| Updated: November 27, 2024Like many other countries in Europe, the Netherlands has adopted a legal framework regulating forex trading, allowing traders who reside on the territory of the country to legally trade various currency pairs. While it is not mandatory for Dutch traders to join forex brokers that have been regulated by the local authority, it is recommended to register with trading brands that have obtained permission to operate from the Dutch Authority for the Financial Markets (AFM). If you are looking for the brands offering the best trading experience to Dutch traders, we suggest checking our list of top forex brokers operating in the Netherlands.
Fusion Markets74-89% of retail CFD accounts lose money
Global Prime74-89% of retail CFD accounts lose money
easyMarkets71% of retail investor accounts lose money
BlackBull Markets
Forex.com77.7% of retail investor accounts lose money
FBS72.12% of retail investor accounts lose money
Eightcap76.09% of retail investor accounts lose money
Plus50082% of retail investor accounts lose money
Saxo Bank65% of retail investor accounts lose money
Tickmill70% of retail investor accounts lose moneyDutch Forex Brokers Ranked by Trustpilot Score
| Forex Broker | Trustpilot Reviews | |
|---|---|---|
| 1. Fusion Markets | 1,862 | 4.9 ⭐ |
| 2. Forex.com | 1,668 | 4.5 ⭐ |
| 3. easyMarkets | 1,667 | 4.5 ⭐ |
| 4. Global Prime | 161 | 4.5 ⭐ |
| 5. BlackBull Markets | 808 | 4.5 ⭐ |
| 6. FBS | 2,926 | 4.3 ⭐ |
| 7. Eightcap | 2,668 | 4.2 ⭐ |
| 8. Plus500 | 14,038 | 4.1 ⭐ |
| 9. Saxo Bank | 6,484 | 3.8 ⭐ |
| 10. Tickmill | 835 | 3.7 ⭐ |
Dutch Forex Brokers Ranked by Spread Commission
| Forex Broker | EURUSD | USDJPY | EURGBP | GBPUSD |
|---|---|---|---|---|
| 1. Tickmill | 0.1 | 0.1 | 0.4 | 0.3 |
| 2. BlackBull Markets | 0.1 | 0.2 | 0.7 | 0.4 |
| 3. Fusion Markets | 0.07 | 0.13 | 0.23 | 1.01 |
| 4. Global Prime | 0.13 | 0.28 | 0.28 | 1.11 |
| 5. easyMarkets | 0.7 | 1.0 | 1.0 | 0.9 |
| 6. FBS | 0.7 | 1.3 | 2.7 | 1.2 |
| 7. Saxo Bank | 0.9 | 1.2 | 0.8 | 1 |
| 8. Eightcap | 1.00 (min) | 1.1 | 1 | 1 |
| 9. Forex.com | 1 | 1.2 | 1.3 | 1.3 |
| 10. Plus500 | 1.2 | 1.5 | 1.5 | 1.5 |
Dutch Forex Brokers Ranked by Commission per Lot
| Forex Broker | Commission per lot |
|---|---|
| 1. easyMarkets | $0 |
| 2. Saxo Bank | $3 per lot |
| 3. Plus500 | $0 |
| 4. Eightcap | $0 on Standard and TradingView Accounts; $7 round turn on Raw Accounts |
| 5. Forex.com | $0 for Standard accounts; $5 per standard lot per side for Raw accounts |
| 6. FBS | $0 |
| 7. Fusion Markets | $0 Classic Account, $4.50 round turn on Zero Account |
| 8. Tickmill | $0 on Classic Account; $3 per side on Raw Account |
| 9. BlackBull Markets | $0 Standard; $6 per lot Prime; $4 per lot Institutional |
| 10. Global Prime | $0 Standard Accounts; $7 round turn on Raw Accounts |
Important Note:The AFM stipulates stringent guidelines that brokers must follow in order to obtain permission to legally operate in the Dutch market. By joining a forex broker regulated by the AFM, traders can be certain that they will always place trading orders in a safe and fair environment. While licenses from other major regulators can also indicate a good broker choice for Dutch forex traders, we advise them to pick AFM-regulated brands. To learn more about the regulator and follow any changes it may introduce to the way forex trading is being regulated in the Netherlands, you can head to the official AFM website or follow the authority’s X, Facebook, or LinkedIn profiles.
Top 10 FX Brokers in Netherlands
Fusion Markets Broker Details Supports Dutch No Netherlands Currency (EUR) Yes Regulators ASIC, FSA (Seychelles), VFSC (Vanuatu) Min Deposit $0 Trading Platforms MetaTrader4, MetaTrader5, cTrader, DupliTrade, Fusion+ Copy Trade, TradingView Trustpilot Rating 4.9 out of 1,862 reviews Number of CFD Forex Pairs to Trade 90+ Leverage Forex & Metals CFDs: 1:30 (1:500 for forex and metals via VFSC)
Index CFDs: 1:5
Cryptocurrencie CFDs: 1:2 (ASIC), 1:10 (FSA, VFSC)Spread EURUSD: 0.07
USDJPY: 0.13
EURGBP: 0.23
GBPUSD: 1.01Forex Commission per Lot per Trade $0 Classic Account, $4.50 round turn on Zero Account Deposit Methods Visa, Mastercard, PayPal, Skrill, Neteller, Fasapay, Jeton Wallet, Perfect Money, Online Naira, Doku, Bitcoin, Ethereum, Litecoin, USDT, Tether, Ripple, bank wire, ZotaPay, VNPay, DuitNow, XPay, DragonPay, VAPay, FasaPay, AstroPay, PayID, Jetonbank, Sticpay, Interac, LuqaPay, Zotapay, MiFinity Withdrawal Methods Visa, Mastercard, Bank Wire, Skrill, Neteller,Bitcoin, Ethereum, Litecoin, Tether, Ripple, MiFinity, Interac, PayPal, AstroPay, Jetonbank, DragonPay Key Pros
- Offers some of the lowest spreads
- ASIC clients enjoy a negative balance protection
- Supports popular trading platforms
- Offers two copy trading platforms
- Supports fiat and crypto payment solutions
Key Cons
- Does not offer investor protection
- Traders outside Australia have no negative balance protection
- Cannot set up an account in a minor currency
- Has no FCA license
Global Prime Broker Details Supports Dutch No Netherlands Currency (EUR) Yes Regulators ASIC (No. 385620), VFSC (No. 40256) Min Deposit $0 Trading Platforms MT4 Desktop, MT4 Webtrader, MT4 Android Trustpilot Rating 4.5 out of 161 reviews Number of CFD Forex Pairs to Trade 56 Leverage Forex & Metals CFDs: 1:500 (1:30 for ASIC entity)
Index CFDs: 1:100 (1:20 for ASIC entity)
Cryptocurrencie CFDs: Up to 1:2 (ASIC); Up to 1:5 (Pro and VFSC)Spread EURUSD: 0.13
USDJPY: 0.28
EURGBP: 0.28
GBPUSD: 1.11Forex Commission per Lot per Trade $0 Standard Accounts; $7 round turn on Raw Accounts Deposit Methods Visa, Mastercard, PayPal, Skrill, Neteller, Gate8, Dragonpay, Fasapay, VNPay, Pagsmile, BPay, POLi, AstroPay, Bank Transfer, Interac, Perfect Money, PayID, Jeton, MiFinity, XPay, Crypto Withdrawal Methods Mastercard, Visa, Local Bank Transfer, Bank Wire Transfer, Skrill, Neteller, AstroPay, PayPal, Dragonpay, Perfect Money, Jeton, Interac, Cryptocurrencies
Key Pros
- Overseen by a top-tier financial regulator (ASIC)
- No fees on deposits and withdrawals
- Low fees for FX trading
- Streamlined sign-up process
- A broad range of currency pairs
Key Cons
- Could use more trading platforms
- A limited range of educational resources
- Does not offer Islamic or cent accounts
easyMarkets Broker Details Supports Dutch No Netherlands Currency (EUR) Yes Regulators CySEC (license no. 079/07), ASIC (license no. 246566), FSA (license no. SD056), and FSC (license no. SIBA/L/20/1135). Min Deposit $100 Trading Platforms easyMarkets, MetaTrader 4, MetaTrader 5, TradingView Trustpilot Rating 4.5 out of 1,667 reviews Number of CFD Forex Pairs to Trade 60+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 0.7
USDJPY: 1.0
EURGBP: 1.0
GBPUSD: 0.9Forex Commission per Lot per Trade $0 Deposit Methods Visa, Mastercard, JCB, Amex, Skrill, Neteller, Fasapay, Sofort, iDEAL, Web Money, BPay, Bank Transfer Withdrawal Methods Visa, Mastercard, JCB, Amex, Skrill, Neteller, Fasapay, Sofort, iDEAL, Web Money, BPay, Bank Transfer Key Pros
- Offers tight spreads and low fees
- Supports trading of over 60 currency pairs
- Regulated by several reputable authorities
- Supports a wide range of payment methods
- Offers a proprietary platform
Key Cons
- Number of supported products is somewhat limited
- Does not offer copy trading platform
- Traders from certain countries may have access to fewer payment methods
Saxo Bank Broker Details Supports Dutch Yes Netherlands Currency (EUR) Yes Regulators FCA (No. 551422), FSA Denmark (No. 1149), MAS (No. 200601141M), ASIC (No. 32110128286), SFC Hong Kong (No. 1395901), FSA Japan (No. 0104-01-082810) Min Deposit $0 Classic$200,000 + Platinum $1,000,000 + VIP Trading Platforms SaxoTraderGO, SaxoTraderPRO, TradingView, SaxoInvestor Trustpilot Rating 3.8 out of 6,484 reviews Number of CFD Forex Pairs to Trade 185+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 0.9
USDJPY: 1.2
EURGBP: 0.8
GBPUSD: 1Forex Commission per Lot per Trade $3 per lot Deposit Methods Visa, Visa Electron, Mastercard, Maestro, Bank Transfer, Quick Payment Withdrawal Methods Bank Transfer Key Pros
- Offers a varied range of major, minor, and exotic FX pairs
- Provides tier-1 liquidity for high order fill rates
- Boasts over 30 years of experience in the financial industry
- Offers more than 140 FX forward contracts
- Excellent fill rates for FX majors like EUR/USD
Key Cons
- Steep minimum deposits for VIP and Platinum accounts
- Overcrowded and hard-to-navigate website
- Customizing SaxoTraderPRO for desktop takes some time
Tickmill Broker Details Supports Dutch No Netherlands Currency (EUR) Yes Regulators CySEC (No. 278/15), FCA (733772), CONSOB (No.4310), BaFin (No.146511), ACPR (No.75473), CNVM (No.4082), FSA Seychelles (SD 008), FSCA (FSP 49464), DFSA (F007663) Min Deposit $100 Trading Platforms MT4, MT5, WebTrader, ZuluTrade Trustpilot Rating 3.7 out of 835 reviews Number of CFD Forex Pairs to Trade 62 Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 0.1
USDJPY: 0.1
EURGBP: 0.4
GBPUSD: 0.3Forex Commission per Lot per Trade $0 on Classic Account; $3 per side on Raw Account Deposit Methods Bank Transfer, Skrill, Mastercard, Visa, PayPal, Przelewy24, Neteller, Trustly Withdrawal Methods Mastercard, Visa, Skrill, Neteller, Przelewy24, PayPal, Bank Transfer Key Pros
- Offers swap-free accounts for Islamic customers
- No commissions on FX trades via Classic accounts
- Global presence in over 180 countries
- FX spreads from zero pips on Raw accounts
- Swift order execution with no requotes
Key Cons
- Could use more base account currencies
- Bank-transfer deposits below $5,000 incur extra fees
Plus500 Broker Details Supports Dutch Yes Netherlands Currency (EUR) Yes Regulators FSA (No.4.1-1/18), FCA (No. FRN 509909), CySEC (No.250/14), FMA (No.47546), SFSA (No. SD039), MAS (No. CMS100648), DFSA (No. F005651), ASIC (No. 417727), BaFin registration, SCB (SIA-F250) Min Deposit $100 Trading Platforms Proprietary desktop and mobile platforms Trustpilot Rating 4.1 out of 14,038 reviews Number of CFD Forex Pairs to Trade 60+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2 (1:5 via FSA)Spread EURUSD: 1.2
USDJPY: 1.5
EURGBP: 1.5
GBPUSD: 1.5Forex Commission per Lot per Trade $0 Deposit Methods Debit Visa/Mastercard, Wire transfer, Apple Pay, Google Pay Withdrawal Methods Debit Visa/Mastercard, Wire transfer, Apple Pay, Google Pay Key Pros
- Trades publicly on the London Stock Exchange
- Commission-free CFD trading with tight spreads
- Great selection of analytical tools and educational materials
- Easy and quick account opening
- Provides real-time quotes
Key Cons
- Charges administrative fees on inactive accounts
- The platform could use more customization features
Eightcap Broker Details Supports Dutch No Netherlands Currency (EUR) Yes Regulators SCB (No. SIA-F220), ASIC (No.391441), CySEC (No. 246/14), FCA (No. 921296) Min Deposit $100 Trading Platforms MT4, MT5, WebTrader, TradingView, Capitalise.ai, FlashTrader Trustpilot Rating 4.2 out of 2,668 reviews Number of CFD Forex Pairs to Trade 50+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 1.00 (min)
USDJPY: 1.1
EURGBP: 1
GBPUSD: 1Forex Commission per Lot per Trade $0 on Standard and TradingView Accounts; $7 round turn on Raw Accounts Deposit Methods Visa, PayPal, Mastercard, Wire Transfer, Neteller, Skrill, Tether, Bitcoin, BPAY, Dragonpay, Fasapay, Interac, Pix, UnionPay Withdrawal Methods Mastercard, Visa, PayPal, Skrill, Neteller, Bitcoin, Tether, Wire Transfers, BPAY, Fasapay, Pix, Interac, UnionPay Key Pros
- Commission-free FX trading via standard accounts
- Spreads from 0 pips on major currency pairs
- Accepts cryptocurrency deposits
- Fantastic variety of deposit and withdrawal methods
- Insights section with webinars, trade ideas, and weekly forecasts
Key Cons
- Below-average range of tradable instruments
- Crypto withdrawals incur transaction fees
BlackBull Markets Broker Details Supports Dutch No Netherlands Currency (EUR) Yes Regulators SFSA (No. SD045), FMA (No. FSP403326), FSA Min Deposit $0 (Standard)$2,000 (Prime)$20,000 (Institutional) Trading Platforms MT4, MT5, TradingView, cTrader, MT WebTrader, BlackBull Shares, BlackBull CopyTrader, BlackBull Trade, BlackBull Invest, ZuluTrade Trustpilot Rating 4.5 out of 808 reviews Number of CFD Forex Pairs to Trade 70+ Leverage Forex & Metals CFDs: 1:500
Index CFDs: 1:500
Cryptocurrencie CFDs: 1:500Spread EURUSD: 0.1
USDJPY: 0.2
EURGBP: 0.7
GBPUSD: 0.4Forex Commission per Lot per Trade $0 Standard; $6 per lot Prime; $4 per lot Institutional Deposit Methods Visa, Mastercard, Neteller, Airtm, Skrill, Bank Transfer, HexoPay, American Express, POLi, Payment Asia, Help2Pay, FXPay, Fasapay, China Union Pay, Boleto, AstroPay, Beeteller, Bitcoin, Ethereum, Tether, Ripple, Litecoin, Bitcoin Cash, Chainlink, USD Coin, Stellar Withdrawal Methods Visa, Mastercard, Bank Transfer, Airtm, Skrill, Neteller, American Express, POLi, HexoPay, Payment Asia, Help2Pay, FXPay, China Union Pay, Boleto, Fasapay, Beeteller, AstroPay, Bitcoin, Litecoin, Bitcoin Cash, Tether, Ripple, Stellar, Chainlink, Ethereum, USD Coin Key Pros
- Uses proprietary copy-trading platform
- Swap-free trading via ECN Standard and Prime accounts
- Multi-platform support
- Provides a 24/7 customer support service
- Great Education Hub for traders looking to hone their skills
Key Cons
- High commissions per lot on Prime and Institutional accounts
- Charges a $5 fee on withdrawals
Forex.com Broker Details Supports Dutch No Netherlands Currency (EUR) Yes Regulators ASIC, MAS, FCA, CIRO, JFSA, CFTC, CySEC, CIMA, SFC, CySEC Min Deposit $100 Trading Platforms MetaTrader 4, MetaTrader 5, TradingView, WebTrader, NinjaTrader Trustpilot Rating 4.5 out of 1,668 reviews Number of CFD Forex Pairs to Trade 80+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 1
USDJPY: 1.2
EURGBP: 1.3
GBPUSD: 1.3Forex Commission per Lot per Trade $0 for Standard accounts; $5 per standard lot per side for Raw accounts Deposit Methods Visa, Mastercard, Skrill, Neteller, Bank Transfer Withdrawal Methods Visa, Mastercard, Skrill, Neteller, Bank Transfer Key Pros
- Supports a great selection of trading platforms
- Enables easy mobile trading
- Offers over 80 currency pairs
- Provides a vast variety of products
- Forex spreads can be very competitive
Key Cons
- Navigating platforms can be difficult for beginners
- Instruments on MT4 platforms are significantly fewer than other platforms
- Charges monthly fee after 12 months of inactivity
FBS Broker Details Supports Dutch No Netherlands Currency (EUR) Yes Regulators CySEC (No. 331/17), FSC (No. 000102/6), ASIC (No. 426359) Min Deposit Standard accounts: $100
Cent accounts: $10Trading Platforms MT5 Desktop, MT5 WebTrader, MT4 Trustpilot Rating 4.3 out of 2,926 reviews Number of CFD Forex Pairs to Trade 35+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 0.7
USDJPY: 1.3
EURGBP: 2.7
GBPUSD: 1.2Forex Commission per Lot per Trade $0 Deposit Methods Visa, Mastercard, Maestro, Skrill, Bank Transfer, Neteller, EFT, Sticpay, Perfect Money, Fasapay, AstroPay, Pix, JCB, BitWallet Withdrawal Methods Visa, Mastercard, Maestro, Skrill, Bank Transfer, Neteller, EFT, Sticpay, Perfect Money, Fasapay, AstroPay, Pix, JCB, BitWallet Key Pros
- Leverage of up to 1:3000 on FX majors (non-EU)
- Excellent learning content
- Novice FX traders can set up cent accounts
- Market execution speed averages 0.3 seconds
- Great Guidebook for FX trading
Key Cons
- Facilitates trading via MT5 only
- Below-average range of tradable products
- Lacks FCA authorization
Is Forex Trading Legal in the Netherlands?
Forex trading is considered a legal activity for residents of the Netherlands, with the AFM being the main regulator overseeing forex trading operations conducted on the territory of the country. To be sure that they are trading in a safe and fair environment, Dutch traders are recommended to join only brokers that have obtained the proper license from the AFM. Since the Netherlands is a member of the EU, forex brokers operating in the Dutch market are also required to follow guidelines imposed by the European Securities and Markets Authority (ESMA) and conduct trading abiding by the MiFID 2 directives.
Since properly regulated Dutch forex brokers are operating following guidelines imposed by both the local regulator and EU authorities, Dutch traders can always be certain that their funds will be protected using industry-standard security tools and measures. Negative balance protection, maximum leverage, and KYC are just a few of the instruments implemented in the operation of licensed Dutch brokers. In April 2019, the AFM moved to prohibit advertising, distributing, and selling binary options to retail clients from the Netherlands.
How Does the Authority for the Financial Markets (AFM) Regulate Forex Trading?
The AFM is an independent agency responsible for the regulation of firms, making sure they operate following directives issued by the Dutch Ministry of Finance. While the regulator has plenty of responsibilities, some of them include issuing licenses to entities who wish to conduct finance activities, including forex brokers.
In addition to issuing licenses, the AFM has also been authorized to take regulatory actions like imposing financial penalties or withdrawing licenses when a company has breached regulatory guidelines. With the AFM being stringent with its regulation, all Forex brokers licensed in the Netherlands are making sure they offer a safe trading environment that will help them keep their AFM licenses.
One of the AFL license conditions forex brokers are required to meet involves periodic financial statements as well as audit reports that companies must submit regularly. Such documents are submitted on a regular basis to help the local regulator monitor the financial activities of licensed entities, allowing for the prevention of any fraudulent activities. Brands operating under an AFM license are also required to keep their customers’ money in segregated accounts, ensuring their safety.
When it comes to the operation capital of AFM-regulated forex brokers, companies are required to notify the regulator about any significant changes in their issued capitals. Every time the overall operating volume of a licensed entity marks a change of over 1% in the previous three months, it is instructed to inform the AFM about its capital changes.
How Can I Verify AFM Authorization?
Confirming the validity of an AFM license is extremely easy, allowing Dutch traders to verify whether a certain forex broker is trustworthy. You can check the online registry available on the AFM official website, allowing you to search for any company and verify the information provided by the broker. The Central Bank of the Netherlands (DNB) maintains a separate register where consumers can find all entities it licenses and oversees.
Traders may also follow the regulator’s social media accounts as well as subscribe to its newsletter, which provides the latest news about the Dutch financial industry. Public notices and warnings can also be found on the official website of the AFM, informing Dutch traders about any regulatory actions taken against entities that have breached AFM guidelines.
Dutch traders can also get in touch with the AFM by directly sending an email to info@afm.nl or by visiting the regulator’s headquarters in Amsterdam (Vijzelgracht 50, 1017). If you decide to pay them a visit, make sure you carry a valid identification document like a passport, government-issued identification card or driver’s license.
Are My Funds Safe with Forex Brokers Operating in the Netherlands?
You can be certain that as long as a forex broker has been licensed by the AFM or has been authorized by the EU authorities, it is offering a fair and secure trading experience. As mentioned above, you can easily verify the legal status of any forex broker operating in the Dutch market, with the local regulator also taking proper actions against any brand participating in unlawful activities.
Following both MiFID 2 directives and security guidelines imposed by the AFM, Dutch forex brokers are required to ensure a safe trading environment for their clients, assessing risk levels and offering the best possible results for traders’ operations. As already mentioned, the Dutch regulator requires licensed brokers to keep their customers’ funds in segregated bank accounts, ensuring an additional layer of protection for traders’ money.
Top forex brokers operating in the Netherlands accept a wide range of payment solutions, offering traders a wide range of convenient and safe options for their deposits and withdrawals. It should be noted that reliable forex brokers utilize enterprise-class security tools like SSL encryption, preventing any unauthorized third parties from accessing the banking information you may share while initiating transactions.
Do Dutch Brokers Provide Negative Balance Protection?
If you register with an AFM-regulated forex broker, you can be certain that the brand will offer negative balance protection to its clients. Both the AFM and MiFID 2 directives require regulated Dutch brokers to implement mandatory negative balance protection for traders residing in the Netherlands. Thanks to this safety measure, traders cannot amass losses that exceed their cumulative deposit amount.
When Dutch traders are placing orders and making use of leverage, they may risk accumulating bigger losses due to the leverage and lose an amount bigger than what is available in their balances. In that case, traders will owe the broker more money, which may lead to trading volumes that exceed the amounts they can afford to lose. Thanks to the negative balance protection feature, Dutch traders are protected from accumulating debts, with the maximum potential losses being capped at the amount equal to the deposits traders have already made to their accounts.
Do You Pay Tax on Forex Trading in the Netherlands?
Generally speaking, Dutch traders are not required to pay any taxes on capital gains, which is the category that profits from forex trading fall under. Since the Dutch Supreme Court has ruled out that forex profits are not subject to corporate income tax, Dutch traders are not required to pay capital gains tax. That is, however, true in the case of your profits not exceeding the value of typical assets.
In case the transactions of Dutch forex traders exceed the typical asset management, their gains are considered income generated from different types of activities, which may also include business income. We should remind readers that tax laws are often subject to amendments so it is always recommended to contact your local financial experts to help you determine whether your forex income should be subject to taxation.
How Does the Available Leverage of AFM-regulated Brokers Compare to the Leverage of Brokers Regulated in Different Jurisdictions?
If you take a look at the maximum leverage Dutch forex brokers offer to their clients, you will notice the same offerings as the ones at any EU-regulated broker. Due to the ESMA regulations imposed across all brokers operating in EU countries, there is a mandatory maximum leverage of 1:30 on major currency pairs and 1:20 on non-major pairs. Dutch brokers make no exception, offering the same maximum leverage on currency pairs.
The compulsory maximum leverage was introduced in 2018, with every EU broker required to stick to these margins. Dutch forex brokers are also implementing the aforementioned leverage maximums, which were introduced as an additional protection measure, balancing out risk levels while trading currency pairs.
The same maximum leverage of 1:30 on major pairs and 1:20 on non-major currency pairs has also been implemented by the official trading regulators in Australia and the UK. Meanwhile, the maximum leverage you can use on major currency pairs if you reside in the US is capped at 1:50. Depending on the market and the local regulator responsible for overseeing financial activities, the leverage can be significantly higher. We suggest traders check with the broker to make sure what is the highest leverage they can get while trading with major and non-major currency pairs.
It should be noted that leverage limitations do not apply to accounts of clients who have been designated as Elective Professional traders. These types of accounts will also have no negative balance protection, enabling higher-risk trading with bigger leverage.
What Do You Need to Qualify to be Designated as a Professional Trader in the Netherlands?
If you wish to bypass the mandatory leverage limitations, you may want to classify as a professional trader. While any reputable Dutch broker will allow you to set up a professional trading account and enjoy higher leverage while trading forex pairs, you should know that you need to meet certain conditions to qualify as a professional trader.
According to ESMA, to be eligible for the perks that come with professional trading, traders must prove they are experienced, knowledgeable, and have the portfolio to back up their high-risk trading. Dutch traders, as well as trading experts residing in other EU countries, are required to meet at least two out of three requirements to be eligible to open professional trading accounts with forex brokers:
- Initiate 10 transactions of sufficient amount per quarter within the last 12 months
- Have at least one year of experience in the financial sector
- Have a financial instruments portfolio worth at least €500,000
Each Dutch broker will require a set of documents to prove that you can meet the criteria that will classify you as a professional trader. Make sure to follow the steps required for the verification process and you may be able to enjoy plenty of perks that come with professional trading accounts, with competitive margins and low or no commission rates being just a few of them.
What Trading Platforms are Available to Dutch Traders
To meet the highest standards and provide seamless trading to Dutch traders, forex brokers strive to offer some of the most popular and easy-to-use trading platforms. While some brokers tend to offer proprietary platforms, there are also commonly used options like MetaTrader4, cTrader, and more implemented in the operations of many reputable Dutch brokers:
MetaTrader 4: It is extremely common for Dutch forex brokers to support the MT4 platform, offering both newbies and experienced traders a rather easy-to-use platform that is extremely suitable for forex trading. In most cases, MT4 is adapted for both desktop and mobile trading, letting Dutch traders enjoy an easy cross-platform trading experience.
MetaTrader 5: While offering a similar experience to MT4, MT5 is more suitable for traders who wish to expand their portfolio and enjoy options beyond forex pairs. In most cases, MT5 offers more markets and better pricing. What is more, MT5 is considered to be faster than MT4, which is something that any forex trader would appreciate.
WebTrader: This platform represents the web-based version of the MT4 platform, offering the same seamless trading experience straight on your preferred browser. That eliminates the need to install any software on your device, making trading even more intuitive. WebTrader tends to have fewer customization options than MT4 but it is very suitable for beginner traders who can make use of basic technical analysis tools.
cTrader: Many Dutch brokers also support the cTrader platform, giving forex brokers access to an extensive charting selection, with over 70 default indicators and intuitive drawing tools allowing expert traders a better insight into different markets. Providing a more modern take on forex trading, cTrader is preferred by many advanced traders.Interested in exploring the forex trading regulations in the Netherlands? Below you can find some useful references with links to help you navigate the forex market in the Netherlands with ease and confidence.
- The Dutch Authority for the Financial Markets (AFM): The regulatory body responsible for financial markets in the Netherlands.
- Searching the register: a register of financial service providers where traders can verify the authorization of a broker.
- DNB database: The Dutch Central Bank maintains a separate database where consumers can find the entities it licenses and regulates.
- Complaints: AFM describes the procedure necessary to file a complaint against financial institutions in the Netherlands.
- Official LinkedIn page of the AFM: the official LinkedIn page of the authority where Dutch traders can view related news, articles, and videos.