AFM - Dutch Authority for the Financial Markets

Who is the AFM?

The Dutch Authority for the Financial Markets (AFM) has overseen the proper functioning of financial markets since 1 March 2002. Its supervision covers the entire financial sector, including savings, investments, insurance, loans, pensions, capital markets, asset management, accountancy, and financial reporting.

In line with ESMA’s product intervention measures, the AFM prohibits Binary Options and restricts the marketing, distribution, and sale of CFDs to retail investors. These rules apply not only to Dutch investment firms but also to firms from other EU member states operating in the Netherlands via branches or the European passporting regime.

As an independent market conduct authority, the AFM is dedicated to ensuring fair, transparent, and sustainable financial markets that support long-term prosperity in the Netherlands.

How does the AFM regulate a forex broker?

1. Client Funds: Must be held in segregated accounts.

2. Reporting: Annual audited reports required.

3. Compliance: Brokers must follow Dutch Market Finance Regulation.

How to check a broker is AFM-regulated or not?

To confirm whether a broker is supervised by the AFM, you can use the License Register on the AFM website and cross-check the information with the broker’s own website.

The detailed steps are as below:

1. Get the broker’s official name from its website.

2. Visit the AFM License Register: https://www.afm.nl/en/sector/registers/vergunningenregisters

3. Enter the broker’s name in the search bar to locate its profile.

4. Check that the broker is authorized for one of the following: C9 – Financial contracts for differences (under Financial instruments), or B4 – Foreign exchange transactions in investment services (under Additional activities).

5. If the broker operates under an EU passport (incoming), verify its authorization with the regulator in its home country as well.

How to solve disputes with a AFM-regulated broker?

If you encounter a dispute with an AFM-regulated broker, you can follow these steps:

1. Contact the broker: Always try to resolve the issue directly first.

2. Escalate the complaint: File with Kifid via consument.kifid.nl or by post (Postbus 93257, 2509 AG, Den Haag).
3. Reach out to AFM through their contact form, mail (P.O. Box 11723, 1001 GS, Amsterdam), phone (+31(0)20-797 2000), or email (info@afm.nl).
4. Go to court: If the dispute remains unresolved, you can take the case to a Dutch court.