides dispute resolutions for other financial service providers that are members of its scheme.
3. Financial Services Complaints Limited – An independent not-for-profit dispute resolution service that resolves complaints about financial service providers. 
4. Financial Dispute Resolution – operated by FairWay Resolution, it seeks to find fair dispute resolutions for the complainant and broker. 

How do I complain about a Forex broker?

If you need to complain about a Forex broker, you should first take your complaint to the company and follow their official complaints procedure. If your complaint is not resolved satisfactorily, your next step is to complain to their dispute resolution scheme. A condition of being licensed by the FMA is that brokers must belong to a dispute resolution scheme. 

How do I check if a Forex broker is FMA-regulated?

At the time of writing, there are only 21 active Forex brokers with FMA licences in New Zealand. To check if a broker is on the list, visit the FMA website. The list is kept current and before you sign up with a new broker, you should check to make sure that they are licensed.

Why is FMA Regulation Important for New Zealanders?

Regulation is essential for protecting your money and ensuring a fair and transparent trading experience.

When trading Forex, you want to be confident that your broker is operating legally and ethically and that your funds are being handled safely. Regulated Forex brokers must adhere to strict standards set by regulatory bodies, which include requirements for capital adequacy, segregation of client funds, and ongoing reporting and compliance. This means that your funds are protected and your trading experience is fair.

Unregulated brokers are not forced to hold to the same standards. This can lead to a higher risk of fraud or unethical practices, which can result in financial losses for traders. Choosing a regulated Forex broker gives you peace of mind and security, knowing that your investments are protected.

Scam Brokers and Reporting Regulatory Violations

If you are unsure about the reliability of your Forex broker, you can check our list of brokers to avoid. If you believe you have been scammed by your broker, the first thing to do is warn others and tell your story. You can check if the scammer is named on the FMA’s warning list and contact them to investigate.  We also have a report a scam broker form which we use to gather information so that we get the word out. Your personal details will not be shared externally.

Conclusion

Though the new regulatory environment in New Zealand has led to a short-term decrease in the number of international brokers operating in the country, it has also led to a significantly more safe market for retail traders.

The FMA is a very transparent and responsible regulator, and as New Zealand gains a reputation as a reliable and secure country for Forex trading, we strongly believe that the industry will expand again in the future.

Forex Risk Disclaimer

Trading Forex and CFDs is not suitable for all investors as it carries a high degree of risk to your capital: 75-90% of retail investors lose money trading these products. Forex and CFD transactions involve high risk due to the following factors: Leverage, market volatility, slippage arising from a lack of liquidity, inadequate trading knowledge or experience, and a lack of regulatory protection. Traders should not deposit any money that is not considered disposable income. Regardless of how much research you have done or how confident you are in your trade, there is always a substantial risk of loss. (Learn more about these risks from the Australian regulator, ASIC or the UK’s regulator, the FCA).

Our Rating & Review Methodology

Our overall Forex Rankings report and Directory of CFD Brokers to Avoid are the result of extensive research on over 180 Forex brokers. These resources help traders find the best Forex brokers – and steer them away from the worst ones. These resources have been compiled using over 200 data points on each broker and over 3000 hours of research. Our team conducts all research independently: Testing brokers, gathering information from broker representatives and sifting through legal documents. Learn more about how we rank brokers. 

Editorial Team

 

Chris Cammack
Head of Content

Chris joined the company in 2019 after ten years experience in research, editorial and design for political and financial publications. His background has given him a deep knowledge of international financial markets and the geopolitics that affects them. Chris has a keen eye for editing and a voracious appetite for financial and political current affairs. He ensures that our content across all sites meets the standards of quality and transparency that our readers expect.

 

Alison Heyerdahl
Senior Financial Writer

Alison joined the team as a writer in 2021. She has a medical degree with a focus on physiotherapy and a bachelor’s in psychology. However, her interest in forex trading and her love for writing led her to switch careers, and she now has over eight years experience in research and content development. She has tested and reviewed 100+ brokers and has a great understanding of the Forex trading world.

 

Ida Hermansen
Financial Writer

Ida joined our team as a financial writer in 2023. She has a degree in Digital Marketing and a background in content writing and SEO. In addition to her marketing and writing skills, Ida also has an interest in cryptocurrencies and blockchain networks. Her interest in crypto trading led to a wider fascination with Forex technical analysis and price movement. She continues to develop her skills and knowledge in Forex trading and keeps a close eye on which Forex brokers offer the best trading environments for new traders.