Binary Options Trading in New Zealand
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Binary options are the newest rage in the financial world, and traders in New Zealand are increasingly joining the bandwagon of millions of traders from around the globe who have gotten hooked on to this wonderful new instrument. This article is meant for all those aspiring traders on that beautiful island, who don’t know how and where to start. Before committing to any new form of trading, it is important that you educate yourself about the ins and outs of the market. Since binary options, as an asset class, are very new, and traders in New Zealand have only recently discovered the many advantages of binary trading, not much credible resource is available online regarding the subject. We have tried to piece together all that a new trader needs to know.
Is Binary Options Trading Legal in New Zealand?
Binary Options Trading in New Zealand
It is completely legal to trade binary options in New Zealand. The country may be small, but the government there is very proactive to any new changes in the financial market. The Financial Markets Authority (FMA) is the regulatory body that oversees binary options trading within the country.
The FMA comes under the purview of the Financial Markets Conduct Act, which stipulates that any binary option broker wishing to enlist traders in New Zealand should be licensed. There are certain minimum standards which any broker must abide by in order to qualify for a FMA license. Also, post the issuance of a license, the regulator periodically monitors the activities of the brokers to ensure that the best corporate practices are maintained. Overall, New Zealand has a clear set of guidelines for both brokers and consumer alike so that traders can engage in profit-making without having to worry about the regulatory issues.
How to Select a Broker?
Since binary options are new in the country, there are very few brokers that are based in New Zealand. As such, most aspiring traders are forced to rely on foreign brokers. The primary concern with signing up with any offshore broker is always its legitimacy. The best way to make sure that a broker is offering fair and transparent products is to inquire about its registration with reputed foreign financial regulators. Most of the big name offshore brokers have licenses from the United Kingdom, the European Union, or Cyprus. All of them have stringent laws governing binary options; similar to the ones that FMA has; making binary options trading a safe experience.
What the Future Holds for Binary Options Traders in New Zealand?
Traders in New Zealand stand apart from their counterparts in the rest of the world for their risk taking appetite. Most of them have an aggressive style of trading and prefer to trade the ultra-short time frames. Since brokers love such kind of traders, it will not be long before more and more binary options brokers sense the opportunity and open their shops in the country.