Best Forex Brokers in 2025

What is Forex or the Foreign Exchange Market?

The Forex (Foreign Exchange) market is the largest financial market in the world, where currencies are traded continuously. It operates 24 hours a day, 5 days a week, with a daily trading volume exceeding several trillion dollars. This market revolves around the exchange of currency pairs, where one currency is bought while the other is sold simultaneously. Each pair is displayed in the format XXX/YYY, for example NZD/USD (New Zealand Dollar versus US Dollar) or GBP/JPY (British Pound versus Japanese Yen). The first currency in the pair is called the base currency, and the second is the quote currency. So, if NZD/USD is quoted at 0.62, it means that 1 New Zealand dollar is worth 0.62 US dollars.

The Forex market is driven by various types of participants. Central banks influence the market through their monetary policy decisions. Financial institutions and hedge funds carry out large-scale transactions, while multinational companies exchange currencies to support their international operations. Finally, individual traders access the market via Forex brokers, which allow them to speculate on currency movements using leverage.

This market offers several attractive features for investors. It operates continuously, offering trading opportunities at any time. Its high liquidity allows for fast trade execution without a lack of counterparties. The leverage offered by Forex brokers allows traders to open positions much larger than their initial capital, although this also increases the level of risk. Furthermore, unlike stock markets, Forex trading allows for speculation in both rising and falling markets by selling one currency against another.

What is a Forex Broker?

A Forex broker is a platform that allows investors to buy and sell currencies on the foreign exchange market. It serves as an intermediary between the trader and the interbank market, where large financial institutions exchange currencies on a large scale. Thanks to online brokers, Forex has become accessible to individuals, who can speculate on the evolution of exchange rates from an intuitive interface and with relatively little capital.

Forex brokers offer currency pairs such as EUR/USD, GBP/JPY or USD/CHF, and allow you to open positions with or without leverage, depending on the level of risk desired. They provide advanced tools to analyse the market, such as real-time charts, technical indicators and automated trading functionalities. Some brokers also offer access to CFDs (Contracts for Difference), allowing you to speculate on currency fluctuations without actually owning the underlying asset.

Compare the best Forex brokers regulated in New Zealand.

How to choose a Forex broker?

Choosing a Forex broker is an essential step for trading currencies in good conditions. Several criteria must be taken into account to select the platform that best suits your needs and your trading style. Here are the main elements to analyze before opening an account.

1. Regulation and Security of Funds

A trustworthy Forex broker should be regulated by a recognised financial authority, ensuring strong investor protection and transparent trading practices. In New Zealand, it is essential to check that the broker is registered with:

• FMA (Financial Markets Authority) – the primary financial regulator in New Zealand.

The FMA enforces strict rules requiring brokers to:

• Hold a Financial Service Provider (FSP) registration and be listed on the Financial Service Providers Register (FSPR).
• Keep client funds in segregated accounts separate from company funds.
• Comply with anti-money laundering (AML) and fair dealing requirements.

While some traders may consider brokers regulated by overseas authorities such as the FCA (UK), CySEC (Europe), or ASIC (Australia), working with an FMA-regulated broker ensures better local oversight and protection under New Zealand law.

2. Type of Broker: Market Maker or ECN/STP

There are two main categories of Forex brokers:

What type of broker to choose?

• Beginner : Market Maker (fast execution, no commission)
• Advanced Trader: ECN/STP (more transparent execution, tight spreads)

3. Spreads and Commissions

Forex brokers primarily earn revenue in two ways:

• Les spreads : différence entre le prix d’achat et le prix de vente d’une paire de devises. Ils peuvent être fixes ou variables.
• Les commissions : appliquées sur chaque transaction, généralement par lot de 100 000 unités de devise.

4. Leverage Offered

Leverage allows traders to control larger positions than their actual capital, magnifying both potential profits and losses.

In New Zealand, the FMA does not impose a fixed cap on leverage for retail Forex trading. However, most FMA-regulated brokers voluntarily align with international standards to reduce risk for individual traders. Typical leverage limits offered include:

• 1:30 for major currency pairs
• 1:20 for minor currency pairs and gold
• 1:10 or lower for commodities and indices
• 1:2 for cryptocurrencies

Be cautious when considering offshore brokers offering high leverage up to 1:500, as these come with significantly higher risk and less regulatory oversight. It’s recommended to use moderate leverage, especially if you are a beginner or trading volatile instruments.

5. Available Trading Platforms

A good Forex broker should offer a platform that is both intuitive and efficient. The most popular options include:

• MetaTrader 4 (MT4) : ideal for automated trading and technical indicators.
• MetaTrader 5 (MT5) : improved version of MT4 with more assets.
• cTrader : appreciated for its speed of execution and transparency.
• Proprietary platforms : some brokers develop their own online and mobile trading software.

6. Deposit and Withdrawal Methods

A reliable broker should offer several methods for depositing and withdrawing funds easily. Check the available options:

💳 Bank card (Visa/Mastercard)
🏦 Bank transfer
📱 E-wallets (PayPal, Skrill, Neteller)
💰 Cryptocurrencies (Bitcoin, USDT, etc.)

Hidden Fees

Some brokers charge withdrawal fees or impose long delays for processing requests.

7. The Quality of Customer Service

A good broker should offer responsive and available customer service in the event of a technical or administrative problem. Before opening an account, test:

• Contact methods: online chat, phone, email
• Reactivity: quick response and in English if possible
• Availability: 24/7 support, especially during trading hours

8. Educational Tools and Resources

If you are new to Forex trading, choose a broker that offers:
📊 Webinars and online training
📈 Market analysis and trading signals
📘 Guide to learn how to use the platforms

Which Forex Broker is Best for a Beginner?

Choosing a Forex broker when you are starting out can be complex, as you need to prioritise a simple, secure platform with transparent fees. A good broker for beginners should offer:

• An intuitive interface: a platform that's easy to pick up, with clear tools and mobile access.
• A free demo account: to practice risk-free with virtual money.
• Competitive fees: reasonable spreads and no hidden commissions.
• Responsive customer service: accessible via chat, phone, or email.
• Reliable regulation: a broker approved by a recognised authority (FMA, etc.).
• Access to educational resources: guides, webinars, market analysis, and tutorials.
• Suitable leverage: limited (as per New Zealand regulations) to limit risks and avoid rapid losses.
• A wide selection of currency pairs: to trade major Forex pairs (EUR/USD, GBP/USD, USD/JPY...).

How to Trade Forex with an Online Broker?

Trading Forex with an online broker involves several key steps. 

1. Choosing a Reliable Forex Broker

The first step is to select a regulated broker that offers an intuitive platform, competitive fees, and appropriate leverage. Check the following criteria:

• Regulation by a recognised authority (FMA, etc.).
• Competitive spreads and no hidden fees.
• Access to a high-performance platform (MetaTrader 4, MetaTrader 5, cTrader...).
• Responsive customer service.

2. Open a trading account

Once the broker is selected, you need to create an account. The procedure generally includes:

• Complete a registration form with your personal information.
• Verify your identity by sending a form of identification and proof of address.
• Select the account type (standard account, ECN account, demo account, etc.).
• Accept the broker's terms of use.

3. Déposer des fonds sur votre compte

To start trading, you need to fund your account via:
💳 Credit card (Visa/Mastercard)
🏦 Bank transfer
📱 E-wallets (PayPal, Skrill, Neteller)
💰 Cryptocurrencies (depending on the brokers)

4. Choosing a Currency Pair to Trade

Forex trading relies on trading currency pairs such as:

• Majors: USD/USD, GBP/USD, USD/JPY (the most liquid and least volatile).
• Minors: EUR/GBP, AUD/NZD (less traded but interesting).
• Exotic: USD/ZAR, EUR/TRY (more volatile with higher spreads).

5. Analyse the market and define a strategy

Before Opening a Position, Analyze the Market Using:

• Technical Analysis: Use charts and indicators (like RSI, MACD, moving averages) to identify trading opportunities.
• Fundamental Analysis: Monitor economic news (interest rates, inflation, employment data) to anticipate market trends.
• Trading Plan: Define your objectives, acceptable risk level, and capital management strategy.

6. Placing a Trade Order

On your platform, you must:

• Select the currency pair to trade.
• Define the position size (in lots).
• Choose the order type: ✅ Market order: immediate execution at the current price. ✅ Limit order: buy or sell at a defined price. ✅ Stop order: execution when the price reaches a certain level.
• Add a stop-loss (to limit losses) and a take-profit (to secure gains).
• Validate the order.

7. Managing Your Positions and Adjusting Your Trading

Once the order is executed, it's important to track your trade in real-time:

• Adjust the stop-loss or take-profit based on market movements.
• Monitor economic news that may impact the currency pair.
• Close a position manually if necessary to secure profits or limit losses.

8. Withdrawing Your Profits and Optimising Your Strategy

Once you have accumulated profits, you can request a withdrawal to your bank account or e-wallet. Remember to:

• Check the withdrawal times and fees imposed by the broker.
• Analyze your trading performance and adjust your strategy.
• Continue to learn and improve through the broker's educational tools (webinars, market analysis, demo accounts, etc.).

Which currency pairs to trade on Forex with an online broker?

Forex trading relies on currency pairs, classified into three main categories: majors, minors, and exotics. Each type of pair has specific characteristics in terms of liquidity, volatility, and spreads. Here is a summary table of the main currency pairs to trade with an online broker.

Which currency pair to choose?

• New to trading? → Focus on major pairs (EUR/USD, USD/JPY, GBP/USD) for their tight spreads and liquidity.
• Experienced trader? → Opt for minor pairs (EUR/GBP, GBP/JPY) for more volatility and opportunities.
• High risk appetite? → Exotic pairs (USD/ZAR, EUR/TRY) offer high potential gains, but with wider spreads and significant volatility.

What are the fees charged by Forex brokers?

Forex brokers apply different types of trading fees that can impact investor profitability. These fees vary depending on the type of broker (Market Maker or ECN/STP), the currency pair traded, and market conditions. Here are the main fees to be aware of before choosing a Forex broker.

1. Spreads (price differences between buying and selling)

The spread is the difference between the buying price (Ask) and the selling price (Bid) of a currency pair. This is the main fee charged by Market Maker brokers. It can be fixed or variable, depending on market volatility.

Spread examples

• USD/USD → 0,5 to 1,5 pips
• GBP/USD → 1 to 2 pips
• USD/JPY → 0,8 to 1,5 pips

Tip: an ECN/STP broker generally offers tighter spreads but applies a commission per trade.

2. Transaction fees

Some brokers charge a fixed commission per lot traded, in addition to the spread. This model is common among ECN brokers, where orders are executed directly on the interbank market.

ECN Commission Example:

NZD 5 to NZD 7 per standard lot (100,000 currency units) for a round trip (buy + sell).

3. Swap Fees (Overnight or Rollover)

Swap fees are applied when you keep a position open after the market closes (usually at 11 PM GMT). This cost depends on the interest rate differential between the two currencies in the traded pair.

Example of swap

• On EUR/USD, if the Euro has a lower interest rate than the Dollar, a trader buying EUR/USD will have to pay a fee to keep their position open.
• Conversely, if they sell EUR/USD, they may receive a credit (positive if the currency sold has a higher rate).

4. Currency Conversion Fees

If you trade a currency pair that is not denominated in your base currency (e.g. an account in NZD trading USD/JPY), the broker will apply a currency conversion fee.

Example of Conversion Fee

A broker may charge 0.25% of the amount converted for a transaction in USD with an account in NZD.

5. Inactivity Fees

Some brokers charge inactivity fees if you don’t make any trades within a certain period (typically between 3 and 12 months).

Inactivity Fees Example

15 CAD to 75 CAD per month after 6 to 12 months without trading.

6. Deposit and Withdrawal Fees

Brokers may charge fees when you deposit or withdraw funds from your trading account. These fees vary depending on the payment method used.

Example of withdrawal fees

• Bank transfer: fixed fees between NZD $5 and NZD $50 depending on the country and the bank.
• Credit card: some brokers charge 1 to 3% of the amount withdrawn.
• Electronic wallets (PayPal, Skrill, Neteller): fees between 0% and 3%.

What strategies for trading with a Forex broker?

Forex trading offers different strategies adapted to the profiles and objectives of traders. Some methods favour quick gains on small movements, while others rely on long-term trends. Here is a summary table of the main Forex trading strategies and their characteristics.

What is the taxation on Forex income in New Zealand?

​In New Zealand, profits from Forex trading are generally treated as taxable income and are subject to the country's standard income tax rates. Unlike some countries, New Zealand does not have a specific capital gains tax; instead, any profits made from trading activities are considered income and taxed accordingly.​

1. Taxation for Individual Traders

If you're trading Forex as an individual, your profits are added to your total income and taxed at the following marginal rates:​

• Up to NZD 14,000: 10.5%
• NZD 14,001 – NZD 48,000: 17.5%
• NZD 48,001 – NZD 70,000: 30%
• NZD 70,001 – NZD 180,000: 33%
• Over NZD 180,000: 39%​

These rates apply to your total income, including any profits from Forex trading. ​

2. Classification as a Business

If your Forex trading is frequent, substantial, and carried out with the intention of making a profit, the Inland Revenue Department (IRD) may classify it as a business activity. In such cases, your trading income is treated as business income and taxed at your applicable marginal rate. ​

3. Record-Keeping and Compliance

Regardless of the scale of your trading activities, it's essential to maintain accurate records of all transactions, including dates, amounts, and purposes of trades. This documentation is crucial for accurate tax reporting and compliance with IRD requirements. ​

4. Reporting Overseas Accounts

If you hold Forex trading accounts with overseas brokers, you must report any income earned from these accounts in your New Zealand tax return. New Zealand tax residents are taxed on their worldwide income, and failure to report overseas income can lead to penalties. ​

5. Losses and Deductions

Losses incurred from Forex trading can be used to offset other income, potentially reducing your overall tax liability. However, the ability to claim such deductions depends on whether your trading activity is classified as a business. It's advisable to consult with a tax professional to understand the implications for your specific situation.​

Example

If you earned NZD 50,000 from your regular employment and made an additional NZD 10,000 profit from Forex trading in a tax year, your total taxable income would be NZD 60,000. This total income would be subject to the applicable marginal tax rates.​

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.