NZ Forex Brokers In January 2021

The Best NZ Forex Broker Is BlackBull Markets

BlackBull is one of the few brokers founded in New Zealand (Auckland) offering 2 retail investor accounts within 60+ tradable CFD instruments including:

• 31 Currency pairs
• 2 Metals (gold, silver)
• 3 Energies (gas, brent and crude oil)
• 9 Indices
• 350+ Stocks

Trading Accounts Offered By BackBull Markets

BackBull offers ‘True ECN’ trading conditions. This means that individuals can trade directly with liquidity markets know as straight-through-processing (STP). In the case of Blackbull, liquidity providers include the Bank of America, Credit Suisse and HSBC. To help you get the best possible spreads, BlackBull has its own proprietary aggregation system designed to ensure liquidity providers are competing with each other to bring you the best spreads. Below shows the three ECN broker accounts available for NZ forex traders.

1) ECN Standard Account

The standard account is designed for beginners with just a spread charged and no commissions. This simpler cost structure makes it easier to calculate trading costs for novice traders. With no commissions charged the spreads are wider than other accounts which is why experiences traders rarely choose this option.

2) ECN Prime Account

This account is best for traders wanting the lowest spreads available to retail traders. Spreads start from 0.1 pips and have commissions USD $3.00 sideways / $6.00 round-turn. Which low spreads and low commissions costs this account an excellent choice for scalpers and high volume traders,  Like the Standard account, the minimum deposit is $200.

3) BlackBull ECN Institutional

If you open your account with a minimum $20,000 then you can receive the best spreads BlakcBull offers. Spreads for this account start from 0.0 pip and commissions can be negotiated with your BlackBull client relationship manager.

BlackBull Have Superior Forex Trading Platform Technology

Blackbull offers the two best forex trading platforms based on popularity, MetaTrader 4 and MetaTrader 5. Below shows that while MetaTrader 4 is the older trading software of the two, it remains the choice for forex trading vs MetaTrader 5 which is designed for CFD trading.

What makes Blackbull the best MetaTrader broker is its superior infrastructure for MetaTrader 4. This includes the use of the NY4 Equinix data centre in New York to connect you with their liquidity providers. This data centre is where the majority of liquidity providers store their servers, so it makes sense BlackBulls use this NY4 as their mains server location. However, to ensure you get the fastest possible execution for your trades, Blackbull can also connect you with fully functional servers in London, Japan, Hong Kong and Shanghai where the proximity may be better for your location.

Other enhancements to their forex trading platform include the add-ones of ZuluTrade and Myfxbook for social trading. Blackbull traders also have access to Virtual Private Servers (VPS) through VPS Trading, NYC Servers or Beeks FX. The enhances the forex trading platform execution speed to as low as 1ms.

BlackBull Has Award-Winning Auckland Based Customer Support

BlackBull was founded in NZ and uses Auckland for its headquarters. This is also where their main customer support is based during business hours which is complemented by the Malaysian office for support outside of business hours. When you open a forex trading account you’re provided with a dedicated account manager.

Key points of contact including:

• NZ Toll-Free Number
• E-mail Support
• Live Chat
• In-Office Support

Deposits can be made via:

• Credit Card/Debit Card
• Skrill/Neteller
• Bank Transfer

The minimum deposit with BlackBull markets is $200 NZD. Traders who make a deposit receive free education tools including videos, guides and a trading glossary.

Full review >>Visit BlackBull >>

Selecting The Best Forex Broker In NZ

NZ forex traders should only consider a CFD provider that shows as active on the Financial Service Providers Register. Only FMA brokers are listed on this page (last updated in January 2021). AxiTrader FMA licence has been suspended and should not be considered by NZ forex traders. New Zealand forex traders should understand the high risks of leveraged products. Regulatory bodies have guides providing risk warnings and risk management suggestions including this article.

When selecting the best forex broker in New Zealand forex broker you should consider the following 5 aspects:

1) Brokerage Fees which primarily is spreads. Spreads are similar to those traveller views when going to a foreign exchange provider with a different price for ‘buying’ a currency compared to ‘selling’ the same currency. The foreign exchange provider makes the difference which is called the ‘spread’. Some forex brokers will move to minimise these spreads and instead charge a commission. This increases the transparency of forex brokerage costs and can lead to a lower overall brokerage. These types of NZ brokers are called ECN brokers. It should be noted that some NZ forex broker charges other fees for holding positions, trading exotics and certain funding methods.

2) Forex Trading Platforms help individual online forex brokers match individual traders with overseas liquidity markets. The main markets are in New York and London so the trading platform servers need to be close to these locations. Choosing the right forex trading platform will mean finding one that has a good interface, fast trading execution and it’s popularity. By using a popular forex platform like cTrader or MetaTrader 4 a broker can relatively seamlessly change the NZ forex broker they trade with. Forex broker reviews will often give more insights into platform performance.

3) Leverage is critical for currency trading to make it worthwhile for traders. With currencies often moving by fractions of a percent each day, leverage makes these changes more substantial. The leverage levels can up to 10x different so this element needs to be considered. It’s also worth noting that higher leverage is not necessarily better. This is because higher leverage increases the risks of forex trading.

4) Risk Management features can help forex brokers reduce the level of risk associated with leverage. Some management tools are in-built such as minimum balance protection which ensures an NZ trader doesn’t lose more than their deposit. Other features need to be enabled on individual trades such as guaranteed stops where a broker can determine the most they are willing to lose on a transaction. It should be noted that these features can increase the brokerage costs of the trader.

5) Regulation: The NZ financial service providers register created by the Financial Services Market (FMA) show locally regulated fx brokers. There are many requirements of the New Zealand regulators so choosing these fx brokers will reduce the risk of forex scans. The brokers listed on this page meet FMA requirements and you can view the FSPR (financial service provider registry) website. Another key regulatory bodies to note is the Financial Services Complaints Ltd (FSCL) where complaints of financial institutions can be made.

FMA Derivatives Issuers

To view the NZ licenced provider list you can view the FMA register. The top derivative issuers which offer retail forex broker NZ services are listed below. As further licences can be added or suspended it’s recommended to check the FMA register website to ensure details are up-to-date.

Please note, AxiTrader NZ lost their Financial Markets Authority in 2020.

Disclaimer: Before trading, make sure you can afford to take the high risk of losing your money. Any leveraged product increases your chances to lose money when trading. Most fx providers will provide details of the percentage of retail investor accounts lose money. Make sure our aware that you can lose money when trading CFDs which are complex instruments. Understand how CFDs work before trading and consider a demo account before trading real money. While overseas traders such as eToro may have overseas regulation from FCA to FSC its recommended to stick to the list shown on this page regulated by FMA.