Binary Options in New Zealand

new zealandSince their debut in the U.S financial market in 2008, binary options have been making their way across the world. Even in the far flung reach of Oceania countries such as New Zealand, binary options are being embraced by many of the local financial traders. Drawn by their simplicity and lucrative returns, many retail financial traders are turning to binary options to maximize their returns. As more and more binary options brokers start to offer their services to New Zealanders, a key question still remain for most new traders as to how to find a reliable binary broker to deal with.

Although regarded as a developed economy, New Zealand is largely a primary industry based economy with heavy reliance on exports of agricultural products to Australia and Europe. The country’s commitment to adopt an open market policy has greatly facilitated its growth on the world’s economic stage. Investments in New Zealand are encouraged by the efficient and transparent regulations adopted by the New Zealand government. In fact in 2005, the World Bank commended New Zealand as one of the most business friendly countries in the world. Coupled with a strong tradition of low tolerance for corruption, New Zealand has managed to earn for itself a reputation a safe haven economy for investors during the global financial crisis.

Although not a major financial center in the , with a transparent and business friendly government, the New Zealand financial sector in recent years have also started to earn a reputation as safe market for investors to invest in. While major economies around the world were badly affected by the global financial crisis, the New Zealand financial sector emerged relatively unscathed. Nevertheless with the lessons learnt from the global financial crisis, several market reforms were instituted by the New Zealand government to further strengthen oversight over the financial services industry.

One of the major reforms which the New Zealand government undertook to further strengthen oversight over their financial services industry was to consolidate the functions and powers of several different regulatory agencies into one integrated super regulator called the Financial Markets Authority (FMA). With this recent development, binary traders in New Zealand can now trade binaries more confidently with binary brokers which are registered with the FMA. Another market reform which had been put into place by the recent overhaul of regulatory oversight in the financial services industry is the dispute resolution mechanism.

Acknowledging the fact that disputes are bound to occur between disgruntled traders and brokers, the FMA have help to provide an independent dispute resolution mechanism whereby disputes between the aggrieved parties can be resolved impartially. While the New Zealand financial market might not be as sophisticated as the UK’s or U.S financial markets, investors in New Zealand’s binary options market can rest assured that the FMA is watching over their brokers to ensure that they operate as per the regulations imposed by the FMA.

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