The online broker you utilize will influence how successful you’ll be. Lets take a look at some of the best trading platforms for traders in New Zealand.
How to Find the Best Trading Platform?
We talked about three superb options above. What are the features that set them apart from the rest, though? Let’s talk about this.
Depending on who you’re working with, you might be asked to make a minimum deposit. It’s very common with the platforms, so there’s no escaping it. A great broker wouldn’t ask you to place a lot of cash. $100-500 is the ideal amount.
No Brokerage Fees
Brokerage fees are the bane of every investor’s existence. You might be charged for being inactive, for annual fees and research or for closing an account.
Find a site that doesn’t charge you for these activities. All three of the options we talked about don’t do so.
Even if you’re a pro trader, working with a site that has an extensive resource center would help you improve your knowledge. Just like minimum deposits, who you’re working with influences the extent of what’s available.
When talking about improving your skills, we have to discuss demo accounts. They allow you to practice trading with virtual coins – soon you’ll be an expert.
No matter how good you think the platform is, you shouldn’t work with it if it isn’t regulated by the authorities.
As a Kiwi, look for trading platform that is governed by the New Zealand Financial Market. However, not many of them will be. Most are regulated by the Financial Conduct Authority, which is a global regulatory body.
The number 1 rule of investing is to not put all of your eggs in one basket. The best choices would offer various kinds of things to trade. If there are CFDs like Plus500, they should have a lot of these.
Best Share Trading Platforms in New Zealand
From the many options on the market, eToro is probably the most well-known. It has issued several campaigns with celebrities.
Unlike its counterpart above, you don’t have to be from New Zealand or Australia to access its services – it is accessible in most parts of the world. Citizens from certain countries are barred, like natives of the United States.
Similar to HFtrading, there are no brokerage fees. But you’ll have to pay other fees that will make up for it.
eToro lets you invest in a variety of assets that include several global shares. Other than this, FD and CFDs are available.
Are you new to trading? The platform sadly doesn’t have an extensive resource center. What’s great is that you can practice your skills with demo accounts, though.
Its customer support is pretty good. You can reach out to them 24/5. There is a ticket system that you will have to use to get in touch.
How well-regulated is it? It is authorized by the Australian Securities and Investment Commission. CYsec and the Financial Conduct Authority also regulate it. What about the New Zealand Financial? It unfortunately does not. But the FCA is known as the global regulatory body, so its presence alone is enough.
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Plus500 is heavily regulated by the New Zealand Financial Market as well as ASIC, CYsec, the FCA and several other bodies.
There is a resource center that is decent. You’ll be able to perfect your trading as demo accounts are available.
You won’t be charged withdrawal fees. However, you can’t trade a variety of assets. The site only offers CFDs. In terms of the CFD types present, there’s a plethora available.
You’ll be able to trade on the move. Plus500’s mobile app is one of our favourites.
Like the two entries above, brokerage fees are not charged.
You want a name that is secure. Well, you’re in luck. HFtrading is authorized by ASIC – the Australian Securities and Investments Commission. It’s also regulated by the New Zealand Financial Market.
ASIC and its New Zealand equivalent ensure that HFtrading always has enough capital, and does regular audits of its systems.
Only citizens of New Zealand and Australia can access its services. Thus, it is only available in English. Check out our best trading platforms in Australia.
How easy is it to make an account on? It took us a little over 5 minutes. The platform is easy to use as well. One of the reasons for this is because it is very organized.
You’ll be able to trade on the go as it offers a mobile app.
The platform lets you buy and sell a range of assets. We’re especially fans of the large number of global shares it has. Other than this, there are also 17 commodities, 50 FX pairs, 214 Share CFDs, 3 ETFS and 51 cryptocurrency types on offer.
The platform doesn’t charge a brokerage fees, but there are other fees that you’ll have to pay.
If you’re a newbie investor, don’t worry. HFtrading has a plethora of resources. It even lets you create a demo account to practice trading.
Customer support-wise, we’re pleased with it. Its representatives are available 11/5.
Share Trading – What You Need to Know
We’ve looked at everything you need to know before taking the leap.
What exactly does diversification mean? Remember that markets can be volatile. Generally, large airlines are good choices to invest in. However, if you invested in them last year, the global lockdowns due to the coronavirus would have caused you to lose cash. Since the airline wasn’t operational, the value of their shares fell.
If you invested in internet services like Netflix and donating agencies like PushPay, you wouldn’t have suffered much of a loss. In fact, you could have made a profit as Netflix and Push Pay did very well during the lockdown.
Think Long Term
Investing in companies solely due to their quarterly earnings is not smart. Think about the industry they’re part of and how hard it can fall and bounce back. Airlines are like this – when they do well, the price of their stocks will skyrocket. But when the economy is bad, their share value plummets.
Brokers offer market trends, news and graphs for a reason. Studying these would let you understand if the market is stable enough to make a move. Make sure you know how to analyze the graphs, trends and news. This is why taking a trading course might help you go further.
Cheap vs Expensive
A newbie might rush to buy expensive shares. Considering what we mentioned about thinking long term and studying the market, this might not be wise. The $50 option could be more fruitful than the $100 one.
How much have you studied? Put your newfound skills to the test by using a demo account. You’re advised to spend some time practicing before you move onto the real deals.
Benefits of Trading Shares in New Zealand
Whether you’re a Kiwi or not, buying and selling from the country’s stock exchange would be smart.
Laws & Regulation
Investing in the country’s stock market is safe. Online brokers are governed by strict laws that keep investors protected. The stock exchange is governed by the NZX, while banks and finance companies are overseen by the Reserve Bank.
Investing in names listed on the NZX is simple – all you need to do is to create a brokerage account.
The New Zealand Stock Exchange is great for investors, as there are a myriad of companies listed on it. The number keeps growing, but as of now, there are over 200 of them.
The NZX ensures investor safety too; its regulatory guidelines make transparency and fairness its top priorities.
Why Pick A Regulated Trading Platform?
A regulated name would be one whose activities are overseen and controlled by governing bodies. As you can imagine, working with these platforms come with major benefits.
These bodies make sure that the trading platforms have enough funds. This ensures that you get your cash when you need it.
Not only are the brokers made to keep enough cash, but user reserves need to be kept separately from their own. Why? Because if anything were to happen to the company, your money would not be affected.
Absence of Laundering
By providing extensive documentation for the brokers to complete, the authorities in question would be able to keep track of illegal activities. The documentation allows them to grasp the quality of work being done as well.
These bodies work to keep investors safe. As a result, they pass laws to make sure the trading platforms have the latest technology, as well as supply resources to encourage traders to learn the ropes.
Investing in companies on the NZX is smart as there are many available, and they are well-regulated. We talked about three great brokers you could use.