What is with New Zealand FX Brokers?

Ok, I can't spell either at times, no worries.

I just got in now, after I have been bruised by Alpari NZ's platform several requotes that lost me the little I dropped with them. On inquiry, I was told that if I open an account for NDD (non dealing desk) it will not give me requotes. I thought it is the worst scam explanation I can ever hear. When I put in live money. Anyway, I have closed their platform for good on my computer.

Regarding Retail FX Intermediaries in general, you can find bad brokers in the United States, or in London, or anywhere else in the world and you don't have to look very hard to locate them. So, the fact that an intermediary is registered in NZ, does not really say much at all.

Second, one of the most clues or indicators as to the kind of company you are dealing with, is the underlying technical competence that shows itself in the deployment of its solutions delivered to customers. Good companies will take the time and spend the investment capital necessary to design, develop and build, solid trading platforms with equally as solid back-office technology support on the server side of the equation.

Third, and probably most important, a good intermediary will NOT hide their proprietary liquidity pool. In fact, it will be more than happy to help you understand where the liquidity on their trading platforms comes from and that pool will contain some of the most active Retail FX participants in the business. If your intermediary makes some lame excuse about why they cannot tell you precisely who provides the liquidity on their platform, that should raise a huge red flag that you might be dealing with a pure Bucket Shop.

Lastly, take note of the consistency in Spreads and Execution Times. Does your intermediary widen spreads artificially and do execution times go up dramatically or fluctuate wildly with various market conditions? If so, you might be dealing with a pure Bucket Shop. In the real Interbank market, spreads do vary wildly, but within a liquidity pool that has been designed and built for FX trading, spreads should not have a wild degree of variation and trade execution should remain blazing quick. [current spread on EURUSD right now is 0.7 pips]

Though I have no affiliation with DCFX, I have not found a Retail FX Intermediary who can even remotely match the performance of Divisa Capital. Divisa Capital FX (DCFX) is technically competent and technically thorough in what they bring to the Retail FX trader. You can use both Currenex and a native MT4 platform without going through a time-delaying MT4 API Bridge through Boston Technologies. That's because Divisa understands technology and is competent enough to build its own back-end infrastructure. That demonstrates an intermediary who knows their business and is committed enough to bring good tools to market.

DCG (Divisa Capital Group), is a larger Financial organization that is growing in size and scope each year. They have multiple lines of business, not just FX Brokering. They are headquartered in San Diego, California. DCFX, is a wholly owned subsidiary of DCG and operates out of Auckland, New Zealand, as their eBrokering solution to the world. It is my belief that they decided to operate their eBrokering out of New Zealand, because the United States makes for an overly constrictive regulatory environment in areas that have nothing to do with preservation of client funds.

A prime example would be Dodd/Frank's impact on Retail FX in the United States. Not a single line of regulatory value that protects the Trader, ever came from Dodd/Frank. Restricting a U.S. Citizen, to doing business with only U.S. based FX intermediaries and then forcing leverage ratios that regulators pretend are necessary to solve the problem of client funds risk, are the kinds of things that penalize the trader and do nothing to provide consumer protections for the industry. The other rules such as FIFO, are actually designed to work against the trader, not for the traders advantage.

As part of my business plan, I have to know who is in the industry, what technology they bring to the table, how secure will my funds be within their institution and how trustworthy are the as an intermediary. Based on my research, I have a hard time finding a Retail FX Intermediary that offers the same level of all around performance on par with DCFX by DCG.

If you find one better than DCFX in the pure Retail FX space, please let me know!

Hi to everyone!, cheers from Buenos Aires / Argentina.

Does anyone know something about EXCELMARKETS (https://www.excelmarkets.com/) and GLOBAL MARKETS NZ ltd?
It seems that they work as one:

Global Brokers NZ Ltd. is an Authorized Futures Dealer regulated by the New Zealand Financial Markets Authority (FMA). All Excel Markets accounts are held and maintained by Global Brokers NZ Ltd. Note that the FMA's role in authorizing futures dealers is limited and this Authorization does not imply the FMA's approval or endorsement of the business, trading, or solvency of GBL, nor has the FMA approved any agreements or disclosure documents of GBL. The ExcelMarkets.com domain is owned by Excel Markets Ltd. whom is responsible solely for marketing and introducing accounts to Global Brokers NZ Ltd. and Excel Markets Ltd. is not a New Zealand regulated entity nor does it have operations in New Zealand. The Excel Markets trading facilities and related API's and internet functionality are fully operated and controlled by Global Brokers NZ Ltd, additionally all marketing material related to Excel Markets must be meet the approval of Global Brokers NZ Ltd. compliance. Live trading accounts are only open to those aged 18 or over.

this is one of the more recent brokers started up by cashbackforex rebate site. anyways, their conditions are pretty good with a $5 RTL rate. not quite sure if it is unit based or anything such as 4 units per 100,000 units traded or something like that. anyways, you can lower it to $4.50 RTL if signing up under cashbackforex.

anyways, for the rest of you, i don't see any harm with a new zealand broker. yes, government policy and regulation isn't as good as the states and may have loopholes which brokers can easily expose. however, having regulation doesn't mean that you are completely safe either. need i bring up pfgbest? also, i find some of their regulations are absurd, ahem ahem fifo and hedging..it's messed up really as you can just open up more than one account with a few different brokers. thanks to technology, this process is so fast.

now if we were to compare a new zealand broker to a broker such as armada stationed in estonia or tradersway stationed in repub. of dominica, i would consider NZ to be safer..after all, i can imagine NZ brokers putting larger deposits with the bank of australia, but not all brokers do this so make sure you know exactly where the funds are stored if this is something you want safety of.

Thanks for your feedback Jhehe.
Do you know where the funds are stored for this broker? im focusing on deposits guarantees, independently of trading pairs results.
(sorry my english)

To answer your question, registration in New Zealand is cheap, no capital requirements, no client segregation required, but you do need to abide by their strict monitoring, KYC, audits, spot checks and so on.

As one poster wrote, it's a registration, note regulation (albeit the same thing) to source a New Zealand regulation you need to apply for and apply for specific stock market products that are of no interest for forex traders, therefore not needed.

Finally, the day has come when Reza F**ing Mokhtarian, thief CEO of NEW ZEALAND registered Capital Trust Markets (what a company name, Jeeez!) has stood in front of a judge in Toronto, Canada charged by the Ontario Securities Commission. (Not a civil trial case!). Apparently New Zealand could not care less about the victims, so Canada had to step in... Why Canada...? Because it was Canada who gave home to this Iranian refugee...

He was arrogantly and blatantly messaging in his YouTube video to his victims (watch from timestamp 15:00) that they were so stupid that they could not even steal from others... Adding (quoting): "Good for ME!" while driving to the bank with the stolen funds (as stated by this ba**rd).

Well, I hope that we - the SOCIETY - can show him that even though we might be "stupid" to steal from others, but we are powerful enough to give him some time to think about it in a prison cell for a couple of years.

Even if I don't see my stolen funds again, I hope the judge will be on the victims' side and give him the maximum sentence: 4 years and 364 days in a high security facility.

And yes, that will be REALLY-REALLY GOOD FOR HIM! (Especially when he will drop his soap in the shower...)