New Zealand FMA (New Zealand Financial Markets Authority) notes high volume of complaints about online FX and binary options over the last 18 months. Until recently, the regulator’s interpretation of the definition of “derivative” in section 8 of the FMC Act was that any derivative transaction that is settled within three working days (for FX agreements) or one working day (for all other cases) was not regulated. Hence, thus far, a derivative issuer license was not required for that activity.
IMPORTANT UPDATE AND WARNING:We have recently received complaints and read many negative reviews on the internet about regulated binary options brokers using indecent practice towards traders. Although some binary brokers may be regulated, we do not recommend opening a trading account with ANY broker, be it a regulated broker or a non regulated broker, as THEY ALL seem to be unethical and non-trustworthy, even the regulated ones! If you have been scammed by such a company you can check out our RECOVER FUNDS FROM BINARY SCAMS section.
Also, instead of trading binaries which are mostly scams, you can trade with a trustworthy and popular FOREX broker such as STR Capital.