Best New Zealand Forex Brokers In 2021
Forex Regulation in New Zealand
In New Zealand, there are 3 well-known institutions: FSPR, FSCL and FMA, but neither of them acts as a regulatory body for New Zealand brokers in the FX market.
Although brokers are required to follow a simple registration procedure in order to provide financial services, it’s fair to say that Forex trading in New Zealand so far is not fully supervised by any regulatory institution.
Financial Service Providers Register (FSPR) – is a government business registry, where entities providing financial services are required to register. All NZ Forex brokers are registered with FSPR.
An official reply from FMA New Zealand suggests that Forex brokers in New Zealand are “generally subject to relatively limited regulation”, where only registration with FSPR, FSCL is required:
Below is the official reply from FMA:
“All foreign exchange dealers that have a place of business in New Zealand must be registered as a financial service provider. As a precondition to registration, financial service providers are required to be members of an approved dispute resolution scheme. More information on registration is available at www.fspr.govt.nz.
Some foreign exchange dealers may be subject to additional regulatory requirements depending on the activities they undertake.
Providing foreign currency exchange services, and associated money remittance services, generally would not require any licence or authorisation (other than registration as a financial service provider) if this is the dealer’s sole activity. These activities are generally subject to relatively limited regulation.
However, foreign exchange dealers who offer foreign exchange futures contracts must be authorised by FMA to deal in futures contracts. ‘Futures contracts’ is defined in the Securities Markets Act 1988, and includes some cash settled derivative products which may not be considered futures contracts for other purposes. It generally includes contracts for difference over foreign exchange pairs and margin foreign exchange products, swaps, or cash settled forward contracts. Authorisations of futures dealers are published in the New Zealand Gazette (www.gazette.govt.nz) and an authorised dealer should be able to provide you proof of its authorisation. However, authorisations are not currently noted on the financial services providers register or published on our website.
Foreign exchange dealers who also provide other financial products or financial services may, depending on what other products or services they provide, be regulated in respect of those other products or services.
We hope this is of assistance.