Forex Brokers in Netherlands
One of the original EU members, the Netherlands is home to a vibrant and extremely healthy online Forex trading scene, with quite a few brokers authorized to offer such services to the public. Unlike binary option brokerages, which are sneered at by the Dutch regulatory agency AFM (Autoriteit Financielle Markten), Forex brokers are accepted, provided they abide by the strict set of rules the said agency has instituted.
To begin with, the AFM requires full transparency on the part of the licensed actors, such as Fx brokerages. In this regard, the latter are compelled to send in regular reports to the AFM, concerning their trading volumes as well as the trading data of their clients.
Furthermore, if the operator’s issued capital changes by more than 1% within a quarter, the AFM has to be notified.
Perhaps most importantly though, offshore Forex brokers looking to offer Fx trading services to the Dutch public, need to establish local branches and they need to obtain the required licenses for the said branch before they can get down to business.
Officially, the AFM considers all Fx brokers investment firms, and it treats them as such in all the licensing-linked legal proceedings. For all its requirements, the AFM does not offer brokers broad-based licensing. It has special codes in place in regards to the exact type of activity the licensed entities shall be performing, and the issued licenses shall cover only one specific type of activity.