CFD trading lets you speculate on whether the price of gold, shares or bitcoin will go up or down, without ever owning a single gram, share or coin.
It’s legal in the Netherlands and comes with plenty of rules designed to protect beginners. However, CFDs are high-risk.
Here’s how CFD trading works, what it costs, and how to get started.
What is a CFD? The simple version
A CFD (contract for difference) is a deal between you and a trading platform about whether a price will go up or down.
Say you think the price of gold will rise. You agree with the platform that if it goes up, it pays you the difference. If it drops, you pay the platform.
However, you never actually own anything. There are no gold bars in the attic, no shares, and no bitcoin. Instead, you’re only taking a position on the price.
You can trade either way, too. “Going long” means you’re expecting that the price will rise, while “going short” means you’re expecting it will fall.
You can trade CFDs on the prices of shares, stock market indices, currencies, commodities like oil and gold, and crypto.
What’s leverage?
Leverage means you only put down a small deposit, but your trade behaves as if you’d invested much more. The platform effectively works as if you’d borrowed the difference.
Example: Say you put down €100 on a share CFD, which lets you trade €500 worth of that share. In this case, you can think of it as €100 of your money and €400 of additional exposure.
If the share rises 10%, you make €50, which is half your deposit. If it falls 10%, you lose €50, which is also half your deposit.
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In other words, leverage makes wins and losses much bigger relative to what you put in. Even small price moves in the wrong direction can wipe out your deposit quickly.
The Dutch limits
This is why, to stop beginners getting carried away, ordinary investors (known as retail clients) face leverage caps.
These were set by ESMA, the EU’s securities watchdog, and the Dutch Authority for the Financial Markets (AFM) has adopted them permanently.
The cap is 5:1 on individual shares (like the example above), 30:1 on major currency pairs, and just 2:1 on crypto.
One more catch: some costs are based on the full size of your trade, not just your deposit. Overnight fees, for example, are calculated on the full €500, not your €100.
Is it legal, and how risky is it?
CFDs are legal in the Netherlands, but restricted. Since April 19, 2019, the AFM has had permanent restrictions in place on selling them to ordinary investors.
That said, the risk is real. Every provider has to publish the percentage of its retail clients’ accounts that lose money, and ESMA’s analysis found it’s typically between 74% and 89%.
So only trade with money you can afford to lose.
How to start trading CFDs
Still keen? Here’s how to get going without tripping over the basics.
Step 1: Understand what you’ll pay
CFD costs aren’t always obvious at first glance. These are the main ones to look out for:
- The spread: Each market has a slightly higher price to buy and a slightly lower price to sell. The gap between them is effectively your fee, so every trade starts slightly in the red. Some providers also charge a separate commission on share CFDs.
- Overnight fees: You pay these if you keep a leveraged trade open overnight.
- Currency conversion: You pay this when trading something priced in dollars from a euro account, so check the rate before you start.
- Account fees: Some providers charge for opening an account, depositing or withdrawing, while others don’t. Check the fee page before you sign up.
Step 2: Choose a regulated provider
First, check the licence. The provider should be licensed by a financial regulator in an EU country, and you can look it up on that regulator’s website.
That regulator doesn’t have to be Dutch. Thanks to EU “passporting”, a firm licensed in one EU country can serve clients across the EU. Its main supervisor is the regulator in its home country, but it still has to follow the AFM’s CFD rules.
Also, watch out for clone websites pretending to be real brokers. Before you log in or deposit, check that the web address matches the official domain listed on the regulator’s website.
Looking for a regulated place to start? Capital.com is licensed by CySEC and gives you access to over 5,500 markets, with no fees for deposits or withdrawals.
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69–89% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Step 3: Open an account
Expect a quiz if you want to open an account. As the AFM explains, this is because the provider must ask about your knowledge and experience, and warn you if CFDs don’t suit you.
A warning isn’t a ban, though, so be honest with yourself about your answers and whether this is really the right move for you.
Step 4: Practise on a demo account
Before risking real money, try a demo account. You practise with virtual money but live prices, so you get a feel for how trades move.
Just keep in mind that real trades may not execute exactly like demo trades.
Step 5: Set your budget
Before your first deposit, pick an amount you could lose completely without it hurting your rent, groceries or holiday plans.
Step 6: Set up your safety nets
Some protections are built in. Under ESMA’s rules, you can’t lose more than the money in your CFD account as a retail client. The platform also has to close your trades if losses eat up half the deposit you need for your open trades.
A regular stop-loss (an order that closes your trade at a set price) isn’t guaranteed, though. As the AFM points out, it simply places a normal order to close your trade at the next available price, so if prices jump suddenly, you could exit at a worse price than the one you set.
Some platforms also offer guaranteed stop-losses for a fee. Depending on the provider, you either pay only if the stop-loss is triggered or pay through a slightly wider spread when you set it. They’re not always available on every market.
Step 7: Place your first (small) trade
Choose a market, decide whether to go long or short and pick a small position size. Then set a stop-loss before you confirm.
Want more practice first? Capital.com offers more than 100 charting tools on web and mobile, plus a free demo account with virtual funds and live prices if you fancy one more practice round.
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69–89% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Step 8: Don’t forget about tax
Box 3 is the Dutch tax category for savings and investments. It looks at what you own minus your debts on January 1.
The good news? According to the Belastingdienst (the Dutch tax authority), the 2026 tax-free allowance is €59,357 per person, or double for tax partners.
Have you ever dabbled in CFDs, or are you sticking with good old index funds? Let us know in the comments!
Frequently asked questions: how to start trading CFDs in the Netherlands
Can I lose more money than I put in?
As a retail client, no. You can’t lose more than the money in your CFD account, but you can lose all of it.
How much money do I need to start?
It depends on the provider, as minimum deposits vary. Whatever the minimum, only deposit what you can afford to lose.
Do I own the shares, gold or crypto I’m trading?
No. A CFD is only a contract based on the price, so you never own the actual asset.
How can I tell if a CFD provider is legitimate?
Check that it’s licensed by an EU regulator, look it up on that regulator’s website and make sure you’re on its official domain rather than a clone site.