Best New Zealand Forex Broker

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Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

New Zealand may be a small country, but it punches well above its size as regulated hub for Forex brokers and as a Forex trading market.

Read on to view my shortlist of the best Forex brokers in New Zealand below, followed by an explanation of the criteria you should use to choose the best one for you. 

1
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
ECN-style trading
Daily market research and Autochartist access
2
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
High level regulation in multiple jurisdictions
Impressive range of tradeable assets including vanilla options and gold options
3
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Solid broker for scalping and hedging
Institutional-style trading opportunities for retail traders
4
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Best ECN execution on the MT4 platform
Excellent implementation of cTrader and Smart Trader Tools
CFD service 72% lose money
5
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Best platform for new Forex & Crypto traders
Trailing stop losses
Get Started
CFD service 72% lose money

  • FP Markets, ECN trading with leverage up to 1:500..
  • AvaTrade, Highly regulated, choice of fixed or floating spreads.
  • BlackBull Markets, Best ECN trading environment, with scalping and hedging.
  • Pepperstone, Great ECN execution on MT4 platform.
  • Plus500, Wide range of CFDs + trailing stop losses.

FP Markets

4.5/5 in this category
In Summary
ECN trading with leverage up to 1:500.

FP Markets maintains a quality NDD trading environment, free of requotes. This broker scores well for transparency and its asset selection for New Zealand traders with more than 10,000 trading instruments on offer. Traders get maximum leverage of 1:500, order execution averaging 40 milliseconds, and raw spreads from 0 pips for a commission of $6.00 per round lot. Swap rates are lower than those at many competitors, making it a good choice for longer-term traders, and as the minimum deposit is relatively low, it can also be a good choice for new traders on a budget. FP Markets also offers its clients several advanced trading tools.

Pros
  • Choice of trading platforms and auxiliary trading tools

  • Very competitive cost structure and excellent asset selection

  • Low minimum deposit requirement and leverage of up to 1:500

  • Well-regulated and trustworthy

Cons
  • Availability of Iress geographically restricted

AvaTrade

4.5/5 in this category
In Summary
Highly regulated, choice of fixed or floating spreads

AvaTrade offers both New Zealand resident and international traders a broad choice of six trading platforms. They consist of third-party providers and in-house developed alternatives. It also presents social trading services, creating a well-diversified environment for copy traders. Its well-balanced asset selection and maximum leverage of 1:400 ensure traders have access to the structural components of a competitive edge. AvaTrade is also home to one of the best educational programs via its spun-out SharpTrader business unit, with more than 40 lessons and 200 videos. AvaTrade is also one of the most regulated Forex brokers, holding licenses in tier 1 jurisdictions Ireland, Australia, and Japan.

Pros
  • High-quality educational offering via SharpTrader

  • Excellent choice of trading platforms catering to various trading needs

  • Broad asset selection and cross-asset diversification opportunities

  • Well-regulated and trusted broker with oversight from a central bank

Cons
  • Trading costs competitive but nothing special

BlackBull Markets

4.5/5 in this category
In Summary
Best ECN trading environment, with scalping and hedging

BlackBull Markets is a New Zealand-based Forex broker and FinTech company. The ECN/NDD trading environment, high leverage, and deep liquidity offered make it an obvious choice for scalpers and high-frequency traders, with the Active Trader Account an especially competitive account type. The ECN account requires a minimum deposit of $2,000 and gives Forex spreads from 0.1 pips for a commission of $6.00 per round lot, which is lowered for active traders. Algorithmic traders can get the FIX API, allowing for the connection of advanced trading solutions to the BlackBull Markets infrastructure, and VPS hosting plus social trading features are also available.

Pros
  • ECN/NDD execution model with deep liquidity

  • Institution-grade pricing for retail traders via proprietary price aggregation

  • ZuluTrade and Myfxbook for social trading

  • Leverage of up to 1:500

Cons
  • Cryptocurrencies and equity trading not available

  • No MT4/MT5 plug-ins offered

Pepperstone

4.5/5 in this category
In Summary
Great ECN execution on MT4 platform

Pepperstone is home to one of the best MT4/MT5 trading environments due to its Smart Trader Tools upgrade consisting of 28 plugins and offers traders the leading ECN trading platform cTrader. All three fully support algorithmic trading and have embedded copy trading services. Pepperstone also provides VPS hosting and API trading, plus two third-party copy trading options. For a minimum deposit of $200, New Zealand traders can get maximum leverage of 1:500, while traders everywhere can obtain raw spreads of 0 pips for a commission of $7.00 per round lot, excellent order execution, plus a selection of more than 1,200 tradable instruments. Pepperstone also holds regulatory licenses in several major Forex centers, including the UK, Germany, Australia, and Cyprus.

Pros
  • Excellent choice of trading platforms consisting of MT4/MT5, and cTrader

  • Market-leading MT4/MT5 upgrade package, Autochartist, and API trading

  • Social trading support via Myfxbook, MetaTrader Signals, and DupliTrade

  • Leverage of up to 1:30 and superb trade execution

Cons
  • Demo accounts have 30-day time limits

Plus500

4.5/5 in this category
In Summary
Wide range of CFDs + trailing stop losses

Plus500 is a UK publicly traded company and a highly trusted and secure Forex broker. It is regulated in New Zealand, but also in several other major Forex centers with advanced regulation such as the UK, Cyprus, Australia, and Singapore. Plus500 delivers traders a well-balanced choice of assets through its proprietary trading platform and is best suited to manual traders seeking an execution-only broker. New Zealand traders get maximum leverage of 1:300, while all traders are offered a minimum deposit of $100 and a competitively priced commission-free cost structure. With over 900 option contracts in its asset list, Plus500 enables access to more complex trading strategies, unavailable at many competitors. Plus500 offers guaranteed stop-loss orders for an additional fee mark-up.

Pros
  • Well-regulated globally

  • Broad asset selection in equities and options

  • Guaranteed stop-loss order

Cons
  • Low leverage for retail traders

  • Sub-standard trading platform without support for automated or social trading

  • No research and limited, below-average educational content

  • Lack of trading tools

Unique Trading Opportunities for Forex Traders in New Zealand 

The Forex market is open 24/5, and New Zealand Forex traders using automated trading solutions and VPS hosting have unlimited trading opportunities. Manual traders who execute their strategies during regular business hours local New Zealand time can find unique trading opportunities in regional currencies and commodities traded across Asia.

New Zealand Forex traders using manual trading strategies should focus on:

  • The New Zealand Dollar
  • The Australian Dollar
  • The Japanese Yen
  • The Chinese Yuan
  • The South Korean Won
  • Commodities quoted in the New Zealand Dollar
  • Cryptocurrencies

Do New Zealand Forex traders face challenges specific to their location?

The biggest challenge is the time difference between New Zealand, London, and New York. They are the primary and secondary Forex trading centers, with the most liquidity and the lowest trading costs. New Zealand Forex traders are most active during the Hong Kong, Tokyo, Singapore, and Sydney trading sessions, all tertiary concerning volume, trading opportunities, trading costs, and market-moving events.

A potential threat to the competitiveness of the New Zealand Forex trading environment is the uncertainty over the FMA policy concerning leverage. The Australian Securities and Investments Commission (ASIC) followed the measure implemented by other tier-1 regulators and slashed retail leverage from 1:500 to 1:30. It resulted in an exodus of traders and revenues, and domestic Forex brokers opened subsidiaries in jurisdictions allowing higher leverage.

New Zealand often follows Australian policy changes, but it remains unclear how the FMA will proceed regarding New Zealand’s higher maximum leverage rate of 500:1. New Zealand is known for a supportive trading environment for ECN brokers, which includes market-leading leverage from a trusted regulator. For now, the FMA maintains its edge on high leverage, but there is no guarantee as to how much longer this will continue. For the time being, New Zealand offers an interesting combination of higher-level regulation with an extremely generous maximum leverage cap.

Other than the time difference and uncertain outlook concerning leverage, New Zealand Forex traders face no specific challenges.

Overview of the New Zealand Forex Trading Environment 

Forex trading is decentralized, but each jurisdiction has its advantages and disadvantages. Understanding them can improve how Forex traders structure their day-to-day trading operations, eliminate confusion about secondary aspects of Forex trading, and result in mature Forex traders.

How does Forex trading differ in New Zealand?

New Zealand Forex traders enjoy a competitive trading environment in a relaxed business atmosphere with business-friendly Forex regulations. Although New Zealand has the least productive G-20 economy, its relatively small size allows policymakers to adapt to a changing global economy faster than many of its competitors.

Manual forex traders in New Zealand have a unique position to trade currency pairs related to Asia but miss the trading opportunities offered from the London and New York sessions unless they are awake during the night. Algorithmic trading and VPS can eliminate the gap but require investment. Many retail traders cannot afford the costs or lack access to profitable trading solutions.

New Zealand is a developed economy and carved out a hotspot for FinTech companies and ECN brokers across Asia and globally. Therefore, the technology and expertise exist to increase its market share of Forex trading, as New Zealand turned into the most attractive destination among developed economies due to its business-friendly trading environment.

What are the advantages of Forex trading in New Zealand?

  • The FMA provides a trusted regulatory framework.
  • Retail traders get maximum leverage of 1:500.
  • ECN brokers can operate with favorable trading conditions, and New Zealand maintains an overall business-friendly environment for Forex brokers.
  • New Zealand is home to excellent technology infrastructure and skilled professionals.
  • FinTech companies set to disrupt the traditional brokerage model.

What are the disadvantages of Forex trading in New Zealand?

  • The time zone differentials with the two major financial centers means less frequent Forex trading opportunities.
  • Trading costs can be higher as New Zealand business hours do not match the highest liquidity periods in major Forex currency pairs.
  • Uncertainty whether the FMA will maintain its high maximum leverage cap after ASIC substantially lowered theirs.
  • Relatively high personal tax rates.

Is Forex trading legal in New Zealand?

Forex trading is 100% legal in New Zealand and regulated by the FMA. New Zealand Forex traders may also open trading accounts with any offshore broker, and most accept Forex traders from New Zealand.

Is Forex trading taxable in New Zealand?

Profitable Forex traders in New Zealand will pay taxes in New Zealand, and it is best to consult a certified professional for legal and tax advice. Tax law can change, and a professional can assist in determining the best approach from a legal perspective.

Noteworthy:

  • Between 60% and 90% of retail traders lose money and fail to document their trading activity properly, which is a mistake.
  • It may be best for active traders best to keep all trading-related activities in a separate bank account and dedicated payment processors, which makes the tax situation easier to navigate for the accountant.
  • Most trading platforms keep logs of all deposits, profits, losses, and withdrawals.

Do New Zealand Forex brokers offer Islamic accounts?

Yes, New Zealand Forex brokers may offer Islamic accounts designed to be compliant with Sharia law. Islamic account traders may face increased spreads or special commissions to cover the absence of swap rates on leveraged overnight positions.

Is cryptocurrency trading available with New Zealand Forex brokers?

New Zealand Forex brokers offer cryptocurrency CFDs but not outright cryptocurrency ownership. Cryptocurrency CFDs are ideal for traders who seek exposure to price action and profit potential from the often-volatile moves in this sector. Another benefit for cryptocurrency CFD traders in New Zealand is the higher maximum permissible leverage offered compared many competing jurisdictions.

Since New Zealand is home to a growing and vibrant FinTech community, there are many venues for traders to purchase and own cryptocurrencies. As the sector expands and matures, New Zealand remains well-positioned to become a leader in this sector, especially if the FMA maintains its business-friendly approach.

Is commodity trading allowed in New Zealand?

New Zealand is a commodity-exporting nation, and the New Zealand Dollar belongs to the group of currencies known as commodity currencies. Therefore, commodity trading is allowed and regulated in New Zealand, as it can hedge the profits of a vital sector of the domestic economy.

New Zealand’s economy is reliant on the export of soft commodities, or those grown and harvested, with a dominant role in milk and beef. New Zealand is also known for its wood exports, and China is its primary trading partner, followed by Australia. New Zealand commodity traders can take advantage of cross-asset trading opportunities tied to the Chinese and Australian economies.

The popularity of commodity trading in New Zealand resulted in many international Forex brokers offering commodities prices in the New Zealand Dollar, mainly for listings of gold and silver. All New Zealand Forex brokers offer commodities, but the range of choice will vary from broker to broker.

How to Compare New Zealand Forex Brokers 

The most important criteria I recommend you use in evaluating the choice of New Zealand brokers are as follows:

  1. Regulation and Security: Traders should always ensure their broker has regulatory oversight, as it drastically decreases the risk of malpractice and fraud. There are some exceptions where trustworthy brokers operate out of business-friendly jurisdictions but supplement the absence of regulation with security features on par with what regulated brokers offer.
  • The Financial Markets Authority (FMA) is the financial regulator in New Zealand, but New Zealand Forex traders may also trade with any international Forex broker. This opens the field to many competitive trading environments. It is important that whichever Forex broker you do choose, is regulated somewhere reputable.
  1. Trading Costs: Forex brokers usually deploy two cost structures, one commission-free and one commission-based. Many retail traders favor a commission-free pricing environment, as they fail to fully understand trading costs. In most cases, commission-free trading structures are more expensive than commission-based alternatives.
  • For example, a Forex broker can offer commission-free spreads of 0.8 pips or $8.00 per round lot, while a commission-based Forex broker may counter with 0 pips for a commission of $6.00, making it 25% cheaper to trade.
  • Swap rates on leveraged overnight positions are one of the most overlooked trading costs, and longer-term traders should carefully evaluate what Forex brokers charge to maintain a position overnight – some rates quoted can be surprisingly high.  
  • Commission-free offers often increase swap rates, making it even more expensive to trade long-term. The best commission-based Forex brokers maintain a volume-based cash rebate program for high-volume traders, which can lower trading costs by over 50% versus most commission-free pricing environments.
  • Forex trading costs above $8.00 per standard lot are expensive, with the best-priced offers ranging between $0.80 to $4.00 and reasonable costs averaging $6.00.
  1. Asset Selection: A well-balanced asset selection allows Forex traders to diversify and gain cross-asset exposure. A diversified portfolio reduces overall trading risks, but some strategies, like Forex scalping or high-frequency trading, require fewer assets. Liquidity matters the most to those traders, and all our best New Zealand Forex brokers deliver deep liquidity.
  • Asset requirements differ between traders, and each one must ensure that their Forex broker provides the trading instruments they require to execute their strategies. Beginner traders who have yet to decide what suits them should aim for a broader selection with 60+ currency pairs.
  1. Account Types: Some brokers offer one trading account type to all clients, while others deploy a multi-tier structure, where higher deposits unlock improved trading conditions. Forex traders should evaluate each offer, as a reasonable tiered approach can result in notable reductions in trading costs, which increases profitability. 
  • Traders should avoid a multi-tier account unless the benefits result in lower trading costs or preferential order placement.
  1. Trading Platforms: Most Forex brokers offer the MT4 trading platform, the leader in algorithmic trading, notably fewer have what is known as the “successor” version MT5.
  • Regrettably, most Forex brokers only present the out-of-the-box MT4/MT5 versions and market them as a cutting-edge trading solution. The infrastructure of both supports extensive upgrades, but they come at a cost. The biggest competitor to MT4 is the ECN favorite cTrader.
  • All three trading platforms support algorithmic trading and come with an embedded copy trading service. For most traders, MT4 presents the best choice. Over 25,000 plugins, custom indicators, and EAs are available, allowing traders to create the trading platform that suits their trading style.
  • MT4 also supports MAM/PAMM accounts for traditional retail account management, while cTrader is the best out-of-the-box trading platform.
  1. Unique Features: While unique features fulfill a secondary role, they can help traders decide between two Forex brokers with a similar core trading environment.
  • Unique features may consist of free VPS hosting, API trading, or proprietary trading tools.
  1. Research and Education: Some Forex brokers offer research, education, or both. While neither need to be a deal-breaker, and some execution-only brokers present an excellent trading environment, the availability can create an overall superior offering.
  • Research and education are available free of charge from numerous trusted sources. Should the core trading environment of a Forex broker grant a competitive edge, traders should ignore the potential absence of research and education.
  1. Customer Support: All Forex brokers listed here explain their products and services well. The FAQ section answers the most common questions, and most traders will not require additional customer support.
  • The listed Forex brokers ensure swift availability in case of emergencies, and despite the most likely absence of assistance, Forex traders should ensure Forex brokers offer customer support.
  • Trusted Forex brokers list a valid phone number, the best option for emergencies.
  • Live chat presents the most convenient contact method for non-urgent matters.
  • The best Forex brokers offer multilingual customer support 24/7, but the availability of a customer services representative during regular business hours is acceptable.
  • Forex traders should ensure that the finance department has a dedicated phone support line, as most issues may arise with withdrawals.
  1. Bonuses and Promotions: Forex traders should consider bonuses and promotions as a tertiary product and not decide their choice of Forex broker based on them.
  • Terms and conditions apply, and traders must read and understand them before accepting an incentive.
  • Scalpers and high-volume traders will benefit from a volume-based cash rebate program, as it lowers overall trading costs.
  • Deposit bonuses can assist traders in long-term portfolio growth, and Forex traders may consider them if the terms and conditions remain reasonable.
  • Forex traders should avoid all non-withdrawable bonuses, as they deprive them of actual trading capital.
  1. Account Opening Process: The account opening process should remain hassle-free and take no longer than fifteen seconds to complete. Depending on the jurisdiction, Forex brokers may ask unnecessary questions.
  • Account verification is mandatory for all regulated Forex brokers in compliance with AML/KYC requirements. Most traders will satisfy them by sending a copy of their ID and one proof of residency document no older than three months.
  1. Deposits & Withdrawals: Most Forex brokers offer free deposits, but third-party charges may apply. Traders should also ensure that withdrawals remain free of internal costs levied by brokers, while payment processors may also impose a fee.
  • It is best to use a method other than bank wires or credit/debit cards used in day-to-day banking. It helps Forex traders to maintain a clean overview, and it also assists during tax return preparation season.
  • Forex traders should also check the costs imposed by preferred payment processor to their bank unless a debit card is available.

What Should New Zealand Forex Traders Know When Evaluating Forex Brokers? 

Before evaluating more specific trading conditions of Forex brokers, beginner traders should consider a few broader aspects. It will help understand the Forex market and assist in selecting the best Forex broker.

Questions traders should answer to narrow down their Forex broker selection from a shortlist:

Is the Forex broker authorized by the Financial Market Authority (FMA) (or another reputable regulator)?

It primarily applies to New Zealand Forex brokers, where FMA authorization is necessary. Forex traders should avoid any New Zealand-based broker not holding a valid an FMA license.

FMA authorization ensures the following:

  • Forex brokers comply with strict financial requirements and audits, limiting the risk of default or malpractice.
  • Compliance with AML/KYC regulations.
  • Negative balance protection (highly advisable in leveraged trading).
  • Fair treatment of client order flow and trade execution.
  • Segregation of client deposits from corporate funds.
  • A regulatory authority that can step in should a Forex broker not act in the best interest of traders.

Noteworthy:

  • New Zealand Forex traders can open trading accounts with any international Forex broker.
  • International brokers with a physical presence in New Zealand must have FMA authorization.

Bottom Line 

There are very good reasons to want to trade with a Forex broker regulated in New Zealand, whether you live there or not. Forex traders are offered high leverage, brokers are regulated by a business-friendly but professional regulator, and several brokers offer advanced technological and ECN solutions.

Forex traders in New Zealand may trade perfectly legally with international brokers headquartered outside New Zealand, and many do, as other financial centers can offer other advantages such as legally mandated eligibility for deposit insurance.

FAQs 

What is the best trading platform in NZ?

The best trading platform in NZ for most traders is MT4. It has the most versatile infrastructure, features 25,000+ plugins, custom indicators, and EAs, and has an embedded copy trading service.

Which bank broker is best in NZ?

There are very few banks also offering brokerage services to a competitive level. The best one seems to be widely acknowledged as ASB.

Huzefa Hamid

I’m a trader and manage my own capital. I trade the major Forex pairs, some Futures contracts, and I rely entirely on Technical Analysis to place my trades. Today, I am also a Senior Analyst for DailyForex.com. I began trading the markets in the early 1990s, at the age of sixteen. I had a few hundred British pounds saved up (I grew up in England), with which I was able to open a small account with some help from my Dad. I started my trading journey by buying UK equities that I had read about in the business sections of newspapers. The 1990s were a bull market, so naturally, I made money. I was fortunate enough in my early twenties to have a friend that recommended a Technical Analysis course run by a British trader who emphasized raw chart analysis without indicators. Having this first-principles approach to charts influences how I trade to this day.