What we do not do
- No investment advice
- No platform or account
- No recommendation of providers
No investment advice · leverage · costs
Trading: what to look out for
With active trading the risk lies not only in the price, but in the leverage, the cost per transaction and the party you transfer your money to.
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Deze pagina in het Nederlands: Traden: waar u op let.
The calculator and the quote form below are in Dutch. Prefer to do this in English? Email info@finassverzekert. nl or call 072 - 509 24 56 and we will take it from there.
- We compare the offerings of several insurers
- An adviser checks whether the cover suits your situation
- We arrange the switch, including cancellation
A premium indication, not personal advice. Prefer to talk it through? Call 072 - 509 24 56.
In brief
Trading means entering and exiting positions yourself, usually with products that have leverage: turbos, futures and contracts for difference. Leverage magnifies profit and loss in the same proportion, so that a limited movement in the underlying price can already wipe out a large part of your stake. If the margin value falls below a threshold, the platform closes the position automatically, even if the price recovers a day later.
For retail investors these products are subject to statutory restrictions: leverage on contracts for difference is capped for consumers, providers must display a risk warning stating the percentage of clients who lose money, negative balance protection applies so that you cannot lose more than your stake, and binary options may not be offered to retail clients. A party that ignores these rules is not subject to Dutch supervision.
Finass Verzekert advises and acts as intermediary in general insurance. We give no investment advice, offer no trading platform and recommend no party. No policy reimburses trading losses or a closed position. If you would rather have your investing done for you, read the page on having your investments managed.
Who does what in active trading?
Three cards showing where our role ends and where the provider's begins.
What to look out for
The points that determine what active trading really costs.
- Spread and transaction costs
- How leverage works
- Financing costs per day
What we do provide
What you can come to us for.
- Home, traffic and liability
- Legal expenses
- Business and property
What is covered
| Situation | At Finass Verzekert | With the licensed provider |
|---|---|---|
| Offering a trading platform | No | Yes |
| An assessment of whether the product suits you | No | Yes |
| Statutory risk and cost information | No | Yes |
| Reimbursement of trading or leverage losses | No | No |
| Advice on your non-life insurance | Yes | No |
| Legal expenses insurance (rechtsbijstandverzekering) in a dispute | Yes | No |
Trading losses are not an insurable risk. What a policy does cover is set out in the policy conditions and the insurance card (verzekeringskaart).
Where things go wrong in practice
Four points that make the difference in active trading.
The position can be closed without your consent
With a leveraged product the platform maintains a margin value. If your position falls below it, a request to top up or an automatic closure at the prevailing price follows. That happens at moments when the market is moving fast and the price at which the position is settled is unfavourable. Anyone trading with borrowed money or with the surplus value in their home is then doubly exposed: the position is gone and the interest on the credit continues. Please note! Borrowing money costs money.
With every transaction you pay again
Besides a fixed charge per order, you pay the difference between the bid and offer price, and on positions held longer often a financing charge per day. Anyone who trades a lot pays those items again and again, whatever the outcome. That part of the result is fixed before the market has done anything. Work it out over your own trading frequency rather than per transaction; only then does the size of this cost item become visible.
The fraud pattern is recognisable
An approach through social media or a messaging app, a demo account that always shows a profit, a personal coach looking over your shoulder, and, at the moment you want to withdraw, a request to top up first for tax or costs. Check the statutory name in the AFM register, never transfer money to a private account or in cryptocurrency, and give no access to your computer or DigiD. Once money has been transferred abroad, recovering it is almost never possible.
What your insurance does and does not do here
A trading loss is not damage within the meaning of an indemnity insurance and is therefore covered nowhere. Legal expenses insurance can help with a dispute with a provider, but generally has a waiting period, an exclusion for disputes already in play when the policy was taken out and often an exclusion for speculative transactions. Home contents or personal cyber cover also does not, usually, cover an amount you transferred yourself after being defrauded. Read the relevant conditions before you assume otherwise.
Fraud disguises itself as opportunity
An approach through social media, promised returns, a demo account that always shows a profit and a request to top up in order to be able to withdraw a profit: that pattern is well known. Check the statutory name in the AFM register and never transfer money to a private account or in cryptocurrency.
No policy covers your loss
General insurance covers damage to property, liability and certain costs. Financial loss through price movements falls outside it. A legal expenses insurance can help with a dispute with a provider, but generally has a waiting period, an exclusion for disputes already in play at inception and often an exclusion for speculative transactions.
What to look out for when comparing
- The product's leverage. How many times your stake moves with the underlying price, and what maximum applies to retail clients.
- Spread and order charge. The difference between the bid and offer price plus the fixed charge that every purchase and sale costs.
- Financing costs per day. What you pay for holding a leveraged position overnight or over a weekend.
- Trading frequency. How often you enter and exit. Every transaction brings the fixed costs again.
- Margin value and closing level. At what level the platform asks you to top up or closes the position automatically.
- Supervision of the provider. Whether the party appears in the AFM's public register and whether the statutory warnings are displayed.
This overview is general in nature and is not personal advice.
How it works
- You will read what to look out forThis page sets out the costs and risks of leveraged products.
- You choose a licensed providerOnly supervised parties may offer these services to retail clients.
- You check the providerLook up the statutory name in the AFM's public register.
- We handle your insuranceFor home, motoring, liability and business cover, you come to us.
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9.8Claims handling
Customers rate our service on four aspects: personal service, service delivery, availability and the outcome. The reviews are collected and published by NH1816 and come from customers who have actually taken out a policy with Finass Advies B.V. or reported a claim.
Frequently asked questions
This is what people ask us most.
Can I lose more than I put in?
With providers that follow the rules for retail investors, no: negative balance protection applies, which limits your loss to the balance in the account. If you trade through a party outside that supervision, that protection does not exist. If you trade with borrowed money, the debt can certainly exceed what is left of the investment.
Why does a provider display a warning percentage?
Providers of contracts for difference must show retail clients what proportion of their clients lose money on these products. That figure concerns that provider's clients and changes by party and by period. It is intended as a check for yourself: if you assume you belong to the smaller group, the question is what you base that on.
Does my legal expenses insurance cover a dispute with a trading platform?
Sometimes, but do not count on it. There is almost always a waiting period after the policy is taken out, an exclusion for disputes already in play at inception and, in many conditions, an exclusion for speculative transactions. Legal expenses cover also covers at most the costs of the proceedings, never the loss itself. Read the assets module in your own conditions before you assume you will be helped.
I have been defrauded through a trading platform. Can insurance reimburse that?
As a rule, no. Amounts you have transferred yourself fall outside the cover of home contents insurance and outside the usual personal cyber cover. Report it to the police, report it to your bank and report it to the AFM so that the party becomes known. Do not transfer further amounts to force a withdrawal to be released. That is part of the same pattern.
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About our service
Finass Verzekert is a trading name of Finass Advies B.V. We advise on and arrange non-life insurance on the basis of an objective analysis of several insurers, and receive commission for this from the insurer, which is included in the premium. You pay no separate advice fee. Before you take out cover, we establish your wishes and needs.
You will find our licence, KvK and Kifid details and our complaints procedure at the foot of every page.
This page was written and checked by an adviser at Finass Verzekert. Last updated on .
The information on this page is general in nature and is not personal advice.