The FMA is New Zealand's primary financial regulator, established in 2011 to replace the Securities Commission with a broader enforcement mandate. It oversees all financial markets conduct including forex brokers, fund managers, and financial advisers. New Zealand was once a popular jurisdiction for forex brokers due to its light-touch registration regime - but that changed dramatically after 2017.
For forex traders, the critical point is that New Zealand no longer offers a retail forex licensing framework. In 2017, legislative changes removed the ability of retail forex brokers to register as Financial Service Providers (FSPs) for the purpose of serving retail clients offshore. Many brokers that had used New Zealand FSP registration as a cheap regulatory badge - particularly targeting clients in Asia and the Middle East - either closed or relocated to Australia, Cyprus, or offshore jurisdictions. Today, there are very few legitimate forex brokers regulated by the FMA for retail dealing.
That does not mean the FMA is irrelevant. It remains the regulator for financial advisers and wholesale market participants. But if you find a broker claiming FMA or FSP regulation for retail forex, it is almost certainly a red flag. Check the Disclose Register to confirm exactly what the entity is licensed for. The FMA does not provide a compensation scheme or investor protection fund for retail forex clients.
Leverage Limits
The FMA does not impose statutory leverage caps on wholesale or professional clients. Retail forex dealing is effectively unlicensed - no FMA-regulated broker can offer retail forex to offshore clients under current law.
| Instrument | Max Leverage |
|---|---|
| Professional / wholesale clients | No statutory cap |
| Retail forex (offshore clients) | Not available under current law |
Trader Protections
- FMA enforcement powers including civil and criminal proceedings
- Client money segregation required for licensed derivatives issuers
- Fair dealing provisions under the Financial Markets Conduct Act 2013
- Wholesale investor classification requires statutory net-worth and experience criteria
How to Verify a License
- Visit the FMA's Disclose Register at disclose-register.companiesoffice.govt.nz
- Search by firm name or FSP number
- Verify the entity holds a Derivatives Issuer license - not just an FSP registration
- Check the registration date (pre-2017 FSP registrations are a red flag for retail forex)
Complaints & Disputes
Financial Dispute Resolution Service (FDR) - www.fdr.org.nz
The FDR scheme is free for consumers, but it only handles complaints against firms that are members. Most offshore brokers claiming FMA regulation do not participate. The FMA can take enforcement action but does not award individual compensation.
Brokers Regulated by FMA
- IG
- Plus500
- Velocity Trade
- RockGlobal
- BlackBull
Frequently Asked Questions
- Can I still open a retail forex account with an FMA-regulated broker?
- Assuming you are a retail client outside New Zealand, almost certainly not. Since the 2017 law changes, the FMA no longer licenses brokers for retail forex dealing to offshore clients. Any broker claiming to be 'FMA regulated' or 'FSP registered' for retail forex is likely operating without proper authorization. Always verify the exact license type on the Disclose Register.
- What's the difference between FMA regulation and FSP registration?
- FSP (Financial Service Provider) registration is a basic listing on New Zealand's Companies Office register - it is not regulation. It costs a few hundred dollars and requires no substantive compliance. For years, offshore brokers used FSP registration to appear regulated when they were not. The FMA itself has repeatedly warned that FSP registration is not a license. Only a Derivatives Issuer license from the FMA carries regulatory weight.
- Where did New Zealand forex brokers go after the 2017 changes?
- Most relocated to Australia under ASIC regulation, Cyprus under CySEC, or offshore jurisdictions like Vanuatu, Belize, or Mauritius. If you are comparing a broker that previously operated from New Zealand, check their current regulatory status - they likely now operate under a different jurisdiction and entity.