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Cyprus Securities and Exchange Commission (CySEC) Brokers 2024

Written By

Paul Holmes

Written By

Paul Holmes

Paul has over 14 years experience in the trading industry, both as a full-time trader and working with leading brokers. He’s traded indices and forex, developed proprietary day trading techniques, and built his own MetaTrader algorithms. He excels at delivering simple-to-follow guides for beginners to experienced traders.  

» Paul Holmes Profile Page

Edited By

James Barra

Edited By

James Barra

James is an investment writer with a background in financial services. As a former management consultant, he has worked on major operational transformation programmes at prominent European banks. James authors, edits and fact-checks content for a series of investing websites.

» James Barra Profile Page

Fact Checked By

Michael MacKenzie

Fact Checked By

Michael MacKenzie

Michael is a writer and editor with over a decade in journalism and publishing. His niche lies in editing and fact-checking content in the financial services sector, with a focus on online brokers and trading platforms. Michael previously reported on politics and economics in the Middle East and edits books for established publishers.

» Michael MacKenzie Profile Page

Updated

Nov 28, 2024

The Cyprus Securities and Exchange Commission (CySEC), a top European regulator with ‘green tier’ status in our Regulation & Trust Rating, ensures brokers maintain a secure environment for active traders like you and me.

Dig into the top CySEC-regulated trading platforms, personally tested by our experts and updated for 2024.

Best CySEC Brokers

Over 20% of the brokers we've evaluated out of our 216-strong database are authorized by the CySEC so the competition was tough. However, these 1 providers emerged as the absolute best following our rigorous tests:

Click a broker for details

1. 1

   
   RedMars
   Go To RedMars

   RedMars Review

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   Ratings

   Regulation & Trust 3.3 / 5

   Accounts & Banking 3.5 / 5

   Assets & Markets 3.8 / 5

   Fees & Costs 3.5 / 5

   Platforms & Tools 3.8 / 5

   Customer Support 4 / 5

   Research 2.8 / 5

   Education 3 / 5

   iOS App 4.7 / 5

   Android App 4.6 / 5

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   Minimum Deposit €250

   Minimum Trade 0.01 Lots

   Leverage 1:30 (Retail), 1:500 (Pro)

   Regulator CySEC, AFM

   Instruments CFDs, Forex, Stocks, Indices, Commodities, Cryptos

   Platforms MT5

   Payment Methods Credit Card, Wire Transfer, Debit Card, Sticpay, FasaPay, Bitcoin Payments, Trustly, PayPal, Skrill, Neteller, Klarna, Mastercard, Visa

   Account Currencies USD, EUR

   Go To RedMars

Here is a short summary of why we think each broker belongs in this top list:

1. RedMars - Launched in 2020, Cyprus-based RedMars offers competitive spreads on more than 300 instruments and leverage up to 1:500. Three accounts are available - Standard, Pro and VIP - serving a range of budgets and experience levels, with a fast and fully digital account opening process.

CySEC Brokers Comparison

CySEC Brokers Comparison

Broker	CySEC Regulated	EUR Account	Minimum Deposit	Markets	Platforms	Leverage
	✔	✔	€250	CFDs, Forex, Stocks, Indices, Commodities, Cryptos	MT5	1:30 (Retail), 1:500 (Pro)

RedMars

"RedMars is the best fit for experienced day traders familiar with the MetaTrader 5 platform and based in the EU, where the broker is authorized by the CySEC. However, the threadbare education and research tools make it unsuitable for beginners."

Christian Harris, Reviewer

RedMars Quick Facts

Demo Account	Yes
Instruments	CFDs, Forex, Stocks, Indices, Commodities, Cryptos
Regulator	CySEC, AFM
Platforms	MT5
Minimum Deposit	€250
Minimum Trade	0.01 Lots
Leverage	1:30 (Retail), 1:500 (Pro)
Account Currencies	USD, EUR

Pros

• The broker is one of a limited number of firms to offer an account specially designed for VIPs with premium support and invites to exclusive events
• Getting started on RedMars is incredibly easy - you can be up and running in just a few minutes based on tests
• The broker supports a range of flexible payment methods, including wire transfers, credit cards, e-wallets, and notably cryptocurrencies

Cons

• RedMars falls short for newer traders, with little in the way of education, no beginner-friendly platform, a steep minimum deposit, and inadequate support during testing
• While RedMars' spreads are within industry averages, they don't offer a significant edge over the cheapest day trading brokers we've personally used, notably IC Markets
• The no-frills trading environment offers little beyond the basics, with no Islamic account, PAMM account or copy trading.

Visit RedMars

RedMars Review

Methodology

To rank the top CySEC-authorized brokerages, we:

How Can I Check If A Broker Is Regulated By The CySEC?

Verifying whether a broker is CySEC-regulated is a simple but vital step to ensure your trading safety.

Here’s a step-by-step walkthrough of the steps I took to check that eToro was regulated.

I’d expect a firm of eToro’s standing to be registered and authorized to conduct its business in every global jurisdiction it trades.

Its compliance department will be one of the firm’s most active divisions and will have staff who should ensure every t is crossed and every i is dotted.

However, a check takes no time at all…

Step 1: Visit CySEC’s Official Website

The first step is to go to the official CySEC website.

Step 2: Navigate To The ‘Regulated Entities’ Section

Look for the ‘Regulated Entities’ tab on the homepage in the menu. Hover over it, and a dropdown list will appear with categories like:

• Investment Firms (CIFs)
• Administrative Services
• Payment Institutions

For brokers, select ‘Investment Firms (CIFs)’

Step 3: Use The Search Function

You’ll be directed to a searchable list of licensed entities.

1. Enter the broker’s name or their license number in the search bar
2. Hit ‘Search’ to view the results

You can see where I punched eToro’s name into the search bar below.

Step 4: Verify The Broker’s Details

When the search results appear, look for the broker’s name in the list.

Click on the broker’s name to view their license details, including:

• Registration number
• Status (eg active, suspended, or revoked)
• Activities they are authorized to conduct

Step 5: Cross-Check Broker Information

Compare the details on CySEC’s website with the information on the broker’s website.

In our experience, legit brokers almost always prominently display their CySEC license number in their footer or ‘About Us’ section.

You can see below where I went to eToro’s website, found its regulation section, and then browsed this specific regulation page.

eToro states CySEC authorizes it under licence number 109/10, and this information should match what’s in the CySEC register.

As we can clearly see from the image in step 4, eToro (Europe) Ltd. is regulated by CySEC under license number 109/10, and further investigation reveals it has a clean bill of health.

It is licensed to conduct many forms of investment business throughout Europe and Cyprus.

Red Flags To Watch For

What Is The CySEC?

CySEC, short for the Cyprus Securities and Exchange Commission, exists to keep the financial markets in Cyprus running smoothly and safely.

But its influence doesn’t just stop at Cyprus – thanks to its role in regulating brokers and financial firms that operate internationally, it extends across Europe and even globally.

Here’s what CySEC is all about:

• Protecting Investors – CySEC’s top priority is safeguarding your interests as a retail trader. They enforce strict rules on financial firms to ensure your money is handled responsibly and transparently.
• Regulating Financial Markets – CySEC oversees a wide range of financial activities, including popular products with day traders like forex, CFDs, and even cryptocurrencies. Its job is to make sure these markets operate fairly and without manipulation.
• Ensuring Compliance – Trading providers under CySEC’s watch must follow the law – period. From maintaining proper licenses to meeting operational standards, CySEC ensures brokers play by the rules.
• Promoting Market Stability – By cracking down on fraudulent activities and ensuring transparency, CySEC fosters trust and stability in the financial system. This benefits not only active traders but the overall economy.

CySEC acts as a watchdog, referee, and guide for financial firms and traders alike. It’s here to create a safe trading environment where everyone has a fair shot.

Paul Holmes

Author

Who Is CySEC Answerable To?

While CySEC plays a significant role in regulating financial markets, it doesn’t operate in a vacuum.

It’s answerable to key entities that ensure its accountability and alignment with broader goals:

• The Cypriot Government – CySEC is an independent public authority, but it ultimately reports to the Cypriot Ministry of Finance. This connection ensures CySEC aligns with national financial and economic policies.
• The European Union (EU) – As Cyprus is a member of the EU, CySEC must comply with EU financial directives, like the Markets in Financial Instruments Directive (MiFID II). These directives standardise European regulations and ensure CySEC’s practices meet EU-wide standards.
• The Public And Investors – CySEC is also accountable to the people it serves: investors, traders, and the broader financial community. CySEC ensures its actions are visible and understandable through regular reporting and transparency initiatives.
• International Regulatory Bodies – CySEC collaborates with organisations like the European Securities and Markets Authority (ESMA) and other global regulators. While not directly “answerable,” this partnership ensures its operations are consistent with international best practices.

By being answerable to these entities, CySEC is held to high-performance standards, transparency, and fairness.

For active traders like us, this means you can trust that CySEC’s actions are guided by clear oversight and a commitment to protecting the financial ecosystem.

Paul Holmes

Author

What Powers Does CySEC Have?

CySEC has the authority to ensure that the financial markets under its watch are fair, transparent, and above board.

Here’s a breakdown of its powers:

• Granting Licenses – CySEC has the power to approve or deny licenses for financial firms that want to operate in or from Cyprus. No license? No business. This means that brokers must meet strict standards before they can serve traders like me and you.
• Setting Rules And Regulations – CySEC doesn’t just enforce the rules – it creates them (with some direction from wider European bodies). It sets guidelines for how financial firms should operate, covering everything from advertising to client fund protection.
• Conducting Audits And Inspections – CySEC has the authority to dig into the books of the firms it regulates. Surprise audits and inspections? Absolutely! This ensures companies are staying compliant and not cutting corners.
• Imposing Penalties – Broke the rules? CySEC can hit trading platforms where it hurts through fines, license suspensions, or even revocations (more on brokers that have felt its wrath below). This keeps brokers accountable and sends a clear message: play fair or face the consequences.
• Investigating Fraud And Misconduct – If there’s any sign of market manipulation, fraud, or shady business practices, CySEC has the power to investigate. It can subpoena documents, question people, and take action to protect retail investors.
• Collaborating With Other Regulators – CySEC doesn’t work alone. Thanks to its connection with the EU and global regulatory networks, it collaborates with other watchdogs to tackle cross-border financial crime and ensure firms meet international standards.

What Rules Must A CySEC Broker Follow?

A broker must follow strict rules to carry the CySEC licence. These aren’t just suggestions but enforceable standards designed to protect traders like you and ensure fair, transparent markets.

Here are key rules a CySEC-regulated broker must adhere to:

• Obtaining Authorization – First things first, CySEC ensures that only reputable brokers can operate. To get a CySEC license, brokers must meet stringent criteria, demonstrating their reliability and financial stability. This licensing process weeds out shady operators, so you can trade with peace of mind knowing your brokerage is legit.
• Capital Adequacy Requirements – Brokers must maintain a minimum level of capital to prove they can handle market risks and unexpected losses. This ensures they stay financially healthy and stable.
• Segregation Of Client Funds – Imagine your trading funds are safely tucked away in a little vault, separate from the broker’s operational money. That’s precisely what CySEC mandates through the segregation of client funds. If anything were to happen to the broker, your money would remain protected and out of reach from any financial hiccups they might face.
• Transparency In Operations – CySEC-regulated brokers must provide transparent and honest information about their services, fees, risks, and trading conditions. Misleading advertising? Not allowed.
• Responsible Leverage Limits – Leverage trading can amplify your gains, but it can also magnify your losses. CySEC imposes leverage limits to keep things balanced, especially for retail traders, typically up to 1:30. This means brokers regulated by CySEC can’t offer sky-high leverage that might expose you to excessive risk, promoting a safer trading environment.
• Negative Balance Protection – Are you ever worried about losing more than you’ve invested? CySEC has your back with negative balance protection. This rule ensures you can’t owe money beyond your initial deposit. So, even if the market turns against your position, your losses are capped, keeping your financial well-being intact.
• Reporting And Auditing – CySEC doesn’t just grant licenses and walk away. It conducts regular audits and compliance checks to ensure brokers adhere to all regulations. These routine inspections help catch and rectify any issues early, maintaining a trustworthy trading environment.
• Best Execution Practices – Brokers must execute your trades at the best possible prices and conditions available at the time, ensuring fairness in how your orders are handled. This is essential for fast-paced traders like day traders.
• Anti-Money Laundering (AML) Compliance – Financial security goes beyond just protecting your trades. CySEC enforces strict AML policies, requiring brokers to verify your identity (Know Your Customer or KYC) and monitor transactions for suspicious activities. This helps prevent financial crimes and keeps the trading ecosystem clean and secure.
• Compensation Scheme Membership – In the unlikely event that a CySEC-regulated broker faces insolvency, you’re covered by the Investor Compensation Fund (ICF). This scheme can reimburse you up to €20,000, providing an extra layer of financial protection and peace of mind. This is a useful protection, though it’s lower than in other jurisdictions (it’s up to £85,000 in the UK).
• Adherence To MiFID II – As part of the EU, CySEC brokers must comply with MiFID II regulations, which govern everything from trade transparency to investor protection across the European Economic Area.
• Swift Action Against Misconduct – If a broker steps out of line, be it through fraud, manipulation, or any other misconduct – CySEC is quick to act. They can impose hefty fines, suspend licenses, or even revoke them entirely. This strict enforcement ensures brokers maintain high ethical standards and operate fairly.
• Complaints Handling – Even with all these protections, issues might occasionally arise. CySEC provides robust dispute resolution mechanisms, allowing you to raise concerns and seek resolutions effectively. If a broker fails to address your complaint satisfactorily, CySEC can intervene to help resolve the matter.

These regulations create a safer trading environment for us to trade. They ensure brokers operate with integrity, protect our funds, and provide the transparency we need to make informed decisions.

So, when you see a broker regulated by CySEC, you know they’ve passed a high bar of trustworthiness and accountability.

Paul Holmes

Author

Does CySEC Have Teeth?

The Cyprus Securities and Exchange Commission has regulatory “teeth”, meaning it has the authority and the tools to enforce compliance among brokers and other financial entities.

Yet while CySEC is active, we’ve seen its penalties can be lenient compared to other major regulators, notably the FCA (UK) and ASIC (Australia).

Fortunately, CySEC has been ramping up enforcement in recent years to shed perceptions of being overly forgiving. Here are some notable examples:

• Exelcius Prime Ltd (2024): CySEC imposed a total fine of €740,000 on Exelcius Prime Ltd for various infractions, including providing unauthorized investment advice, non-compliance with organizational requirements, and failing to act in the best interests of clients​.
• TradeEU.com and Titan Edge (2024): In late 2024, CySEC fined TradeEU and Titan Edge Capital for non-compliance issues such as inadequate disclosure practices and failure to implement measures to protect retail investors​ .
• Enforcement Actions (2023): CySEC imposed fines totaling €2.2 million in 2023 for various violations, including failures in compliance, transparency, and investor protection measures.
• FXORO (2023): FXORO faced a €360,000 penalty for breaches of investment laws, highlighting the firm’s failure to meet its regulatory obligations. This action underscores CySEC’s focus on investor protection and ensuring firms adhere to legal standards.

Bottom Line

While not as respected as FCA in the UK or ASIC in Australia, for traders in Europe, CySEC offers a reliable regulatory framework that prioritizes transparency, investor protection, and market integrity.

Its strict licensing requirements, regular audits, and ability to impose penalties ensure that brokers adhere to high operational and ethical standards.

With safeguards like segregated accounts, compensation schemes, and detailed compliance measures, day traders can feel more secure while navigating the volatile world of CFDs and forex.

Ultimately, choosing a CySEC-regulated broker ensures that one of Europe’s leading regulatory authorities governs your trading activities, offering peace of mind and fostering trust in the financial system.

To find the right provider for your needs, see DayTrading.com’s pick of the best CySEC trading platforms.