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When considering which broker to choose, security is always a factor you should have at the front of your mind. CySEC is one of the leading names and top-regulators in the world when it comes to providing you with this safe trading experience. Through this listing, not only will you find brokers who have been tested and come out with some of the very best online forex trading platform review scores, but also some of the safest and more secure that the industry has to offer.
We will also take an in-depth look at exactly what CySEC is and what they can offer you as a trader, along with some of the very best CySEC regulated brokers that you can choose from.
Table of contents
What is the CySEC?
CySEC stands for Cyprus Securities and Exchange Commission. As the name suggests, they are based in, and the regulatory body for Cyprus. Their reputation though is one of providing the most trusted regulation in the industry for traders all over Europe and the world. For that reason, they are one of the most common, respected, and sought after regulatory bodies you will find attached to many of the best forex brokers.
It is important to note that a broker which is CySEC regulated, is also ESMA compliant. ESMA is the head of the national regulatory bodies and every body must respect the ESMA MiFiD II guidelines. All CySEC regulated brokers then, because they are ESMA compliant, can offer services within the entire EEA (European Economic Area).
Top 10 best CySEC Regulated Forex Brokers
With some knowledge on CySEC and how important it is acquired, let’s take a closer look at some of the top 10 best CySEC regulated brokers around.
How the CySEC works
Now that you have seen some of the top CySEC regulated brokers to choose from, here is more information on the exact role CySEC plays. The primary roles for the broker are ones of oversight in terms of the finances, ensuring these are secure at the broker, and providing trader protection which they do through a number of measures put in place. They also maintain communication with ESMA and all other national regulatory bodies providing feedback and reporting on the activities of brokers in the sector.
Ultimately, CySEC ensures that the brokers under its regulation respect ESMA and MiFiD II regulations and provide the most secure trading environment possible for you as a trader. These guidelines are set by ESMA as the head of European regulatory bodies, and effectively implemented by CySEC and other national regulatory bodies with the end result being that broker compliance is well maintained.
Characteristics and benefits of CySEC
When it comes to the benefits of being CySEC regulated, these are really all in favor of protecting you as a trader. They have set out a great deal of measures to ensure this protection.
Under ESMA regulations, which all CySEC brokers follow, leverage for retail traders is set at a maximum of 30:1 on major forex pairs. This means you will not be trading vastly beyond your position. The exception here is if you qualify as a professional trader. In this case you would be able to unlock leverage of up to 400:1.
Under CySEC, the trading of both CFDs and some other derivative products is legal, as is the trading of cryptocurrency. Negative balance protection which stops you from losing more than the balance in your account though is mandatory, as is the use of segregated bank accounts by the broker. Furthermore, with CySEC, you will be covered under the ICF (Investor Compensation Fund) for losses of up to €20.000 in case of insolvency or bankruptcy from the broker.
Prohibitions with CySEC
There are a few things that you cannot do under a CySEC regulated broker. These include spread betting which was made illegal under the MiFiD II rules that CySEC follows. Bonuses are also not permitted but this only applies to attracting new customers through welcome bonuses and encouraging more deposits through deposit bonuses, active trader programs that reward traders for reaching certain trading goals, are permitted.
Differences between CySEC Regulated and CySEC Licensed Brokers
As with many other regulatory bodies, you may find brokers who are CySEC regulated, and CySEC licensed. The difference is that to become regulated, a broker must pass through the entire registration process for that body in order to offer services in that country. A licensed broker may be able to avoid some of these steps and still offer services within that area respecting local laws.
In illustration of this point, then a forex broker who registers under any EU regulator, will also be allowed to offer services in the EEA, and Cyprus whether or not that regulator is CySEC, though this is not overly common since CySEC is by far the most recognized in the region.
How to check if a broker is CySEC regulated
You can easily and quickly check the brokers ESMA compliance by visiting the ESMA official website if you want to give a general look at this. On the other hand, if you would like to check the CySEC regulation, you can also do this. You simply need to go to the CySEC official website and type the name of the broker into the search bar where you will find all of the information you need.
How CySEC intervene in case of financial abuse?
If a broker is reported to CySEC, then they have the power to ban that broker from the country. They can also follow up and report the issue to ESMA or other national brokers to take further action if needed.
How CySEC can help you
If you think a broker is not acting in a legal way, if you feel you were not treated in a fair way, or if you realize that broker is false-advertising or engaging in any practice that you think violates regulation, then you can contact CySEC by going on their CySEC Official Website and following the process which is laid out there.
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