Netherlands Authority for the Financial Markets (AFM)
The Netherlands Authority for the Financial Markets (AFM) is the financial regulatory body of the Netherlands, responsible for supervising the conduct of financial institutions, investment firms, and forex brokers. Operating under the European Securities and Markets Authority (ESMA), AFM ensures transparency, fairness, and integrity across the Dutch financial markets.
The Netherlands Authority for the Financial Markets (AFM) ensures a secure trading environment by enforcing strict compliance with ESMA regulations. Choosing an AFM-regulated forex broker gives retail traders access to strong investor protections, transparent oversight, and legal support within the European regulatory system.
- 30:1 for major currency pairs
- 20:1 for non-major currency pairs, gold, and major indices
- 10:1 for commodities (excluding gold) and minor indices
- 5:1 for individual equities
- 2:1 for cryptocurrencies
- Supervises forex brokers and investment firms offering services in the Netherlands
- Enforces ESMA guidelines on leverage, investor protection, and marketing
- Issues warnings against unauthorized entities
- Promotes financial education and consumer protection
- Visit the AFM Public Register
- Search for the broker by name or license number
- Confirm the firm's status and permitted services
- Minimum Capital Requirements: As per MiFID II (€730,000 minimum for investment firms)
- Negative Balance Protection: Must be provided to all retail clients
- Client Fund Segregation: Required to ensure client asset safety
- Leverage & Margin Rules: In full compliance with ESMA standards
- Ban on Bonuses: Promotional incentives are not allowed
- Risk Warnings: Standardized disclosures of loss risk must be published
Advantages
- Strong oversight and alignment with ESMA protections
- Transparent register of authorized firms
- Public alerts on unlicensed brokers
- Protection under Dutch and EU law
Limitations
- Strict leverage and bonus restrictions for retail clients
- Smaller number of authorized brokers due to high compliance standards
- Most regulatory communication primarily in Dutch
Country
The Netherlands
Established
2002
Contact
+31 20 797 2000
Complaint bodies
Netherlands Authority for the Financial Markets (AFM) Kifid (Dutch Financial Services Complaints Institute) for mediation
Hotline
+31 20 797 2000
Complaint email
Last updated on: March 26, 2025
High Risk Warning : Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.