CySEC Regulated Forex Brokers – A Reliable List for 2020

Regulator Info
  • Founded: 2001
  • Head Office: 19 Diagorou Str. CY-1097 Nicosia
  • Phone: +357 22506600
  • Email: info@cysec.gov.cy
  • Website: www.cysec.gov.cy

For those who wish to get involved in the European Forex trading market, it’s essential you pick the right broker. So many Forex brokers exist now, though, that knowing who you can and cannot trust can be tough. Sure, you could read review after review – but how do you know if you can trust a modern Forex broker?

The main thing that you should be looking to do is find out who regulates the company. Regulation has become the backbone of a modern Forex industry. Without strict regulation on a company, you should not use them. If you wish to get into the European Union and enjoy some Forex trading, though, you will want to look out for certain regulatory bodies.

While all regulatory bodies look to provide some insulation to people, others have stricter terms and punishments for non-compliance. One of the most powerful bodies in Europe for Forex regulation is known as the Cyprus Securities and Exchange Commission. Otherwise known as CySEC, this group has become among the most trusted names in all of Europe for delivering safe, secure, and modern regulation.

As a member of the EU, they provide comprehensive expertise in regulation that complies with European MiFID financial laws.

Best CySEC Regulated Brokers for Forex Trading
Broker Rating Regulation Mobile Min. Deposit Reward Review Site
5/5 CySEC* Yes $250 N/A Read Review Trade Now!
5/5 CySEC Yes $250 N/A Read Review Trade Now!
4.5/5 CySEC, FCA, ASIC, FSCA Yes $100 100% Read Review Trade Now!
4.5/5 CySEC Yes £250 N/A Read Review Trade Now!
4.5/5 CySEC, IFSC Yes £250 N/A Read Review Trade Now!
4.5/5 CySEC Yes $25 $2,000 Read Review Trade Now!
4/5 CySEC, FCA, ASIC Yes £5 £5,000 Read Review Trade Now!
3.5/5 CySEC, FCA, CIMA, DFSA Yes $100 N/A Read Review Trade Now!
3.5/5 CySEC, FCA, ASIC, FSCA**(76.4% of retail CFD accounts lose money) Yes £100 N/A Read Review Trade Now!

*Trading CFDs carries considerable risk of capital loss. **Plus500 UK Ltd is authorised and regulated by the Financial Conduct Authority (FRN 509909). Plus500 CY LTD is authorised and regulated by the Cyprus Securities and Exchange Commission (Licence No. 250/14).

What is CySEC?

As mentioned above, CySEC is the regulatory body that handles all forms of financial regulation in the Republic of Cyprus. Unlike other forms of regulation in Europe, though, CySEC did not come to be due to the 2007-08 financial crisis. Instead, it has been a part of the European regulatory sphere since as early as 2001. Their expertise and their knowledge has ensured they are among the most prominent names in European regulation. It’s currently run by Demetra Kalogerou, who is the Chairwoman of CySEC. With over 100 employees, too, it’s one of the largest regulation groups in the whole of Europe.

They are a major part of the European Forex industry, though. Many companies not based in Cyprus have managed to get their regulation managed through CySEC. This is a common process for companies who are overseas. The reason why is simple: CySEC is rated as among the most specific and intelligent regulatory bodies out there. Given their exceptionally high standards, CySEC is a company that has managed to gain a reputation for not settling for second best. It’s for that reason that it’s growing all the time in terms of size, scope, and authority.

Why Can I Trust Them?

The main reason that CySEC is among the most trusted names in the industry stems from their excellent takes on regulation. While it’s always easy to follow their regulations once you are part, you have to stick to them, or you could face some kind of ban and/or censure from the company. Cyprus has become a major hub in Europe for various platforms, but it’s long been a preferred destination for both brokers and traders.

The stems from their tax structure and their regulatory platform go hand-in-hand. Though it’s very strict, the friendly taxation system in Cyprus means many companies are more than happy to comply so they can benefit from the extra investment opportunities that Cyprus is known for.

Another reason why you can trust CySEC, too, is because they’ve been through a tough time in the past. In the early days, it was a company that was known for having a very light regulatory structure. This led to a considerable increase in financial malpractice, leading to more than a fair share of complaints from traders that brokers were behaving in irregular manners.

However, there was often little penalty given to companies who were caught out making mistakes or not playing by the rules. Even for larger crimes that were taking place, little happened as there was a feeling that Cyprus did not wish to off other investors from entering the country.

It is safe to say, though, that those days are gone. Today, CySEC is known as one of the most trusted names in the EU when it comes to regulation. Much like other parts of Cypriot life, their stringent approach to regulation and fairness has seen them become very popular for a lot of people across the board.

What are the Expectations?

Overview of the CySEC Forex homepageThe main thing that you can learn from CySEC is that the days of their light regulation are over. Today, a company is expected to be able to hold at least €750,000 back in operating capital. This was not something they asked for in the past; something that caused significant damage to their reputation.

Today, this is in-line with what is asked for by the MiFID program. They also ask any company that they agree to regulate to send them regular financial statements. It should be sent to them on a periodic basis for a thorough review. They also have to send in a yearly audit report; this is then audited by an independent third party who can sign it off without prejudice.

They also have to be able to make sure that all traders capitals are kept in safe, secure, trusted banks in Europe. They should be put into accounts and the money should be fully segregated. There is no allowance for any trading capital to be in with the company operating capital; any broker caught doing this would very much be likely to lose their ability to operate long-term. The requirement is that all CySEC brokers meet these new rules. They have also looked to try and ensure that traders are protected from the risk of being made insolvent if their broker goes. As part of the Investor Compensation Fund, you can be given as much as €20,000 back in return if your broker was rendered insolvent.

This would help to ensure that traders would to be reliant on the condition of their broker to stay afloat. Given the massive importance of Forex trading across Europe, the fact that vigilant bodies like the CySEC exist can provide much-needed peace of mind to people all across the continent.

If you wish to trust a broker in Europe, seeing it has been CySEC regulated is a very good sign!