Forex Trading Laws in New Zealand.
Hi there,
Can someone clarify the legal issues around trading for friends?
Also is there a difference legally between trading for offshore clients or local clients?
At what point is a trader forced to apply to be a Broker to remain within the law.
I have been dabbling for about 5 years, and now have a system for manual trading good enough to earn a good return but I find it hard to get good answers about how regulated things are, what you can legally do and what you cant.
Many Thanks for any comments.
Thos.
Forex Trading Laws in New Zealand
Hi there,
So far 70 odd views and only one reply - very puzzling.
Having a portfolio of clients would seem to me to be quite reasonable...
Are traders doing this informally and staying under the radar?
Have I raised a topic no one wants to talk about?
Has no one really cracked the beast, so they have nothing to offer?
When I talk to "Officialdom" they seem to classify FOREX as FUTURES and want a sizeable fee to become a registered Broker if you start trading for others.
What is going on... ???
Cheers,
Thos.
Forex trading laws in new zealand
Hi there,
Thanks Stoploss and Jay for your responses.
I am guessing that a good percentage of successful traders extend beyond trading for themselves.
Jay Said "Would you be classed an as adviser and come under FMA rules?? But may get away with it if all under your own name..."
The setup can be structured in several ways.
One way is to have the client open an account with a broker and give you the legal right to trade the fund. If this is done without disclosing the trading method, it is hard to see how any financial advice is given.
If this account is off shore, would profits only be subject to tax if they were bought back onshore.
I am sure that many serious traders have done this. I would however like to know if it is within present law...
Cheers,
Thos.
Forex Trading Laws in New Zealand.
Quote:
Originally Posted by
NewGuy
Our of interest, would you be willing to share some very high-level information about your system? For example:
what chart timeframe to you trade on?
what indicators do you use to time entries?
how long are you in each trade on average etc?
No worries if you don't want to share, but I've analysed and written a lot of algos for forex and none work all year round....
Hi There,
OK I wouldnt call myself an experienced trader but have been assisting with testing and developing EA's for about 5 years and started learning about forex about 8 years ago.
My present method is pretty simple and is yielding on average between 1% and 2% per day but it is early days.
I enter on the 15M chart consistent with the H1 and D1 trend.
Pairs are chosen based on volatility and trend and the entries are timed using the behaviour of multi. moving averages.
There is a bit of intuition going on and taking account of support and resistance.
Trades can be open from hours to several days typically.
Discipline is essential and I have a lot to learn.
I think there is a lot of myth out there around forex, and conspiracy theories to cover for the inadequacy of traders IMHO.
My mentor told me not to trade until I doubled a demo account. I managed this in one month some years back using COG. Then the market changed and I had to abandon the approach.
So there you go - I guess you give me about two out of ten.
Thanks for your help.
Thos.