- Low fees on shares
- Free demo account
- Copy trading available
- Regulated in Ireland (CBI)
- Low fees on shares
- Free demo account
- Copy trading available
- Regulated in Ireland (CBI)
Is Avatrade reliable?
AvaTrade is a trusted broker, regulated by major institutions including the Central Bank of Ireland, ASIC (Australia) and the FSA (Japan). Active since 2006, it offers solid guarantees, including the segregation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both novice and experienced traders.
Why choose Avatrade?
AvaTrade combines simplicity and expertise. Tutorials, demo accounts and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities as you progress. You don't need to be an expert: AvaTrade adapts to you.
What are the fees at Avatrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and inactivity costs that can be avoided with regular use. You can focus on learning and your investments, without surprises when it comes to paying.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can take advantage of detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you are looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from Avatrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as credit cards, bank transfers or e-wallets. Everything is designed to offer you fast, clear and secure access.
Is Avatrade reliable?
AvaTrade is a trusted broker, regulated by major institutions including the Central Bank of Ireland, ASIC (Australia) and the FSA (Japan). Active since 2006, it offers solid guarantees, including the segregation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both novice and experienced traders.
Why choose Avatrade?
AvaTrade combines simplicity and expertise. Tutorials, demo accounts and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities as you progress. You don't need to be an expert: AvaTrade adapts to you.
What are the fees at Avatrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and inactivity costs that can be avoided with regular use. You can focus on learning and your investments, without surprises when it comes to paying.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can take advantage of detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you are looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from Avatrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as credit cards, bank transfers or e-wallets. Everything is designed to offer you fast, clear and secure access.
- Responsive support
- No fees on CFDs
- Copy trading available
- Regulated in Australia (ASIC)
- Responsive support
- No fees on CFDs
- Copy trading available
- Regulated in Australia (ASIC)
Is Vantage reliable?
Vantage is a reliable broker, regulated by recognised authorities such as ASIC (Australia) and the FCA (United Kingdom). It is distinguished by the security of its client accounts, protected by top-tier banks, and its commitment to transparency. With over 15 years of experience, Vantage is a trustworthy platform.
Why choose Vantage?
Vantage stands out for its balance between accessibility and professional tools. Beginners benefit from support with demo accounts and educational resources, while experienced traders appreciate the competitive spreads, fast execution and advanced platforms like MT4/MT5. With a varied range of assets and transparent fees, Vantage caters to a wide audience looking for reliable and efficient trading conditions.
What are the fees at Vantage?
The fees at Vantage are adapted to everyone. On ECN accounts, spreads start at 0 pip with a commission of $3 per lot. Standard accounts offer slightly higher spreads, but without commission. No deposit or withdrawal fees are applied, and the cost of inactivity is limited. With Vantage, you keep control of your costs to invest effectively.
Who is Vantage for?
Vantage is perfect for traders looking for professional conditions, while remaining accessible to beginners. If you want a fast platform, competitive fees and advanced tools, Vantage is an excellent choice. Whether you are learning or perfecting your strategies, you will find the necessary resources there.
Is it easy to withdraw money from Vantage?
Withdrawing funds from Vantage is quick and secure. Requests are processed in less than 48 hours and you can choose between bank transfer, cards or electronic wallets. The platform guarantees smooth transactions and reduced fees, allowing you to access your earnings easily.
Is Vantage reliable?
Vantage is a reliable broker, regulated by recognised authorities such as ASIC (Australia) and the FCA (United Kingdom). It is distinguished by the security of its client accounts, protected by top-tier banks, and its commitment to transparency. With over 15 years of experience, Vantage is a trustworthy platform.
Why choose Vantage?
Vantage stands out for its balance between accessibility and professional tools. Beginners benefit from support with demo accounts and educational resources, while experienced traders appreciate the competitive spreads, fast execution and advanced platforms like MT4/MT5. With a varied range of assets and transparent fees, Vantage caters to a wide audience looking for reliable and efficient trading conditions.
What are the fees at Vantage?
The fees at Vantage are adapted to everyone. On ECN accounts, spreads start at 0 pip with a commission of $3 per lot. Standard accounts offer slightly higher spreads, but without commission. No deposit or withdrawal fees are applied, and the cost of inactivity is limited. With Vantage, you keep control of your costs to invest effectively.
Who is Vantage for?
Vantage is perfect for traders looking for professional conditions, while remaining accessible to beginners. If you want a fast platform, competitive fees and advanced tools, Vantage is an excellent choice. Whether you are learning or perfecting your strategies, you will find the necessary resources there.
Is it easy to withdraw money from Vantage?
Withdrawing funds from Vantage is quick and secure. Requests are processed in less than 48 hours and you can choose between bank transfer, cards or electronic wallets. The platform guarantees smooth transactions and reduced fees, allowing you to access your earnings easily.
- No fees on stocks
- Unlimited demo account
- Copy trading available
- French Regulation (AMF)
- No fees on stocks
- Unlimited demo account
- Copy trading available
- French Regulation (AMF)
Is XTB reliable?
XTB is a trusted broker, regulated in France by the AMF and overseen by reputable authorities like the FCA and CySEC. It protects client funds in segregated accounts, ensuring a secure trading environment. With millions of users, XTB stands out as a reliable and transparent platform.
Why choose XTB?
XTB is appealing because of its intuitive platform and powerful tools like xStation, ideal for all levels. With a wide range of assets including stocks, cryptos, and Forex, investing becomes accessible. In addition, its rich educational content allows traders to evolve quickly and gain autonomy.
What are the fees at XTB?
XTB offers competitive fees, including 0% commission on the purchase of shares and ETFs. Spreads are attractive and deposits are free. Withdrawals over $100 are free of charge, and prolonged inactivity may incur fees after one year. Transparency is at the heart of its model.
Who is XTB for?
XTB is suitable for both beginners and experienced investors. Novices will appreciate its educational resources and easy handling, while experienced traders will benefit from advanced tools and a wide selection of assets to diversify their strategies.
Is it easy to withdraw money from XTB?
XTB facilitates withdrawals through various options such as bank transfer and e-wallets. Requests are generally processed within 24 hours, ensuring quick access to funds. No fees are applied beyond a certain amount, and the process is clear and secure.
Is XTB reliable?
XTB is a trusted broker, regulated in France by the AMF and overseen by reputable authorities like the FCA and CySEC. It protects client funds in segregated accounts, ensuring a secure trading environment. With millions of users, XTB stands out as a reliable and transparent platform.
Why choose XTB?
XTB is appealing because of its intuitive platform and powerful tools like xStation, ideal for all levels. With a wide range of assets including stocks, cryptos, and Forex, investing becomes accessible. In addition, its rich educational content allows traders to evolve quickly and gain autonomy.
What are the fees at XTB?
XTB offers competitive fees, including 0% commission on the purchase of shares and ETFs. Spreads are attractive and deposits are free. Withdrawals over $100 are free of charge, and prolonged inactivity may incur fees after one year. Transparency is at the heart of its model.
Who is XTB for?
XTB is suitable for both beginners and experienced investors. Novices will appreciate its educational resources and easy handling, while experienced traders will benefit from advanced tools and a wide selection of assets to diversify their strategies.
Is it easy to withdraw money from XTB?
XTB facilitates withdrawals through various options such as bank transfer and e-wallets. Requests are generally processed within 24 hours, ensuring quick access to funds. No fees are applied beyond a certain amount, and the process is clear and secure.
- No fees on ETFs
- Training options
- Copy trading available
- French Regulation (AMF)
- No fees on ETFs
- Training options
- Copy trading available
- French Regulation (AMF)
Is IG reliable?
Yes, IG is a recognised trading platform regulated by leading authorities such as the FCA in the UK. It protects client funds through segregated accounts and ensures enhanced security. Many users attest to its seriousness and transparency in transaction management.
Why choose IG?
IG is ideal for beginners as well as more experienced traders. Its simple interface and practical tools, such as the ProRealTime function, make learning to trade easier. The platform offers a wide choice of assets, from shares to cryptocurrencies, while emphasising an active community to exchange and progress together.
What are the fees at IG?
IG stands out with competitive fees, with no commission on the purchase of shares and ETFs. Spreads are affordable, and there are no fees on deposits. However, inactivity fees may apply if your account is inactive for 2 years. The platform focuses on transparency to avoid surprises.
Who is IG for?
IG is suitable for all types of investors. If you are a novice, you will benefit from a clear interface and demo accounts to learn at your own pace. For experienced traders, IG offers powerful tools and a wide variety of assets, from stocks to options, to refine your trading strategies.
Is it easy to withdraw money from IG?
Withdrawing your money from IG is quick and easy. You can use several methods such as bank transfer, PayPal or credit card. Withdrawals are processed quickly and the fees are transparent. Thousands of customers testify to the smoothness of the process and direct access to their funds.
Is IG reliable?
Yes, IG is a recognised trading platform regulated by leading authorities such as the FCA in the UK. It protects client funds through segregated accounts and ensures enhanced security. Many users attest to its seriousness and transparency in transaction management.
Why choose IG?
IG is ideal for beginners as well as more experienced traders. Its simple interface and practical tools, such as the ProRealTime function, make learning to trade easier. The platform offers a wide choice of assets, from shares to cryptocurrencies, while emphasising an active community to exchange and progress together.
What are the fees at IG?
IG stands out with competitive fees, with no commission on the purchase of shares and ETFs. Spreads are affordable, and there are no fees on deposits. However, inactivity fees may apply if your account is inactive for 2 years. The platform focuses on transparency to avoid surprises.
Who is IG for?
IG is suitable for all types of investors. If you are a novice, you will benefit from a clear interface and demo accounts to learn at your own pace. For experienced traders, IG offers powerful tools and a wide variety of assets, from stocks to options, to refine your trading strategies.
Is it easy to withdraw money from IG?
Withdrawing your money from IG is quick and easy. You can use several methods such as bank transfer, PayPal or credit card. Withdrawals are processed quickly and the fees are transparent. Thousands of customers testify to the smoothness of the process and direct access to their funds.
- Low CFD fees
- Automated trading
- Regulated in the UK (FCA)
- Limited demo account
- Low CFD fees
- Automated trading
- Regulated in the UK (FCA)
Is Pepperstone reliable?
Yes, Pepperstone is a reliable trading platform regulated by reputable authorities such as the FCA (UK) and ASIC (Australia). It ensures the security of funds through segregated accounts and advanced security protocols. Users appreciate the transparency and strict regulation that frame the operations on this platform.
Why choose Pepperstone?
Pepperstone distinguishes itself by its accessibility and tools adapted to all profiles. With an intuitive platform and powerful tools like cTrader, beginners and experienced traders can exploit a wide range of assets, from currencies to indices. The emphasis is on competitive spreads and fast order execution.
What are the fees at Pepperstone?
Pepperstone offers attractive fees with spreads from 0 pip on Raw accounts, but with a small commission of $3.5 per lot. For Standard accounts, there are no commissions, but slightly wider spreads. No fees on deposits, and withdrawal fees are transparent and reasonable.
Who is Pepperstone for?
Pepperstone is perfect for traders of all levels. Beginners will benefit from guides and demo accounts to practice, while more advanced users will appreciate the speed of the platform and access to high-end trading tools. Its diversity of assets allows everyone to find their area of expertise.
Is it easy to withdraw money from Pepperstone?
Withdrawing funds from Pepperstone is a simple and fast process. You can make your withdrawals via bank transfer, credit card or e-wallets. Requests are generally processed within 1 to 2 business days, with transparent withdrawal fees and a clear procedure, appreciated by many users.
Is Pepperstone reliable?
Yes, Pepperstone is a reliable trading platform regulated by reputable authorities such as the FCA (UK) and ASIC (Australia). It ensures the security of funds through segregated accounts and advanced security protocols. Users appreciate the transparency and strict regulation that frame the operations on this platform.
Why choose Pepperstone?
Pepperstone distinguishes itself by its accessibility and tools adapted to all profiles. With an intuitive platform and powerful tools like cTrader, beginners and experienced traders can exploit a wide range of assets, from currencies to indices. The emphasis is on competitive spreads and fast order execution.
What are the fees at Pepperstone?
Pepperstone offers attractive fees with spreads from 0 pip on Raw accounts, but with a small commission of $3.5 per lot. For Standard accounts, there are no commissions, but slightly wider spreads. No fees on deposits, and withdrawal fees are transparent and reasonable.
Who is Pepperstone for?
Pepperstone is perfect for traders of all levels. Beginners will benefit from guides and demo accounts to practice, while more advanced users will appreciate the speed of the platform and access to high-end trading tools. Its diversity of assets allows everyone to find their area of expertise.
Is it easy to withdraw money from Pepperstone?
Withdrawing funds from Pepperstone is a simple and fast process. You can make your withdrawals via bank transfer, credit card or e-wallets. Requests are generally processed within 1 to 2 business days, with transparent withdrawal fees and a clear procedure, appreciated by many users.
- What is a CFD or Contract for Difference?
- What is a CFD broker?
- Types of CFD Brokers: Market Maker vs STP/ECN
- What Regulations and Security Measures are in Place for CFD Brokers in New Zealand?
- How to Choose a CFD Broker?
- 2. CFD Broker Regulation
- Which CFD broker is best for a beginner trader in New Zealand?
- How to Trade CFDs with an Online Broker?
- What are the CFD broker fees?
- What strategy to trade with a CFD broker?
- What is the taxation of CFD income in New Zealand?
What is a CFD or Contract for Difference?
The term CFD is the abbreviation for Contract For Difference.
A CFD is a financial instrument in the category of derivative products. Indeed, the value of a CFD is based on the performance of one or more underlying assets. The assets, represented by a CFD can be diverse, such as shares, indices, currencies, commodities or even bonds or crypto-currencies.
One of the particularities of CFDs is that they allow speculation on both the rise and fall of the price of a financial asset.
The profit or loss generated when closing the position corresponds here to the difference between the price of the underlying asset at the time of purchase and the price of the asset at the time of sale.
Attention !
81% of retail investor accounts lose money when trading CFDs.
What is a CFD broker?
A CFD broker is a trading platform that allows investors to speculate on the price movements of a financial asset without actually owning the underlying asset. CFD stands for "Contract for Difference", a derivative product that reflects the price movement of an asset such as a share, currency, commodity or stock index.
A CFD broker provides traders with an interface where they can buy (long position) or sell (short position) a CFD on a given asset. The difference between the entry price and the exit price determines the trader's profit or loss.
The main elements that characterize a CFD broker are:
- Access to markets: brokers generally offer a wide range of assets in the form of CFDs, including stocks, indices, Forex, cryptocurrencies and commodities.
- Leverage: traders can use leverage, allowing them to amplify their market exposure with reduced capital. However, this also increases the risk of losses.
- Trading fees: a CFD broker may charge spreads (the difference between the buy and sell price), commissions or financing fees for positions held open overnight.
- Regulation: In New Zealand, CFD brokers must comply with the regulations set by the Financial Markets Authority (FMA) concerning investor protection and leverage limitations.
Types of CFD Brokers: Market Maker vs STP/ECN
When choosing a CFD broker, it's important to understand the differences between Market Makers and STP/ECN brokers. These models influence order execution, fees, and the trading experience.
| Criteria | Market Maker | STP/ECN |
|---|---|---|
| Order Execution | Internal, the broker takes the counterparty | Direct, via liquidity providers |
| Pricing Method | Fixed or variable spreads, without commission | Variable spreads + commissions on orders |
| Conflict of Interest | Possible, as the broker wins if the trader loses | No broker intervention, no conflict of interest |
| Transaction Fees | Included in the spread (generally wider) | Reduced spreads, but with commissions applied |
| Leverage | Often higher | May be more limited depending on the regulation |
| Suitable for | Beginners, occasional traders | Active and professional traders looking for reduced costs |
| Execution Speed | Fast, but potentially subject to "requotes" | Very fast, without requotes, ideal for scalping |
What type of broker to choose?
- Market Maker: Ideal for beginner traders and those who prefer simple pricing with fixed spreads.
- STP/ECN: Suitable for experienced traders seeking lower costs, greater transparency, and direct market access.
What Regulations and Security Measures are in Place for CFD Brokers in New Zealand?
In New Zealand, CFD brokers must be registered with the Financial Markets Authority (FMA), which is the country’s official financial regulator. The FMA ensures brokers operate fairly, transparently, and in accordance with New Zealand's financial laws. In addition, Kiwi traders often use international brokers regulated by other reputable authorities in major jurisdictions.
| Regulator | Country / Region | Role |
|---|---|---|
| FMA (Financial Markets Authority) | New Zealand | Regulates financial services providers and enforces market integrity and investor protection. |
| ASIC (Australian Securities & Investments Commission) | Australia | Well-respected in the region, ASIC imposes strict leverage limits and protects retail traders. |
| FCA (Financial Conduct Authority) | United Kingdom | Strong emphasis on transparency and client protection. |
| CySEC (Cyprus Securities and Exchange Commission) | European Union | Oversees many brokers offering services to Kiwi traders under EU laws. |
The Financial Markets Authority ensures that brokers offering CFDs in New Zealand adhere to strict standards for client protection. Some key requirements include:
- Fair dealing obligations : Brokers must treat clients fairly, avoid misleading claims, and provide transparent disclosures about risks and fees.
- Segregation of client funds : CFD brokers must hold client funds in separate trust accounts, safeguarding them from broker insolvency.
- Registration with the FSPR : Brokers operating in New Zealand must be registered on the Financial Service Providers Register (FSPR).
- Dispute resolution access : Clients must have access to a licensed external dispute resolution scheme (DRS) in case of unresolved complaints.
- Disclosure of risks : Brokers must clearly warn retail clients about the high risk of CFD trading and the likelihood of losing money.
Unlike regions such as Australia or the EU, the FMA currently does not impose fixed leverage limits. However, most reputable brokers offering services to New Zealanders voluntarily follow leverage caps similar to those applied by ASIC or ESMA—for example, 1:30 for major forex pairs—to ensure responsible trading environments.These rules provide New Zealand traders with a relatively flexible but secure framework for CFD trading, especially when working with FMA-registered or internationally licensed brokers.
How to Choose a CFD Broker?
Choosing a CFD broker is a key step for any trader looking to speculate on the markets. To make the right decision, it’s important to compare several factors, from regulation and fees to trading platforms and customer support—especially when trading from New Zealand, where many brokers operate internationally.
1. Available Assets
A good CFD broker should offer a wide range of financial assets allowing traders to diversify their investments. Here are the main types of assets accessible in CFD:
| Asset Type | Description |
|---|---|
| Stocks | CFDs on shares of listed companies (Apple, Tesla, LVMH, etc.). |
| Stock Indices | Allows trading indices such as the S&P/NZX 50, S&P 500 or DAX 40. |
| Forex (currencies) | Speculation on major currency pairs (EUR/USD, GBP/USD, etc.). |
| Commodities | CFDs on gold, oil, silver, natural gas, etc. |
| Cryptocurrencies | Trading on Bitcoin, Ethereum, Ripple and other cryptos (depending on the broker's regulation). |
| ETFs and Bonds | Some brokers allow trading ETFs and bonds in CFD form. |
2. CFD Broker Regulation
Regulation is one of the most important criteria for identifying a reliable and safe CFD broker. In New Zealand, brokers must be registered with the FMA (Financial Markets Authority) or be authorised in a reputable foreign jurisdiction with strong investor protections.Here are the top regulatory bodies trusted by Kiwi traders:
| Regulator | Country / Region | Strengths |
|---|---|---|
| FMA (Financial Markets Authority) | New Zealand | Local regulator ensuring brokers follow fair dealing and risk disclosure rules. |
| ASIC (Australian Securities & Investments Commission) | Australia | Trusted in the region with strict rules on leverage, client money, and transparency. |
| FCA (Financial Conduct Authority) | United Kingdom | Highly respected for consumer protection and strict operational standards. |
| CySEC (Cyprus Securities and Exchange Commission) | European Union | Oversees many international brokers operating under EU financial laws. |
| FINMA (Swiss Financial Market Supervisory Authority) | Switzerland | High credibility and capital requirements for brokers. |
Warning
Be cautious of brokers licensed in offshore jurisdictions such as Belize or Vanuatu. These brokers may offer high leverage but often lack basic client protections and proper dispute resolution.
3. Leverage in New Zealand
Leverage allows traders to open larger positions with less capital, which can amplify both gains and losses. While the FMA does not impose strict leverage caps, most top brokers voluntarily align with global standards like those set by ASIC or ESMA.
| Asset Type | Max Leverage (NZ / ASIC-like brokers) | Max Leverage (Unregulated / Offshore) |
|---|---|---|
| Major Forex pairs (e.g. NZD/USD, AUD/USD) | 1:30 | Up to 1:500 |
| Minor Forex pairs, Gold, Major Indices | 1:20 | Up to 1:500 |
| Commodities (excl. gold), Minor Indices | 1:10 | Up to 1:200 |
| Shares and ETFs | 1:5 | Up to 1:50 |
| Cryptocurrencies | 1:2 | Up to 1:100 |
Professional traders can access higher leverage, but must waive certain protections (e.g. negative balance protection). Be cautious—higher leverage increases risk dramatically, especially with volatile assets like cryptocurrencies.
4. Available Orders
A good CFD broker should offer a variety of trading orders to optimize strategies and better manage risk.
| Order Type | Description |
|---|---|
| Market Order | Immediate purchase or sale at the current price. |
| Limit Order | Purchase or sale at a pre-defined price. |
| Stop-loss Order | Automatically closes a position in case of excessive loss. |
| Take-profit Order | Automatically closes a position when a certain profit is reached. |
| Trailing Stop | Stop-loss that follows market movements to protect gains. |
5. Available Features
The best trading platforms offer advanced features that facilitate analysis and order execution.
- Trading Platforms: MetaTrader 4 (MT4), MetaTrader 5 (MT5), TradingView, proprietary platforms.
- Charts and technical indicators: moving averages, RSI, MACD, Fibonacci, etc.
- Analysis and reporting tools: price alerts, trading signals, real-time market analysis.
- Mobile compatibility: iOS/Android app for trading on the go.
- Trading automation: trading robots (Expert Advisors on MT4/MT5) and API for algorithmic trading.
- Customer service: assistance in English, 24/7 support via chat, phone or email.
Which CFD broker is best for a beginner trader in New Zealand?
Choosing a CFD broker when you're starting out in trading can be difficult. Here are the essential criteria for selecting a broker suitable for novice New Zealand traders.
- Simple and intuitive platform: choose a broker with a clear interface like eToro or XTB. MetaTrader 4 (MT4) is also a popular option, but a little more technical. It is recommended to test a demo account before switching to a live account.
- Regulation and security: a reliable broker must be regulated by the Financial Markets Authority (FMA) or a recognised authority in New Zealand. It must guarantee protection against negative balance and segregation of client funds. Avoid offshore brokers (Belize, Vanuatu) that do not protect investors.
- Transparent and competitive fees: compare the spread (difference between buying and selling price), commissions (some brokers are commission-free on stocks/ETFs), overnight fees (swap) and deposit/withdrawal fees. Opt for a broker with tight spreads and free withdrawals.
- Customer support in English: check if the broker offers assistance in English via chat, email or telephone, as well as a detailed FAQ. Support available 24/5 or 24/7 is a real plus.
- Educational resources and training: a good broker for beginners should offer video tutorials, webinars and trading guides. A free and unlimited demo account is essential to practice without risk.
How to Trade CFDs with an Online Broker?
Trading CFDs with an online broker involves several essential steps. Here is a detailed guide to get started effectively.
1. Choose a Regulated CFD Broker
Before placing your first trade, it’s crucial to select a regulated and trustworthy CFD broker. In New Zealand, brokers should be registered with the Financial Markets Authority (FMA) or hold a license from a reputable foreign regulator like ASIC, FCA, or CySEC. This ensures that the broker operates transparently and provides key protections such as fund segregation and dispute resolution.Make sure the broker also offers:
- A reliable and intuitive platform (like MetaTrader 4/5 or a custom web-based platform)
- Competitive spreads and low trading fees
- Responsive customer support available in English
- Local payment options such as POLi, bank transfer, or credit card
2. Open a trading account
Once the broker has been selected, opening an account requires:
- An online registration with your personal information
- An identity verification (identity card, proof of address)
- An initial deposit according to the broker's requirements (often between NZ$150 and NZ$800)
Some brokers offer a demo account to practice risk-free before trading with real money.
3. Choose an asset to trade
Top CFD brokers offer access to a wide range of global and regional markets, allowing New Zealand traders to diversify their strategies. Popular trading instruments include:
- Shares: Air New Zealand, Xero, Tesla, Apple, Amazon
- Indices: NZX 50, ASX 200, S&P 500, Nasdaq 100
- Forex: NZD/USD, AUD/NZD, EUR/USD, GBP/USD
- Commodities: Gold, Crude Oil, Natural Gas
- Cryptocurrencies: Bitcoin, Ethereum, Ripple, Solana
Choose assets that match your trading style, market knowledge, and risk appetite.
4. Analyse the market and take a position
Before opening a position, analyse the market with:
- Technical analysis: indicators (RSI, MACD, moving averages) and chart patterns
- Fundamental analysis: economic news, company results, central bank decisions
Next, you can open a position:
- Buy (Long): if you think the price will go up
- Sell (Short): if you anticipate a decrease
5. Defining Your Leverage and Protective Orders
Leverage allows you to trade larger positions than your account balance, but it significantly increases both profit potential and risk. While New Zealand does not impose strict leverage limits, most reputable brokers follow international guidelines such as:
- 1:30 for major forex pairs
- 1:20 for gold and major indices
- 1:5 for share CFDs
- 1:2 for crypto assets
To manage your exposure, always use risk-management tools like:
- Stop-loss: Automatically closes your trade if losses reach a predefined level
- Take-profit: Locks in gains by closing your trade once a target price is hit
6. Monitoring and Closing Your Position
Once your position is open, monitor its progress via the broker's platform. Depending on your strategy, you can:
- Close your position manually
- Let your take-profit or stop-loss execute automatically
- Adjust your orders according to the market
Attention!
Positions held open for several days may incur overnight fees (swap), to be verified with your broker.
7. Analyze your performance and optimize your strategy
After each trade, analyze your results to improve:
- Check what worked and what didn't
- Adapt your risk management and entry/exit strategies
- Use the broker's tools such as trading journals and market analysis
What are the CFD broker fees?
CFD brokers apply various fees that influence trading profitability. It is essential to understand these costs before opening an account. Here are the main types of fees, with concrete examples.
1. The spread
The spread is the difference between the buying (Ask) and selling (Bid) price of an asset. It is the main source of revenue for commission-free brokers.
Example of CFD Spread
A broker offers a CFD on the EUR/USD with a spread of 1.2 pips. If you open a 1 lot position (100,000 units), the cost of the spread will be:
- 1 pip = $10 on a standard lot
- 1.2 pips = $12 fee to open the position
2. Commissions
Some brokers charge fixed commissions in addition to the spread, especially on ECN/STP accounts, which offer lower spreads.
Example of commission on CFD
An ECN broker applies a commission of $7 per lot on a Forex trade. If you open a position of 1 lot on EUR/USD, you will pay $3.50 when opening and $3.50 when closing, i.e. $7 in fees in total.
3. Overnight Fees (Swap)
Overnight fees, also known as swaps, are charged when you keep a position open after the markets close (22:00 GMT). They are based on the interest rates of central banks.
Example of CFD swap fees
You hold a buy position on the EUR/USD CFD with a leverage of 1:30. Your broker applies a swap rate of -0.7 pips per day. If your position is 1 lot, you will pay $7 in overnight fees each night.
4. Inactivity fees
Brokers may charge inactivity fees if your account remains inactive for a certain period (usually 3 to 12 months).
Example of inactivity fee
A broker charges NZD 10 per month after 6 months of inactivity. If you don't trade for a year, you'll pay NZD 60 in inactivity fees.
5. Deposit and withdrawal fees
Some brokers charge fees on bank transactions or withdrawals depending on the payment method used.
Example of Deposit and Withdrawal Fees
A broker charges 1.5% on deposits by credit card and $5 on each withdrawal by bank transfer. If you deposit $1,000, you will pay $15 in fees. If you withdraw $500, you will pay an additional $5.
6. Fees Associated with Leverage
Leverage allows you to trade with more capital than is available in your account, but it can incur financing fees.
Example of Leverage Fees
You open a position of NZ$10,000 with a leverage of 1:30. Your broker applies a daily financing rate of 0.01% on the borrowed amount (NZ$9,667). Each day, you will pay approximately NZ$0.97 in fees to maintain this position.
What strategy to trade with a CFD broker?
CFD trading allows New Zealand traders to adopt different strategies depending on their experience, time horizon, and risk appetite. Whether you're looking to make quick trades on currency pairs like NZD/USD, or take advantage of longer-term movements on assets like the NZX 50 or gold, choosing the right strategy is key.Here’s a breakdown of the most common CFD trading strategies, with examples tailored to local market preferences:
| Strategy | Description | Example | Trader Profile |
|---|---|---|---|
| Scalping | Involves opening and closing positions within minutes, aiming to profit from small price movements. Requires low spreads and fast execution. | A trader buys NZD/USD at 0.6050 and closes at 0.6053, making a 3-pip profit in under a minute. | Experienced traders with quick reflexes and large capital. Likes high-paced trading. |
| Day trading | All trades are opened and closed within the same day to avoid overnight fees. Relies on technical analysis and short-term trends. | A trader enters a CFD on the NZX 50 at market open and exits the same day after a 50-point move. | Active traders looking to profit from daily volatility. Suitable for engaged beginners. |
| Swing trading | Positions are held for several days or weeks to ride broader trends. Uses both technical and fundamental analysis. | A trader buys a CFD on gold at NZD 3,150 and sells a week later at NZD 3,250 after positive economic data. | Medium-term traders comfortable with holding overnight risk. Requires patience and planning. |
| Trend trading | Focuses on identifying upward or downward market trends and staying in the trade until the trend reverses. | A trader spots a long-term uptrend on the ASX 200 and holds a long position for multiple weeks. | Suited for patient traders who follow long-term cycles. Ideal for swing and positional traders. |
| Range trading | Targets assets that move within a horizontal channel, buying at support and selling at resistance. | A trader buys Brent Crude oil CFDs at USD 82 and sells at USD 86, repeating the cycle within a defined range. | Conservative traders who prefer stability. A great strategy for beginners. |
| Breakout trading | Involves entering a trade when an asset breaks above resistance or below support with strong momentum. | A trader opens a long position on the S&P 500 after it breaks above 4,300 with strong volume. | Momentum-focused traders looking for fast, high-potential moves. Works well with day/swing strategies. |
| Algorithmic trading | Uses automated systems or bots to execute trades based on pre-set rules or signals. | A trader creates a bot to open long positions on NZD/JPY when the RSI drops below 30 and sell above 70. | Advanced traders with coding skills or access to third-party automation platforms. |
What is the taxation of CFD income in New Zealand?
In New Zealand, profits derived from trading Contracts for Difference (CFDs) are generally considered taxable income and are subject to income tax. Understanding the specific tax obligations associated with CFD trading is crucial for compliance and effective financial planning.AvaTrade
1. Tax Treatment of CFD Trading in New Zealand
In New Zealand, there is no comprehensive capital gains tax. However, profits from trading activities, including CFDs, are typically treated as income and taxed accordingly. This means that if you are trading CFDs with the intention of making a profit, those profits are considered taxable income. Home+1Wikipedia+1The tax rates on such income are progressive and depend on your total taxable income for the year.Centre d'aide eToro
| Taxable Income (NZD) | Tax Rate (%) |
|---|---|
| Up to 14,000 | 10.5 |
| 14,001 – 48,000 | 17.5 |
| 48,001 – 70,000 | 30 |
| 70,001 – 180,000 | 33 |
| Over 180,000 | 39 |
For example, if your total taxable income, including CFD trading profits, is NZD 50,000, the first NZD 14,000 is taxed at 10.5%, the next NZD 34,000 at 17.5%, and the remaining NZD 2,000 at 30%.
2. Treatment of Losses from CFD Trading
Losses incurred from CFD trading can generally be offset against other income, potentially reducing your overall taxable income. However, the ability to deduct these losses depends on whether the trading activity is conducted with the intention of making a profit. It's important to maintain thorough records of all trading activities to substantiate any claims of losses.
Example of Loss Offset
If you have a salary income of NZD 60,000 and incur a loss of NZD 5,000 from CFD trading, your total taxable income could be reduced to NZD 55,000, subject to verification by tax authorities.
3. Reporting CFD Income and Losses
All income and losses from CFD trading must be reported in your annual tax return to the Inland Revenue Department (IRD). Accurate and comprehensive records of all trades, including dates, amounts, and outcomes, should be kept to ensure compliance and facilitate the reporting process.
Key Points for Reporting:
- Record-Keeping: Maintain detailed records of all CFD transactions.
- Annual Tax Return: Include all CFD income and losses in your tax return under the appropriate sections.
- Consultation: Consider consulting with a tax professional to ensure accurate reporting and compliance with current tax laws.
Understanding and adhering to New Zealand's tax regulations regarding CFD trading is essential for legal compliance and effective financial management.
