New Zealand is one of the countries where Forex established itself as a regular market. Hence, the government had to authorize certain organizations to implement regulations upon broker companies. There are three main organizations: FMA, FSCL, and FSPR. All of them have a certain role, but none of them fully monitors the Forex market. Still, FSPR slightly dominates over the other two.
The FSPR and Forex Regulations
The FSPR stands for Financial Service Providers Register and represents a governmental body where companies dealing with financial services have to register, including Forex brokers. The registration procedure is not that complicated, and many famous western Forex brokers registered their business in New Zealand as well. Following the FMA (Financial Markets Authority) Report of 2015, 28 companies were deregistered from FRSP for not following regulations. Some overseas Forex brokers were also deregistered for not being able to meet their obligations towards clients. This example shows that FMA and FSPR really make an effort to keep the market safe from brokers who are not able to protect their customers. This also means that traders can be sure (at least to some extent) that FRSP registered brokers will work professionally and honestly. As a New Zealand trader, you can rely on FRSP brokers in most of the cases. Brokers could not operate without licenses, and they are aware of the positive effect of strong licenses from renowned regulators, even if it tightens the leash on their business conduct. Top Forex brokers know that it will pay off to follow all the rules imposed by the regulatory body. The FSPR’s main duties regarding Forex include:
- Keeping the market transparent and fair
- Healthy competition
- Maintenance of the integrity of the New Zealand financial system
- Investigation of companies
The FSRP takes its job serious and hunts down all malfunctioning broker companies which work at the expense of customers.
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Top New Zealand Forex Brokers
Many overseas brokers made the decision to open an office in New Zealand. To do so, they had to register with FRSP and adapt their business to the New Zealand rules and regulations. So far, no major complications have arisen, and all the brokers who have a regular business could register. The New Zealand brokers are for both types of traders; overseas traders looking for a new, exciting market, and for domestic traders who are curious about western Forex brokers and want to know if they offer better services than the domestic ones.
What to Look for in a Top Forex Broker in New Zealand?
Several major issues are important regarding the choice of your very own broker. As we said, New Zealand offers decent registration, and your job is to find licensed Forex brokers who are nationally recognized. And, just in case, you can opt for a broker who has registered with other famous regulators like the FCA, CySEC, etc. A licensed broker is of utmost importance, but this does not mean that you are done with looking for the ideal broker. It takes a lot more to be prepared for the Forex market, and a broker is supposed to be your assistant on your Forex journey. Great Forex brokers will have a reputable license to prove their trustworthiness. Not only that, they will make sure that traders get excellent platforms with no malfunctions, and multiple account types relevant to the traders’ experience, etc. Thus, finding a solid Forex broker to trade with if you are a New Zealand citizen will mean finding one that carries an FSPR license and is generally good and profitable for you as a trader. With quite a few brokers having the license, your choices will be many and you will have plenty of options in choosing your broker.
Avoiding Fraud
If you are into Forex trading, you have probably realized by now how volatile the market is and how many malicious parties are in it trying to defraud traders and run off into the sunset. This is exactly why FSPR licenses are so important for those wanting to trade within New Zealand. Keep in mind that the list of regulated brokers is ever changing, and there is ample opportunity for brokers to lose their license if they do not conduct according to the FSPR regulations. This is why you should always remain diligent, periodically check if your broker is still in good standing with FSPR and make sure any trader claiming to have their seal actually has one.
FSPR Looks Out For You
If you are a New Zealand citizen looking to trade Forex, FSPR is your absolute best friend. The agency is a powerful tool against fraud, having plenty of mechanisms to regulate and constantly keep in check all Forex brokers trying to operate within New Zealand. On multiple occasions, FSPR has banned brokers who have tried to operate in New Zealand without having the proper licensing, which has led to these brokers losing most of their New Zealand traffic. Make sure you always check with FSPR before you trade with any Forex broker and you will without a doubt be much safer in the market.
Start Trading Forex With FSPR Brokers
As long as you are willing to make sure your broker has the proper FSPR licensing, you will have a great time with Forex. Forex trading is a lucrative opportunity that is only just emerging and there is plenty of money to be made and success to be had within the industry. Remember to climb the gravy train while there is still time and while the market is still so full of opportunity, just remember to remain safe and always trade with properly licensed FSPR brokers.