Forex Trading Netherlands

When people talk about Forex trading, most of the times they refer to the decentralized worldwide wide market where people exchange currencies at an agreed rate. Currently, this is the largest liquid market globally. Its average trading volume rises to over $5 trillion and it is a no wonder that everybody in the Netherlands wants a piece of the cake too. Other names used to refer to this trade include FX, currency trading and foreign exchange and many other names depending on your location. In this article, we are going to focus more on foreign exchange in the the Netherlands. We will look at some of the benefits that come with this trade, the regulations set by the government and the success stories of people who have achieved more from this trade in the country.

Why do the Dutch Involve In Forex Trading?

Not only normal people engage in forex trading in the Netherlands but also banks, government and currency speculators want a share of the cake too. This significant growing trend can be noted in the recent past as more and more people in the country are discovering a way to make money and meet their daily needs. In comparison with stock exchange, forex trading do not require any centralized market place therefore many people can engage in the trade from the comfort of their homes. Knowing how people in the Netherlands are, this is a perfect reason for them to engage in this kind of business.

Why has forex trading become so popular in the country?

Many people both foreigners and local residents in the country are yearning to get capital, deposit them in their accounts and start earning from the trade as fast as possible. This growing number is mainly because of the trading atmosphere in the country. Currently, the government provides a perfect condition for people to engage in this trade without fear of “being conned”. The government has put up stiff regulations such as being keen on capturing unscrupulous brokers. This way, it provides a perfect environment for people to engage in forex trading without worrying of unforeseen losses.

What motivates the Dutch into engaging in foreign exchange trade?

Before starting a business, many people must find motivation of why they need to start the business in the first place. For the Dutch, three main motivations make them want to engage in forex trading. These motivations are:


Nobody wants to die poor. Most people especially the youth in the country re devicing ways through which they can make money and fend for themselves. Apparently, one of the ways through which they can make money in the country in a fast and legal way is by engaging in forex trading. The last two years has seen more people signing up for this business and as surveys show, most people are in it for the money.

It is a source of self employment

Not many people like a job where they are forced to report at a specific time and answer to people who may sometimes be nagging. Therefore, when an opportunity like this arises in a country like the Netherlands, there is no chance that such people will miss it. According to surveys conducted in the country, forex exchange provides a platform where people can work using their own schedule and therefore serves as one of the main motivation factors for the citizens to engage in the trade.

The challenges that the business posses

For some people in the country, forex exchange for them is a way of gaining a new challenge. To begin with, the business is not a bed of roses as many people may think. If anything, one has to stay vigilant and know when to play in the cards. Wrong moves can result in losses. Therefore, the challenges that come with this business are what some people like. This therefore serves as their sources of motivation for engaging in the business.

What are the advantages of forex trading in the Netherlands?

As aforementioned, many benefits come with engaging in foreign exchange in the country. This is part of the reasons as to why more people are desperate to begin investing if they have not already. Some of the benefits include:

The Country suits the business

Living in the Netherlands alone is a huge advantage for forex trade investors. The country’s currency is huge in the market thereby making trading much easier and more profitable. Finding people who want to buy the Euros is very easy and therefore if one trades well, the chances of running at a loss are minimal. In addition to that, for effective trading, one needs to have an effective internet connection and that is what the country provides in abundance.

Encourages a free lifestyle

Forex trading is a job that one can do at any time of the day. People in the country can wake up at two in the morning, conduct their business in one or two hours and then go back to sleep. In other words, in this job, there is nobody to answer to and there is no specific time to report. The Dutch love being independent and when the opportunity of working in forex trading appeared, they quickly jumped at it.

There are wider trading options in the country

Forex trading has different options to which investors can pursue. In a business that the banks and the government as well are interested in, this comes as no surprise. If you get a good and professional broker in the country, he will be able to help you explore all the available options and show you ones that are more profitable.

Forex trading can be very profitable

On a good day, an investor can make an amount of money equal to another person’s monthly salary. This is why most people in the country prefer engaging in this trade. With the fact that the trade has no specific periods, most people engage in it as a part time job.

Good analyzing strategies are available

Contrary to the time in the past, the growth of technology has enabled better and faster analyzing of the global markets. This way, investors in the country have an idea of when to invest with their money and when not to. In that case, investors can avoid the risks and in the end avoid possible losses.

What are the challenges of forex trading in the Netherlands?

However much you may think forex trade is a success in the Netherlands, the country has some challenges in the field too. Many benefits come with this trade and in the end they overshadow the challenges but that is not to mean they are not present. Some of the challenges include:


The risk factor

Even with all the analyzing strategies of the foreign exchange patterns, people still make loses in the trade. As a result, many citizens are still afraid of engaging in this business. Stories have been told of people who lost everything in forex trade mainly because of the unforeseeable risks in the trade.

The process of foreign exchange is complex

Many people in the country still do not know how forex exchange trade operates. This is mainly due to the hard terms and figures that come alongside the transactions. This makes many people to opt for other ways of making money.

What are the rules that govern forex trading in the Netherlands?

Where there is a possibility of making a fortune, frauds are bound to emerge from their hidings. However, the government is keen and vigilant in making sure that no underhand deals go through. To achieve this, it has put up tight regulations. Some of them include:


This is the the Netherlands authority for the financial markets. This board has the task of regulating and foreseeing all the activities that goes on in the financial markets with forex trading being a part of it. The Dutch minister of finance is the overall head of this autonomous body and it is responsible for activities such as providing licenses to forex trade brokers both local and international. In addition to that, it has put up regulations such as requiring the brokers to submit all the necessary documents regarding their operations, establishing and authorizing local branches.

The brokers do not charge their traders any commissions

In the Netherlands, the broker cannot charge the trader any form of commission. This allows for maximum gaining by the trader. In addition to that, many people can now engage in forex trade without the fear of being conned or making obvious losses. However, this does not mean that the law does not require the trades to pay anything from their earnings. Instead, when a trader makes profit, the law requires one to pay a “small spread” from the trades they make. Mostly, this comes from the difference between the BID and the ASK price.

There are legal trading platforms set

Most Dutch brokers have branches many of them being outside the country. This is because forex exchange is a trade that is growing very fast and therefore the brokers do not just attend to the traders in the country but abroad too. In that case, the government has put up a common trading platform called the 4 (MT4) trading platform. Other platforms include cTrader and Sirix Web Trader. Here, the traders can meet genuine brokers in a bid to work together in the field of forex trading. These platforms also help traders to deposit their money safely to their accounts for trading purposes.

Why is training very important?

In the Netherlands in particular, forex trading is very important. As one of the challenges facing forex exchange in the country, we mentioned above that most people do not know the terminologies and the processes used during forex trade transactions. Undergoing training will therefore:

Help people understand forex trading better

The various institutions available in the country will help the citizens learn more and embrace the idea of forex trading. On the other hand, the government should emphasize on foreign exchange as a way of making a living either on part time basis or as full-time jobs. In the end, more people will understand the various processes and terminologies used in the trade.

Training helps in avoiding unnecessary loses

When people undergo training, they get the knowledge to analyze the market well before investing. With this knowledge, people know when to place in their money and when to hold on to their cards. In the process, the chances of making loses are minimized.


Even though there may be no many success stories of people who have made it in the forex exchange trade in the Netherlands, it is safe to say that many people are quietly making money in the business. the Netherlands is a country in Europe with good economic stability. This gives it all the necessary strong foundation for anyone in the country to engage in forex trading and make a fortune out of it.