Best Forex Brokers in New Zealand 2021
Looking for the best forex broker for New Zealanders in 2021? You are in the right place, we have updated our reviews in November 2020! There are a large variety of Forex brokers available to the Kiwi Forex trader of today. Forex trading is always evolving with new FX brokers emerging all the time, and competition evolving at a rapid pace making it difficult for the Kiwi forex trader to stay on top of things. The 8 best forex brokers in New Zealand in 2021 are:
- BlackBull Markets Forex Broker
- Plus500 Forex Broker
- FXTM Forex Broker
- easyMarkets Forex Broker
- OctaFX Forex Broker
- FXCM Forex Broker
- VantageFX Forex Broker
- Moneta Markets Forex Broker
However, the best Forex broker for one trader may not be the best broker for another. It depends on your trading style, what you want to trade and your support needs. Some Forex broker offerings are general, whilst some aspects might appeal to a trader’s individual style and needs.
Choose a Forex Broker
Forex broker regulation, however, is very important for any trader when choosing a broker, since one of the key features in the choice of broker is how safe your investment will be. In the Land of the Long White Cloud, the governing body regulating and licensing brokers is the Financial Markets Authority (FMA). Some traders from New Zealand prefer to trade with fx brokers regulated by FMA, and other Kiwi traders, however, might choose to trade with other internationally regulated brokers because they offer advantages the trader is looking for. As you will see in the top list below most of the brokers we recommend are regulated by FMA, but a few are regulated with other strong European regulators.
Below, we review various forex brokers, both internationally regulated and FMA regulated forex brokers well suited for traders from New Zealand. Our reviews are done on regulation, usability, platforms, minimum deposit, spreads, customer support and many other criteria. Start by browsing our top list of recommended and trust worthy brokers below and continue by reading the individual reviews of each broker on the respective review pages (that are linked from the top list). All forex brokers below accept traders from New Zealand and you can easily see in the “Pros” if the broker is also regulated by FMA.
Top 10 Tips for Picking an FX Broker in New Zealand
Here we look at ten different factors that we believe are of significant importance when you, as a trader from New Zealand, consider choosing a Forex Broker, whether you are a beginner or advanced trader. The significance of each will differ depending on your needs, which in turn will depend on your trading style, your knowledge level and your type of trading.
1. Regulation and how safe is my money?
You wouldn’t put a large amount of your savings in a bank account if you did not know that the bank was secure and regulated would you? So similarly why would you deposit with an FX Broker unless you were confident your funds and profits are safe?
In New Zealand, brokers are regulated by FMA. However, it is still legal for a New Zealander to trade with a broker that is not regulated by FMA. You would still look for a broker regulated by one of the other major regulators in the world. In the UK, this would mean looking for a broker that is regulated by the Financial Conduct Authority (FCA). In the USA, the equivalent would be a broker regulated by the National Futures Association (NFA) and/or the Commodity Futures Trading Commission (CFTC).
A major advantage of opening an account with an FMA regulated broker with an NZD account is that you will not take any exchange losses when depositing with the broker. Opening an account with a broker regulated by any of the above brokers should allow for protection if you as a depositor/trader have an issue or grievance with the broker. As already said, the top list above includes a few brokers regulated by FMA and a few other brokers, all regulated by major regulatory bodies, and therefore you can feel secure about trading with them.
2. Spreads and/ or Commission
Brokers do not provide their services for nothing, so they charge either commission per trade or more likely by the spread between the bid and offer prices. The wider the spread, effectively the more the trader has to pay to get into and out of each trade. So the narrower the spread, effectively the better off for the trader. Sometimes brokers offer fixed spreads, but often the spread will be variable depending on the volatility of the market.
3. Withdrawals and deposits
Most FX Brokers today offer very low requirements to open an account (from as little as £50). Brokers have differing policies with regard to depositing, funding and withdrawals. Are you able to fund the account from a bank account via wire transfer, via credit card, via PayPal? When withdrawing, is this done via wire transfer, back to your bank account or credit card? Are there any withdrawal fees? Any initial deposit requirements?
4. Rollover interest (credit/ debit)
Some brokers charge a debit (or give a credit) for daily interest. This would be a consideration for any traders thinking of holding open positions over night.
5. Margin and Leverage
Many FX Trading accounts are based on the concept of margin and leverage. Leverage is basically the ability to increase the possible return on an investment or trade. A margin account allows the trader to use leverage by trading larger amounts than deposited in their account. This is because only the potential short term losses on the accounts need to be covered, not the full amount of the underlying asset. How much leverage any forex broker offers and the margin requirements may be a consideration when opening an account with a particular forex broker.
6. Types of forex accounts
There are different types of FX trading accounts which include more traditional cash exchange accounts, spread betting type accounts or CFDs (Contracts for Difference). The choice of which account to open will depend on your very specific needs and potentially even depend on your tax liabilities.
7. What markets can you trade?
All FX brokers in the top list above for New Zealand offer trading in the major currency pairs, including EURUSD, USDJPY, GBPUSD and also NZDUSD, EURNZD, AUDNZD etc. Most also offer currency cross rates, ability to trade a large selection of currency pairs against each other.
In addition, many brokers offer the opportunity to trade other financial markets and assets. These would include equity indices, government bond markets and commodities (such as oil, gold and copper).
8. Trading platforms supported by the broker
Practically all brokers offer a trading platform, whereby the trader can access the various markets available to trade. Some brokers provide their own developed trading platforms, whilst others suggest downloading free platforms offered by third-party providers. There are many different factors to consider when looking at differing trading platforms including; ease of use, accessibility, trading tools on offer, charting packages, mobile/ tablet access etc. Please see our list of best trading platforms in New Zealand here.
9. Customer support
Many markets are now open 24 hours a day, five days during the week. So a strong customer support service would be open at all times during this time. Also, the speed of access to a live individual rather than an automated service should certainly be considered. Inevitably, when calling customer service it is usually with an issue, which as a trader you will likely want resolved as soon as possible. Opening hours may be especially important when you’re located in New Zealand and the broker’s headquarters might be located on the other side of the planet in a completely different time zone.
10. Demo account available?
Most, but not all, Forex Brokers offer demo trading accounts to practice on. A demo account allows you to test the trading platform and evaluate some of the above-mentioned factors. All forex brokers useful to traders from the Land of the Long White Cloud in the top list above will offer demo accounts to new traders.
In the top list above you will find links to our reviews of the best forex brokers for traders from New Zealand. In these reviews we’ve covered most of these ten tips to make your choice of broker as easy as possible.