Different types of online trading options are getting popular in different parts of the world. Not only this but we are expecting to see further popularity for things like CFD trading because of the benefit it brings for the traders. This benefit attracts more and more investors and traders to CFD trading. According to imarc, the world will be seeing an 8.2% increase in CFD trading in the next 5 years.
So, if you are from New Zealand, it might be your best choice to go for CFD Trading New Zealand. Stick till the end because here we will be discussing everything you need to know about CFD Trading New Zealand.
Top CFD Trading Brokers NZ
What is CFD?
It is an agreement about a financial asset that can be a currency pair, share, stock, commodity, or anything else from the trading market. The agreement is between the buyer and seller. The buyer buys at some price and when the trade ends one of them earns according to the price difference.
What is CFD Trading in New Zealand
While most people know about Forex trading and crypto trading, a lot do not know about CFD trading. CFD trading stands for Contract for Difference trading. It is a trading way where you get high leverage, and it is done by placing trades that don’t last long.
Additionally, these are the trades where you get money back with a very successful trade whether you make a profit or loss. It means that there is no option to settle a trade for some asset.
Moreover, it comes with low transaction costs and convenient settlement options that make CFD trading in New Zealand attractive for all the investors and traders out there. If we consider CFD trading specifically in New Zealand it was not regulated before 2017 and it got regulations in 2017
Regulation of CFD Trading New Zealand
CFD trading in New Zealand is under the regulation of FMA and the rules and regulations might be a bit different. For example, if there is some broker/seller offering CFDs in New Zealand it must have a license from FMA. This license is about a Derivatives issuer that allows traders to check the exchange rate for different things that they invest in.
Speaking about the CFD trading New Zealand regulations there are 23 companies that hold the license. So, if you are looking for CFD trading you must only go for these options.
Risks you need to know about CFD Trading
While CFD trading in New Zealand is very attractive, it is very risky at the same time. It is because of the high leverage and hypothetical nature of these Contracts for difference. What happens when you start trading is that you put in extra funds which seems that you will earn more when you win.
However, most beginners ignore the fact that this high investment also increases the loss margin. This is the biggest and unique risk that you need to be careful about.
Going for better risk management options when going for CFD trading New Zealand is an amazing option. It not only makes things better for beginners, but experts can also benefit from it.
Best CFD Trading NZ Platforms Reviewed
Being in New Zealand means that you have to choose from 23 companies that offer CFD trading. This is never going to be an easy thing for you because all of the platforms promise to provide the best experience. However, we researched for you, and here is what we found about the top platforms you can choose.
BlackBull is an excellent choice for those who want to go for CFD trading in New Zealand. It has been there since 2014 and it provides its exceptional services under the MT5 and MT4 platforms. Things are not that straightforward as it provides an option to choose between different account types.
Additionally, it provides attractive services like low minimum deposits and convenient funding options.
ActivTrades is another major name in the CFD trading market of New Zealand. It comes with amazing features like free deposits and withdrawals. Along with that, the trading fees here are minimal. Starting trading and opening an account here is very simple for beginners.
It also comes with a customer support team that provides award-winning performance. However, the support is only available 24/5.
Next up on the list is CMC markets which are known internationally for their CFD trading services. It counts among the oldest online trading platforms. Today it comes with several regulations along with FMA meaning that you can enjoy reliability and safety.
With the MT4 trading platform, the experience will be amazing. It can be even amazing if you take a look at the other instruments and tools it provides.
Spreadex trading is also a well-reputed option for CFD trading in New Zealand. It comes with a reliable web platform and customer service that is available to assist you in the best manner. This global CFD trading platform has been functional for over 2 decades now and it provides its Top-Tier services around the globe. The best part is that it is cheap with no additional fees.
Yet another online broker that is known for its good quality trading services around the world. It provides exceptional services in New Zealand as well including its CFD trading service. Another plus point about Plus500 for CFD trading in New Zealand is that it comes with an MT4 trading platform that brings very user-friendly options.
With an easy-to-use platform and a wide variety of options, it is one of the best platforms. On top of everything, the minimum requirements here are also easy to manage.
CFD trading in the world is increasing with every passing day. In 2021 the market size was $2109 Million which can reach $3428 Million by the year 2027. This means that the CFD trading market might be one of the most successful markets in the world.
So, if you do not know a lot about CFD trading it is the right time for you to get into CFD trading in New Zealand. This will be your best choice to secure your future by making all the right trading decisions.