| Updated: January 15, 2025The Netherlands, known for its vibrant economy and favorable business environment, has become a hub for forex trading in recent years. The Dutch Authority for the Financial Markets (AFM), plays a crucial role in regulating the financial markets, ensuring that all forex brokers operating in the country comply with the necessary guidelines and regulations.
As a member of the European Union, the Netherlands is also subject to the guidelines of the European Securities and Markets Authority (ESMA) and the Markets in Financial Instruments Directive II (MiFID II).
Below you can find a list with the best Forex brokers regulated in Netherlands:
Top 9 Forex Brokers in Netherlands
-
Fusion Markets
- Australia regulated broker
- MT4, MT5, TradingView, Ctrader
- Leverage up to 500
-
Axi
- Raw spreads start from 0.0 pips
- Offers order execution faster than standard ECN model
- Axi Select Funded Trader Program offers funding up to $1 million
Trading Instruments- Forex
- Stocks
- IPOs
- Indices
- Commodities
- Cryptocurrencies
-
FP Markets
- Australia & CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading Instruments- Forex CFDs
- Shares CFDs
- Metals CFDs
- Commodities CFDs
- Indices CFDs
- Crypto CFDs
- ETF CFDs
-
IG
- Offers different account types, including DMA (Direct Market Access) one
- Offers turbo warrants on forex pairs, commodities, indices, and equities
- Supports popular platforms like MT4 and TradingView as well as ProRealTime, L2, and more
Trading Instruments- CFDs on Indices
- Shares
- Crypto
- Futures
- Commodities
- Options
- Interest Rates
- Sectors
- Bonds
- Knock-out trading
-
Pepperstone
- Australia & CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading Instruments- Forex
- Indices
- Commodities
- Cryptocurrencies
- Share CFDs
- ETFs
-
Vantage FX
- Broker offering some of the lowest spreads from 0.0 pips
- Operating in multiple markets under licenses from tier-1 regulators
- Provides a range of account types with great trading conditions
Trading Instruments- Forex
- Indices
- Commodities
- Shares CFD
- ETFs
- Bonds
-
Admirals
- Trade using MetaTrader 4 and 5, as well as Admirals' specialized plugins for additional functionality.
- Access forex, shares, indices, commodities, ETFs, bonds, and cryptocurrency CFDs.
- Admirals is overseen by top-tier regulatory bodies: FCA, ASIC, CySEC, and EFSA, assuring transparency and customer security.
Trading Instruments- CFDs on Forex
- Indices
- Stocks
- Commodities
- Bonds
- ETFs
- Cryptocurrencies
-
BlackBull Markets
- Broker boasting lightning-fast execution speed
- ECN brokers with tight spreads from 0.0 pips
- $0 minimum deposit requirement
Trading Instruments- Forex
- Commodities
- Futures
- Indices
- Stocks
- Cryptocurrencies
-
FxPro
- NDD broker offering deep liquidity and ultra-fast execution
- Over 99% instant order executions with no requotes
- Supports MT4, MT5, cTrader, and a proprietary platform
Brokers Compared by Spread
| Brand | Commission per lot | |
|---|---|---|
| Fusion Markets | 0.93 avg (Classic) | $0 Classic Account, $4.50 round turn on Zero Account |
| Axi | 1.2 | $0 on Standard Account; $7 round trip on Pro Account |
| FP Markets | 1.1 | $0 Standard Account; $6 round turn on Pro Account |
| IG | 0.86 av.spread | $0 |
| Pepperstone | 1.00 (min) | $0 (Standard Account), $7 round-turn (Razor Account) |
| Vantage FX | 0.2 | $3 per side on Raw; $1.50 per side on Pro |
| Admirals | 0.1 | $3 per lot |
| BlackBull Markets | 0.1 | $0 Standard; $6 per lot Prime; $4 per lot Institutional |
| FxPro | 0.25 | $0 on Standard Account; $3.5 per side on Raw+ and Elite Accounts |
FX Brokers Deposit Method Comparison
| Brand | Minimum deposit | |
|---|---|---|
| Fusion Markets |  |
$0 |
| Axi |  |
$0 |
| FP Markets | |
$50 (AU$100) |
| IG | |
$0 |
| Pepperstone | |
$0 |
| Vantage FX | |
$50 |
| Admirals | |
$100 ($1 for Invest MT5 Account) |
| BlackBull Markets | |
$0 (Standard)$2,000 (Prime)$20,000 (Institutional) |
| FxPro | |
$100 |
Brokers by Regulator
| Brand | Maximum leverage | |
|---|---|---|
| Fusion Markets | |
1:30 (1:500 for forex and metals via VFSC) |
| Axi | |
1:30 |
| FP Markets | |
1:30 |
| IG | |
1:30 |
| Pepperstone | |
1:30 |
| Vantage FX | |
1:30 |
| Admirals | |
1:30 |
| BlackBull Markets | |
1:500 |
| FxPro | |
1:30 |
Forex Brokers Platform Availability
| Brand | FX pairs to trade | |
|---|---|---|
| Fusion Markets | |
80+ |
| Axi | |
80 |
| FP Markets | |
70+ |
| IG | |
80+ |
| Pepperstone | |
90+ |
| Vantage FX | |
60+ |
| Admirals | |
82 |
| BlackBull Markets | |
70+ |
| FxPro | |
70+ |
Comprehensive Comparison of the Best Netherlands Forex Brokers
| Brand | Min. Deposit | Trading Platforms | Spread | Regulation | Trustpilot |
|---|---|---|---|---|---|
 |
$0 |
|
0.93 avg (Classic) |
|
|
 |
$0 |
|
1.2 |
|
|
 |
$50 (AU$100) |
|
1.1 |
|
|
 |
$0 |
|
0.86 av.spread |
|
|
 |
$0 |
|
1.00 (min) |
|
|
 |
$50 |
|
0.2 |
|
|
 |
$100 ($1 for Invest MT5 Account) |
|
0.1 |
|
|
 |
$0 (Standard)$2,000 (Prime)$20,000 (Institutional) |
|
0.1 |
|
|
 |
$100 |
|
0.25 |
|
This publication aims to provide an overview of the legal forms of forex trading in the Netherlands, the restrictions on currency trading, and the regulatory framework that governs the industry. We will also discuss the requirements for forex brokers, how to identify reliable brokers and the tax implications of forex trading in the Netherlands.
Legal Forms of Forex Trading in the Netherlands
The AFM is the primary regulator of the financial markets in the Netherlands, responsible for overseeing the activities of forex brokers and ensuring that they comply with the relevant regulations. As a member of the EU, the Netherlands is subject to the guidelines of ESMA and the MiFID II Directive, which aim to promote transparency, fairness, and investor protection. The legal forms of forex trading in the Netherlands include:
- Spot trading: the exchange of currencies at the current market price. Spot trading of currencies is a legal and regulated activity in the Netherlands, and financial institutions that offer these services must comply with the relevant regulations and guidelines set by the AFM and ESMA.
- CFDs (Contract for Difference): a derivative instrument that allows traders to speculate on the price movement of currencies. Brokers that offer trading CFDs with margin must provide specific customer protection mechanisms.
- Spread betting on currency pairs: spread betting on forex is legal in the Netherlands, but it is subject to certain regulations and restrictions aimed at protecting consumers from high-risk investments. Financial institutions that offer these products must comply with the AFM’s rules and regulations, and consumers should be aware of the potential risks and costs associated with these products before investing.
- Futures: Futures trading of currency pairs, also known as forex futures or currency futures, is a type of financial derivative that allows traders to buy or sell a specific currency pair at a predetermined exchange rate on a specific date in the future.
- Forwards: Forwards are over-the-counter (OTC) instruments that lock in the exchange rate for the purchase or sale of a currency on a future date.
The AFM requires all forex brokers operating in the Netherlands to comply with the regulations and guidelines, ensuring that traders have access to a fair and transparent market.
Restrictions on Currency Trading in the Netherlands
The AFM has imposed several restrictions on currency trading in the Netherlands, particularly concerning binary options. In 2017, the AFM banned the sale of binary options to retail investors, citing concerns about the high risk of fraud and the lack of transparency in the market. The ban was implemented in response to a significant increase in complaints about binary options scams, which had resulted in significant financial losses for many investors. The AFM has also warned traders about the risks of trading with unlicensed brokers, emphasizing the importance of verifying the license and reputation of a broker before opening an account.
The regulator requires all brokers to provide clear and transparent information about the risks and costs associated with the financial products they offer and to ensure that traders are aware of the potential consequences of their investments.
Who Regulates Forex Trading in the Netherlands?
The Dutch Authority for the Financial Markets (AFM) is the primary regulator of forex trading in the Netherlands. The AFM is an independent regulatory agency that is responsible for overseeing the financial markets in the Netherlands, including the forex market. The AFM’s main objectives are to:
- Protect consumers and investors by ensuring that financial institutions operate fairly and transparently
- Promote the stability and integrity of the financial system
- Foster a competitive and innovative financial market
The AFM has a range of powers and responsibilities, including:
- Licensing and supervising financial institutions, including forex brokers
- Monitoring and enforcing compliance with financial regulations and guidelines
- Investigating and prosecuting cases of financial misconduct and fraud
- Providing guidance and support to consumers and investors
In addition to the AFM, forex trading in the Netherlands is also subject to the guidelines of the European Securities and Markets Authority (ESMA) and the Markets in Financial Instruments Directive II (MiFID II). ESMA is an independent EU agency that is responsible for regulating and supervising the EU’s financial system, while MiFID II is an EU directive that aims to promote transparency, fairness, and investor protection in the financial markets.
The AFM works closely with other regulatory agencies, including the Dutch Central Bank (DNB) and the European Central Bank (ECB), to ensure that the financial markets in the Netherlands are stable and secure. The AFM also provides guidance and support to traders and investors, including information on how to choose a reliable broker and how to avoid scams.
Traders can verify the AFM authorization of a broker by checking the regulator’s website, which provides a list of licensed brokers. The AFM also provides a range of resources and tools to help traders make informed decisions about their investments, including guidance on how to choose a reliable broker and how to avoid scams.
Requirements for Forex Brokers in the Netherlands
Forex brokers operating in the Netherlands are subject to a range of requirements, including:
- Negative balance protection: brokers must ensure that traders cannot lose more than their initial investment
- Retail leverage limits: brokers must limit the amount of leverage available to retail forex traders. The maximum allowable leverage is 1:30 for major forex pairs and 1:20 for minor forex pairs.
- Investor compensation: Investor Compensation Schemes safeguard traders by delivering compensation when brokers fail to return their assets
- Risk disclaimers: brokers must provide clear and transparent information about the risks associated with forex trading
- Fund segregation: brokers must keep traders’ funds separate from their operating funds
- Automatic margin closeouts: brokers must have systems in place to automatically close out trades when a trader’s margin falls below a certain level
How to Identify Reliable Forex Brokers Accepting Dutch Clients
Traders can identify reliable forex brokers accepting Dutch clients by checking for the following:
- AFM or another European license: brokers must be licensed by the AFM or another European regulator
- Checking the register: traders can check the AFM’s website to verify a broker’s license and reputation
- Price transparency: brokers must provide clear and transparent information about their prices and fees
- Reputation: traders can research a broker’s reputation by reading reviews and checking for any complaints or warnings
Traders should also be wary of brokers that offer unusually high leverage or promise unusually high returns, as these may be indicative of a scam. By doing their research and choosing a reliable broker, traders can help protect themselves from fraud and ensure a safe and successful trading experience.
Are There Taxes on Profits from Forex Trading in the Netherlands?
In the Netherlands, forex trading profits are generally not subject to corporate income tax, as ruled by the Dutch Supreme Court. This means that Dutch traders are not required to pay capital gains tax on their forex profits, as long as their trading activities are considered typical asset management.
However, if a Dutch forex trader’s transactions exceed the typical asset management threshold, their gains may be considered income generated from other activities, such as business income. In this case, the trader may be subject to taxation on their forex income.
It’s essential to note that tax laws are subject to change, and individual circumstances can affect tax obligations. Therefore, it’s highly recommended that Dutch forex traders consult with local financial experts to determine whether their forex income is subject to taxation.
To clarify, the typical asset management threshold is not strictly defined, but it generally refers to the level of trading activity that is considered normal for an individual investor. If a trader’s activities exceed this threshold, they may be considered a professional trader, and their gains may be subject to taxation as business income.
In any case, it’s crucial for Dutch forex traders to keep accurate records of their trading activities and to consult with a tax professional to ensure they are meeting their tax obligations. By doing so, they can avoid any potential tax liabilities and ensure they comply with Dutch tax laws.
FAQs
What is the main regulator of forex trading in the Netherlands?
The main regulator of forex trading in the Netherlands is the Dutch Authority for the Financial Markets (AFM).
Are binary options allowed in the Netherlands?
No, binary options are not allowed in the Netherlands. The AFM banned the sale of binary options to retail investors in 2017.
How can I verify the AFM authorization of a broker?
Traders can verify the AFM authorization of a broker by checking the regulator’s website, which provides a list of licensed brokers.
How do I know if a forex broker is reputable and trustworthy in the Netherlands?
To determine if a forex broker is reputable and trustworthy in the Netherlands, you can check if they are licensed and regulated by the Dutch Authority for the Financial Markets (AFM). You can also check online reviews and ratings from other traders, as well as check if the broker is a member of any professional associations or organizations. Additionally, you can check if the broker has a physical presence in the Netherlands and if they have a good reputation with the local financial authorities.
Can I trade forex in the Netherlands using a demo account or a practice account?
Yes, many forex brokers in the Netherlands offer demo accounts or practice accounts that allow you to trade with virtual money. This can be a great way to practice trading, test strategies, and get familiar with the broker’s platform and trading conditions without risking any real money. Demo accounts are usually free and can be a valuable tool for beginners or experienced traders who want to try out new strategies or brokers. Some brokers may also offer demo accounts with a limited time period or with certain restrictions, so it’s always best to check with the broker to see what options are available.
Conclusion
In conclusion, the Netherlands is a popular destination for forex trading, with a range of legal forms of trading available to traders. The AFM plays a crucial role in regulating the industry, ensuring that brokers comply with the necessary regulations and guidelines. Traders can identify reliable brokers by checking for an AFM or European license, and by researching a broker’s reputation and price transparency. By doing their research and choosing a reliable broker, traders can help protect themselves from fraud and ensure a safe and successful trading experience.
Why You Should Trust RationalFX
When it comes to making informed decisions about forex brokers, it’s essential to rely on trustworthy sources. RationalFX, a company with over 17 years of experience since its founding in 2005, has established itself as a credible authority in the industry. With an impressive collection of over 2500 reviews on Trustpilot, boasting a score of 4.2, it’s clear that Rational FX has built a reputation for providing reliable and unbiased information.
What sets Rational FX apart is its rigorous evaluation process, which considers over 30 different criteria when selecting forex brokers. This comprehensive approach ensures that every aspect of a broker’s service is taken in consideration, including regulation, forex spreads, trading platforms, deposit methods, and reputation. With its wealth of experience, transparent review process, and outstanding customer feedback, Rational FX is a trusted source for anyone seeking reliable information on forex brokers. You can reach us via e-mail at [email protected] or contact us through our social media accounts here: Facebook, YouTube, or leave a feedback here.