The small product portfolio of the Dutch based firms compels traders in Amsterdam to resort to foreign brokers who present them with a bigger market base. The larger currency pairs and standard CFD are the main concerns of the majority of local brokers, and more serious traders may require exotic currencies, crypto based products or even special tools that are not accessible to smaller domestic brokers. This restriction is particularly annoying to the professionals, who have multiple asset classes or require sophisticated hedging methods.
Massive cost will make the local alternative not that competitive compared to the offshore alternative that has limited spreads and commission schemes. The brokers in Amsterdam tend to have smaller clientele hence they are not able to have economies of scale that are comparable to large international firms. Active trading expenses accumulate quickly and a minor change in the spreads or overnight funding charges may have a dramatic effect on the choice of broker.
Many of the Dutch brokers have limited technology due to the minimum investment in platform development or advanced trading products. The smaller local companies are not able to afford the international rivals with their superior charting programs, algorithmic trading support and mobile apps. Local platforms might be irritating to the traders who are used to using complex analytical software since not every local platform is equipped with such features as custom indicators, automated strategies, or integration with multiple devices.
Dutch rules are stricter regarding leverage and negative balance coverage, which some traders find restrictive to their risk management strategies. Even under different regulatory environments, professional traders often prefer a forex broker with more flexible terms.
The quality of customer service offered by local providers is also highly differentiated, as most smaller Dutch companies do not have the resources to provide 24/7 support or multilingual services. International brokers normally have larger support teams with expertise in various markets and trading plans. Language barriers also exist, as local employees may lack sufficient English to serve international clients.
There is also a tendency for markets to execute more slowly at smaller Dutch brokers due to fewer relationships with liquidity providers and less advanced order execution systems. Such changes in performance are best observed in volatile markets, where high-frequency traders need to get in and out of markets as quickly as possible in order to take on profits. Latencies and requotes may adversely relate to trading strategies that are based on the timely movements and even order fills.
The Dutch brokerages offer little training and do not offer webinars, trading courses, and research departments that bigger brokers offer. These educational services are valued by professional traders because they are needed in the process of developing their skills continuously.
The liquidity situation is clear when it comes to significant market events when the local brokers may find it difficult to maintain tight spreads or execute smoothly. The international forex broker will tend to pool together liquidity and it will be able to accommodate sudden increases in trading volume without customer service quality declining. This is also suitable so that professional traders are able to implement with confidence high-frequency or multi-asset strategies. The trading experience is also improved with access to advanced risk management tools and real-time analytics. As a result, traders can act responsively to market dynamism and reduce losses as well as maximize returns.
The brokers in the area do not always have a history of performance, and so the experienced brokers would not trust them and be comfortable with their investments and business. Lack of historical dependability may deter experienced traders against developing bigger positions or more sophisticated approaches and require them to find regulated overseas platforms.