The economy and financial market of the Netherlands: general information
The Netherlands is a highly industrialized country (one of the top ten industrialized Western countries) with intensive agriculture. In recent years, the gross domestic product has exceeded €680 billion, providing an above-average per capita income in the European Union. Although the population of the Netherlands is only 4.5% of the total population of the EU, the share of the gross domestic product of this country accounts for 5.1% of the total GDP of the European Union. At present, in terms of contribution to GDP, the sectoral structure of the Dutch economy is as follows: the service sector – 70.2%, industry – 28.0%, agriculture – 1.8%.
The largest group in the structure of production in the Netherlands is formed by enterprises producing food products, drinks, and tobacco products, they account for more than 28% of the total industrial turnover of the country, and 22% of the turnover is provided by chemical and petrochemical companies. The share of electrotechnical enterprises is 10%. Approximately 6% each falls on metallurgy, metalworking, the branches of transport engineering (production of aircraft, cars, ships), and the printing industry. The share of high-tech industries is 12.3% of the total industrial output.
Also, the economy of the Netherlands is characterized by highly productive agricultural production. About 11% of the national income is produced in this sector. The largest branch of agriculture is vegetable growing and horticulture.
Another important component of the Dutch economy is the service sector, which employs over three-quarters of the working population. The leading sectors are transport and communications, banking and insurance. Computerization, maintenance, settlement operations, marketing, trade, etc. also occupy a significant place.
The capital of the country is home to the Amsterdam Stock Exchange. It was founded in the early 17th century, making it one of the oldest stock exchanges in the world. In autumn 2000, it teamed up with the stock exchanges of Paris and Brussels to create Euronext, the largest cash market on the Old Continent. The Netherlands is also known for its healthy and well-regulated foreign exchange trading. Its main trading partners are other stable economies such as Germany, the US, the UK, France, and Belgium.
As for the currency, the country abandoned the Dutch guilder in exchange for the euro in 2002. This opened up huge trading opportunities for investors and Forex traders. As a result, the Forex sector in the Netherlands is thriving and many international brokers are happy to serve Dutch traders.
Forex market and regulations in the Netherlands
There are 1.5 million traders in Europe, of which more than 60 thousand are located in the Netherlands, making this country seventh on the list of European traders in terms of the number of people. Trading in the Netherlands is becoming increasingly popular as anyone with a stable internet connection can access the global financial markets and start earning.
The Netherlands has one of the most developed infrastructures for Forex trading in the world: local traders have a fairly large selection of brokers. Some of them are based in Sweden and licensed by the local regulatory authority AFM, the regulator that was formed in 2002 and is state-owned and reports directly to the Ministry of Finance. Moreover, Dutch traders can freely open accounts with international Forex brokers that have reputable licenses from top regulators such as FCA, CySEC, IIROC, ASIC, MAS, or FSA. In some cases, these international brokers under these jurisdictions have more favorable conditions for traders with smaller deposits.
If you are new to trading, then there is an amazing tool for you like Social Trading. It is one of the easiest ways to take advantage of the expertise of other traders. Even those who do not understand how the financial markets work can make money by simply automatically copying professionals.
In our article, we list not only trusted brokers with millions of clients both around the world and in the Netherlands in particular but brokers with Copy trading tools and many other benefits.
Popular online trading instruments in the Netherlands
The Netherlands has a developed and fairly stable economy. Advanced technology, high-speed internet, and an educated population are the factors that make Forex trading a particularly popular method of making money in the country. In turn, the government of the Netherlands provides an opportunity for international brokers to legally conduct their activities and accept clients, providing a huge selection of financial instruments. Let’s take a closer look at the most popular of them:
Currency pairs trading in the Netherlands
The Netherlands is located in the EU zone. Since 2002, the euro currency has been in force in the Dutch territories. When it comes to currency pairs trading, the best brokers in the Dutch market provide local traders with a huge selection of Forex currency pairs, in some cases more than fifty. Traders can choose from major currencies such as EUR/USD, GBP/USD, and USD/JPY, which tend to have the lowest spreads, not to mention that they have a wealth of information that can help you make informed decisions. In addition to major currency pairs, traders in the Netherlands also have access to dozens of major and minor combinations as well. If you want to try trading with different pairs, we have provided you with reliable brokers with the best conditions.
XM Group is popular with traders both around the world and in the Netherlands as it is authorized by the Netherlands Financial Markets Authority (AFM), the Finnish Financial Supervisory Authority (FIN), and the German Federal Financial Review Office (BaFin). The broker is also licensed by such reputable regulators as ASIC, CySEC, IFSC, and DFSA, which indicates its reliability.
XM offers over 50 currency pairs that include Majors, Minors, and Exotics to choose from. In addition to currency pairs, the broker allows you to trade more than 1000 trading instruments including CFDs, commodities, indices, precious metals, energies, and stocks on four types of accounts with negative balance protection, good leverage, and tight spreads: Micro, Standard, XM Ultra Low, Shares. Besides, there is a special one – a demo account where traders can practice their skills and knowledge.
The broker provides users with not only convenient web platforms but also a universal XM mobile app. All it takes is to download the app and go into deals.
Commodities trading in the Netherlands
The Netherlands has reserves of such minerals as oil, gas, coal, peat, kaolin, etc. In particular, oil and gas production plays an important role in the Dutch economy. The country is the third producer of natural gas in Europe. In addition, the Netherlands is known for the supply of its agricultural products. Trading in commodities provides anyone who monitors the price fluctuations of this financial asset with another opportunity to earn.
One option for commodity trading is the direct purchase of raw materials. However, this method includes different costs for the purchase, transportation, storage of goods, and the search for a new buyer. Another common way to trade is to buy and sell futures contracts on an exchange. You will be able to trade commodities without the need to receive or deliver any goods. Forex provides all the opportunities for you.
HF Markets is an international reliable broker that offers a variety of trading instruments, including currency pairs, metals, deposits, stocks, Cryptocurrency, and many others. In particular, HF Markets provides low transaction costs and flexible leverage on Forex Gold trading. You can find more information about this trading instrument in our article.
The broker officially works and accepts clients from the Netherlands, as it is regulated by such bodies as CySEC (Europe), FCA (UK), FSCA (South Africa), DIFC (Dubai), and SFSA (Seychelles).
For your convenience, you can use the mobile app in conjunction with the HF MT4/MT5 desktop and web platforms. This will allow you as a trader to keep abreast of global financial events and will make your trading convenient and accessible from anywhere.
Another nice part to mention both for new and experienced traders is that HF markets created an HFcopy – Copy Trading feature where anyone can join as a follower or as a pro trading strategy provider.
Stocks trading in the Netherlands
The Dutch stock market has long attracted traders from all over the world due to the country’s political and economic stability, transparent legal system, low taxes, and efficient capital markets. Euronext Amsterdam (EURONEXTAMS) is the stock exchange in the Netherlands that was founded in 1602 and is considered the oldest in the world. Listed shares include well-known and actively traded companies such as AkzoNobel, ING group, Philips, Royal Dutch Shell, and Unilever.
For traders who want to buy and sell stocks in the Netherlands, there are two options: buy stocks directly or through a broker. Buying stocks through a broker is the preferred option for traders who want their investments to be managed by experts. For your convenience, we’ve listed only trusted brokers, with convenient platforms, 24/7 support, and minimal commissions.
NAGA Markets is one of the top-rated brokers that provides access to different asset classes for trading: stocks, Forex, ETFs, futures, commodities, and metals. Several options for trading platforms are offered for trading: MetaTrader of both versions (4 and 5), and the original platform NAGA Webtrader. All platforms support mobile versions.
NAGA is also a social investing network where clients of all experience levels can trade, share and copy investments on over 950+ trading instruments. The broker has very competitive trading conditions including tight spreads, low commissions, rapid trade execution speeds, and a variety of flexible account funding options.
The broker aims to make trading simple and accessible for everyone. To make investment services available to clients in different jurisdictions, NAGA complies with multiple authoritative regulations around the world such as FCA, CySEC, MiFID II, and MiFIR.
Indices trading in the Netherlands
The main stock index of the Netherlands appeared on January 3, 1983. At the start, it was called the European Options Exchange Index, and it received its modern name AEX only in 1994. Including only 25 companies, the AEX index almost completely represents the industrial sector, among the participants is one banking structure and two insurance ones. But companies of industrial goods and services, as well as food products, have a great influence. A small share is held by IT, the media, and the oil and gas sector.
Being a classic stock index, AEX will be convenient for traders working with the real sector of the economy. With the right strategy, you can earn long and successful money on the Dutch stock index.
Plus500 has many indexes to choose from in particular Amsterdam Exchange (AEX) and many others. In addition to CFDs on indices, the broker has a wide range of other CFDs including currency pairs, commodities, and stocks.
Today, Plus500 is one of the most trusted brokers in the world. It is regulated by the FCA, as well as by many international regulators, including CySEC, ASIC, and MAS.
Plus500 provides its clients with state-of-the-art trading platforms. Users can choose a web-based platform. But the Plus500 trading platforms are not only available in a web browser. Traders who want to trade from their smartphones or other mobile devices can use the mobile app. The Plus500 platform is available on Android, iOS, and Windows.
If you are still new to CFD trading and are worried about possible losses, Plus500 has a demo account for you. This is one of the Plus500 account types that can really help you take your trading skills to the next level before opening a Live Plus500 account.
CFDs trading in the Netherlands
Another popular financial instrument among Dutch traders is CFDs. Contracts for difference can be used to trade many assets and securities, including exchange-traded funds (ETFs). When trading CFDs, you aren’t actually buying the underlying asset itself, but instead dealing with the buying and selling prices of a given financial instrument in order to profit from the price difference. One of the most popular in the Netherlands of course is CFD on the AEX 25 Index.
OANDA has in its arsenal many financial instruments such as currency pairs, commodities, CFDs, Cryptos, and stock indices. The broker gives access to two types of trading platforms: fxTrode (Oanda’s personal development) and MetaTrader 4. Both of these platforms are available in three types: desktop, mobile, and Web.
The main regulator of the broker is the UK organization – the Financial Conduct Authority (FCA). Besides, brokers hold licenses by such authoritative regulations around the world as FSA, ASIC, and IIROC.
Globally, OANDA offers three account types: demo, Standard, and Advanced Trader, which makes the broker a fine fit for both new and seasoned trades. Moreover, it requires no minimum deposit to open an account with OANDA.
Cryptocurrency trading in the Netherlands
The Netherlands is not just a bitcoin-friendly state, it even has its own “bitcoin city” – Arnhem, where you can pay for almost everything with Cryptocurrency, including housing, gas, bicycles, and even dentist services. Even so, as in most other European countries, the Netherlands has not yet built a clear legislative framework for Сryptocurrencies, and there is no law regulating its purchase and sale, which in turn allows Crypto trading.
The Court of the Netherlands ruled that Сryptocurrencies should not be considered as money, but as “means of exchange”. As a medium of exchange, Сrypto is not subject to the Financial Supervision Act that regulates the supervision of almost the entire financial sector in the Netherlands. Companies engaged in this activity do not pay corporate tax on turnover. Although from a tax point of view, Сryptocurrency is under the category of ‘asset’ and under Dutch law falls into Box 3 when declaring personal income.
Almost all brokers licensed to operate in the Netherlands have the opportunity to trade Cryptocurrencies. As a rule, brokerage companies provide an opportunity to trade different coins such as BCH, XRP, BTC, XTZ, EOS, OMG, ADA, TRON TRX, etc.
AvaTrade gives you the opportunity to trade one of the most popular Cryptocurrencies 24 hours a day, having the ability to open long or short positions. It has such a range of Crypto as Bitcoin, Bitcoin Cash, Ethereum, Ripple, Dash, Litecoin, Bitcoin Gold, and EOS. In addition to Crypto, 1250 instruments are available to clients: stocks, securities, indices, commodities, currency pairs, and CFDs.
The broker is widely recognized around the world and has established itself as a reliable broker with several regulatory licenses, including ASIC, FSA, Abu Dhabi, and British Virgin Islands regulators.
AvaTrade has several platforms, both automated and manual. The broker offers its own solution, and several third-party Copy trading platforms including ZuluTrade, DupliTrade as well as MetaTrader 4 (MT4) (and in some places MT5). In addition to web platforms with AvaTrade, you can also use a mobile app.
eToro is another broker that offers many Cryptocurrencies as well a wide range of assets for trading: stocks, indices, and commodities. In terms of regulatory oversight, eToro is licensed by the FCA, ASIC, and CySEC. In over 15 years that the eToro broker has been on the market, it has managed to establish itself in the online trading community as one of the most respected brokers in the industry.
The broker is the perfect choice for passive traders and for those who do not want to check the market 24/7. The platform allows you to trade independently or copy the trades of other participants with the Copy Trading tool.
The mobile app is supported by iOS and Android operating systems and provides full-fledged work, combining the possibilities of digital technologies, social communication, and trading.
Top Forex brokers in the Netherlands
There are quite a lot of Forex brokers in the Netherlands. However, as a trader, you should only be interested in the best conditions. In order to make the most correct choice of a broker for trading in the financial market, you need to analyze all the factors in the complex, since each of them matters: its reputation among traders, safety and reliability, lifespan, rules, convenience of payment systems, the trading platform used, etc. A good broker will have a license of the highest category, convenient platforms, a minimum of commissions, and a wide range of financial instruments for their clients.
Considering all the criteria, we have prepared for you a list of brokers offering the best conditions and security in the Netherlands:
Plus500 in the Netherlands
Plus500 is one of the popular CFD brokers in the Netherlands. The company provides a huge number of CFDs for different trading assets, including currency pairs, indices, commodities, Cryptocurrencies (availability subject to regulations), stocks, options, and ETFs.
On an unlimited trading demo account, beginner traders can work out their strategies, try unfamiliar instruments, and practice before advancing to the next level. Professional traders can also benefit from this by using the demo to practice new strategies.
The company has been able to build a reputation as a reliable broker that is worthy of the trust of its clients. It is controlled by ASIC, FCA, CySEC, MAS, and other global reputable global regulators.
Plus500 provides its customers with a web terminal for PCs and laptops, as well as a convenient mobile app for Android and iOS to stay up to date 24/7.
OANDA in the Netherlands
OANDA is a well-known broker for traders all over the world. The broker offers trading in over 100 instruments including currency pairs, Cryptos, indices, commodities, bonds, and metals. There are 9 base currencies available in the company: EUR, GBP, CHF, USD, CAD, AUD, JPY, HKD, and SGD.
Oanda is one of the most trusted forex brokers. It has licenses to operate in several countries, in addition, it is a member of the following regulators: IIROC, FCA, and ASIC.
Globally, OANDA offers three account types: demo, Standard, and Advanced Trader, which makes the broker a fine fit for both new and seasoned trades. Besides, the broker invites traders to test their professionalism in practice by using a demo account with an unlimited amount of virtual funds on the balance and with an unlimited period of their use.
NAGA Markets in the Netherlands
Naga Markets is a fully licensed and regulated broker with over 950 trading instruments and assets. Its clients can trade commodities, Crypto assets, and Forex, and make deals on the markets of futures, precious metals, ETFs, and indices. There is also available CFD trading.
Brokers provide users trading with minimal risk, even if they are new to trading. NAGA has made this possible with a special automatic Copying feature. NAGA AutoCopy is an innovative tool that allows you to automatically follow the top traders on the platform and learn from their experiences.
eToro in the Netherlands
eToro is one of the most well-known and fast-growing brokerage firms with over 20 million investors worldwide. The reliability of the broker is based on the fact that eToro is licensed by reputable regulators such as the FCA, ASIC, and CySEC.
The broker provides some of the most attractive market conditions: low Forex fees, minimum deposits, trading, and non-trading fees. Also, it has a very convenient CopyTrader feature, which is perfect for beginners, since you can follow professional traders’ strategies.
HF Markets in the Netherlands
HF Markets is a well-known forex broker whose services are used by traders from all over the world. The broker offers to trade currency pairs, precious metals, indices, stocks, Cryptocurrencies, and CFDs. Traders can choose a trading account with the conditions they need. The broker offers both classic trading accounts, as well as accounts with premium trading conditions for demanding traders.
As far as regulation is concerned, the broker is controlled by the Financial Services Commission (FSC), with some of the best conditions in commodity trading. Another important tool to mention is the CopyTrading function, which makes it possible to copy the trades of several traders at the same time.
Forex broker HF markets provide its users with a fairly wide range of various trading platforms. You have the option to choose MT4, MetaTrader 4 Web Terminal, or dedicated mobile trading apps for Apple and iOS devices. As a result, you will be able to work and open deals anytime, anywhere.
XM Group in the Netherlands
XM Group is a popular Forex broker in the Netherlands with over 1000 trading instruments: more than 55 currency pairs, including cross rates, metals (including palladium and platinum), commodities (cocoa, cotton, grain), and stocks; which can be traded on the MT4/MT5 platforms. The broker also offers a convenient mobile application where you can trade on international markets with a single login on a demo or live account. In the application, users of the MT5 platform can manage their trading accounts and trade all the instruments offered by XM.
The broker has no fees for deposits and withdrawals. All commission costs of payment systems XM Group takes over. Clients can choose the most profitable trading account on unique terms with negative balance protection, good leverage, and tight spreads: Micro, Standard, XM Ultra Low, and Shares.
Broker has received international recognition and the trust of millions of users, having obtained licenses from such regulators as ASIC, CySEC, IFSC, and DFSA.
AvaTrade in the Netherlands
AvaTrade has in its arsenal many trading instruments such as Forex, Cryptocurrencies, CFDs on stocks, commodities, indices, metals, and securities and provides the best conditions with large leverage and low spreads.
This broker can be classified as international, as its representative offices serving more than 50 thousand clients are located all over the world. Broker is regulated by six financial authorities, including ASIC, FCA, and CySEC.
In addition to web platforms with AvaTrade, you can also use a mobile app. If you want to have access to more than 1250 assets, and 24/7 multilingual support all over the globe, then AvaTrade may be your choice.
By registering and verifying an account with several of the top brokers in the Netherlands, you can not only compare different trading platforms to find the most suitable one but also maximize the Forex bonuses you receive. This will allow you to test many trading strategies and set the way to becoming a true professional trader.
Top Forex brokers in the Netherlands - FAQ