In an effort to prevent fraudulent brokers from establishing business in the country, and also in order to provide high quality investment opportunities for its consumers, industry watchdogs are keeping a close eye on brokerage activities.The Financial Markets Authority (FMA) was previously known as the Securities Commission. The latter was a Crown Entity of the government and was mainly in charge of regulating investments. In April 2010, it was announced that a new financial regulator would soon take over and it was in May 2011 that the government decided to replace the Commission with the FMA. It would ultimately take on a much broader role than its former organization.The financial markets regulation structure of the country is often called twin peaks. The first peak is represented by the FMA, whereas the second one is the Reserve Bank of New Zealand who has all prudential power over the countrys banking sector.The FMA is a government agency responsible for overseeing all financial regulations within a wide range of markets in New Zealand. It has a duty to protect its consumers rights and to not only regulate but also enforce all rules within the financial sphere.Some guidelines have been determined in order to offer better structure for the industry. For any investor, responsibilities should be clear and understood upon entering financial markets. In addition, investors have a right to information access where they will feel confident in making proper decisions. The FMA underlines the importance for investors to feel confident in the regulations of the market where any potential risks are flagged and investigated appropriately.The FMA regulates a number of sectors such as securities, exchanges, financial advisors, brokers, issuers, and trustees. Transparency and fairness are key elements within the FMAs strategy since without them, the capital markets would struggle to grow and remain competitive with other global markets. The organization clearly understands that efficient capital markets lead to economic prosperity, job creation, and building of wealth. It strives to provide consumers with opportunities to build diverse portfolios, and in recent years, binary options have taken a front row seat due to their ease of trade for beginners.While the FMA has only been in operation for the past few years, experts have already noticed significant benefits to the hard work it has been doing. Some of the impacts have been felt in regards to levels of compliance both market participants and frontline regulators maintain good practices. The resources available to consumers are growing and contributing to investors having a better awareness of investments. Having the proper tools allows traders to make informed decisions.The Financial Service Providers Act was passed into law in September 2008. In August 2010, the Financial Service Provider Register (FSPR) started accepting applications for registration but it waited until December of the same year to make it mandatory for any broker or organization wanting to legally provide financial services to have to sign up.The purpose of the FSPR is clear: it is to maintain a register of all financial service providers in the country to increase transparency of information. In creating this organization, the government has made it more streamline for brokers and other financial providers to obtain registration and licensing in one place.The eligibility criteria have been kept broad to encompass all service providers. In fact, all a business needs to register is to have an address of business in New Zealand, and to be in the business of providing financial products. Another layer of protection has also been added by requiring all organizations to pass a criminal record check.Since binary options are just starting to make waves in New Zealand, there are still very few brokers operating from within the country. If traders are interested in keeping their investment funds in the nation, the choice of brokers tends to be limited. On the other hand, traders can be assured that the standards of practice are high and that the industry is closely monitored by financial authorities.For traders wiling to expand their search, many offshore brokers cater to New Zealanders. The concern with signing up with a foreign broker is always its legitimacy. However, the best way to ensure a broker is operating a fair and safe business is to inquire about registration from a foreign financial authority. Many offshore brokers have licenses from the United Kingdom, the European Union, or Cyprus. All are valid and have similar regulations to the FMA.Stocks are listed on a variety of exchanges. Binary options related stocks can be found mainly in the United States, Europe, Asia, or the Middle East. Each broker may offer a different set of stocks. If you are particular about which stocks you want to trade, it is recommended to check with the broker before signing up to ensure you will have access to the ones you want to work with.Trading currencies on binary options is generally perceived to be less complex than stocks. Since the most popular currencies tend to be traded among a majority of investors all over the world, it is easier to have access to the right information you will need to make smart decisions.Almost all binary options platforms will offer listings on the US exchanges since these are what most foreign brokers use. As such, traders generally always have access to the Dow, the SampP500, and NASDAQ. Other exchanges may also be available depending on your broker of choice.As a trader in New Zealand, you must keep in mind how the local economy is heavily influenced by the changes and fluctuations within the agricultural, tourism, and film industries. Due to its small size, even a minor change can have a significant impact on the stability of the economy or anyone of these industries. Trade wisely and always stay current with the information pertaining to the assets you decide to trade.Just as you would go to different dealers when shopping for a car, you should evaluate a few brokers before making a choice.
