Binary options trading is a worldwide phenomenon that is equally alluring to Asia residents, US residents, Europeans, students, financial professionals and workers worldwide. This type of financial trading really knows no limits, unlike some of older types of financial trading that were focused on rich and people educated in finances. Binary options are open to everyone, and New Zealand is no exception. Citizens of this country have quickly discovered binary options and got attracted to friendly nature of this type of trading. High returns and well-known risk make binary options more favorable among traders that other similar financial products. Forex and CFDs Trading in New Zealand Despite the popularity forex and CFDs trading, with their big brands and regulated platforms are still ruling the online trading.  There are much more regulated brokers who accept NZ residents on the market. We have selected some of the most popular. You can see them here. With AvaTrade you can start with a free demo account immediately, no deposit required. Is Binary Options Legal in New Zealand? But, there are many things that average trader wants to know about binary trading. Are they legal? Are they regulated? What prevents a broker from simply taking a deposit and vanishing? How to choose a proper broker? This article provides all answers to these questions, and will help binary options traders from New Zealand to get familiar with the status of this financial instrument in their country. It is completely understandable that traders don’t want to get involved in any type of illegal financial speculations. Luckily, binary options are legal in New Zealand, but try to find a NZ regulated brand. Australia ASIC regulated brands can also be a good selection.. Unlike many other countries who decided to ignore the fact that binary options exist and simply let the market regulate it by itself, New Zealand Government put some effort and defined the status of binary options. This action is beneficial not only to the Government financial authorities but for brokers and traders as well. Brokers know their duties, customers know their rights, and official bodies are aware of the new trend in financial markets. New Zealand’s legal framework leaves little to no space for misinterpretations. Binary Options Regulation in New Zealand Binary options brokers in New Zealand are regulated by Financial Markets Authority, that acts upon the Financial Markets Conduct Act. In order to get their license, all brokers must follow a certain procedure and fulfill certain requirements. For example, in order to provide binary trading services, brokers must have physical offices and staff in New Zealand. Segregated funds are a must, just like several other conditions that grant better user security. All brokers can easily be checked in special Register, which is highly recommended for traders who are not sure what to think about a broker. Regulated status is always a sign of serious broker. FMA doesn’t stop there. This regulatory body takes its role very seriously and frequently publishes papers about scam brokers in order to warn the public about some unethical practices they might be exposed to. FMA also has great customer service that provides support to New Zealand citizens who have been victims of binary scams. Broker Obligations Binary brokers who are licensed by FMA, know that getting a license is only the beginning. This authority is regularly supervising all brokers and their actions, creating new laws and regulations in order to protect the citizens from any misinterpretations of laws or requirements, and brokers must always be ready to upgrade their service, or adjust it to the new regulations. It could be said that FMA is oriented on two goals: providing transparency of the market and protection of customers. Unlike many European regulatory bodies that seem to be slow and inert, FMA is much more dynamic and consumer oriented. All restrictions are made with citizens in mind, but at the same time, there are enough possibilities left for potential traders to diversify their portfolios and have a good selection of investing opportunities. New Zealand has special requirements when it comes to licensing. All brokers must file a request with Financial Service Provider Register, and first such request was accepted in 2010. This office is in charge of keeping all the records of companies that provide any type of financial service on the New Zealand Territory. It is not specialized in binary brokers, but yet allows customers to take a peek and see whether their broker is regulated or not and is he recommended. Of course, the decision is always done by the user, but such information can direct them in the right way. Brokers Outside the New Zealand As already mentioned, the binary market is global. The world really is a small village that is connected in so many ways, so no wonder many traders opt for offshore brokers. It is considered that offshore brokers are brokers that are not necessarily located or registered in the country of traders’ residence. Such brokers can be registered elsewhere, like in the UK, Cyprus or some other countries. There are many unregulated brokers as well, but it is always recommended to trade with a regulated broker, as this simply protects the trader from different malpractices, and simplifies the selection process. How to Select a Broker? There are many tips on how to select a broker that is reliable and safe to trade with. The trader must always do a proper investigation on all brokers he is interested in. User reviews may be helpful, but keep in mind that there are still some traders who act irresponsibly during trading and who blame brokers on their loss. It is recommended to select a broker from FBO brokers list. Try to find a broker that has technically advanced platform as a reliable platform is of crucial importance for the trader. Also, traders should look for a broker that has payment methods they prefer, and that has quick and reliable withdrawals. Before depositing, make sure to go through the assets the broker has to offer and see if the preferred ones are available. It would be great to test the customer service and find out all additional info. Also, make sure to be familiar with options types provided by the broker. Future of Binary Options Trading in New Zealand Binary options in New Zealand are well regulated, and traders can only expect that FMA will continue to do a good job in providing a transparent and regulated market that is safe for binary traders. As the market will continue to grow, it is almost sure that there will be needed further regulations and requirements in order to continue creating reliable conditions. Traders who opt for offshore brokers will have to continue to carefully examine the market and follow the latest news regarding the regulation of the selected brokers. All traders should be aware of the fast nature and quick developments in binary market in order to achieve the best results and