New Zealand offers a strictly regulated forex trading environment that benefits both retail and institutional participants. In 2022, the country reported an average daily forex trading volume of $10.6 billion, ranking second by market size in Australasia. The Financial Markets Authority (FMA) oversees the sector, licensing financial service providers and enforcing compliance with local laws. Kiwi traders have access to a variety of legal products, including derivatives such as forex futures and contracts for difference. Stay with us to further explore forex brokers and regulatory requirements in New Zealand.
Top 11 Forex Brokers in New Zealand
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Fusion Markets
- Australia regulated broker
- MT4, MT5, TradingView, Ctrader
- Leverage up to 500
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
-
FP Markets
- Australia and CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Energy CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
-
ActivTrades
- Winner of 20+ Global Awards
- MT4/MT5, TradingView
- Leverage up to 1:400
Trading InstrumentsDeposit Methods- Bonds CFDs
- Commodities CFDs
- Crypto CFDs
- ETF CFDs
- Forex CFDs
- Indices CFDs
- Share CFDs
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BlackBull Markets
- Broker boasting lightning-fast execution speed
- ECN brokers with tight spreads from 0.0 pips
- $0 minimum deposit requirement
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
-
Iron FX
- IronFX offers more than 300 trading instruments.
- Access to MetaTrader 4 (MT4), along with proprietary features and trading tools to enhance user experience.
- Multiple instruments available for trading, including Forex, Indices, Commodities.
Trading InstrumentsDeposit Methods- Commodities CFDs
- Commodity Futures
- Crypto CFDs
- Currency Futures
- Forex CFDs
- Indices CFDs
- Metal Futures
- Metals CFDs
- Share CFDs
-
Axi
- Raw spreads start from 0.0 pips
- Offers order execution faster than standard ECN model
- Axi Select Funded Trader Program offers funding up to $1 million
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
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Tickmill
- Classic and Raw accounts available to suit various trading needs and requirements.
- Popular trading platforms, such as MT4 and MT5.
- Regulated by reputable authorities: ASIC and CySEC.
Trading InstrumentsDeposit Methods- Bonds CFDs
- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Stock CFDs
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Blueberry Markets
- Well-known broker, established in Australia
- Low trading fees
- MT4, MT5, Mobile Trading Platform
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Share CFDs
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Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors.MultiBank Group
- The broker offers leverage up to 500:1.
- Available trading platforms are: MT4 and MT5.
- MultiBank Group provides various account types (Standard, Professional and ECN) to cater to different trading preferences.
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Share CFDs
-
CMC Markets
- Provides a choice of 10,000+ trading instruments
- Supports MT4 and Next Generation (proprietary platform)
- Spreads for EUR/USD from 0.5 pips
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Energy CFDs
- ETF CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Share CFDs
- Stock CFDs
- US Stock CFDs
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easyMarkets
- Innovative tools like to manage risk effectively.
- EasyMarkets provides access to Forex, Indices and Stocks
- Proprietary EasyMarkets platform available, as well as MetaTrader 4 (MT4), to suit both beginner and experienced traders.
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Forex Forwards
- Forex Options
- Indices CFDs
- Metal Options
- Metals CFDs
- Share CFDs
Brokers Compared by Spread
FX Brokers Deposit Method Comparison
| Brand | Minimum deposit | |
|---|---|---|
| Fusion Markets |  |
$0 |
| FP Markets | |
$50 (AU$100) |
| ActivTrades | |
$0 |
| BlackBull Markets |  |
$0 (Standard)$2,000 (Prime)$20,000 (Institutional) |
| Iron FX | |
$100 |
| Axi | |
$0 |
| Tickmill | |
$100 |
| Blueberry Markets | |
$100 |
| MultiBank Group | |
$50 (Standard), $10,000 (ECN), $1,000 (Pro) |
| CMC Markets | |
$0 |
| easyMarkets | |
$25 ($2,000 for MT4 Premium, $10,000 for MT4 VIP) |
Brokers by Regulator
| Brand | Maximum leverage | |
|---|---|---|
| Fusion Markets | |
1:500 (ASIC | Pro Account), 1:30 (ASIC | Retail Account), 1:500 (VFSC | Retail Account) |
| FP Markets | |
1:500 (CySEC | Pro Account), 1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:500 (FSAS | Retail Account) |
| ActivTrades | |
1:400 (CMVM | Pro Account), 1:30 (CMVM | Retail Account), 1:1000 (FSC), 1:200 (SCB) |
| BlackBull Markets | |
1:500 (FMA), 1:500 (FSAS) |
| Iron FX | |
1:30 (CySEC), 1:30 (FCA), 1:1000 (FSCA) |
| Axi | |
1:500 (Elite Account), 1:400 (Pro Account), 1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:30 (DFSA | Retail Account), 1:30 (FCA | Retail Account), 1:500 (SVGFSA) |
| Tickmill | |
1:500 (CySEC | Pro Account), 1:500 (FCA | Pro Account), 1:30 (CySEC | Retail Account), 1:30 (FCA | Retail Account), 1:1000 (FSAS) |
| Blueberry Markets | |
1:30 (ASIC | Retail Account), 1:500 (VFSC) |
| MultiBank Group | |
1:500 (ASIC | Pro Account), 1:30 (ASIC | Retail Account), 1:500 (CIMA), 1:30 (CySEC), 1:20 (MAS) |
| CMC Markets | |
1:500 (ASIC | Pro Account), 1:500 (FCA | Pro Account), 1:30 (ASIC | Retail Account), 1:30 (BaFin | Retail Account), 1:30 (FCA | Retail Account), 1:20 (MAS | Retail Account) |
| easyMarkets | |
1:500 (ASIC | Pro Account), 1:500 (CySEC | Pro Account), 1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:2000 (FSAS | Retail Account) |
Forex Brokers Platform Availability
| Brand | FX pairs to trade | |
|---|---|---|
| Fusion Markets | |
cTrader, MetaTrader 4, MetaTrader 5, TradingView |
| FP Markets | |
cTrader, TradingView |
| ActivTrades | |
MetaTrader 4, MetaTrader 5, Proprietary Web, TradingView |
| BlackBull Markets | |
cTrader, MetaTrader 4, MetaTrader 5, TradingView |
| Iron FX | |
MetaTrader 4 |
| Axi | |
MetaTrader 4 |
| Tickmill | |
MetaTrader 4, MetaTrader 5, Proprietary Mobile, Proprietary Web |
| Blueberry Markets | |
MetaTrader 4, MetaTrader 5, TradingView |
| MultiBank Group | |
MetaTrader 4, MetaTrader 5 |
| CMC Markets | |
MetaTrader 4 |
| easyMarkets | |
MetaTrader 4, MetaTrader 5, Proprietary Mobile, Proprietary Web, TradingView |
Comprehensive Comparison of the Best New Zealand Forex Brokers
| Brand | Min. Deposit | Trading Platforms | Spread | Regulation | Trustpilot |
|---|---|---|---|---|---|
 |
$0 |
|
AVG 0.93 pips |
|
|
 |
$50 (AU$100) |
|
AVG 1.2 pips |
|
|
 |
$0 |
|
AVG 0.5 pips |
|
|
 |
$0 (Standard)$2,000 (Prime)$20,000 (Institutional) |
|
AVG 0.3 pips |
|
|
 |
$100 |
|
AVG 1.2 pips |
|
|
 |
$0 |
|
AVG 0.1 pips |
|
|
 |
$100 |
|
AVG 1.7 pips |
|
|
 |
$100 |
|
AVG 0.2 pips |
|
|
 |
$50 (Standard), $10,000 (ECN), $1,000 (Pro) |
|
AVG 0.1 pips |
|
|
 |
$0 |
|
MIN 0.5 pips |
|
|
 |
$25 ($2,000 for MT4 Premium, $10,000 for MT4 VIP) |
|
MIN 0.8 pips |
|
Legal Forms of Forex Trading in New Zealand
In New Zealand, individuals and institutions engage in various forms of forex trading, each with distinct characteristics and regulatory considerations. The primary legal forms include:
- Spot Forex Trading
This involves the direct exchange of one currency for another at the prevailing market rate, with transactions typically settled within two business days. - Contracts for Difference (CFDs)
CFDs are derivative instruments that allow traders to speculate on the price movements of currency pairs without owning the underlying assets. In New Zealand, offering CFDs requires a derivatives issuer license from the Financial Markets Authority (FMA). - Futures Contracts
These standardized agreements obligate parties to exchange a specific amount of currency at a predetermined price on a future date. Futures are commonly used for hedging and speculative purposes. - Options
Options provide the holder with the right, but not the obligation, to buy or sell a currency at a specified price before a certain date, offering flexibility in trading strategies. - Forward Contracts
Similar to futures, forwards are customized agreements between two parties to exchange currencies at a future date and a predetermined rate. Unlike futures, forwards are traded over-the-counter (OTC) and can be tailored to the specific needs of the parties involved.
Each of these trading forms carries its own set of risks and benefits. It’s essential for traders to thoroughly understand the mechanics and implications of each instrument and to ensure compliance with New Zealand’s regulatory framework. Engaging with licensed and reputable brokers is crucial for maintaining the integrity and security of trading activities.
Restrictions on Forex Trading in New Zealand
In New Zealand, the Financial Markets Authority (FMA) imposes specific restrictions on certain forms of currency trading to safeguard investors and maintain market integrity. As of February 2025, the following restrictions are in place:
- Leverage Limits on CFDs
The FMA has implemented leverage restrictions on Contracts for Difference (CFDs) offered to retail investors. The maximum allowable leverage is capped at 30:1, aligning with international standards to mitigate the risks associated with high leverage. - Binary Options
Trading binary options is legal in New Zealand; however, it is subject to regulation to protect traders from fraud and ensure fair trading practices. The FMA requires all binary options brokers operating in New Zealand to be registered and to comply with the Financial Markets Conduct Act 2013. This legislation aims to promote fair, efficient, and transparent financial markets. Brokers must provide clear information about their services, fees, and the risks involved in trading binary options. They are also required to segregate client funds from their own to protect traders’ money.
These measures reflect the FMA’s commitment to fostering a secure and transparent trading environment, ensuring that market participants are adequately protected from undue risks.
Regulations on Forex Trading in New Zealand
Forex trading in New Zealand is regulated by the Financial Markets Authority (FMA), which is responsible for overseeing financial services and ensuring a fair, efficient, and transparent trading environment. Established under the Financial Markets Authority Act 2011, the FMA enforces strict regulatory standards to protect investors and maintain market integrity.
The FMA plays a key role in supervising forex brokers, particularly those offering Contracts for Difference (CFDs) and other derivative instruments. Under New Zealand law, any firm providing forex trading services, including CFDs, must hold a derivatives issuer license issued by the FMA. This licensing requirement ensures that brokers operate ethically, meet capital adequacy requirements, and implement client protection measures such as fund segregation and risk disclosures.
Additionally, forex brokers must comply with New Zealand’s Anti-Money Laundering and Countering Financing of Terrorism Act (AML/CFT). This legislation requires brokers to conduct due diligence on clients, monitor transactions for suspicious activity, and report any irregularities to the authorities.
The FMA also collaborates with international regulatory bodies such as the International Organization of Securities Commissions (IOSCO) to align New Zealand’s forex trading regulations with global best practices. By enforcing these measures, the FMA aims to foster a secure and competitive forex trading environment while preventing financial misconduct.
For traders in New Zealand, engaging with an FMA-licensed broker is essential for ensuring compliance with local regulations and safeguarding investments from potential fraud or malpractice.
Requirements for Forex Brokers in New Zealand
Forex brokers operating in New Zealand must adhere to stringent regulatory standards set by the Financial Markets Authority (FMA) to ensure a secure and transparent trading environment. Key requirements include:
- Negative Balance Protection
Brokers are obligated to implement measures that prevent clients from losing more than their initial investment. This ensures that traders cannot incur a negative account balance, safeguarding them from excessive losses. - Segregation of Client Funds
Brokers must keep client funds separate from their operational accounts. This segregation protects client assets in the event of the broker’s insolvency, ensuring that traders’ funds are not used for the broker’s business activities. - Leverage Restrictions
The FMA has proposed capping leverage for retail investors at a maximum of 30:1 for Contracts for Difference (CFDs). This move aims to mitigate the risks associated with high leverage, aligning with international regulatory trends. - Risk Disclosures
Brokers are required to provide clear and comprehensive risk disclosures to clients. This includes informing traders about the potential risks involved in forex trading and ensuring that marketing materials are not misleading. - Automatic Margin Closeouts
To protect clients from significant losses, brokers must implement automatic margin closeout mechanisms. This ensures that positions are automatically closed when a client’s margin falls below a specified level, preventing the account from going into negative balance.
By enforcing these requirements, the FMA aims to uphold the integrity of New Zealand’s financial markets and provide robust protection for retail investors engaging in forex trading.
Taxes on Forex Trading Profits in New Zealand
In New Zealand, profits derived from forex trading are generally considered taxable income. The Inland Revenue Department (IRD) mandates that any income earned from business activities, including online trading, must be declared in your income tax return.
New Zealand operates a progressive income tax system with the following rates:
- $0 to $14,000: 10.5%
- $14,001 to $48,000: 17.5%
- $48,001 to $70,000: 30%
- $70,001 to $180,000: 33%
- Over $180,000: 39%
However, it is important to note that the taxes will change from April 1st 2025:
- 0 – $15,600: 10.5%
- $15,601 – $53,500: 17.5%
- $53,501 – $78,100: 30%
- $78,101 – $180,000: 33%
- $180,001 and over: 39%
Forex trading profits are typically taxed as ordinary income, especially if trading is conducted frequently or constitutes a primary source of income. Even though New Zealand does not have a separate capital gains tax, profits from forex trading may still be taxed as part of your regular income if the transactions are carried out with the intention of making a profit.
It’s important to note that tax obligations can vary based on individual circumstances, such as the scale of trading activities and other sources of income. Therefore, it’s advisable to consult with a tax professional or the IRD directly to ensure compliance with current tax laws and to understand any potential deductions or obligations specific to your situation.
By accurately reporting forex trading profits and understanding the applicable tax rates, traders can fulfill their tax obligations and avoid potential penalties.
How to Identify Reliable Forex Brokers Accepting Clients from New Zealand
Selecting a trustworthy forex broker is crucial for traders in New Zealand to ensure a secure and efficient trading experience. When evaluating potential brokers, consider the following factors:
- Regulatory Compliance
Ensure the broker is authorized by the Financial Markets Authority (FMA) or holds a license from a reputable international regulatory body. This affiliation signifies adherence to stringent financial standards and investor protection protocols. - Transparency and Pricing
Look for brokers that offer clear and transparent pricing structures, including competitive spreads and commissions. Transparency in pricing helps traders make informed decisions and manage trading costs effectively. - Trading Platforms and Tools
Evaluate the trading platforms provided by the broker. Platforms like MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are popular for their user-friendly interfaces and advanced charting tools. Additionally, assess the availability of trading tools such as automated trading systems, technical analysis resources, and educational materials. - Customer Support
Reliable customer support is essential for resolving issues promptly. Check if the broker offers multiple communication channels, including phone, email, and live chat, and ensure they provide timely and effective assistance. - Account Types and Leverage
Consider the variety of account types offered, including options for different trading styles and capital levels. Be aware of leverage offerings and ensure they align with your risk tolerance and trading strategy.
By thoroughly assessing these aspects, traders in New Zealand can identify brokers that align with their trading needs and regulatory standards, fostering a secure and efficient trading environment.
FAQs
Is forex trading legal in New Zealand?
Yes, forex trading is legal in New Zealand, provided that the broker is properly licensed and regulated by the Financial Markets Authority (FMA). The FMA ensures that brokers adhere to strict financial standards and protect investors.
Do I need a special license to trade forex in New Zealand?
As an individual trader, you do not need a special license. However, if you plan to operate as a forex broker or provide services related to forex trading, you must hold a derivatives issuer license issued by the FMA.
How can I protect myself from forex trading scams in New Zealand?
To protect yourself, ensure that the forex broker you choose is regulated by the FMA or another reputable international regulatory body. Avoid brokers that do not provide clear risk disclosures, transparent pricing, and segregated client funds. Always check for reviews and regulatory compliance before opening an account.
What taxes do I pay on forex trading profits in New Zealand?
Profits from forex trading are considered taxable income by the Inland Revenue Department (IRD) in New Zealand. The profits are subject to standard income tax rates, which range from 10.5% to 39%, depending on your earnings. It is advisable to consult with a tax professional to ensure accurate reporting.
What is the maximum leverage allowed for retail forex traders in New Zealand?
As of February 2025, the maximum leverage for retail forex traders is capped at 30:1 for Contracts for Difference (CFDs) by the FMA. This restriction aims to reduce the risks associated with excessive leverage.
Can I trade forex using a demo account in New Zealand?
Yes, many brokers offer demo accounts to New Zealand traders, allowing them to practice trading without risking real money. Demo accounts are a great way to familiarize yourself with a broker’s platform and test strategies before trading with actual funds.
Are there any restrictions on cryptocurrency forex trading in New Zealand?
While forex trading involving cryptocurrencies is not illegal in New Zealand, brokers offering such services must comply with the same regulatory standards as those dealing with traditional currencies. This includes proper risk disclosures, fund segregation, and AML/CFT obligations.
Why You Should Trust RationalFX
When it comes to making informed decisions about forex brokers, it's essential to rely on trustworthy sources. RationalFX, a company with over 20 years of experience since its founding in 2005, has established itself as a credible authority in the industry. With an impressive collection of over 2500 reviews on Trustpilot, boasting a score of 4.2, it's clear that Rational FX has built a reputation for providing reliable and unbiased information.
What sets Rational FX apart is its rigorous evaluation process, which considers over 30 different criteria when selecting forex brokers. This comprehensive approach ensures that every aspect of a broker's service is taken in consideration, including regulation, forex spreads, trading platforms, deposit methods, and reputation. With its wealth of experience, transparent review process, and outstanding customer feedback, Rational FX is a trusted source for anyone seeking reliable information on forex brokers. You can reach us via e-mail at feedback@rationalfx.com or contact us through our social media accounts here: Facebook, YouTube, or leave a feedback here.