Several online brokers have offices in the Netherlands, and many foreign brokers open accounts for traders who reside in the country. As part of the European Union (EU), the Netherlands has a strict regulatory environment. Always ensure that any broker you choose is well-regulated by its local financial authority. Keep in mind that not all forex brokerages are created equal, so make sure to carefully consider your needs as a trader and ensure they are met before making a margin deposit to open a live forex trading account.
Quick Look: Best Forex Brokers in the Netherlands
- Best Overall: FOREX.com – Open an account
- eToro – Open an account
- easyMarkets – Open an account
Trading Forex in the Netherlands
The Dutch national currency is the European Union’s euro (EUR), which is divided into 100 smaller denominations known as cents. According to the Bank of International Settlements (BIS), the euro was the second most-traded currency in 2016 and made up roughly 31.4 percent of overall forex market turnover in that year.
The EUR also ranked second among the world’s most popular currencies held as central bank reserves, amounting to roughly 19% of total reserves in 2018’s third quarter, according to the International Monetary Fund (IMF). With respect to Dutch financial sector regulation, the Netherlands Authority for the Financial Markets (AFM) is the financial services regulatory authority for the Netherlands.
Its role is comparable to that of the SEC in the United States. The regulator aims to protect investors and traders by ensuring that Dutch financial markets operate smoothly and remain accessible, as well as promote investor confidence. Financial institutions need to be authorized by AFM before operating in Holland, and its regulatory authority includes overseeing online forex brokers based in the Netherlands.
When it comes to forex trading, there are several reputable forex brokers based in the EU to choose from, although Dutch residents can easily deposit money and trade forex via accounts held with foreign brokers regulated in other strict jurisdictions like the United States.
Remember that any legitimate foreign forex broker will generally submit to regulation in the country where your primary operations are situated, so be sure to choose a reputable broker overseen by a reasonably strict regulatory organization.
What to Look for in a Dutch Forex Broker
No matter whether an online forex broker is based in the EU or elsewhere, the best online brokerage options will typically have the following characteristics:
- Regulated in a strict jurisdiction
- Solid client reputation
- Allows you to open an account of the type you want
- Requires an affordable minimum deposit
- Has a high enough maximum leverage ratio for your trading strategy
- Has competitive dealing prices
- Provides protection against negative balances
- Keeps order slippage to a minimum
- Maintains client funds separate from its own money
- Has withdrawal and deposit methods that suit you
Another important thing to keep in mind when choosing a suitable online forex broker involves well-supported trading software. Many online brokers have their own proprietary trading platforms clients can use and at the same time provide market access via popular third-party trading platforms such as NinjaTrader, cTrader and MetaTrader 4 and 5 from MetaQuotes.
The Best Forex Brokers in the Netherlands
If you’re seeking a reliable online forex broker, select from among the well-regulated brokers listed below. This selection mainly includes online brokers with offices in the EU (mainly in the U.K. and Cyprus) like FXTM, FXCM, IG and FXPro.
The list also includes FOREX.com, a well-regulated broker based in the United States. If an online broker has established an office in the EU and is regulated under the MiFID’s rules, it tends to act more responsibly since local legal action can be taken against them if necessary. Litigating outside the EU can be challenging and will likely cost you extra money and time if serious problems with your broker ever arise. All of these legitimate online brokers already have English language websites and customer service staff.
If you prefer to use Dutch rather than English, then you will most likely want to choose a broker with a website translated into Dutch as well as a customer service desk with staff members who speak the language. Selecting the best forex broker for your online trading needs will depend on your unique situation, so check out the options each broker offers to find your best fit. Here’s a quick list of some of the top online forex brokers if you’re from the Netherlands:
Best Overall: FOREX.com
FOREX.com is the top U.S. forex broker with respect to client assets. While it may not be regulated by the AFM, it is instead strictly regulated by the NFA and CFTC in the United States, in addition to regulators in the U.K., Canada, Australia, Japan, Hong Kong, Singapore, and the Cayman Islands.
You can fund a trading account at FOREX.com with only $250, and the broker lets you trade micro lot if you prefer to start with smaller trading amounts. The broker also segregates client accounts from its own funds and has an Islamic account option.
The company offers several desktop, web-based and mobile trading platforms, including NinjaTrader and the ever-popular MetaTrader 4 and 5 platforms from MetaQuotes. Clients can also use its proprietary Advanced Trading Platform for desktop computers and its Web Trading platform if you prefer to trade via a web browser.
When it comes to leverage, FOREX.com has a somewhat low maximum leverage ratio of only 50:1 available to clients trading currencies. You can visit the broker’s official website for more information at FOREX.com.
eToro is a social trading platform who has provided forex products and more to retail clients for over 10 years. With 10 million worldwide account holders, eToro allows users to be a part of the trading community around them.
eToro has many features, with their most popular ones for forex trading being CopyTrader, CopyPortfolios, and the Social News Feed.
With the Social News Feed, you get access to a Twitter-esque feed to trader updates. Traders discuss the markets, their strategies, and are able to get alerts based on certain market factors.
With CopyTrader and CopyPortfolio, you can locate a successful trader and copy their strategy. With the ability to copy up to 100 traders, this feature is easy to set up and access.
easyMarkets allows traders to invest in forex with MetaTrader 4, and they offer traders the unique features of Freeze Rate, Insider Viewer, DealCancellation, and easyTrade.
With Freeze Rate, traders can stop, or freeze, live rates. They can do this for a moment to open and close trades. Insider Viewer is an indicator that allows you to see what other traders are doing.
Traders undo certain losing trades within 60 minutes with DealCancellation. easyTrade lets you set your minimum trading risk that will never be surpassed.
With easyMarkets, there is no commission on trades but there is fixed dealing on spreads.
FXCM is a well-established forex broker with offices in the U.K., South Africa and Australia that submits to regulation under the U.K.’s FCA, South Africa’s FSCA and Australia’s ASIC.
You can open up a trading account at FXCM with only $50 and the broker lets you trade in micro lots if you prefer to start small. FXCM also keeps client accounts segregated from its own funds.
FXCM’s supports currency trading through MetaTrader 4, Trading Station and NinjaTrader trading platforms, and it offers a copy trading feature through ZuluTrade’s web platform.
Desktop, mobile and web trading platforms are available to suit just about every need. When it comes to leverage, FXCM Australia lets clients use much greater leverage than FXCM U.K., with up to 400:1 leverage available on forex trades.
You can visit the broker’s official website for more information at FXCM.com.
IG is an online broker that buys and sells contracts for difference (CFDs). Based in London, England, IG submits to regulation by the U.K.’s FCA and other regulators.
Micro lot trading is not allowed at IG if you need that feature. You can also select an account type with limited risk to avoid placing more than your initial margin deposit at risk. IG’s minimum deposit can also be quite high, depending on which branch you open your account.
You will also need to fund your account with enough margin for your initial trade.
The trading platforms supported by IG include MetaTrader 4 as well as the broker’s proprietary IG and web-based ProRealTime platforms. It also offers a direct market access (DMA) platform called L2 Dealer.
This broker offers desktop, mobile desktop and web platforms. Regarding leverage ratios, IG offers a moderate leverage ratio of 200:1 if you want to trade currency pairs.
You can also trade CFDs on shares, indices and commodities. Visit the official website for the broker at IG.com.
FXPro offers a pure NDD brokering service. Based in Cyprus, the U.K., the UAE and South Africa, FXPro submits to regulation under CySEC, as well as the FCA, DFSA and FSCA.
The broker also offers negative balance protection for your peace of mind. You can open an account with FXPro for as little as $100. The broker also lets you trade micro lots and open Islamic accounts.
FXPro supports trading platforms that include cTrader and the popular MetaTrader 4 and 5, in addition to its proprietary FxPro Markets platform. The broker makes desktop, mobile and web-based platforms available to clients.
FXPro also offers a decent amount of leverage: up to 500:1 on up to 100 open lots when you trade currency pairs.
If you have larger open lot sizes, then lower leverage ratios apply. Visit the broker’s official website at FxPro.com to learn more.
XM is an online broker with offices in Cyprus, the U.K. and Australia. It submits to regulation under CySEC, the FSA and ASIC. The broker offers negative balance protection and segregates its clients’ accounts from its own.
XM lets you trade a variety of assets besides currency pairs, including energy commodities, precious metals and stocks via its supported trading platforms. These platforms include MetaTrader 4 and 5 from MetaQuotes that offer desktop, mobile and web-based trading options.
The broker also lets you use MT4 MultiTerminal to manage several accounts simultaneously from the same trading interface. The maximum leverage ratio at XM is rather high, at up to 500:1 when trading currency pairs.
Trading accounts can be opened with as little as $5, and you can trade micro lots and open an Islamic account. Visit the broker’s official website at XM.com for more information.
If you live in the Netherlands, choose a well-regulated broker that keeps client accounts segregated from its own accounts and places them on deposit with a top tier bank. Regulation by an EU-based financial oversight authority is also highly recommended, while the NFA and CFTC also offer strict regulation. The safety of your margin deposit is another very important factor to remember when choosing a forex broker. Also, be sure that any trading profits you earn can be easily and promptly withdrawn upon request. Take some time to research the broker’s client reputation ratings thoroughly and watch out for warning signs, such as a significant number of account holders who report unresolved issues when they try to withdraw earnings from the broker.