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Find the best Forex Brokers in the Netherlands

The Netherlands is one of the founding members of the EU. It is one of the most developed countries in the Eurozone. The Forex trading in the country is also one of the most advanced in the world but at the same time one of the most strictly regulated. There are many Forex brokers registered here and there are others incorporated in other countries and which carry out their business here. In order to protect your FX capital, you should only go for the best Dutch Forex broker. All the brokers in Holland (including those in the Netherlands) are regulated by the Netherlands Authority for the Financial Markets – AFM. AFM actually stands for Autoriteit Financiële Markten in Dutch. There are firms which will purport to be regulated by AFM while they are not. In order to confirm whether a broker is genuine and regulated by AFM, visit www.afm.nl.

The currency used in the Netherlands is the Euro. All the top Netherlands FX brokers do offer traders withdrawal and deposit options in EUR currency. Many of the foreign brokers that operate in the Netherlands are incorporated in Cyprus where they fall under the CySEC regulations. Other foreign brokers are based in the UK where FAC regulations are observed. Other than the UK-based FX brokers whose future is not very certain because of the current Brexit talks a majority of the brokers are incorporated here in the Netherlands.

A good FX broker should afford its clients the best support possible. Given that many of the brokers are located in Europe, the time difference should not be too much of an issue. In the rare chance that a broker is located in a far-off country such as Australia, you should check whether they have a support team within your time zone. Not to worry though because AFM requires that every broker to have an operating office in the Netherlands.

Find the top Dutch Forex brokers and their reviews

There are over 3,000 brokers which can offer FX trading services in The Netherlands. A majority of these brokers are found outside the Netherlands and only have a small part of their business located in the country. After undertaking some in-depth research, we have come up with a solid Dutch Forex brokers list which you can use to pick your favorite broker.

XM

XM Forex Broker Review

Minimum deposit

5$

Regulation

CySEC, FCA

Bonus

30$, 50%+20%

Maximum leverage

1:888

Year founded

2009

Trading platform

MT4, WebTrader

IQ Option

IQ Option Review

Minimum deposit

$10

Regulation

CySEC

Bonus

N/A

Maximum leverage

1:30

Year founded

2013

Trading platform

WebTrader

Markets.com

Markets.com Review

Minimum deposit

100$

Regulation

CySEC, FSB

Bonus

N/A

Maximum leverage

1:300

Year founded

2008

Trading platform

Custom

Plus500

Plus500 Review

Minimum deposit

100$

Regulation

FCA

Bonus

N/A

Maximum leverage

1:30

Year founded

2008

Trading platform

Custom

Forex.com

Forex.com Broker Review

Minimum deposit

250$

Regulation

FCA, NFA

Bonus

N/A

Maximum leverage

1:200

Year founded

1999

Trading platform

MT4

EasyMarkets

EasyMarkets Review

Minimum deposit

25$

Regulation

CySEC, ASiC

Bonus

N/A

Maximum leverage

1:200

Year founded

2003

Trading platform

MT4, WebTrader

LH-Crypto

LH-Crypto review

Minimum deposit

€10

Regulation

Vanuatu

Bonus

Rolling Swap, Contest

Maximum leverage

1:500

Year founded

2018

Trading platform

MT5, WebTrader

Z.Com Trade

Z.Com Trade Review

Minimum deposit

5$

Regulation

FCA

Bonus

N/A

Maximum leverage

1:200

Year founded

2005

Trading platform

MT4

A simple way to learn about a broker is by directly visiting their website. This might present some trouble, however, given that some of the brokers operate as a scam and might even swindle you of your money. Just stick on our website and you will explore all the reviews we’ve done for all the brokers. You will not only enjoy safety but also convenience while browsing our website.

What does AFM stand for and what are the AFM regulated Forex brokers

Picking an FX broker which is regulated by AFM is definitely the good thing to do when it comes to picking FX brokers while in the Netherlands. For a firm to offer investment services or perform any investment activities, it must first be licensed by AFM or DNB. The Dutch Authority for the Financial Markets (AFM) has been regulating the financial markets in the country since 2002. Some of its roles include;

  • Supervision of the insurance industry
  • Capital markets regulation including FX
  • Loans and savings and pensions overseer
  • Financial reporting and accountancy regulation
  • Asset management

All Forex brokers in the Netherlands are known as investment firms. Only the firms which have acquired the license from the AFM are allowed to offer investment services within the country. The law of the land states that all the foreign FX brokers that seek to offer investment services here must first establish local branches before getting a practicing license for the said branch.

The AFM regulatory body is not very accommodative of binary options. However, it is okay to welcome Forex trading firms which abide by the rules. In order to ensure that the brokers are in full compliance with the law, AFM demands that brokers send regular reports regarding their trading volumes and all the trading data that they have collected from their clients. AFM is considered one of the EU’s toughest financial regulatory bodies.

The legal position of FX trading in the country

All Dutch regulated Forex brokers are demanded under the law to abide by the rules and the regulations concerning their business. The breaking of these rules can lead to the imposition of withdrawal of a license, sanctions, public warnings, and cancellation of registration, fines or even criminal prosecution. When an AFM regulated Forex broker is licensed by AFM, they are required to abide by the following;

  • Disclose its issued share capital. If the issued capital happens to change by more than 1% in a span of three months, then the broker should notify AFM of this change.
  • Offshore FX brokers must establish local branches and get licenses for these branches. AFM does not embrace the expectation that traders in the Netherlands should send wire transfers outside the country to offshore brokers. A broker that wants to do business with the Dutch must set up a fully functioning office in the Netherlands.
  • All the AFM regulated Forex brokers are expected to abide by the strict financial reporting standards. A broker should submit financial reports to the AFM regularly disclosing the various aspects of their business.

As stated earlier, top Dutch FX brokers are seen and regarded as investment firms by the AFM. They are even addressed as such in all documentation coming from the AFM. At a closer glance, you will realize that the Forex regulation in the Netherlands is designed such that homegrown brokers should grow. But still, some of the largest Forex brokers in the Netherlands come from outside. In addition to that, an FX broker looking forward to being licensed in the Netherlands must ensure that they are very specific in their application. This is because AFM does not give broad-based licenses.

The EURO pair and its trading features

In 2002, The Netherlands abandoned the guilder to embrace the Euro. This currency has been adopted by all the EU countries. It is one of the most used currencies in the world today. When it comes to FX, the EUR is one of the seven major currencies of the world. In fact, it is one of ‘the major’ four pairs. The EUR is to be found next to the USD on the FX platforms and these two currencies normally get paired together. This is the pair that appears the most on Forex traders’ platforms.

The EUR/GBP and JPY/EUR are some of the most popular pairs in speculative FX trading. This is according to the Bank for International Settlements in a report released in 2016. Of course, the USD remained the main currency on all trades. In all the FX trades done according to the report, the USD accounted for 88% of all the transactions. The Euro still remains the second most traded currency to-date. Many of the African countries peg their countries to it. Any currency which is paired with the EUR increases its chance of liquidity.

The EUR/USD is the most traded pair in the world offers traders very low bid-ask spreads. However, it is the most liquid pair and speculative traders love it a lot. In fact, Forex trading newcomers are often advised to start with the EUR/USD pair because it provides high levels of volatility which then means opportunities for profit are many.

Forex Scam in the Netherlands

Scammers are all over. They are looking for an opportunity to snatch what you have. This situation became so perilous in the Netherlands to an extent that AFM imposed some ban on FX trading as well as binary trading in 2017. The ban was not at all surprising given how strict AFM is. According to AFM, some brokers, or a big number of them, were misrepresenting the facts hence making the public make decisions based on wrong information. AFM stated that FX trading and binary trading is very risky and brokers should explicitly tell the public as much. The regulatory body went ahead and banned any advertisement of FX or binary options.

In the past, there have been numerous attempts on traders’ accounts and this led to The Netherlands’ AFM taking the precautionary measure. In other countries such as Belgium Binary options and FX trading have been banned totality. If you are a resident of the Netherlands, you should feel quite safe especially when it comes to you avoiding the Netherlands Forex scams. The AFM employs strict measures to ensure that only the legitimate brokers get to be licensed and practice.