Forex trading is gaining more traders around the world. A key criterion for traders is a broker's license, such as the Cyprus Securities and Exchange Commission (CySEC), as it is a global & reputable regulator. Read more to find out how to qualify for this license & its benefits.
- FXTM, Best all-around broker with high floating leverage and fast execution.
- FP Markets, ECN trading with leverage up to 1:500.
- Eightcap, Competitive pricing + excellent daily videos.
- eToro, Best broker for social traders and crypto traders : 74% of retail CFD accounts lose money.
Best CySEC Brokers Comparison
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Regulators | CMA, CySEC, FCA, FSC Mauritius, FSCA | ASIC, CySEC, FSCA | ASIC, CySEC, FCA, SCB | ASIC, CySEC, FCA, FSA |
Year Established | 2011 | 2005 | 2009 | 2007 |
Execution Type(s) | ECN/STP, Market Maker | ECN/STP | ECN/STP, Market Maker | Market Maker |
Minimum Deposit | ||||
Average Trading Cost EUR/USD | 0.1 pips | 1.1 pips | 1.0 pips | 1.0 pips |
Average Trading Cost GBP/USD | 0.2 pips | 1.4 pips | 1.2 pips | 2.2 pips |
Average Trading Cost Gold | $0.18 | $0.21 | $0.12 | $0.45 |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | MetaTrader 4, MetaTrader 5, Trading View | Proprietary platform |
Islamic Account | ||||
Negative Balance Protection | ||||
| Visit Website | Visit Website | Visit Website | Get Started Visit Website74% of retail CFD accounts lose money |
FXTM
In Summary Best all-around broker with high floating leverage and fast executionFXTM which is more commonly known as ForexTime is a popular forex trading company that is based in the United Kingdom as well as Mauritius and Cyprus. With the functionality of FXTM, users can buy and sell currencies, oil, precious metals like silver and gold, and other assets. This gives traders of all levels the opportunity to make money and the potential chance of becoming world class traders. The company is regulated in South Africa, Cyprus, Mauritius, and the United Kingdom. With being licensed in the United Kingdom, FXTM of course possessed a license by the coveted Financial Conduct Authority.
Pros & Cons
- Excellent commission-based Forex pricing environment and transparency
- Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app
- Quality market research and educational content for beginner traders
- A highly regulated broker with a tier-1 license
- No cryptocurrencies and limited choice of commodities
FP Markets
In Summary ECN trading with leverage up to 1:500FP Markets has been operating in the financial services and forex brokering industry for 16 years and in this time, they have created a name for themselves with a long list of awards, regulatory certificates, and of course a heft asset selection. Whether you are new to the trading game or you are an experienced trader, FP Traders will give you the options and functionality you have been looking for. This trusted forex broker is regulated in Australia by the Australian Securities and Investments Commission and in Cyprus by the Cyprus Securities and Exchange Commission giving you the assurance that they are overseen by a reputable regulator.
Pros & Cons
- Choice of trading platforms and auxiliary trading tools
- Very competitive cost structure and excellent asset selection
- Low minimum deposit requirement and leverage of up to 1:500
- Well-regulated and trustworthy
- Availability of Iress geographically restricted
Eightcap
In Summary Competitive pricing + excellent daily videosCySEC-regulated Forex brokers fall within the ESMA regulatory environment, which consists of less flexibility and more stringent regulation. It makes offering a competitive Forex trading environment more challenging, but Eightcap has emerged at the top of CySEC-regulated Forex brokers. While it fully complies with the rules and regulations outlined by CySEC, including limiting retail Forex leverage to 1:30 and no bonuses, promotions, or rebates for retail Forex traders, it ensures low trading costs in its commission-based raw spread account.
Traders get MT5, 200 liquid assets spanning Forex, commodities, indices, equities, deep liquidity, and the Euro as the account base currency.
Pros & Cons
- Low minimum deposit and high leverage of up to 1:500
- Competitive cost structure
- Excellent technology infrastructure and seasoned management team
- Daily research and quality educational content
- Limited leverage in some areas
eToro
In Summary Best broker for social traders and crypto traders : 74% of retail CFD accounts lose moneyeToro is one of the most well-known forex brokers in the world. This trustworthy broker was founded in 2007 and has since grown to over 17 million registered users, making it one of the largest trading platforms in the world. eToro offers new traders excellent educational content on their platform in order to guarantee that new traders can make educated decisions when it comes to trading stocks. The FCA in the United Kingdom, CySEC in Cyprus, ASIC in Australia, and the FSA in the Seychelles are the four regulators that regulate eToro. Users can trade over 49 currencies, 31 commodities, 93 cryptocurrencies, over 2000 equity CDFs, and much more using forex broker.
Pros & Cons
- Active investment community ideal for social trading
- Dedicated tools for social trading
- Broad cryptocurrency selection
- Expanding educational offering for beginner traders
- Internal withdrawal fees
Introduction to Forex Regulations
All Forex companies in Cyprus are under the regulation of CySEC.The activities of all financial intermediaries, which include Forex brokers and dealing centers, are subject to mandatory certification. When issuing a license, regulating authorities usually post information about the company to which the license was issued on their official website. This allows you to easily and quickly check whether a Forex broker's license is valid. Almost all brokers today have licenses today, but not all licenses are equal,
Each country has a governmental regulatory agency that oversees operations in the Forex and financial markets. These agencies function as controlling bodies to ensure that all participants of the Forex trading comply with local rules.
Today, there is a very large number of different regulatory bodies and sometimes the difference in their reliability is significant. Which regulators are the most reputable?
- CySEC - Cyprus Securities and Exchange Commission (Cyprus)
- FINRA - Financial Industry Regulatory Authority (USA)
- NFA - National Futures Association (USA)
- SIPC - Securities Investor Protection Corporation (USA)
- ASIC - Australian Securities and Investments Commission (Australia)
- FSC - Financial Services Commission (Mauritius)
What is CySEC Regulation?
CySEC is the Cyprus Securities and Exchange Commission. This state regulator issues licenses for investment and brokerage companies and controls their activities. Therefore, Cyprus-based brokers must have a CySEC certificate.
Since Cyprus is a member of the European Union, the CySEC regulator operates in accordance with EU legislation. This means that its requirements are very strict, which makes it difficult for many companies to go through the licensing procedure.
Moreover, European law demands that all CySEC activities be strictly regulated in terms of fulfilling its obligations.
A CySEC license aims to provide the following confirmation that:
- the broker operates legally;
- the broker's activities are strictly regulated by European legislation;
- the broker's financial activities are transparent;
- the broker provides high-quality services and trading conditions.
CySEC's Responsibilities
This regulator is an extremely popular one in the professional environment. It combines the benefits of offshore registration with strict financial controls in line with EU standards.
CySEC was created with the aim to oversee the financial and investment sectors. Its functions include:
- licensing of companies involved in investment;
- control over the activities of brokerage and dealing companies;
- taking action to regulate and control the activities of the Cyprus stock exchange;
- supervision of issuers of securities;
- analysis of the activities of investment consultants and portfolio managers;
- taking actions to collect information about companies, subject to CySEC regulation;
- inspection actions in relation to companies operating on the stock exchange.
The regulator has a great amount of influence and rights. It can make a request to law inforcement regarding a particular company, to impose a restriction or completely terminate the activities of the company, to interfere with management or to request the freezing of accounts.
Among the extremely important advantages of the regulator is the amount of insurance coverage, reaching 22,000 euros for each client.
How CySEC Regulation Protects You
The presence of a CySEC license provides the following advantages to traders:
- Protection against illegal actions of the broker. Constant control and regular license renewal minimize illegal and fraudulent actions of the broker.
- You can be sure the broker is a reliable partner for trading, which reduces your risks and increases chances for profitable trading. Only the most progressive brokers with high-quality services receive the certificate.
- A safety guarantee for your funds in the event of a brokerage firm going bankrupt. Companies with CySEC certificates participate in the regulator's compensation fund, which means that in the event of bankruptcy, funds will be returned to traders by CySEC.
You can officially file a complaint against a broker who has a valid CySEC license. The procedure is as follows:
- Make sure that the broker really has a valid license by finding it on the regulator's website.
- Go to the appropriate section on the regulator's website and fill out the form at (https://www.cysec.gov.cy/en-GB/complaints/);
- Send a copy of the complaint to the Cyprus Financial Ombudsman.
Guidelines for CySEC-Regulated Brokers
Many brokers are seeking licensure by this European regulator. But it is not so easy to get a CySEC license.
The main difficulty is that this regulator makes strict demands on its applicants and it is a real challenge to meet them all. To begin with, a potential applicant must operate in the market for at least three years.
The applicant also must be able to pay an initial membership fee and an annual fee to support the activities of the regulator. As for technical support, the applicant must have a high-quality trading platform, a certain number of registered trading accounts and be able to provide its customers with everything necessary for comfortable work.
Perhaps the most important requirement of CySEC is the mandatory presence of a representative office in Cyprus. If the broker, for some reason, does not want or cannot register a physical office in Cyprus, then licensure by the Cyprus regulator will be declined.
Every year, all licensed firms are checked for compliance with the requirements, and the regulator issues fines for certain violations. Note that the amount of fines is quite large. For a minor violation, the regulatory body may fine the violator 1000 euros. In some cases, the regulator may even revoke the license and shut down the company.
Verifying the Authenticity of CySEC-Regulated Forex Brokers
Often, licensure can become an additional advertising tool for a broker that focuses on online trading. This information is usually indicated on the website with the certificate number and date of issue. It is advisable to additionally confirm this data on the official website of the regulator.
To check the license of any financial institution that claims to be CySEC-regulated, just go to this page, where you can search by license number. Do not be surprised if under the number indicated on the broker's website you find an unknown company name.
The regulator shows the legal name of the company and not the broker's trading name. You can find out the legal name of the broker in the support service or on the broker's official website.
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