Caesar Trade becomes a NZ Financial Services Provider (FSP)

Forex and CFD broker Caesar Trade has just recently announced that it has become a recognized New Zealand Financial Services Provider (FSP), prior to this the brokerage had operated offshore and was based in the Seychelles. The brokerage had previously stated that they would be pursuing some sort of regulation on their website, but it wasn't until the other week the firm announced it had become a registered Financial Services Provider. This sees Caesar Trade join a long line of Forex brokerages who are already FSP's, with other well known brokerages such as XM.com and FXOpen who also operate brands which claim FSP membership.

What is a NZ Financial Services Provider? 

New Zealand has a rather interesting regulatory system, with it being possible for companies based offshore to become listed on the countries Financial Services Provider register. Brokerages based in New Zealand are regulated by the governments financial regulator and will not be on the Financial Services Provider register which is exclusively for offshore companies. What being a member of the FSP register does for a company is allow them to operate within in the country and also to state that they are dual regulated. The costs involved in being featured on the register are much smaller than the costs of becoming a fully regulated New Zealand entity, though in 2012 the country increased what was required from companies wanting to list themselves as a Financial Services Provider. Companies now have to one full time member of staff based on Kiwi soil, who are responsible to ensure certain regulations are complied with. Additionally, those who are trading with a brokerage who operates as a Financial Services Provider can take their complaints and disputes to an specific organization based in New Zealand.

NZ FSP's: Should I Trade With One? 

Brokerages "regulated" as FSP's are used by a large number of traders worldwide, however it is important to realize that the FSP system doesn't provide the same kind of protection as a proper regulatory authority would. However FSP registration is still superior to no regulatory oversight at all.