CompareForexBrokers have done comparisons so you don’t have to...
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To find out the best forex brokers in New Zealand, we partnered with CompareForexBrokers to compare six FMA-regulated brokers using our team’s specialised forex knowledge. To complete our comparative analysis, we opened a trading account with each broker to test their platforms and compare their trading fees. We also used automated bots to test the execution speeds and real spreads each broker offers.
According to CompareForexBrokers research, the best FMA-regulated brokers in New Zealand for 2024 are:
1. BlackBull Markets - Best Forex Broker For New Zealand Traders
2. TMGM - Best Low Spread Forex Broker
3. IG Group - Best Range Of CFDs
4. RockGlobal Markets - Best NZ Broker for Shares
5. CMC Markets - Best MetaTrader 4 Broker
6. Plus500 - Best Forex Broker for Beginners
1. BlackBull Markets - Best NZ Forex Broker Overall
Our testing showed BlackBull Markets was the stand-out broker overall thanks to their ECN Standard Account. This account has a $0 minimum deposit and competitive spreads starting from 0.8 pips for major forex pairs like the EUR/USD. For even lower spreads (starting from 0.1 pips), BlackBull also offers the ECN Prime Account. With a minimum deposit of USD 2,000, this account is best for high-volume trading as you will save on commission costs, paying just USD 6.00 round-turn for each trading lot.
In addition to low trading fees, BlackBull Markets also has the fastest execution speeds of any broker worldwide. By opening trading accounts with 20 top brokers, we compared brokers execution speeds using MetaTrader 4 bots (Expert Advisors). Our testing found BlackBull Markets’ limit order speed averaged 72ms, while market orders averaged a speed of 90ms, which proved the fastest of any broker.
Industry expert Justin Grossbard from CompareForexBrokers highlights the unique strengths of BlackBull Markets: “Their diverse account offerings cater to a wide spectrum of traders. The broker’s clear sweet spot is the ECN Prime account for active traders, with execution speeds unmatched by their competitors.”
BlackBull offers the best forex trading platforms in the industry including:
1. MetaTrader 4 (the most popular forex platform)
2. MetaTrader 5 (the most popular CFD platform)
3. cTrader (best for trading with automation)
4. TradingView (best interface and charting)
As well as webtrader and desktop options, all four trading platforms have Android or iOS functionality for mobile trading. Other features of BlackBull include VPS Trading for reliable, high-speed trading; FIX API Trading for direct market access with custom trading algorithms; Autochartist for powerful market analysis and automated trade detection; and a choice of Myfxbook or ZuluTrade for social trading.
It is not just us that thinks highly of the Auckland-based broker. BlackBull Markets has some of the strongest ratings on TradingView, with real traders rating the broker 4.4 out of 5 stars based on 1200+ votes. Customer service is available 24/7 via email, live chat, or phone support. With the ability to trade over 26,000 financial instruments from forex markets to cryptocurrencies and even a stockbroking service, BlackBull Markets is the clear standout for NZ traders.
2. TMGM - Best Low Spread Forex Broker
TMGM (formerly TradeMax Global Markets) is an ideal broker for beginner traders due to the low spreads on their Edge account and minimum deposit requirement of just NZD 100. Trading costs are competitive with commission fees of NZD 3.50 per side (NZD 7 round turn) for each lot and spreads start from just 0.0 pips on major forex pairs like the GBP/USD and AUD/USD.
TMGM complements its commitment to low spreads by offering the forex industry’s most popular trading platform - MetaTrader 4. With 30 in-built technical indicators, the ability to buy or create your own custom indicators, 24 analytical objects, and automated trading, MetaTrader 4 has all the essential features you need for informed trading decisions.
In addition to its competitive spreads, TMGM provides an industry-leading trading environment with high liquidity and rapid execution, ensuring that orders are executed efficiently and without significant slippage.
3. IG Group - Best Forex Broker for Range of CFDs
Based on our testing, IG Group ranks third for its vast range of CFDs. Established in 1974, the IG Group has a longstanding history of being one of the best brokers worldwide. At the heart of IG Group’s offering is its wide selection of financial markets with over 17,000 products available.
This expansive range of trading instruments includes over 80 currency pairs as well as indices, shares, ETFs, commodities, and cryptocurrencies. In addition to the standard asset classes, you can also trade specialised markets such as options, sector CFDs, and Digital 100s.
IG Group’s platform options are another highlight, offering a user-friendly interface and a large range of charts via their proprietary platform. Alternatively, you can use MetaTrader 4, ProRealTime, or L2 Dealer. ProRealTime has the most advanced charting and automation, while L2 Dealer is good for DMA trading.
Justin Grossbard from CompareForexBrokers praised IG Group for its comprehensive market coverage: “IG Group’s strength lies in its ability to offer traders access to a vast range of markets. Whether you’re interested in traditional forex trading or looking to explore other asset classes like bonds or cryptocurrencies, IG Group provides the platform and tools to do so effectively.”
4. RockGlobal Markets - Best NZ Broker for Shares
RockGlobal Markets, a NZ-based broker, offers versatility with both stock CFDs and physical stock trading. This dual approach makes them a good choice for both short-term trading via CFDs or a more long-term, traditional approach where you invest in physical stocks.
Noam Korbl from CompareForexBrokers.com said of RockGlobal Markets’ stock trading services: “The standout feature of RockGlobalMarkets is its commitment to providing access to global stock markets. You can engage with a vast array of shares, from tech giants like Apple and Amazon to a diverse selection of other major companies. This extensive range allows for portfolio diversification, appealing for those looking to engage across various sectors and geographical locations.”
Beyond stocks, the online broker offers a broad spectrum of CFD trading instruments, including over 60 foreign exchange markets, 50 cryptos, commodities, options, and futures. Such a wide range of instruments enables you to explore different markets and adapt your strategies accordingly.
5. CMC Markets - Best Broker for MT4
When we analysed each broker’s trading tools, CMC Markets stood out for its MetaTrader 4 (MT4) offering. This broker has tailored its MT4 service to focus on copy trading, meeting the demands of traders who aspire to mirror the strategies of more experienced traders.
Designed to provide an interactive experience, MT4′s mirror trading feature allows you to observe and copy the strategies of seasoned pros. This feature is particularly beneficial if you are a beginner or looking to diversify your trading strategies by learning from more experienced investors.
As well as copying trades, you can also engage in automated trading and advanced technical analysis on MT4. A package of 12 additional add-ons and 15 indicators are available for the MetaTrader platform, with index, commodity, and forex markets available to trade.
6. Plus500 - Best for Beginners Forex Trading
If you are a beginner trader we recommend Plus500, thanks to the broker’s focus on risk management and educational resources. Plus500 offers excellent support if you are new to navigating the complexities of forex trading, allowing you to have a more secure and informed experience initially.
The key feature making Plus500 a top choice for newcomers is its comprehensive suite of risk management tools. Among these trading tools, the guaranteed stop-loss (GSLO) order is particularly useful and only offered by some brokers in NZ. This premium order type allows you to set a specific price at which your position will close, protecting you from losses caused by market volatility and gapping.
Plus500 also provides an extensive educational resource base packed with detailed guides, tutorials, and webinars all designed to enhance your forex knowledge.
Choosing the Best New Zealand Forex Broker
When choosing the best forex broker in New Zealand to suit your needs, several factors come into play. First and foremost, it’s crucial to consider FMA regulation. A licence from the FMA ensures that the broker operates under strict guidelines and standards within New Zealand, providing a layer of safety and reliability for traders. The FMA holds regulated brokers to high standards of transparency and fairness, essential in the often volatile and complex world of forex trading.
In addition to selecting a regulated forex broker, other important aspects to consider include the range of trading instruments offered, the quality and user-friendliness of platforms, spreads and trading costs, execution speeds, and the level of customer support. It’s also beneficial to look at the educational resources and tools the broker provides, especially for those new to forex trading.
In our review, BlackBull Markets, TMGM, and IG Group took the top three rankings for best forex brokers in New Zealand. BlackBull Markets stands out as the best overall, offering true ECN execution, FMA regulation, and a broad range of markets. TMGM stands out for its low spreads and efficient trading, especially with its Edge Account. IG Group excels with its extensive range of over 17,000 markets, catering to traders seeking diverse trading opportunities. These brokers, distinguished by their unique strengths, are the preferred choices for New Zealand traders in 2024, balancing regulation, trading conditions, and platform options.
To find out more about FMA-regulated brokers, you can read more about the Best Trading Platforms in New Zealand, or the Lowest Spread Forex Brokers.
What is the Best Forex Trading Platform?
Choosing the best forex trading platform depends on your individual needs. MetaTrader 4 (MT4) is ideal for forex trading with its user-friendly interface and advanced charting tools. MetaTrader 5 (MT5) offers more versatility, supporting a wider range of markets including stocks. cTrader is favoured for its sophisticated interface and detailed charting tools, while TradingView stands out for its social networking features and collaborative trading insights.
In New Zealand, BlackBull Markets provides excellent access to both MT4 and MT5, catering to various trading preferences.
How to Open a Forex Trading Account
Opening a Forex trading account is a straightforward process, typically completed online. Here’s a short guide on how to open a trading account:
1. Choose a Broker: Research and select a forex broker that meets your trading needs and is regulated by a reputable authority like the FMA.
2. Complete the Application Form: Fill in the online application form with your personal and financial details, such as name, address, employment information, and trading experience.
3. Verify Your Identity: Submit identification documents for verification, usually a government-issued ID and proof of address, like a utility bill or bank statement.
4. Wait for Approval: The broker will review your application and documents. This process can take from a few hours to several days.
5. Fund Your Account: Once approved, you can deposit funds into your account using the methods provided by the broker, like bank transfer, debit card, credit card, or e-wallets such as PayPal and Skrill.
6. Access the Trading Platform: Log in to the trading platform provided by the broker, familiarise yourself with its features, and start trading.
Starting with a demo account is a smart move in forex trading. It offers a risk-free way to get familiar with the trading platform and sharpen your skills before engaging in live trading. When moving to live trading accounts it’s important to be aware of inactivity fees. Most forex brokers charge a fee of $5-20 per month if you do not log in to your trading account for a specific amount of time.
About the Financial Markets Authority
The Financial Markets Authority (FMA) oversees brokerage firms and financial service providers such as forex and CFD brokers. This authority plays a crucial role in safeguarding investors from scams, dishonest marketing, and theft of funds. There is an FMA forex trading page detailing the risks and steps to take if considering foreign exchange trading.
The FMA’s rigorous standards are comparable to those in other major jurisdictions, including the Monetary Authority of Singapore (MAS), the Australian Securities and Investments Commission (ASIC), the UK’s Financial Conduct Authority (FCA, formerly FSA), South Africa’s Financial Sector Conduct Authority (FSCA), and Europe’s CySEC and BaFin. Financial authorities such as the FMA aim to maintain a fair and transparent global financial regulatory environment.
If you are based outside of New Zealand, we recommend trading with a broker licensed in your local jurisdiction, such as an ASIC-regulated broker in Australia.
How to Verify FMA Authorisation
To verify a broker’s FMA authorisation in New Zealand, you should consult the Financial Service Providers Register (FSPR). This public register allows you to search for the broker and review their registration details, including their FMA authorisation status, the scope of services they are licensed to provide, and any disciplinary history. This quick check is a crucial step in ensuring you’re dealing with a compliant and trustworthy forex broker in New Zealand.
Disclaimer
This guide is for informational purposes only and does not constitute financial advice. Trading derivatives involves leveraged products and significant risk and is not suitable for all retail investor accounts.
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