Quote Originally Posted by GTM 3442 View Post
If I was an Australian looking at Term Deposit rates, I would be finding that 2.7% on offer in New Zealand quite attractive:

https://www.anz.com.au/personal/bank...fees-terms/#td

I have some Australian term deposits coming due this month, and those AUD sure won't be going back into bank TDs. They'll be going into an Australian government bond ETF, current yield +/-2.75%, maintaining the current asset class allocation and currency profile.

If I was a New Zealander and convinced that the NZD/USD rate was due to fall, I would be looking at a 0% foreign currency account - possibly in Australia to take advantage of the government deposit guarantee scheme. I note that Betashares are forecasting an AUD/USD rate of $0.62 later in the year, and the NZD has a strong tendency to follow the AUD.

As far as fees, charges and the like go, the New Zealand financial services industry may have become dramatically cheaper over the past 25 years, but it remains ridiculously expensive and overpoweringly entitled, and the options for investment outside New Zealand may be cripplingly limited, but those are, sadly, the rules of the game.
Yes they are rules of the game according to NZ's FMA. Interestingly, they're imposing foreign brokers 'who provide services to NZ residents, AND if these firms offers derivatives / options / FX in their business, then they must be 'licensed by the FMA' in order to deal with NZ clients. This is sound a bit extreme and I remember globally how bad it was when the US imposed FACTA around the world. It's 1 thing to ask banks to report to the IRS for tax reporting on their US citizens but, to say to foreign sovereign nations that they're doing things illegally by serving to NZ clients?

As a matter of interest, here is cash deposit schedule at TDAmeritrade. FDIC insured and funds that are simply left in the account (ie. not actioned to be put in a term deposit):

https://imgur.com/ONv1ZXc

Canada use to have similar fee schemes by their brokers, circa in the 80s and early 90s. It could not of lasted long being next to the US but in NZ's case, I highly doubt it would change much. Not with FIF which distorts the global investment field.