Best forex brokers New Zealand – Regulations and features
The Australasia region is known as a hub for foreign exchange, with the New Zealand dollar remaining in the top 20 most traded currencies globally. Therefore, many investors are looking at forex brokers for NZ traders.
These forex broker NZ reviews will examine the best options, why they are excellent choices, and the pros and cons. But first, we’ll start with regulations for NZ brokers.
Top 5 Forex Brokers in New Zealand for 2023
|XM||Min. Deposit: $5||Max. Leverage: 1:1000||
||Visit XM XM review|
|AvaTrade||Min. Deposit: $200||Max. Leverage: 1:400||
||Visit AvaTrade AvaTrade review|
|IG||Min. Deposit: -||Max. Leverage: 1:200||
||Visit IG IG review|
|eToro||Min. Deposit: $100||Max. Leverage: 1:400||
||Visit eToro eToro review|
|Interactive Brokers||Min. Deposit: $100||Max. Leverage: 1:30 | 1:50||
||Visit Interactive Brokers Interactive Brokers review|
Regulation for forex brokers accepting NZ clients
It is only safe to trade in regulated forex brokers, so this is the first thing we look for in an operator. The Financial Markets Authority (FMA) is the government agency that regulates financial services companies, including brokers, in the country. The FMA is seen as a highly reputable body in the industry, with only around 22 derivatives providers licensed by them.
Like any regulator, the FMA’s job is to:
- Offer a strict licensing process for brokers
- Ensure that brokers segregate client funds
- Maintaining compliance with periodic reporting standards
- Imposing warnings and sanctions against unlawful behavior
Fortunately, the FMA is not as strict as its neighboring Australian Securities and Investments Commission regarding leverage. This is also reflected in the reasonable licensing fee of $10,695, a much lower fee than other regulators.
These are the other general requirements for regulated forex brokers in NZ:
- A broker must have a minimum net tangible assets value of NZ$1 million
- They should have a physical office in the country with a compliance director present
- A broker shouldn’t misconstrue information to its clients and must disclose risks
Below is a summary of the main things we considered in compiling this NZ forex brokers list:
- The trading costs should be minimal and competitive. Also, no funding and withdrawal fees should apply.
- NZD regulated forex brokers should have a broad choice of currency pairs and non-FX markets.
- The broker should offer a wide selection of convenient payment methods.
- We ensured excellent and responsive customer support.
- Lastly, a broker must provide a distinct feature or unique service to differentiate themselves from competitors.
Now we’ll observe the best five options available.
IG truly deserves a spot in our best forex brokers NZ list. They are one of the oldest derivatives providers, established in 1974. IG has been listed on the London Stock Exchange since 2000 and is part of the FTSE 250.
The broker has everything a modern and sophisticated trader needs, from an expansive market selection to offering numerous charting platforms.
IG's main direct costs include a spread or commission (depending on the market), along with swaps. If you decide to use guaranteed stops, there is a premium for when it is executed. IG doesn't levy any funding or withdrawals, but you may incur some from your payment processor.
Lastly, clients are charged a monthly fee of $18 if their account has been inactive for two years.
With this broker, you can access over 18 000 markets spanning FX, indices, shares, commodities, crypto, options, ETFs, and bonds. It also has unusual instruments like interest rates, knock-outs trading, and digital 100s.
There is no minimum if you are funding via bank wire. Otherwise, the starting balance is $300 if you deposit via debit card or PayPal.
The range of charting software supported by IG makes them one of the top forex trading brokers New Zealand. If you're looking for something familiar, they have MT4. For something different, they offer ProRealTime and their own proprietary trading terminal.
Lastly, a unique feature is L2 Dealer, a direct market access platform for stock and forex, where you can see the order books.
- One of the oldest CFD brokers
- No minimum deposit (for bank transfers)
- Vast choice of markets available
- Offers excellent educational content through DailyFX
- Multiple trading platforms
- Inactivity fee applies
- Not many funding options
CMC Markets is another old player in the game, having been formed in 1989. Like IG, it is a listed company on the London Stock Exchange and an FTSE 250 constituent. These qualities are enough to make CMC one of the top NZ regulated forex brokers, but there's more.
CMC offers the standard MT4 and its advanced proprietary charting software Next Generation. If you're looking for spreads that start from zero on currencies, you can use their FX Active account on both platforms.
As one of the recommended forex brokers accepting NZ clients, CMC Markets has a simplified fee structure. You can expect to be charged spreads and overnight holding costs on a standard FX account.
FX Active's account has a fixed commission rate of 0.0025% per transaction. Lastly, a dormancy fee of $15 applies if there is no trading activity for 12 consecutive months.
With CMC, you can speculate in over 9500 CFDs across FX, indices, commodities, equities, crypto, and treasuries.
One advantage of CMC Markets, as part of our NZ forex brokers list, is that the starting balance is $0. You can fund and withdraw via debit card, bank transfer, POLi, and PayPal.
CMC offers two platforms: MT4 and Next Generation, the latter of which is a proprietary platform. Both of these are available in web and mobile versions. Next Generation isn't available in a desktop format, while MT4 is.
- Publicly-listed broker
- Supports multiple base account currencies
- Offers a broad selection of instruments
- Zero spread account available
- Charges for card payments
- Inactivity fee applies
BlackBull Markets is nowhere as old as IG and CMC. Yet, since 2014, it has served tens of thousands of clients across most parts globally. The fact that it was founded natively makes it one of the best forex brokers New Zealand has to offer.
BlackBull has several interesting features. It supports MT4, MT5, and the exquisite TradingView. BlackBull is also one of the few forex brokers accepting NZ clients with social or copy trading for investors looking to replicate the positions of other traders. For this, you can use their own BlackBull Social or the popular Myfxbook and ZuluTrade.
Another advantage is that the broker supports many funding choices, including Visa/Mastercard, Skrill, NETELLER, and even crypto.
With BlackBull, a forex trader can expect the customary spreads and swaps. On their ECN Prime and ECN Institutional accounts (with spreads from zero), there is a commission of $6 and $3 per lot, respectively.
No fees apply for deposits. Yet, for withdrawals (via bank wire, Skrill, NETELLER, or debit card), a $5 transfer fee from their remitting bank or payment system provider applies.
A broad instrument selection is what you expect from supreme NZ regulated forex brokers like BlackBull. You can trade FX, shares, indices, commodities, energies, and precious metals here. This totals over 26 000 individual instruments.
BlackBull's starting balance on the standard account is $0; $2000 for ECN Prime; $20 000 for 'ECN Institutional. Impressively, you can fund these amounts with over ten different methods, making Blackbull certainly one of the excellent forex brokers for NZ traders.
BlackBull Markets provides trading access on MT4, MT5, and TradingView, along with its proprietary software for shares BlackBull Shares. You can use these platforms across multiple web and mobile mediums (MT4/5 and TradingView are available on Mac and Windows).
- $0 starting balance on standard account
- Offers copy trading
- Works with MT4, MT5, and TradingView
- Supports multiple base currencies
- Provides numerous payment options
- High deposit requirement for zero spread account
- Lower selection of forex pairs
Plus500 was originally formed in 2008 by six alumni from the Israel Institute of Technology. The company is now a global fintech brand in CFDs, with a physical presence in 10 countries. Moreover, it is a listed company on the London Stock Exchange and part of the FTSE 250 index.
So, what makes Plus500 a worthy addition to our NZ forex brokers list? If you're seeking a different charting platform away from the familiar MetaTrader, Plus500 offers its own on web and mobile.
It has a unique feature of a guaranteed stop loss order (GSLO) which closes at a preset price, regardless of market conditions like slippage.
Plus500's attention to having zero fees on most things makes them one of the excellent regulated forex brokers in NZ. Aside from spreads and rollover charges, no commissions apply. There are also no deposit and withdrawal costs (although you might still incur them from your payment issuer).
The GSLO does have a premium, which only applies if triggered (it may also come with a higher spread).
Lastly, a dormancy applies of $10 every month if there is no trading activity for three consecutive months.
The broker's total choice of securities is 28 000, spanning currencies, crypto, stocks, indices, commodities, ETFs, and options.
Plus500's minimum starting balance is $100, which is reasonable for forex brokers in New Zealand. This can be funded via VISA/Mastercard, Skrill, PayPal, and bank wire.
Plus500 provides trading access via its own software that you can use on Android, iOS, and web browsers.
- Wide range of markets available
- Offers GSLOs (at cost)
- Decent minimum deposit amount
- Doesnt offer any MetaTrader platforms
- Only one account type provided
- Trading with EAs, scalping, and hedging are not allowed
- Inactivity fee applies
Founded in 2017, Rockfort Markets is certainly one of the least popular forex brokers for NZ traders. Yet, its only office is in the country, making it feel closer to home for Kiwis. With Rockfort, you can trade on MT4 and Trader Workstation (TWS).
TWS is popular with Interactive Brokers clients, allowing traders direct market access to exchange-traded instruments like stocks, futures, and options. For FX, this platform allows tighter spreads, faster execution, and straight-through processing.
Another unique feature of Rockfort is that you can deposit via the crypto USDT (Tether).
Like all FX brokers in New Zealand, spreads and swaps apply with Rockfort Markets. The company advises that they charge for certain deposit methods. For withdrawals to a non-NZD bank, a $15 fee applies per transaction.
Lastly, a NZ$20 inactivity applies monthly if your account hasn't had trading activity for over six months and has a balance below $100.
With Rockfort Markets, you can speculate in forex, indices, shares, options, metals, energies, commodities, and futures.
Rockfort Markets' starting balance of $200. Their funding methods include Visa, Mastercard, POLi, BitWallet, bank wire, and Tether.
Rockfort Markets supports MT4 and Trader Workstation, which you can use across various web, mobile, and desktop platforms.
- MT4 and Trader Workstation supported
- 1:500 max leverage
- Deposits available via Tether
- Not as popular as the other NZ regulated forex brokers
- Inactivity fee applies
- Charges may apply for certain deposit methods
Is forex trading legal in NZ?
Yes, trading FX is permitted in the country as long as you use any FMA-regulated forex brokers in New Zealand. You can ensure the FMA licenses the broker by looking at its official register.
This organisation, like any regulator, has strict guidelines for member firms to ensure a safe and legal trading environment.
Is forex taxable in New Zealand?
Absolutely. Tax applies when using forex brokers in New Zealand. The government refers to it as Resident Withholding Tax (RWT) which is relevant for job and investment-related earnings. The RWT rate varies from 10.5% to 3%, the higher your yearly income, the higher the rate is.
What is the best time to trade forex in New Zealand?
You need to know the different sessions to understand the most optimal times. The best time for the New Zealand currency is during the Australasian overlap from 19h00 to 00h00 EST. As the Sydney and New Zealand markets near a close, the Asian pairs come into the fray.
So, when using NZD regulated forex brokers, expect movement across numerous AUD, NZD, and JPY-based markets.