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New Zealand has one of the most interesting trading scenes in the world. Specifically, online Forex trading in New Zealand is one of the best on the global Forex market, making New Zealand a top destination for all types of traders, both new and experienced ones. However, it wasn’t always like this. For a certain while, New Zealand had a lot of problems specific to its Forex market due to a lack of proper regulation which resulted in a lot of financial scams.
So, how did New Zealand make a turn-around and take its Forex and financial market to the heights of today, and what are the exact factors contributing to that? The answer is that it mainly boils down to several improvements that Nez Zealand made, and when these are taken together, they create a wonderful market with lots of opportunities for everyone. In this guide, we will be discussing what exactly these factors are, and how has New Zealand managed to differentiate and put itself way ahead compared to many other FX countries. Before you go ahead with this thorough and extensive guide, make sure to check out XM, one of the best brokers in New Zealand.
Our Ultimate New Zealand Forex brokers list
There are tons of Forex brokers in New Zealand. With its fast-growing scene, more and more brokers are joining every year. For a beginner, it can definitely get a bit overwhelming sometimes, and choosing which one to go with definitely isn’t always an easy task. After examining many different Forex brokers and comparing all of their stronger and weaker sides, we came up with this list, which, we hope, will be of assistance to you for choosing your favorite broker in New Zealand.
License and Regulation
As stated, it wasn’t always sunshine and rainbows for Forex Regulation in New Zealand. For quite a long time, New Zealand, due to its inferior regulatory environment, was considered one of the riskiest countries for Forex trading. There were so many financial scams and frauds going on, that it was really damaging the country’s reputation as a financial hub. New Zealand, at the time, did have the Securities Commission which was supposed to ensure the safety and security of the market with its regulation, but it was really inconsistent and ineffective, letting many of the scam companies operate without any tangible supervision. It was also the same time period of the 2008 financial crisis, which, taken with these unfavorable market conditions, really undermined what little effectiveness the Securities Commission had on controlling and regulating the market.
Enter the FMA
New Zealand started offering some very attractive benefits and advantages to new Forex companies starting up in the country, and due to this, the need for a better regulatory body for legit Forex brokers in New Zealand couldn’t be ignored anymore. The commission was eventually dismantled, and the government introduced FMA (Financial Markets Authority). After FMA’s introduction, the number of financial scams started dwindling down very fast, and since that point, FMA has done an excellent job at regulating and supervising all financial companies offering Forex and other similar services.
FMA’s Methods for improving Market conditions
Since it started operating, FMA has been a key factor in taking New Zealand’s financial market to new heights. What is it exactly that they do that allowed the market to make a 180 degree turn from what it was to where it is now? This was all a result of numerous specific rules and regulations that FMA introduced, which allowed to eliminate some of the key issues that the market was having, and allowed for advancement in the areas that it was lacking in the most.
As an example, FMA necessitated all the registered Forex brokers in New Zealand to provide fully-disclosed, meticulously detailed reports that would give it full and complete information on how trustworthy and compliant a company was. These audits and reports were a central part of identifying companies that were potentially conducting their business in a shady way and acted as a sort of a screening tool. As an example, companies are obligated to have very detailed and informative documentation of all the specific rules and regulations that may possibly affect the transactions between the broker and the investor. Any changes to the terms and conditions relating to these matters will also need to be reported in extreme detail, and are subject to FMA’s approval. This ensures that regulated Forex Brokers in New Zealand are always obligated to act with the consumers’ best interest in mind.
FMA also implemented a number of policies that work really well in identifying companies that are potential wrongdoers. They actively encourage tip-offs from people who notice possible fraudulent or unethical activities from the companies. Whether that be investors or even the company employees, FMA provides numerous secure and private ways to assist in bringing possible wrongdoing to light. With their whistleblower programs, everyone is fully encouraged to rid the market of undesired players without any possible negative consequences.
With its frequent reviews and financial audits, FMA ensures that New Zealand regulated Forex brokers are complying with international anti-money-laundering laws and regulations and has strict punishment for violators in form of financial fines, or sometimes even imprisonment. Rules like these are what solidified FMA as one of the most effective regulators with pound-for-pound best results delivered. If you are looking for a broker that works in full cooperation with FMA and ensures your full safety, check out XM, one of the top brokers, check out XM brokers.
What kind of bonuses and promotions do brokers in New Zealand have?
One of the most common and reliable points that we usually take into consideration when choosing where to start Forex Trading at, is what kind of promotions and bonuses are available there. Due to the decentralized nature of Forex, there’s not much beyond licensing and regulatory environment that you can use as a reference of comparison for choosing which Forex market is the best, except for one thing, which is bonuses and promotions. These bonuses and promotions, for some of the traders who are starting out, can be the main actual deciding point for choosing their broker, and rightly so. With so much financial risk that is involved in trading on Forex, it’s definitely understandable. As a beginner, it’s very important that you take every measure available to ensure that you are increasing your chance to come out on top.
Due to the diversity of the market and trading process itself, there are many different kinds of bonuses that you can get with New Zealand based Forex brokers. They all have their specific advantages and disadvantages in different situations, so you should examine the circumstances and make a decision on which broker offers you the bonuses that are most appropriate for your own goals. With that being said, here are some of the most common types of bonuses that are usually available with most brokers in New Zealand.
Welcome bonuses
Welcome bonuses are offered to the new traders as a token of appreciation for signing up on a Forex website. with the goal of incentivizing people to join them. These are. due to their very nature itself, mainly designed with new players in mind. For some players, who are still undecided on which one of the Forex trading platforms in New Zealand is the best one for them, this can act as a deciding factor. There are many different forms of welcome bonuses, but there are two main ones:
- First-time deposit bonus: This bonus is given to new traders to make their very first deposit after signing up. It acts as a form of encouragement for assisting traders to make their very first step of depositing the funds. The extra sum can act either as a boost, or a safety net in case too much loss occurs in the beginning stages. The amount varies from broker-to-broker, and it will, in many cases, have an upper limit in terms of the percentage, or the maximum amount that the bonus can apply to.
- No-deposit welcome bonus: As the name implies, players can get this bonus without even having to make a deposit. They are usually available right after signing up, and so are available exclusively to new players. A nice encouragement for the beginners, it still remains one of the main tools that Forex trading companies in New Zealand use to attract new players on their websites. In order to avoid any kind of abuse or exploitation of these bonuses and promotions, players can’t withdraw this bonus, but can only withdraw profits that they have made from this bonus if such exists.
These bonuses, although especially attractive for new traders, are sought-out by the experienced ones as well. It’s very common for an experienced trader to be checking out alternative places where they can trade. If a broker offers an amazing promotional welcome bonus, which is usually much more valuable in the hands of a trader who actually knows what to do with it, it can make all the difference when choosing where to start trading. So, needless to say, online Forex brokers in New Zealand recognize these bonuses as one of the best methods of promoting their websites.
Refill Bonuses
Another very common type of bonus that is offered by pretty much all the brokers is the Refill or Redeposit bonus. These bonuses are given to the returning traders who have already made at least one deposit with the broker and are depositing again. These bonuses aim to encourage continual deposits from the existing clients and to establish a long-term partnership with them. The higher and more lucrative these bonuses are, the higher the likelihood of traders sticking with them, and Forex trading brokers New Zealand know this very well. The higher the refill, the higher the bonus, but it also usually has a cap as well. They also aren’t given out with each and every new redeposit, but rather, they are given out periodically, usually announced in advance by the broker. If you want to start your Forex trading journey with a nice head start, check out the amazing welcome bonus by XM.
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Who can do Forex trading in New Zealand and how much does it cost?
Forex trading is legal for anyone over the age of 18. Beyond that, if you are compatible with the specific requirements of your broker, you are good to go. As for how much does it cost to get started, the answer to that, strangely, is free. What do we mean by free? By “free”, we mean that there’s no cost for opening your account or any separate fees for just starting to trade. The beauty of Forex is that you are the one making decisions on exactly how much you want to start trading with. With some of the New Zealandian Forex brokers there are absolutely no restrictions on that front, and you can start with as little as one dollar.
With that being said, most of the Forex brokers in New Zealand do usually have some kind of a requirement on what’s the smallest amount that you can start with. This entirely varies depending on the broker, but it can be as little as $5, or as high as $250. Choosing which one makes sense to go with is totally up to you, as even if one broker has a way higher entry barrier than the other one, some of the benefits that they might have may completely outweigh the benefit of the low entry point. The devil is in the details, and you are the only one who knows all the details for your particular situation. If you feel that you have all the necessary knowledge to be successful now, take your first step in the world of Forex with XM and start building something great!
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So, should you go with New Zealand brokers?
The Forex market in New Zealand has had one of the most interesting stories in terms of the ups-and-downs that it has gone through, as well as the progress it has made over the years. Having started with a safe-haven for scam trading companies and going all the way towards being one of the top Forex destinations in the world, it has definitely impressed us all. In contrast with its past self, with the help of FMA, New Zealand is now among the countries with the safest and most effective regulations. If you are looking for a thriving Forex market that heavily focuses on your safety and protection, give New Zealand Forex trading online a chance and you won’t be disappointed!
