The Financial Markets Authority (FMA) is New Zealand’s principal regulator for financial services, including forex brokers and derivative issuers. The FMA enforces strict licensing rules, investor disclosures, and conduct standards to maintain market integrity and consumer protection across the country's financial markets.
The FMA provides a well-regulated and transparent environment for forex and derivatives trading in New Zealand. Traders should always choose an FMA-licensed Derivatives Issuer, verify registration on the FSPR, and review risk disclosures carefully before engaging in leveraged products.
- No universal leverage cap set by the FMA
- Leverage is risk-assessed per product disclosure, and high-leverage offerings must justify risk mitigation
- Brokers must disclose loss probability and use negative balance protection
- Licensing and oversight of derivative issuers, including forex CFD providers
- Ensuring fair conduct, proper disclosure, and investor protection
- Monitoring advertising practices and risk warnings
- Coordinating with the Reserve Bank of New Zealand (RBNZ) and international regulators
- Visit the FSPR Website
- Enter the broker’s name or FSP number
- Confirm registration as a Derivatives Issuer and FMA licensing status
- Must be registered on the FSPR and licensed by the FMA for issuing derivatives
- Must submit a Product Disclosure Statement (PDS) with full risk and cost disclosures
- Require strong internal governance and AML/CFT compliance
- Client Fund Protection: Segregation of retail client funds is mandatory
- Brokers must report misconduct, submit audits, and follow dispute resolution rules
Advantages
- Transparent and modern licensing process
- Clear risk disclosure framework with client protection focus
- Regulates crypto CFDs and new financial products under derivatives rules
- Public access to FSPR and broker licensing history
Limitations
- Some offshore firms misuse FSPR registration without proper licensing
- Limited enforcement reach beyond NZ
- No fixed leverage ceiling may confuse risk-prone traders
Country
New Zealand
Established
2011
Contact
+64 3 962 2698
Complaint bodies
Financial Markets Authority (FMA) Financial Dispute Resolution Scheme (FDRS) – mandatory for all licensed providers
Hotline
+64 3 962 2698
Complaint email
Last updated on: March 28, 2025
High Risk Warning : Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.