Best AFM (Netherlands) Regulated Forex Brokers 2018

If you are a forex trader based in the Netherlands then you should work with an AFM regulated broker. It is a strict financial regulator which doesn’t let any shady brokers slip through its net. So which are the best AFM brokers? Take a look at our definitive list.

List of Brokers

BROKERUSER RATINGREGULATED BYHEADQUARTERSMIN. DEPOSITOFFICIAL SITE
Plus500
ASiC, CySEC, FCAIsrael$100Open Account
CFD Service, Your capital is at risk
AvaTrade
ASiC, BVI, FSA(JP), FSB, MiFIDIreland$100Open Account
Your capital is at risk
eToro
CySEC, FCACyprus$50Open Account
Your capital is at risk
Markets.com
CySEC, FSBCyprus$100Open Account
Your capital is at risk
FXCM
BaFin, FCAUnited Kingdom$50Open Account
Your capital is at risk

Introduction to AFM Regulation

AFM stands for The Authority for Financial Markets. It was created in 2002 when it took control of all the responsibilities of its predecessor, the Securities Board of the Netherlands. However, this new legal body gained far more responsibilities than just regulating securities market. It now supervises all the sectors of financial markets including: savings, investments, insurance and loans. The purpose of the agency is to make sure these markets operate smoothly and companies offering their services compete fairly. Despite the fact that it is an independent financial body, it still operates under the authority of the Ministry of Finance of Netherlands. AFM is also a member of larger financial regulatory institutions in Europe and the World. In Europe, it is a member of the Committee of European Securities Regulators and globally it is a part of the International Organization of Securities Commissions. So, as well as being under the regulation of the Netherlands laws, and the financial directives of EU it also follows the regulatory standards of world financial markets.

AFM Responsibilities

The main responsibility of AFM is to inspect financial markets for any abuse, irregularities, manipulation and inside trading. In finding any breaches of standards of fairness it may impose sanctions and issue fines, give private and public warnings, place its regulated brokers under undisclosed custody, revoke licenses and even start prosecution of companies that carry out illegal activities. The aim of the regulator is to ensure that the final users of financial services get them in a fair and transparent way. That is precisely what it promotes among its regulated financial intermediaries. AFM also monitors all transactions taking place in various local markets to make sure markets are functioning efficiently and competitively. Finally, the regulator puts all efforts to guarantee stability of the entire financial sector.

How AFM Regulation Protects You

AFM protects you by strict supervision of all market participants, constant interaction with its regulated financial institutions, public disclosing of transgressing parties, serious punishments of illegal activities and promotion of fair conduct of all financial entities under its authority. If unhappy with your brokerage service you can write a complaint, that the regulator will investigate thoroughly and if any foul play was used against you, the guilty party will be punished and the damaged caused to you will be repaired.

Guidelines for AFM Regulated Brokers

If a broker wants to offer its services to the Dutch they will have to do a number of things. Firstly, they will have to obtain a license. Secondly, they will have to send regular financial reports about their financial transactions, employees working for them and managerial structure, salaries, clients and etc. It will also have to send them their capital disclosure. Lack of liquidity is a sign of emerging trouble and AFM will not risk market stability by letting some company that has no liquidity to operate in Netherlands. Finally, a broker will have to establish a branch in the country. Offshore investment brokers are not welcome in the country.

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