5 Best Forex Brokers in the Netherlands for 2024

List of Top Forex Brokers in the Netherlands

Forex Trading in the Netherlands

In April 2019, the Dutch Financial Markets Authority (AFM) enforced a permanent set of regulatory rules for brokers based in the Netherlands and for those providing investment services to residents in the country. The rules were created a year earlier by the European Securities Market Authority (ESMA) and its Markets in Financial Instruments Directive II (MiFID II).

Some of the most important measures detailed in the ESMA MiFID II directive include the legal requirement for forex and CFD brokers to segregate client funds from their own and provide negative balance protection for retail investors. While ESMA does not legally require brokers to participate in a compensation scheme, the AFM does require brokers in the Netherlands to participate in the Dutch Investor Compensation Scheme (DSC), which covers client funds up to a certain amount in case the broker becomes insolvent.

The Dutch AFM also allows international brokers based outside the Netherlands to offer investment services to its citizens. However, it’s up to individual investors to determine what, if any, investor protections they have. Using our proprietary rating system, which analyzes 250 data points across nine core categories, our analysts have identified the best forex brokers in the Netherlands.

How Did FX Empire Select the Best Brokers in the Netherlands?

• We only selected brokers with a top overall score from our proprietary rating system.
• We verified each broker is authorized to provide investment services in the Netherlands and that they comply with the Dutch AFM’s requirement of following ESMA’s MiFID II Directive.
• We examined the different payment options available to check their fees and ability to transact in EUR.
• We opened a live trading account to examine the broker’s live spreads and compare them to the industry average in terms of their competitiveness and transparency.
• We explored the number of tradable instruments to evaluate the number of markets priced in EUR across forex pairs, stocks, commodities, and indices.
• We tested each trading platform to assess the range of features and tools offered, as well as their user-friendliness in a live trading environment.
• We investigated whether the broker has localized resources, such as a physical office in the Netherlands, as well as a website and customer support in both Dutch and English languages.
• We examined each broker’s educational content and market research to see if there were any materials tailored toward traders in the Netherlands.

Using FX Empire’s comprehensive methodology, our team of experts has identified the best forex brokers in Indonesia for this year. Here’s how we test.

Now let’s explore the selected brokers.

How to Choose a Forex Broker in the Netherlands?

Here is a quick guide on how to choose the best forex broker in the Netherlands.

1. Why is trading with a regulated broker important?

Trading with a broker under the supervision of an independent financial authority ensures the broker adheres to strict regulations that govern the safety and security of your capital. Unfortunately, an increasing number of offshore brokers offer little to no regulatory protection, with some operating completely unregulated.

Based on my extensive trading experience, I strongly recommend avoiding unregulated brokers. Trading with such entities could leave you without any means of recovering your funds if they decide to steal them.

However, even if a broker is regulated, not all financial regulators are equal. In our broker rating reviews, we classify regulators into three tiers:

• Tier-1 regulators operate from well-known financial hubs and encompass institutions such as the Cyprus Securities and Exchange Commission (CySEC) and the UK Financial Conduct Authority (FCA).
• Tier-2 regulators function in respected yet smaller financial centers. An example is the Financial Markets Authority (FMA) of New Zealand.
• Tier-3 regulators typically operate in offshore jurisdictions. An example is the Financial Services Commission (FSC) of Belize.

For residents in the Netherlands, opting for a broker authorized and licensed by a Tier-1 regulator is essential. Most Tier-1 regulators, such as the UK FCA, CySEC, BaFin, IIROC, ASIC, and others, have aligned themselves with the European Securities Market Authority (ESMA) and its Markets in Financial Instruments Directive II (MiFID II).

The Dutch AFM has also provided legal frameworks to ensure brokers based in the Netherlands adhere to MiFID II. This directive legally binds brokers to:

• Segregate client funds. This ensures that client deposits are not used with the broker’s operational capital.
• Provide negative balance protection. This is a policy that prevents your account from going into a deficit due to adverse market movements.
• Offer access to the Investor Compensation Fund (ICF). This is a fund that acts as a compensation scheme to protect client deposits of up to €20,000 in the event of broker insolvency.

To verify your broker’s regulatory status and authorizations, review the broker’s legal terms and conditions and consult the regulator’s online register.

Read more about best regulated forex brokers in our comprehensive guide.

2. What fees to consider when choosing a broker?

A broker’s trading and non-trading fees for their services can have a huge impact on your overall profitability. Below are a few fees to take into consideration when choosing a broker:

• Spread. The difference between the buy price and the sell price. See our guides on the best zero spread and best lowest spread forex brokers.
• Commission. A transaction fee is incurred for executing a trade, whether it’s a buy or a sell order.
• Overnight/swaps. The fee to hold a leveraged or margined position overnight. Find the list of the lowest swap brokers in our detailed guide.
• Payments. Any fees associated with depositing or withdrawing funds from your trading account.
• Inactivity Fee. A fee due to no activity on your account.

To check the broker’s fees, view the fees section on their website, check the legal terms and conditions, and speak to customer support. If finding the information is difficult, or it is not clear and transparent, then consider that to be a red flag, as maybe they are trying to hide something.

3. How to choose the best account type?

The retail trading brokerage sector is now more competitive than ever before. Therefore, many brokers will now offer a wide range of account types to appeal to as many different types of traders as possible.

Each account type may vary in the minimum deposit required and additional services provided. However, one of the major differences will be the trading fees. Some accounts may be commission-free, and some commission-based.

• A commission-free account incurs no fees for buying and selling because most of these costs are built into the spread. Consequently, such accounts usually feature wider spreads.
• A commission-based account charges a fee for both buying and selling. These fees exist because the spread is much narrower, coming directly from the broker’s liquidity providers.

Read more about Best STP forex accounts and Best ECN forex accounts.

Which account type is best? Short-term traders who prioritize precise trade execution levels may prefer a commission-based account with low spreads. Beginner traders might lean toward a commission-free account, as most costs are built into the spread, simplifying risk management calculations.

4. How much leverage should I use?

Leverage has played a pivotal role in the growth of the forex and CFD trading sector. So what is it? Leverage allows traders to control a larger position with a relatively small deposit, amplifying the potential gains and losses.

For instance, consider a scenario where a broker offers a 1:30 leverage ratio. This allows you to control a position worth €30,000 with a mere €1,000 in your trading account. In essence, you can initiate a trade that is 30 times larger than your initial deposit.

It’s crucial to be cautious when dealing with certain offshore and unregulated brokers who may offer exceptionally high leverage ratios, sometimes reaching up to 1:3000. While high leverage can amplify your profits, it also magnifies your losses. This is because your profit and loss are calculated on the total trade value, not just the margin you’ve committed. If your account lacks sufficient margin to manage this larger position size, you could face a margin call, leading your broker to automatically close your trades.

For traders seeking high-leverage options, FX Empire offers a list of the best forex brokers with high leverage, carefully selected to suit specialized trading needs.

Tier-1 regulators such as the UK FCA, CySEC, IIROC, and ASIC, all of which are aligned with ESMA’s MiFID II framework, typically offer a maximum leverage of 1:30 for retail traders to ensure a safer trading environment.

5. How to choose the best trading platform?

A trading platform serves as your portal to the global market, offering access to real-time price data and enabling the transmission of trading orders to your broker. When selecting a platform, consider the following factors:

• Multi-Device Accessibility: Does the platform support desktop, web, and mobile devices, giving you the flexibility to trade wherever and however you like?
• Real-Time Price Data: Does it provide free, real-time price quotes so you can trade at the best possible price?
• Drawing Tools and Indicators: Are integrated drawing tools and technical indicators available to assist you in your market analysis?
• Educational Resources: Does the broker provide tutorials or support to help you learn and make the most of the platform?
• Customer Support: Is there a customer support team available to assist with any queries or issues you might encounter?
• Third-Party Integrations: Does the platform allow third-party integrations to enhance your trading experience?

Some of the most commonly used trading platforms include:

• MetaTrader 4: This platform is renowned for its charting capabilities, drawing tools, and a rich array of technical analysis indicators, establishing it as the go-to choice for forex traders globally.
• MetaTrader 5: Building upon MT4, this updated version offers more indicators, timeframes, and market options.

Check out our dedicated guides on best MT4 brokers and best MT5 brokers.

• cTrader: Tailored for high-frequency traders and scalpers, cTrader provides a responsive platform for quick decision-making. Read more about best cTrader brokers.
• TradingView: Operating as a browser-based social trading platform, it offers advanced research tools and access to global markets. See our detailed list on the best TradingView brokers.
• In-House Proprietary Software: Some brokers develop their own, unique trading software to cater to the specific needs of their clients.

Throughout my 15 years of trading experience, my preference has always leaned towards brokers offering multi-device accessible platforms. This feature provides the flexibility to access my trading account via desktop, laptop, or mobile devices as needed.

Additionally, it’s worth noting that many brokers offer demo trading accounts, which is an excellent way to test different platforms across various devices and identify the one that suits you best. You can also check out our dedicated guide on best forex trading platforms.

What to avoid when choosing a forex broker in the Netherlands?

Here are some things to avoid when choosing a forex broker in the Netherlands:

• Unregulated Brokerages. Unregulated brokers are not bound by stringent financial regulations, leaving you with no legal recourse to recover your funds if they engage in fraudulent activities.
• Lack of Transparency. When a broker fails to clearly disclose its regulatory status and trading fees, it raises a significant warning sign. Reputable brokers aim for transparency, ensuring you are well informed about their competitive trading costs and regulatory compliance.
• No Physical Presence. Brokers lacking physical offices in established regions or live customer support should be approached with caution. A lack of tangible presence may indicate a lack of safety and reliability.
• Unrealistic Profit Guarantees. Brokers that promise substantial profits are not being honest and are likely unregulated. These brokers should be avoided at all costs.

How to avoid forex and CFD scams?

Unfortunately, there are many forex and CFD scams targeting traders in the Netherlands. To safeguard yourself, consider these guidelines:

• Trade exclusively with a regulated broker and verify their license through the official regulator’s website.
• Conduct a reputation check by researching the broker online and reviewing relevant news articles.
• Ensure the broker maintains a physical office in a reputable region and has a responsive live customer support team.
• Use only payment methods you are familiar with, and exercise caution when dealing with unfamiliar ones.
• Carefully read the terms and conditions to understand the legal commitments you’re making.

And if you are still uncertain, you can always check out our database of reviews to find the most reliable brokers.

Our Methodology

We evaluate brokers using a proprietary rating system that involves analyzing 250 data points across nine core categories, which include:

• Trustworthiness: We check the authorization and licenses for each broker with the regulator of the country they operate in.
• Fees: We test the broker’s trading fees by comparing them to the industry average by opening live trading accounts and witnessing them first-hand.
• Trading platform and tools: We trade on the broker’s trading platforms to identify the features they provide and test how user-friendly they are.
• Tradable instruments: We explore the number of tradable instruments to ensure there is a diverse range of instruments and asset classes available.
• Customer support: We interact with the customer support team to test the ease of access, knowledge, and helpfulness.
• Payment methods: We assess the different deposit and withdrawal methods to identify their fees and processing times.
• Account types: We explore all of the features and benefits of each account type, including execution method, minimum deposits, and more.
• Research and education: We assess the quality of the broker’s research and educational materials.

We abide by our strict guidelines for editorial integrity based on the objective standards we have set for our reviews. You can read more about our review process here.

For this guide, we verified that each broker accepts traders from the Netherlands and operates under entities compliant with the Dutch AFM’s regulatory standards, aligned with ESMA’s MiFID II Directive. We also looked for localized features, including websites and customer support in Dutch, as well as physical offices in the Netherlands. Additionally, we confirmed that each broker allows deposits and withdrawals in euros for traders in the region.

Meet Our Writers

The team of forex and CFD writers and editors at FX Empire is composed of trading industry professionals and seasoned financial journalists. Our writers have been published on leading financial websites such as Investopedia and Forbes. In addition, they all have extensive trading experience.

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