3 Best CySEC Regulated Brokers in 2021

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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.

Top CySEC Regulated Forex Brokers

1
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
ECN-style trading
Daily market research and Autochartist access
2
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Commission-free trading on 3000+ assets
User-friendly proprietary platform with top-level analysis
3
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Best all around broker
High floating leverage + fast execution
4
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Best social trading platform on the market
Excellent choice of options for crypto traders

FP Markets, ECN trading with leverage up to 1:500.
Capital.com, Award-winning proprietary trading platform alongside MT4.
FXTM, Best all-around: high floating leverage + fast execution.
eToro, Best broker for social traders and crypto traders : 75% of retail CFD accounts lose money.

FP Markets

5.0/5 in this category
In Summary
ECN trading with leverage up to 1:500

FP 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.

Capital.com

5.0/5 in this category
In Summary
Award-winning proprietary trading platform alongside MT4

Capital.com is an international forex broker that operates out of the United Kingdom, Belarus, and Cyprus. This proprietary trading platform provider was founded only a few years ago in 2017. Despite being relatively new on the scene, they have managed to build a client base of over 2 million traders and a trading library of more than 3000 assets. These assets comprise of a staggering 238 cryptos, more the 130 currencies, over 2800 equity CDFs, and much more. Capital.com is regulated by the esteemed FCA (Financial Conduct Authority) in the United Kingdom and CySEC (the Cyprus Securities and Exchange Commission) in Cyprus. The company is also protected by the FSCS and the CIF.

FXTM

4.0/5 in this category
In Summary
Best all-around: high floating leverage + fast execution

FXTM 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 have the ability to 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.

eToro

4.5/5 in this category
In Summary
Best broker for social traders and crypto traders : 75% of retail CFD accounts lose money

eToro 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 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.

CySEC-Regulated Forex Brokers

All Forex companies in Cyprus are under the regulation of CySEC. Companies with this license are in high demand among traders. Let's review the Forex platforms that have gained the highest popularity in the market.

Introduction to Forex Regulations

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? (H2)

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.

Methodology

We create our articles and brokers’ reviews using a strong team of expert traders with extensive experience in trading on many reputable Forex platforms. Many reviews on the Internet contain misleading information about brokerage companies.

We invest our personal involvement in verifying all trading conditions to avoid publishing false information on our website. We focus on honest, objective, and consistent broker information. In our materials, we recommend only reputable brokers who actually provide licensed services.

FAQs

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 license.

Are CySEC-regulated brokers safe?

A CySEC license gives many advantages to a brokerage company and its clients. It also confirms that the broker operates legally. Every year, all licensed firms are checked for compliance with the requirements, and in the case of certain violations, are fined.

What is the best CySEC regulated broker?

There are many brokers that provide excellent trading conditions. You can read reviews, client feedback and test a demo account on several brokerage platforms to decide which one suits you best. You should also analyze the minimum deposit amount. For beginners, it is advisable to start with the smallest investments.

How do I make a complaint to CySEC?

You can officially file a complaint against a broker with 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 (https://www.cysec.gov.cy/en-GB/complaints/);
  • Send a copy of the complaint to the Cyprus Financial Ombudsman Service.

How do I know if a broker is regulated by CySEC?

This information can be found on the official site of the regulator.

Huzefa Hamid

I’m a trader and manage my own capital. I trade the major Forex pairs, some Futures contracts, and I rely entirely on Technical Analysis to place my trades. Today, I am also a Senior Analyst for DailyForex.com. I began trading the markets in the early 1990s, at the age of sixteen. I had a few hundred British pounds saved up (I grew up in England), with which I was able to open a small account with some help from my Dad. I started my trading journey by buying UK equities that I had read about in the business sections of newspapers. The 1990s were a bull market, so naturally, I made money. I was fortunate enough in my early twenties to have a friend that recommended a Technical Analysis course run by a British trader who emphasized raw chart analysis without indicators. Having this first-principles approach to charts influences how I trade to this day.