Best FMA Regulated Forex Brokers 2018

Opportunities come with risks. Don’t let your choice of broker be one of them. If you are based in New Zealand you should only trade with an FMA regulated broker. We have compiled a list of the very best ones. Take a look below:

List of Brokers

BROKERUSER RATINGREGULATED BYHEADQUARTERSMIN. DEPOSITOFFICIAL SITE
Plus500
ASiC, CySEC, FCAIsrael$100Open Account
CFD Service, Your capital is at risk
AvaTrade
ASiC, BVI, FSA(JP), FSB, MiFIDIreland$100Open Account
Your capital is at risk
eToro
CySEC, FCACyprus$50Open Account
Your capital is at risk
Markets.com
CySEC, FSBCyprus$100Open Account
Your capital is at risk
FXCM
BaFin, FCAUnited Kingdom$50Open Account
Your capital is at risk

Introduction to FMA Regulation

After an economic meltdown in New Zealand, lots of brokers in the country lost their licenses, because they used fraud against their customers. Things have changed and now if you want to trade in the country you have a stricter financial regulator FMA, who ensures that no broker under its authority defrauds their customers. 

FMA stands for the Financial Markets Authority. It is a governmental body that was established in 2011 after its predecessor the Securities Commission of New Zealand came under severe criticism for failure to ensure stability of financial markets in the 2008 meltdown. Lots of investors were hurt and the government decided to form a new financial authority with stricter rules and regulations for companies offering financial services in the country. The regulatory structure of the FMA is defined by the Financial Markets Conduct Act of 2013. The key role of the newly formed institution is to regulate capital markets and financial services in New Zealand. It also promotes fair, transparent, competitive and efficient financial sector. FMA is a member of IOSCO – the International Organisation of Securities Commissions.

FMA Responsibilities

The most important role of FMA is to return public confidence in financial markets and ensure smooth functioning of the markets by effective and transparent regulation. They implement this by monitoring and supervising companies under their authority to assess market participants’ conduct, compliancy and competency. They also license those applicants who meet FMA strict requirements of the legal framework of New Zealand. The agency, likewise investigates potential hazards to the markets and finding any it takes strict legal actions against entities causing those hazards. FMA similarly provides clear guidance for the financial services providers along the lines of its regulatory policy and how to comply with it effectively. Finally, the regulator provides educatory materials for investors to assist them in making better decisions how to invest more securely and prudently.

How FMA Regulation protects you

First and foremost, FMA does a lot of prevention work on your behalf by strictly regulating market participants under its jurisdiction. They do regular audits and checks of the companies under their jurisdiction and take serious measures that providers of financial services comply with the rules and laws issued by New Zealand government regarding financial markets. So, if you have chosen one of the FMA brokers (that you can see below) you can rest assured that the transactions of the broker are strictly followed by one of the strictest regulators in the world. In case things do go wrong between you and your broker you can file a complaint and if the regulator finds any irregularities or fraud on the part of the broker your complaint will be satisfied and the guilty party punished according to the proportion of the transgression.

Guidelines for FMA Regulated Brokers

Any broker who wants to offer their services to New Zealand investors will have to undergo thorough scrutiny by FMA and after careful consideration to get a license. The broker will then have to comply with the rules and regulation set by the agency and financial laws of the country, send regular reports about their transactions, capital changes and all required information to the agency and be prepared to get audited. They will similarly have to put security of investors’ funds first. They will eventually have to know that if they fail to comply with the requirements set by FMA their license can be revoked at any time.

Top Brokers
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