Forex brokers in netherlands
A simple way to learn about a broker is by directly visiting their website. This might present some trouble, however, given that some of the brokers operate as a scam and might even swindle you of your money. You will not only enjoy safety but also convenience while browsing our website. For a firm to offer investment services or perform any investment activities, it must first be licensed by AFM or DNB. Some of its roles include;. All Forex brokers in the Netherlands are known as investment firms. Only the firms which have acquired the license from the AFM are allowed to offer investment services within the country.
The law of the land states that all the foreign FX brokers that seek to offer investment services here must first establish local branches before getting a practicing license for the said branch. The AFM regulatory body is not very accommodative of binary options. However, it is okay to welcome Forex trading firms which abide by the rules.
AFM Forex Brokers
In order to ensure that the brokers are in full compliance with the law, AFM demands that brokers send regular reports regarding their trading volumes and all the trading data that they have collected from their clients. All Dutch regulated Forex brokers are demanded under the law to abide by the rules and the regulations concerning their business. The breaking of these rules can lead to the imposition of withdrawal of a license, sanctions, public warnings, and cancellation of registration, fines or even criminal prosecution.
They are even addressed as such in all documentation coming from the AFM. At a closer glance, you will realize that the Forex regulation in the Netherlands is designed such that homegrown brokers should grow. But still, some of the largest Forex brokers in the Netherlands come from outside. In addition to that, an FX broker looking forward to being licensed in the Netherlands must ensure that they are very specific in their application.
This is because AFM does not give broad-based licenses. In , The Netherlands abandoned the guilder to embrace the Euro. This currency has been adopted by all the EU countries.
It is one of the most used currencies in the world today. This is according to the Bank for International Settlements in a report released in Of course, the USD remained the main currency on all trades. The Euro still remains the second most traded currency to-date.
Is Forex Trading Legal in Netherlands?
Many of the African countries peg their countries to it. Any currency which is paired with the EUR increases its chance of liquidity.
However, it is the most liquid pair and speculative traders love it a lot. Scammers are all over. They are looking for an opportunity to snatch what you have. This situation became so perilous in the Netherlands to an extent that AFM imposed some ban on FX trading as well as binary trading in The ban was not at all surprising given how strict AFM is. According to AFM, some brokers, or a big number of them, were misrepresenting the facts hence making the public make decisions based on wrong information. AFM stated that FX trading and binary trading is very risky and brokers should explicitly tell the public as much.
The regulatory body went ahead and banned any advertisement of FX or binary options.
In other countries such as Belgium Binary options and FX trading have been banned totality. If you are a resident of the Netherlands, you should feel quite safe especially when it comes to you avoiding the Netherlands Forex scams.
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