Online Forex trading in New Zealand is legal and operates under comprehensive regulation by the Financial Markets Authority. Individuals or businesses offering forex contracts linked to exchange rates between two currencies must hold a derivatives issuer licence from the FMA. The FMA is New Zealand's principal conduct regulator for financial markets and regularly receives complaints from consumers regarding online forex trading (1).
New Zealand maintains an open financial system with no foreign exchange controls. The Reserve Bank of New Zealand oversees the banking system and provides clearing and settlement services to financial markets. Financial institutions provide secured bank credit and trade finance products including irrevocable letters of credit, with electronic payments being the standard method for transactions. Over 90 percent of banking assets are owned by overseas entities (2).
"In New Zealand, individuals or businesses offering these contracts must hold a 'derivatives issuer licence' from us. We recommend New Zealanders avoid overseas forex trading services not licensed by us, even if they appear to be regulated by an overseas authority."
Licensed derivatives providers must give traders a product disclosure statement before trading commences. The FMA maintains a searchable register of licensed entities and issues warnings about unlicensed forex dealers. Different types of forex trading products involve varying risks including counterparty risk, market liquidity issues, trading delays, and leverage considerations. The regulator strongly recommends seeking financial advice before engaging in forex trading due to its high-risk nature (1).
Source:
https://www.fma.govt.nz/consumer/investing/types-of-investments/foreign-exchange-trading/
https://www.trade.gov/country-commercial-guides/new-zealand-trade-financing
Last updated: 15-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
