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Netherlands Authority for the Financial Markets (AFM) Brokers 2025

Written By

Christian Harris

Written By

Christian Harris

Christian is an active trader with over 5 years of experience across stocks, futures, forex, and crypto. A former tech journalist, he shifted to finance to pursue his passion for investing, eventually becoming an eToro Popular Investor. With real-world trading knowledge across multiple asset classes, he brings valuable, hands-on insights to the table.

» 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

Oct 22, 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.

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.