Forex Brokers in New Zealand
New Zealand, “the land of the long white cloud”, is a pristine natural paradise, far from the “madding crowd” of international commerce, but such is not the true reality of this country’s economy. While their “cousin” to the north, Australia, is known for its exports of minerals from under the ground, New Zealand has focused on what grows out of the ground and what lives off of it. The “Kiwi” Dollar is a “commodity” currency, driven by agricultural exports, and if you have never savored New Zealand lamb, then you have never truly enjoyed this alternative to beef and chicken.
New Zealand and Australia have both benefited by the enormous growth in the emerging economies of Asia. As burgeoning middle classes have increased their respective disposable incomes, their desire to eat better food has raised demand dynamics in favor of Kiwi exports. The New Zealand Dollar has appreciated, as a result, to higher levels than most analysts would have ever forecasted, and the desire of local investors to parlay these positive trends into investment gains has driven many to choose forex trading as an appropriate venue for this strategy.
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Choosing a forex broker in New Zealand, however, requires more due diligence than in most other countries. Being cut off from most of the world has meant that New Zealand is “late to join the party”. While currency trading has gained worldwide popularity as one more lucrative option to pursue, New Zealanders are in their initial phases of industry development, fraught with many of the same issues that other markets had to deal with in the early going, namely outrageous marketing claims and outright fraudulent activities from the criminal elements of society. Where there is money and a lack of experience, fraudsters will congregate until driven out by authorities.
Activities are not totally unregulated, but at this stage of development, many believe that investor protection is pretty thin. Brokers must comply with standard anti-money laundering laws, and they must obtain licenses from the New Zealand Securities Commission, the financial oversight authority in the country that has established a framework of rules related to commodities and futures trading. Currency trading, however, is already big business, and the rules setting bodies are just now addressing this new genre. In other words, conditions resemble the “Wild West” where participants must protect themselves with more due diligence when choosing a forex broker.
In many cases, traders defer to high quality brokers that have been in Australia for some time. Many of these have also set up shop in New Zealand, but many of the shadier variety have also rushed to the scene in search of easy commissions and investor deposits. Safety and security should be your primary concern in your selection process. Check credentials, seek recommendations from veteran traders, and read reviews that are truly independent. After satisfying these requirements, one can look more to software features, execution times, “slippage”, and fees for points of separation between competing firms.
To summarize, choosing a forex broker can be a daunting task, but do not shortcut this process, or you may live to regret it. Go to seminars and workshops to gain invaluable knowledge and seek out “mentors” in the industry. Choose a broker that meets all of your tests, from safety and security to providing all of the features, tools, and research necessary to ensure a favorable trading experience. As traders ourselves, we know how unnerving this can be at times, and to make your job easier, we have screened and selected a choice group of regulated brokers to be featured in our forex broker list above. Check it out, and make yours a winning career!