Monday, April 22, 2024

Forex Trading NZ: A Short Guide on Legal Issues, Taxation, Platform Choice

In case you plan to try investing in currency or other assets in New Zealand, you should start by studying the legal aspect and taxation. The best news is that you will not have to waste plenty of time studying the documents, our review will help you understand the basic rules within a couple of minutes.

The most essential piece of news to mention ― investing and trading currency pairs, as well as other types of assets, is fully legalized in NZ. According to the law, all brokers and trading platforms offering services to local citizens must comply with the rules set by the FMA. This regulatory body is aimed at protecting local traders from fraud and dishonest brokers. Certainly, like any other gainful activity, trading and investing are subject to taxes. Such investors must stick to the general taxation rules: up to $14,000 ― 10.5%, up to $48,000 ― 17.5%, up to $70,000 ― 30%, and so on.

Now, you can move to choosing a platform for Forex Trading NZ. Our experts have compiled a list of the most essential choice factors for you to follow:

  •   Authorization by the FMA.
  •   Competitive fees. No doubt, your task is to find a source with the lowest fees on the market as that will have a direct influence on the size of your income. Be sure to pay attention to non-trading charges, like withdrawal or inactivity commissions, as well.
  •   Low spreads. The point is that the higher the spread the more money you may lose in case of a wrong trading decision.
  •   An extensive selection of financial instruments. No sense to limit yourself to investments in Forex only.
  •   Minimum deposit limits and minimum lot sizes. Make sure you can afford to trade on the service chosen.
  •   Comprehensive functionality. Check whether the broker you are interested in offers a full range of research, charting, and automation features you need.
  •   Feedback. Do not undervalue this point. But, to get an objective opinion, search for reviews left by other investors on independent third-party sources.

Also Read: 2021 Rating of Leading Crypto Exchanges UK

Sure, we will also give you a shortlist of exact brokerage companies, which are regulated by the FMA, provide a large selection of financial instruments, and offer reasonable, transparent, and affordable fees. So, in our opinion, the leaders of the New Zealand market are IG, CMC Markets, BlackBull Markets, Plus500.

In sum, investing in fiat currencies, crypto, or other assets is a fully-legal activity in New Zealand. And, it can bring decent profits, if you pay enough attention and effort to self-education, market monitoring, and selecting a reliable and safe trading platform.


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