Cyprus Securities and Exchange Commission (CySEC) Brokers 2024

A huge number of online trading brokers are regulated by the Cyprus Securities and Exchange Commission (CySEC). In fact, you will find more regulated forex brokers in Cyprus than any other jurisdiction. However, what precisely is CySEC and which brokers are regulated by them? This tutorial will answer all of the above, while also covering the agency’s history, criticisms and key announcements. We have also listed the top CySEC-regulated brokers.

Best CySEC Brokers

Brokers regulated by the CySEC are required to follow strict measures to protect retail traders. Upon testing, our team have determined that these are the 15 best brokers authorized by the CySEC:

#1 - AvaTrade

Why We Chose AvaTrade

AvaTrade is a leading forex and CFD broker, established in 2006 and regulated across 9 jurisdictions. Over 400,000 users have signed up with the broker which processes over 2 million trades each month. The firm offers multiple trading platforms, including MT4, MT5, and a proprietary WebTrader. 1250+ financial instruments are available for day trading, alongside a comprehensive education center and multilingual customer support.

"AvaTrade offers the full package for short-term traders. There is powerful charting software, reliable execution, transparent fees, and fast account opening with a low minimum deposit."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds, Crypto, Spread Betting
  • Regulator: ASIC, CySEC, FSCA, ISA, CBol, FSA, FSRA, BVI, ADGM
  • Platforms: WebTrader, AvaTradeGO, AvaOptions, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade
  • Minimum Deposit: $100
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:30 (Retail) 1:400 (Pro)

Pros

  • Day traders can access stable spreads and zero commissions with no hidden fees
  • There's a great range of fee-free deposit methods, including bank wire, credit cards and popular e-wallets like Skrill
  • WebTrader is well-suited to beginners and features a strong suite of technical analysis tools and market research for day traders

Cons

  • A high $2000 minimum investment is required to use DupliTrade, which will be out of reach for many beginners
  • Traders from the US are not accepted
  • There is no ECN account with raw spreads

#2 - Pepperstone

Why We Chose Pepperstone

Established in Australia in 2010, Pepperstone is a top-rated forex and CFD broker with over 400,000 clients worldwide. It offers access to 1,300+ instruments on leading platforms MT4, MT5, cTrader and TradingView, maintaining low, transparent fees. Pepperstone is also regulated by trusted authorities like the FCA, ASIC, and CySEC, ensuring a secure environment for day traders at all levels.

"Pepperstone stands out as a top choice for day trading, offering razor-sharp spreads, ultra-fast execution, and advanced charting platforms for experienced traders. New traders are also welcomed with no minimum deposit, extensive educational resources, and exceptional 24/7 support."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Currency Indices, Stocks, Indices, Commodities, ETFs, Crypto, Spread Betting
  • Regulator: FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB
  • Platforms: MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade
  • Minimum Deposit: $0
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:30 (Retail), 1:500 (Pro)

Pros

  • There’s support for a range of industry-leading charting platforms including MT4, MT5, TradingView, and cTrader, catering to various short-term trading styles, including algo trading.
  • Pepperstone boasts impressive execution speeds, averaging around 30ms, facilitating fast order processing and execution that’s ideal for day trading.
  • Award-winning customer support is available via telephone, email or live chat with response times of <5 minutes during testing.

Cons

  • Pepperstone does not support cTrader Copy, a popular copy trading feature built into the excellent cTrader platform and available at alternatives like IC Markets.
  • Despite enhancements to its range of markets, crypto offerings are relatively limited compared to other brokers such as eToro, with no option to invest in real coins.
  • There’s no simplified proprietary trading platform, nor are there any social trading features, which could be a disadvantage if you are new to day trading.

#3 - XM

Why We Chose XM

XM is a globally recognized forex and CFD broker with 10+ million clients in 190+ countries. Since 2009, this trusted broker has been known for its low fees on 1000+ instruments. XM is regulated by multiple financial bodies, including the ASIC and CySEC.

"XM is one of the best forex and CFD brokers we have tested. The flexible account types will suit a variety of short-term trading styles while the $5 minimum deposit and smooth sign-up process make it easy to start trading."

- DayTrading Review Team
  • Instruments: Forex, Stock CFDs, Turbo Stocks, Indices, Commodities, Precious Metals, Energies, Shares, Crypto, Futures
  • Regulator: ASIC, CySEC, DFSA, FSC, FSCA
  • Platforms: MT4, MT5
  • Minimum Deposit: $5
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:1000

Pros

  • Powerful MT4 and MT5 platforms are available with 60+ and 80+ technical charting tools
  • Accessible trading accounts with a $5 minimum deposit and fast account opening
  • XM is a hugely respected broker authorized by tier-one regulators

Cons

  • PayPal deposits are not supported
  • There's $5 inactivity fee after only 3 months, though this won't affect active traders
  • There is weak regulatory oversight through the global entity

#4 - IC Markets

Why We Chose IC Markets

IC Markets is a globally recognized forex and CFD broker known for its excellent pricing, comprehensive range of trading instruments, and premium trading technology. Founded in 2007 and headquartered in Australia, the brokerage is regulated by the ASIC, CySEC and FSA, and has attracted more than 180,000 clients from over 200 countries.

"IC Markets offers superior pricing, exceptionally fast execution and seamless deposits. The introduction of advanced charting platforms, notably TradingView, and the Raw Trader Plus account, ensures it remains a top choice for intermediate to advanced day traders."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Indices, Commodities, Bonds, Futures, Crypto
  • Regulator: ASIC, CySEC, FSA
  • Platforms: MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade
  • Minimum Deposit: $200
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global)

Pros

  • With ultra-fast execution speeds averaging 35 milliseconds and deep liquidity, IC Markets provides an optimal trading environment for scalpers, hedgers, and algorithmic traders.
  • You have access to over 2,250 CFDs across various markets, including forex, commodities, indices, stocks, bonds, and cryptocurrencies, allowing for diversified trading strategies.
  • As a tightly regulated and widely respected broker, IC Markets prioritizes client security and transparency, helping to ensure a reliable trading experience globally.

Cons

  • There are fees for certain withdrawal methods, including a $20 wire charge, which can eat into profits, especially for frequent withdrawals.
  • Interest isn't paid on unused cash, an increasingly popular feature found at alternatives like Interactive Brokers.
  • Despite four industry-leading third-party platforms, there is no proprietary software or trading app built with new traders in mind.

#5 - Eightcap

Why We Chose Eightcap

Eightcap is a forex and CFD broker founded in Australia in 2009. The brand is popular with serious day traders for its raw spreads on 1000+ instruments and advanced MetaTrader platforms. With five global offices and ASIC regulation, Eightcap has built a strong reputation. New traders can also sign up for a live account in just a few minutes.

"Eightcap is great for day traders familiar with MT4 and MT5 and looking to trade forex and CFDs in a secure environment. The brand is also a great pick for crypto traders with 100+ derivatives, a sophisticated market scanner, plus Bitcoin and Tether deposits."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Indices, Commodities, Crypto
  • Regulator: FCA, ASIC, CySEC, SCB
  • Platforms: MT4, MT5, TradingView
  • Minimum Deposit: $100
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:500

Pros

  • Sophisticated platforms built for short-term strategies, including TradingView which offers 50 drawing tools and 12 chart types
  • Strong trading education and analysis including forex guides and online webinars
  • AI-powered economic calendar with top-level insights, in partnership with Acuity

Cons

  • The demo account can only be extended upon request
  • There are only four commodities available, which may disappoint experienced day traders looking to diversify their portfolios
  • There are several frustrating jurisdictional restrictions - for example, the Crypto Crusher tool is not available for UK or Australian clients

#6 - LiteForex Europe

Why We Chose LiteForex Europe

LiteForex Europe is a CFD broker established in 2008 and authorized by the CySEC. The brokerage offers forex, commodities and indices via the MT4 and MT5 platforms. Spreads are ultra tight on ECN accounts and leverage is available up to 1:30 in line with EU regulations. LiteForex also offers a rich education centre for new day traders and social trading capabilities.

"LiteForex is a good option for active day traders with variable spreads from 0.0 pips, daily analysis and high-quality training guides. The forex copy system also lets you duplicate the positions of experienced traders."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Indices, Commodities
  • Regulator: CySEC
  • Platforms: MT4, MT5
  • Minimum Deposit: $50
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:30

Pros

  • Low $50 minimum deposit makes LiteForex accessible for beginners
  • The broker offers a VPS server for experience day traders looking to run their auto strategies continuously
  • LiteForex has been established for 15+ years and is regulated by a trusted regulator, CySEC

Cons

  • The range of day trading markets is limited compared to alternatives, with no share CFDs offered
  • There are limited funding methods compared to other brands
  • Cryptocurrency trading is not offered

#7 - eToro

Why We Chose eToro

eToro is a top-rated multi-asset platform which offers trading services in thousands of CFDs, stocks and cryptoassets. Launched in 2007, the brand has millions of active traders globally and is authorized by tier one regulators, including the FCA and CySEC. The brand is particularly popular for its comprehensive social trading platform. Crypto Trading is offered via eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. CFDs are not available in the US Cryptoasset investing is highly volatile and unregulated in the UK and some EU countries. No consumer protection. Tax on profits may apply. 76% of retail accounts lose money.

"eToro's social trading platform leads the pack with a terrific user experience and active community chat that can help beginners find opportunities. There are also competitive fees on thousands of CFDs and real stocks, plus excellent rewards for experienced strategy providers."

- DayTrading Review Team
  • Instruments: Stocks, ETFs, Options, Crypto
  • Regulator: FCA, ASIC, CySEC, FSA, FSRA, MFSA
  • Platforms: eToro Web, CopyTrader, TradingCentral
  • Minimum Deposit: $10
  • Minimum Trade: $10

Pros

  • Charts are powered by TradingView and offer strong technical analysis features, including 9 chart types and over 100 indicators
  • There's a comprehensive online training academy with accessible resources, from bitesize articles to comprehensive courses
  • The copy trading app facilitates a best-in-class social environment, with an engaging social feed and community chat

Cons

  • There is a $30 minimum withdrawal amount and a $5 fee, which will affect novices with low capital
  • There are no guaranteed stop loss orders which would be a useful risk management feature for beginners
  • There are limited contact methods aside from the in-platform live chat

#8 - Exness

Why We Chose Exness

Exness is a Cyprus-based forex and CFD brokerage established in 2008. With over 260,000 clients, several awards and reputable licensing, the broker has maintained its position as a highly respected global brand. Active day traders can access the popular MT4 and MT5 platforms, raw spreads and multiple account types.

"Exness remains an accessible broker for all experience levels, though experienced day traders will particularly appreciate the ultra-low commission rates, fast withdrawals and high-quality charting software."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Indices, Commodities, Crypto
  • Regulator: FSA, CySEC, FCA, FSCA, FSC, CBCS
  • Platforms: Exness Trade App, MT4, MT5, TradingCentral
  • Minimum Deposit: $10
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:2000

Pros

  • Top-tier licensing with the FCA and CySEC and a strong reputation with over 10 years in business
  • There's excellent 24/7 multilingual customer support via telephone, email and live chat
  • The broker is accessible for beginners with low minimum deposits from $10 and flexible payment methods

Cons

  • There are no promotional deals or loyalty schemes for high-volume day traders
  • Unlike most competitors, Exness doesn't provide its own education section
  • There are several regional restrictions for retail traders including the USA, Europe and the UK

#9 - Skilling

Why We Chose Skilling

Skilling is a multi-asset broker founded in 2016 and based in Cyprus. The brand offers hundreds of day trading instruments with competitive spreads from 0.1 pips and beginner-friendly platforms. Skilling are also regulated in Europe and beyond with a transparent pricing structure. You can sign up and start trading in three easy steps.

"Skilling maintains its position as a top pick for beginners looking for a competitive zero commission account with direct access to a copy trading feature. It will also serve experienced strategy providers looking to earn commissions, or anyone looking to trade forex during extended hours."

- DayTrading Review Team
  • Instruments: Forex, CFDs, Stocks, Indices, Commodities and Cryptos
  • Regulator: CySEC, FSA
  • Platforms: Skilling Trader, MT4, cTrader, TradingView
  • Minimum Deposit: $100
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:500

Pros

  • The broker has a solid global reputation and is regulated by top-tier authorities including the CySEC
  • The broker offers smooth account funding with a good range of payment methods with zero deposit fees
  • The €100 deposit and zero commissions in the Standard account are accessible for beginners

Cons

  • Skilling trails alternatives like IG when it comes to research tools that can help day traders make informed decisions
  • You can only access shares in the Skilling Trader platform and fewer instruments are available overall in the MT4 accounts

#10 - FxPro

Why We Chose FxPro

Founded in 2006, FxPro is an established forex, CFD and spread betting broker offering 2100+ assets to over 2 million clients worldwide. The broker is regulated in 4 jurisdictions and offers reliable 24/5 customer support, earning it a high trust and safety score. FxPro has also picked up more than 100 industry accolades for its competitive trading conditions, including fast execution and deep liquidity.

"FxPro is best for experienced traders looking for wide market access, premium research tools and advanced charting platforms. The competitive fees and fast execution will serve serious short-term traders, whilst the BnkPro investment service will appeal to those looking for long-term e-money solutions."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Indices, Commodities, Futures
  • Regulator: FCA, CySEC, FSCA, SCB, FSC
  • Platforms: FxPro Platform, MT4, MT5, cTrader, AutoChartist, TradingCentral, DupliTrade
  • Minimum Deposit: $100
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:30 (Retail), 1:500 (Pro), 1:1000 (Via Prime Ash Capital Limited)

Pros

  • FxPro maintains its position as a top no dealing desk (NDD) broker, with fast execution speeds under 13ms and co-located trading servers with Tier 1 banks
  • Comprehensive analysis and trading tools are available for seasoned traders, including signals powered by Trading Central and VPS hosting
  • Thousands of CFDs are available across 6 asset classes with a particularly impressive range of indices and precious metals

Cons

  • There's no copy trading service, which reduces the appeal for strategy providers looking to earn extra revenue
  • FxPro's services are mainly geared towards experienced investors and beginners may find the broker's fees and accounts complex
  • There are only a handful of payment methods available, compared to the 10+ offered at top competitors like AvaTrade

#11 - FXCC

Why We Chose FXCC

FXCC is an established broker that’s been offering low-cost online trading since 2010. Registered in Nevis and regulated by the CySEC, it stands out for its ECN trading conditions, no minimum deposit and smooth account opening that takes less than 5 minutes.

"FXCC continues to prove itself an excellent option for forex day traders with an extensive range of 70+ currency pairs, ultra-tight spreads from 0.0 pips during testing, and high leverage up to 1:500 in the ECN XL account. "

- DayTrading Review Team
  • Instruments: CFDs, Forex, Indices, Commodities, Crypto
  • Regulator: CySEC
  • Platforms: MT4
  • Minimum Deposit: $0
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:500

Pros

  • The free education section, including the 'Traders Corner' blog, offers a large selection of materials that will serve all experience levels
  • There are no deposit fees except industry-standard mining charges on cryptos, which is advantageous for active traders
  • FXCC is trusted and licensed by the CySEC, a top-tier European regulator offering high standards of safeguarding

Cons

  • FXCC’s single platform offering is a major drawback compared to many alternatives, notably AvaTrade which provides 5 platforms to suit different trader preferences
  • While the range of currency pairs exceeds most alternatives, the selection of additional assets is narrow, and notably, there are no stocks
  • Although MetaTrader 4 continues to shine for technical analysis, the subpar design dampens the trading experience, especially compared to modern alternatives like TradingView

#12 - XTB

Why We Chose XTB

Founded in 2002 in Poland, XTB now serves more than 935,000 clients. The forex and CFD broker combines a heavily regulated trading environment with an extensive selection of 5,600+ assets and a commitment to trader satisfaction, featuring an intuitive in-house platform with superb tools to support aspiring day traders.

"XTB stands out as a top choice for new day traders with the terrific xStation platform, commission-free pricing, no minimum deposit, and excellent educational tools, many of which are seamlessly integrated into the platform. "

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Indices, Commodities, Crypto, ETFs
  • Regulator: FCA, CySEC, KNF, CNMV, DFSA, FSC
  • Platforms: xStation
  • Minimum Deposit: $0
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:30 (EU) 1:500 (Global)

Pros

  • Opening an XTB account is a hassle-free, entirely online process that takes just a few minutes, making the entry into day trading smooth for new traders.
  • First-class 24/5 customer support is available, including a friendly live chat with response times of under two minutes during testing.
  • XTB has started offering interest on uninvested balances (up to 5% on $30K+) with lower requirements than brokers like eToro (up to 5% on $50K+).

Cons

  • XTB does not offer a raw spread account, which is becoming increasingly common among competitors like Pepperstone, and may disappoint day traders looking for the tightest spreads.
  • The demo account expires after just four weeks, a serious limitation for traders who wish to thoroughly test the xStation platform and practice short-term strategies before committing real funds.
  • Not being able to adjust the default leverage level of XTB products is frustrating, as manual adjustment can significantly mitigate trade risk, especially in forex and CFD trading.

#13 - Plus500

Why We Chose Plus500

Established in 2008 and headquartered in Israel, Plus500 is a prominent brokerage that boasts over 25 million registered traders in over 50 countries. Specializing in CFD trading, the company offers an intuitive, proprietary platform and mobile app. It maintains competitive spreads and does not charge commissions or deposit or withdrawal fees. Plus500 also continues to shine as one of the most trusted brokers with licenses from reputable regulators, including the FCA, ASIC and CySEC.

"Plus500 offers a super-clean experience for traders with a CFD trading platform that sports a modern design and dynamic charting. That said, the broker’s research tools are limited, fees trail the cheapest brokers, and there’s room for enhancement in its educational resources."

- DayTrading Review Team
  • Instruments: CFDs on Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto
  • Regulator: FCA, ASIC, CySEC, DFSA, MAS, FSA, FSCA, FMA, EFSA
  • Platforms: WebTrader, App
  • Minimum Deposit: $100
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:30

Pros

  • The customer support team continue to provide reliable 24/7 support via email, live chat and WhatsApp
  • You can utilize leverage while engaging in long or short positions, allowing for more strategic trading opportunities
  • The broker offers commission-free trading on a diverse range of markets, minimizing additional fees while appealing to established traders

Cons

  • Compared to some competitors, especially IG, Plus500’s research and analysis tools are limited
  • Educational resources are limited compared to best-in-class brokers like eToro, impacting the learning curve for beginners
  • Plus500’s lack of support for MetaTrader or cTrader charting tools might be a deal breaker for advanced day traders looking for familiarity

#14 - Easy Markets

Why We Chose Easy Markets

Founded in 2001, easyMarkets is a multi-regulated forex broker offering leveraged trading opportunities on forex, stocks, indices, commodities and crypto. With fixed spreads, an affordable initial deposit, regulation from several reputable bodies and a diverse selection of account currencies, this broker provides simple and straightforward trading solutions to a diverse range of traders.

"Casual traders who want a secure and straightforward trading environment will find a good broker in easyMarkets. The fixed spreads and upfront fees will also appeal to newer traders and cost-conscious investors."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Cryptos, Commodities
  • Regulator: CySec, ASIC, BVI, FSCA
  • Platforms: MT4, MT5, TradingView
  • Minimum Deposit: €100
  • Minimum Trade: Variable
  • Leverage: 1:30

Pros

  • There’s a wide range of free research tools and news feeds available in all the broker's platforms
  • easyMarkets is regulated by top authorities including the CySEC and ASIC, and has a strong 20+ year history
  • Day traders can access an excellent range of risk management tools, including negative balance protection, guaranteed stop loss orders and the proprietary dealCancellation tool

Cons

  • There's no copy trading service for beginners looking to follow successful strategies, or for experienced traders looking to sell their own strategies
  • Spreads on the Standard account are fairly wide based on tests, starting from 1.7 pips for EUR/USD
  • There is no VPS service for seasoned algo traders looking to run their automated strategies 24/7

#15 - FBS

Why We Chose FBS

FBS is an award-winning forex and CFD broker based in Cyprus. The broker has a strong global reputation with authorization from the CySEC and ASIC, amongst others regulators. The brand has 17 million clients in over 190 countries, attracted by a diverse range of markets and the reputable MetaTrader platforms.

"FBS is a great choice for traders of all experience levels and budgets with various account types, plus MetaTrader 4 and MetaTrader 5 access. That said, the broker's Cent account and intensive forex course will be particularly beneficial for beginners."

- DayTrading Review Team
  • Instruments: CFDs, forex, indices, shares, commodities, cryptocurrencies
  • Regulator: ASIC, CySEC, FSC, FSCA
  • Platforms: MT4, MT5
  • Minimum Deposit: $5
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:30 (EU & Restricted Countries), 1:3000 (Global)

Pros

  • The broker’s NDD technology ensures fast order execution within 0.4 seconds and no requotes
  • The commission-free payment methods and low minimum deposits make the broker ideal for beginners or those on a lower budget
  • The MetaTrader terminals deliver a comprehensive day trading environment at FBS, including up to 21 timeframes and 6 pending orders

Cons

  • There’s no copy trading solution which would offer an alternative way to trade and is offered at many top competitors like Skilling
  • There's a limited range of assets overall, including only 35+ currency pairs
  • Account availability, platform access and market coverage all vary by jurisdiction

CySEC regulations

What is CySEC?

CySEC is the financial regulatory agency of Cyprus. When Cyprus became an EU member state in 2004, all regulations, processes and operations of CySEC had to comply with the European MiFID financial harmonisation law.

Purpose & Responsibilities

As the official website details, CySEC’s main aims and responsibilities are as follows:

History

CySEC is a public corporate body that sprung to life in 2001 from the Cyprus Securities and Exchange Commission Law of 2001. As a result of Cyprus becoming one of the EU members, all registered brokers and licensed companies were given access to European markets.

However, the EU registration and transition weren’t without problems. The move had a significant impact on the tax haven regulatory framework that CySEC has previously adopted.

By the time May 4th, 2012 had rolled around, the board made an announcement that it was changing the classification of binary options so they counted as financial instruments. All platforms operating in Cyprus had to adhere to the new binary options regulations in 30 days. These new rules included providing consumers with clear information about products and a requirement to “operate in a way that is fair to clients”.

This was a significant move for two reasons. Firstly, the majority of platforms are found in Cyprus. Secondly, CySEC became the first regulatory body to recognise and regulate binary options as financial instruments.

Structure

A board consisting of five members, including two full-time employees, a chairman and vice-chairman run CySEC. On top of that, a non-voting board member represents the Central Bank of Cyprus.

CySEC also has links to the government. The Council of Ministers decides on the board of directors after receiving proposals from the Minister of Finance.

Regulation & Processing

Regulation

When you take CySEC vs FCA or CFTC you realise the former is constantly having to adjust regulations to try and keep up with significant growth rates and more reputable regulatory agencies.

In fact, during 2014-2015, CySEC was under attack in the news from traders and industry commentators who thought more stringent regulations were necessary to monitor high-risk investment firms. In particular, there was an argument fines for binary options brokers were too low.

Processing

Because they were the first to regulate binary options, a huge number of brokers hold CySEC licenses so they can operate within the Eurozone. However, many believe verification and processing times could be much quicker.

It’s also worth noting many brokerage websites claim “Binary Options are the simplest way to trade the market. They have been available since 2008, and became regulated in Europe by CySEC in May 2012”. However, this does not necessarily mean that a particular broker is regulated by CySEC. So traders should search for the 5 Digit CySEC License Number and then verify the license on the CySEC website.

Broker Guidelines

CySEC has distributed guidelines and regulations on a whole range of trading activities. This includes bonus circulars, new guidelines for cryptocurrencies, such as bitcoin and directives for money laundering.

But with so many regulations, let’s touch on a couple of important examples that a regulated forex company must adhere to:

In addition to the above, CySEC can also set minimum capital requirements, bonus qualifications and leverage limits. Furthermore, brokers must meet regulations around indemnity insurance and ensure access to investor compensation funds.

Note if a broker fails to meet license requirements, their offices can swiftly receive notifications of fines or even the removal of their license.

Criticisms

Those with contacts in the industry or follow relevant news announcements will have seen there are certain criticisms of CySEC. These include:

CySEC Responses

It’s worth noting CySEC have taken action to address some of these issues. In fact, they have pursued greater transparency around listed brokers and tougher fines. Furthermore, they have taken more action to suspend and revoke licenses.

In addition, a 2016 circular said: “the name of the regulated entities, or the use of words within their name, should reflect the work/activities they are engaged in, for purposes of not misleading the investors”. Also, to tackle consumer complaints, they have brought in a new structure.

It’s also worth pointing out that despite criticism, CySEC can be in pro-active. For example, new legislation in France was brought in to prevent digital advertising of high-risk investment products. CySEC were then quick to bring out a circular informing companies they would need to adhere to these new regulations when advertising to French clients.

Final Thoughts

CySEC still has much to do to be as reputable as the FCA in the UK and the CFTC in the USA. However, they remain a popular body and continue to grow as a result of low barriers to entry and less stringent regulations.

Remember before you sign up with a brokerage, always check the firm is one of the approved brokers using their registration number and the official CySEC website.