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Netherlands Authority for the Financial Markets (AFM) Brokers 2024

Written By

Christian Harris

Written By

Christian Harris

Christian is a seasoned journalist with decades of experience. He transitioned from tech journalism to finance to follow his interest in investing. He has been trading stocks, futures, forex, and cryptocurrencies for more than 5 years, becoming an eToro Popular Investor. With hands-on expertise across various assets, he offers valuable trading insights.

» Christian Harris Profile Page

Edited By

James Barra

Edited By

James Barra

James is an investment writer with a background in financial services. As a former management consultant, he has worked on major operational transformation programmes at prominent European banks. James authors, edits and fact-checks content for a series of investing websites.

» James Barra Profile Page

Fact Checked By

Michael MacKenzie

Fact Checked By

Michael MacKenzie

Michael is a writer and editor with over a decade in journalism and publishing. His niche lies in editing and fact-checking content in the financial services sector, with a focus on online brokers and trading platforms. Michael previously reported on politics and economics in the Middle East and edits books for established publishers.

» Michael MacKenzie Profile Page

Updated

Sep 10, 2024

Brokerages under the strict regulation of the Netherlands Authority for the Financial Markets, or Autoriteit Financiële Markten (AFM), operate within a framework of stringent rules.

This authority is designed to protect Dutch investors and ensure the integrity of the financial markets, making AFM-regulated brokers a reliable choice for your day trading activities.

These rules are based on the Financial Supervision Act, or Wet op het financieel toezicht (Wft), and other relevant EU regulations and directives.

The Netherlands AFM is a ‘green tier’ body in line with DayTrading.com’s Regulation & Trust Rating, reflecting its active oversight of online brokers and robust safeguards for traders.

Explore our selection of the top AFM-regulated trading platforms in the Netherlands. We’ve checked that every provider is on the AFM’s Financial Services Register, and is either directly authorized or registered for passporting through the EU’s cross-border scheme.

Best AFM Brokers

After hands-on tests, these 3 Dutch-regulated trading platforms lead the pack:

Click a broker for details

1. 1

   
   Interactive Brokers
   Go To Interactive Brokers

   Interactive Brokers Review

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   Ratings

   Regulation & Trust 4.5 / 5

   Accounts & Banking 3.5 / 5

   Assets & Markets 4.5 / 5

   Fees & Costs 4.3 / 5

   Platforms & Tools 3.3 / 5

   Customer Support 3 / 5

   Research 4.4 / 5

   Education 4.3 / 5

   iOS App 4.3 / 5

   Android App 4.5 / 5

   ---

   Minimum Deposit $0

   Minimum Trade $100

   Leverage 1:50

   Regulator FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA, AFM

   Instruments Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies

   Platforms Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral

   Payment Methods Cheque, ACH Transfer, Wire Transfer, Automated Customer Account Transfer Service, TransferWise, Debit Card

   Account Currencies USD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF

   Go To Interactive Brokers
2. 2

   
   IG
   Go To IG

   IG Review

   Forex trading involves risk. Losses can exceed deposits.

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   Ratings

   Regulation & Trust 4.9 / 5

   Accounts & Banking 4 / 5

   Assets & Markets 4.5 / 5

   Fees & Costs 3.5 / 5

   Platforms & Tools 4.8 / 5

   Customer Support 4.5 / 5

   Research 4.9 / 5

   Education 5 / 5

   iOS App 4.6 / 5

   Android App 4 / 5

   ---

   Minimum Deposit $0

   Minimum Trade 0.01 Lots

   Leverage 1:30 (Retail), 1:250 (Pro)

   Regulator FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOB, AFM

   Instruments CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting

   Platforms Web, ProRealTime, L2 Dealer, MT4, AutoChartist, TradingCentral

   Payment Methods PayPal, Wire Transfer, Mastercard, Credit Card, Visa, Debit Card

   Account Currencies USD, EUR, GBP, CAD, AUD, JPY, ZAR, SEK, DKK, CHF, HKD, SGD

   Go To IG
3. 3

   
   RedMars
   Go To RedMars

   RedMars Review

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   Ratings

   Regulation & Trust 3.3 / 5

   Accounts & Banking 3.5 / 5

   Assets & Markets 3.8 / 5

   Fees & Costs 3.5 / 5

   Platforms & Tools 3.8 / 5

   Customer Support 4 / 5

   Research 2.8 / 5

   Education 3 / 5

   iOS App 4.7 / 5

   Android App 4.6 / 5

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   Minimum Deposit €250

   Minimum Trade 0.01 Lots

   Leverage 1:30 (Retail), 1:500 (Pro)

   Regulator CySEC, AFM

   Instruments CFDs, Forex, Stocks, Indices, Commodities, Cryptos

   Platforms MT5

   Payment Methods Credit Card, Wire Transfer, Debit Card, Sticpay, FasaPay, Bitcoin Payments, Trustly, PayPal, Skrill, Neteller, Klarna, Mastercard, Visa

   Account Currencies USD, EUR

   Go To RedMars

Here is a summary of why we recommend these brokers:

1. Interactive Brokers - Interactive Brokers (IBKR) is a premier brokerage, providing access to 150 markets in 33 countries, along with a suite of comprehensive investment services. With over 40 years of experience, this Nasdaq-listed firm adheres to stringent regulations by the SEC, FCA, CIRO, and SFC, amongst others, and is one of the most trusted brokers for trading around the globe.
2. IG - Founded in 1974, IG is part of IG Group Holdings Plc, a publicly traded (LSE: IGG) brokerage. The brand-US offers spread betting, CFD and forex trading across an almost unrivalled selection of 17,000+ markets, with a range of user-friendly platforms and investing apps. For 50 years, IG has maintained its position as an industry leader, excelling in all key areas for traders.
3. RedMars - Launched in 2020, Cyprus-based RedMars offers competitive spreads on more than 300 instruments and leverage up to 1:500. Three accounts are available - Standard, Pro and VIP - serving a range of budgets and experience levels, with a fast and fully digital account opening process.

AFM Brokers Comparison

AFM Brokers Comparison

Broker	Minimum Deposit	Markets	Platforms	Leverage
	$0	Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies	Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral	1:50
	$0	CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting	Web, ProRealTime, L2 Dealer, MT4, AutoChartist, TradingCentral	1:30 (Retail), 1:250 (Pro)
	€250	CFDs, Forex, Stocks, Indices, Commodities, Cryptos	MT5	1:30 (Retail), 1:500 (Pro)

Interactive Brokers

"Interactive Brokers is one of the best brokers for advanced day traders, providing powerful charting platforms, real-time data, and customizable layouts, notably through the new IBKR Desktop application. Its superb pricing and advanced order options also make it highly attractive for day traders, while its diverse range of equities is still among the best in the industry."

Christian Harris, Reviewer

Interactive Brokers Quick Facts

Demo Account	Yes
Instruments	Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies
Regulator	FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA, AFM
Platforms	Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral
Minimum Deposit	$0
Minimum Trade	$100
Leverage	1:50
Account Currencies	USD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF

Pros

• IBKR continues to deliver unmatched access to global stocks with tens of thousands of equities available from 100+ market centres in 24 countries.
• IBKR is one of the most respected and trusted brokerages and is regulated by top-tier authorities, so you can have confidence in the integrity and security of your trading account.
• The TWS platform has clearly been built for intermediate and advanced traders and comes with over 100 order types and a reliable real-time market data feed that rarely goes offline.

Cons

• IBKR provides a wide range of research tools, but their distribution across trading platforms and the web-based 'Account Management' page lacks consistency, leading to a confusing user experience.
• TWS’s learning curve is steep, and beginners may find it challenging to navigate the platform and understand all the features. Plus500's web platform is much better suited to new traders.
• You can only have one active session per account, so you can’t have your desktop program and mobile app running simultaneously, making for a sometimes frustrating trading experience.

Visit Interactive Brokers

Interactive Brokers Review

IG

"IG continues to provide a comprehensive package with an intuitive web platform and best-in-class education for beginners, plus advanced charting tools, real-time data, and fast execution speeds for experienced day traders."

Christian Harris, Reviewer

IG Quick Facts

Demo Account	Yes
Instruments	CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting
Regulator	FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOB, AFM
Platforms	Web, ProRealTime, L2 Dealer, MT4, AutoChartist, TradingCentral
Minimum Deposit	$0
Minimum Trade	0.01 Lots
Leverage	1:30 (Retail), 1:250 (Pro)
Account Currencies	USD, EUR, GBP, CAD, AUD, JPY, ZAR, SEK, DKK, CHF, HKD, SGD

Pros

• The ProRealTime advanced charting platform is free as long as certain modest monthly trading activity requirements are met
• The IG app offers a superb mobile trading experience with a clean design that helped it secure Runner Up at our Best Trading App award
• IG is amongst the best in terms of its range of instruments, which includes stocks, forex, indices, commodities, and cryptocurrencies, plus recently added US-listed futures and options, providing ample diversification opportunities

Cons

• While there is negative balance protection in the UK and EU, there is no account protection or guaranteed stop losses for US clients
• Stock and CFD spreads still trail the cheapest brokers like CMC Markets based on tests
• Beginners might find IG’s fee structure complex, with various fees for different types of trades or services, potentially leading to confusion or unexpected charges

Visit IG

IG Review

RedMars

"RedMars is the best fit for experienced day traders familiar with the MetaTrader 5 platform and based in the EU, where the broker is authorized by the CySEC. However, the threadbare education and research tools make it unsuitable for beginners."

Christian Harris, Reviewer

RedMars Quick Facts

Demo Account	Yes
Instruments	CFDs, Forex, Stocks, Indices, Commodities, Cryptos
Regulator	CySEC, AFM
Platforms	MT5
Minimum Deposit	€250
Minimum Trade	0.01 Lots
Leverage	1:30 (Retail), 1:500 (Pro)
Account Currencies	USD, EUR

Pros

• The broker is one of a limited number of firms to offer an account specially designed for VIPs with premium support and invites to exclusive events
• Getting started on RedMars is incredibly easy - you can be up and running in just a few minutes based on tests
• RedMars offers one of the best platforms for day trading, MT5, hosting 21 timeframes, dozens of analytical tools, flexible templates and algo trading

Cons

• RedMars falls short for newer traders, with little in the way of education, no beginner-friendly platform, a steep minimum deposit, and inadequate support during testing
• The no-frills trading environment offers little beyond the basics, with no Islamic account, PAMM account or copy trading.
• With just 300 instruments, RedMars offers a narrow trading environment, particularly compared to category leaders like BlackBull Markets which offers 26,000 assets

Visit RedMars

RedMars Review

Methodology

To locate the top brokers that are regulated in the Netherlands, we:

How Can I Check If A Broker Is Regulated By AFM?

Verifying a broker’s AFM regulation is a straightforward process, which we used to assess the credibility of every recommended platform.

You can do it in three simple steps:

1. Head to the AFM’s Register page on its website.
2. Enter the provider’s name in the search bar.
3. Filter the search results if necessary, or click on a company name to view details like full business trading name(s) and AFM registration date(s).

To show you how this works, below you can see where I verified that Admiral Markets is regulated by the AFM.

With it taking just a couple of minutes and a few clicks, I recommend all Dutch traders check any brokerage they are considering is authorized before depositing Euros.

Christian Harris

Author

What Rules Must AFM-Regulated Brokers Follow?

For an online broker to offer financial services in the Netherlands, they must obtain a regulatory licence from the AFM. This is no small feat, as the application process is demanding and requires meticulous preparation, reflecting the high standards of regulation upheld by the AFM.

Alternatively, providers may serve Dutch traders through the EU’s passporting regulations, which allow firms regulated in their home countries to legally offer trading services in the Netherlands.

To secure an AFM licence, a trading platform must meet the following essential requirements:

• Fit & Proper Requirements: The management board and key personnel must meet ‘fit and proper’ criteria, demonstrating the necessary expertise, integrity, and experience to manage the firm effectively.
• Client Protection & Suitability: Brokers must conduct thorough Know Your Customer (KYC) processes to understand the financial situation, investment experience, and risk tolerance of their clients – a vital step due to the significant risks involved in day trading.
• Transparency & Disclosure: Brokers must provide clear, accurate, and timely information to clients about the risks, costs, and features of the financial products they offer.
• Best Execution: Brokers must establish and implement an order execution policy that ensures they achieve the best possible outcome for their clients when executing orders, considering price, costs, speed, likelihood of execution, and other factors.
• Conflicts of Interest: Brokers must identify, manage, and disclose any conflicts of interest that may arise between themselves and their clients. This includes implementing policies and procedures to prevent disputes or to ensure they do not negatively impact clients.
• Segregation of Client Funds: Brokers must segregate client funds from their own operational funds to protect traders’ funds in the event of the broker’s insolvency.
• Compliance & Risk Management: Brokers must have robust internal controls, including compliance, risk management, and internal audit functions, to ensure they operate in accordance with regulatory requirements. Brokers must implement anti-money laundering (AML) and consolidated trade file (CTF) policies, including client identification, monitoring transactions, and reporting suspicious activities.
• Capital Adequacy: Brokers must maintain a minimum level of regulatory capital to ensure they can meet their liabilities and operate on a sound financial basis. The specific capital requirements depend on the broker’s size and the nature of its business.
• Reporting & Record-Keeping: Brokers must submit regular reports to the AFM, including financial statements, capital adequacy reports, and other regulatory filings. Brokers must maintain accurate and comprehensive records of all transactions, communications, and client interactions for a specified period, usually five years.
• Market Conduct Rules: Brokers must avoid practices that could undermine the integrity of the financial markets, such as market manipulation, insider trading, or dissemination of false information. Brokers must ensure that all clients are treated fairly and that they act in the best interest of their traders at all times.
• Advertising & Marketing: Marketing materials and advertisements must be transparent, fair, and not misleading. They must not exaggerate potential returns or downplay the risks associated with the products offered, including leveraged derivatives that are popular with active traders.
• Complaint Handling: Brokers must have a clear, transparent, and efficient process for handling client complaints. They are also required to report unresolved complaints to the AFM.
• Product Governance: Brokers involved in developing financial products must ensure that they are designed to meet the target market’s needs and that their distribution strategies are appropriate.
• Compliance with EU Regulations: Brokers must comply with the Markets in Financial Instruments Directive II (MiFID II), which sets standards for investor protection, transparency, and market integrity across the European Union. Brokers must also comply with the General Data Protection Regulation (GDPR) to protect clients’ personal data.

Brokers who fail to comply with these rules may face enforcement actions from the AFM, including fines, sanctions, or the revocation of their license.

For example, the AFM has imposed fines. A notable example is the €530,000 administrative fine imposed on BinckBank N.V., operating as Saxo Bank, for failing to implement procedures and measures to protect clients.

The first time the AFM used national product intervention measures was to prohibit binary options and restrict the marketing or sales of CFDs.

Bottom Line

We strongly encourage Dutch traders to open accounts with AFM-regulated brokers. This not only ensures the brokerage is trustworthy but also maintains a fair and transparent trading environment, providing you with peace of mind.

You can verify this in just a few minutes on the AMF website. Alternatively, use our list of the best day trading platforms regulated in the Netherlands.

It’s important to remember that online trading remains risky, regardless of the broker’s regulatory status, and you could lose all the money you invest.