Forex Brokers in the Netherlands
Richard Montana | November 23, 2022
Trading forex is popular in Holland, with traders and investors looking to make a profit from speculating on falling and rising currency pair prices. Traders in the Netherlands are free to use any forex broker that can accept residents of the country. However, if you prefer to use a regulated broker that is based in Holland, then the Netherlands Authority for the Financial Markets (AFM) is the financial regulatory body to look out for.
Best forex brokers Netherlands
To find the best forex brokers in the Netherlands, we created a list of all the regulated forex brokers that accept traders from Holland, then ranked them based on our overall rating. You can see our list of our top forex brokers for the Netherlands below.
ASIC, BaFin, CFTC, DFSA, FCA, FINMA, FMA, FSA, FSCA, JFSA, MAFF, MAS, METI, NFA
AFM forex brokers in the Netherlands
AFM regulation means that a forex broker must follow the stringent rules and procedures of the Authority for the Financial Markets (AFM). The AFM is the conduct supervisor for the financial markets. This means that the AFM supervises conduct in the entire financial market sector: savings, investing, trading, insurance and lending.
AFM is the financial regulator in the Netherlands, and trading with AFM regulated forex brokers means that traders in Holland have some protection should something go wrong. It can give them peace of mind so that they can focus on their trading without worrying about the safety of their broker.
AFM is responsible for all banking as well as non-banking financial companies that operate in Holland, and the agency reports directly to the Ministry of Finance for regulatory supervision and guidelines. All financial markets, including forex, commodities, stocks, CFDs, futures, options, and other OTC products come under the direct supervision of the AFM.
The AFM attempts to ensure the honest and transparent operation of forex brokers, the stability of financial sectors and customer protection. The main responsibility of the body is to inspect the market for any inconsistencies and detect trading offerings and manipulations.
The AFM has a detailed regulatory structure that clearly establishes the ground rules for operating in the Dutch financial markets. Forex brokers in Netherlands are only allowed to offer their products and services to Dutch traders if they have an AFM license or a permit under the EU derivatives. All foreign brokers without a valid EU license should not offer services to traders or investors in Holland.
The AFM has been responsible for supervising the operation of the financial markets since 1 March 2002. As an independent market conduct authority, they contribute to a sustainable financial system and prosperity in the Netherlands.
The AFM conducts its supervision by means of inspections, enforcement and transfer of standards, and in so doing expressly monitors signals originating from the market and findings from its own control organisation.
If the AFM identifies any breaches, it can impose sanctions. It may issue instructions or public warnings, place institutions under undisclosed custody, withdraw licences, cancel or refuse registrations or file reports with the Public Prosecution Service. The AFM is also authorised to impose fines and orders for periodic penalty payments.
How to verify AFM regulated brokers in Holland
Forex brokers can legally operate in the Netherlands as long as they receive official authorization from the local regulator, the AFM. The Dutch regulatory framework largely overlaps with the requirements outlined by the European Securities and Markets Authority (ESMA).
You can get the broker’s license number from the disclosure text at the bottom of their homepage. You can then look up this number using the AFM financial registrar to confirm if the forex broker is regulated in Netherlands.
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