The Cyprus Securities and Exchange Commission (CySEC) is the independent regulatory authority responsible for overseeing the financial markets in Cyprus, including the foreign exchange (forex) market. It was established in 2004 and is a member of the European Securities and Markets Authority (ESMA).
CySEC’s regulatory framework for forex brokers is based on the Markets in Financial Instruments Directive (MiFID II) and its implementing regulations. MiFID II is a European Union directive that aims to harmonize the regulation of financial markets across the bloc.
Some of the key features of CySEC’s forex regulation include:
Capital requirements: CySEC-regulated forex brokers must maintain a minimum operating capital of €730,000. This is to ensure that the broker has sufficient financial resources to meet its obligations to its clients.
Client segregation: Client funds must be segregated from the broker’s own funds. This means that client funds are not at risk if the broker becomes insolvent.
Negative balance protection: Retail clients (as defined by MiFID II) cannot lose more than their invested capital when trading CFDs or forex.
Leverage limits: The maximum leverage that CySEC-regulated forex brokers can offer to retail clients is 1:30 for major currency pairs and 1:20 for non-major currency pairs and commodities.
Disclosure requirements: CySEC-regulated forex brokers must provide their clients with a number of disclosure documents, including a client agreement, risk warning, and order execution policy.
5 Best CySEC Regulated Forex Brokers 2024
IC Markets
Best CySEC Regulated Forex Broker
IC Markets CySEC Regulation
IC Markets EU complies with CySEC regulatory requirements and is required to meet strict financial standards, including capital adequacy and audit requirements.
Pros
- Low forex fees
- Easy and fast account opening
- Free deposit and withdrawal
- Offers standard and raw spread accounts
Cons
- Limited product selection
- Slow live chat support
- High Leverage Risk
- No investor protection for non-EU clients
FXTM
Best Forex In Europe
FXTM CySEC Regulation
Forextime Ltd is regulated by the Cyprus Securities and Exchange Commission under License number 185/12. number 185/12 and Legal Entity Identifier (LEI) number 549300AOBWCBUX8I1R48, operating in harmonisation with the Markets in Financial Instruments Directive (MiFID II).
Pros
- First-class education
- Exceptional value
- Fast execution
- 24/7 Customer support
Cons
- Not available for U.S. traders
- High starting deposit
- High Leverage Risk
- Limited product range
FxPro
Best CySEC CFD Broker
FxPro CySEC Regulation
FxPro Financial Services Ltd is authorised and regulated by the Cyprus Securities and Exchange Commission (licence number 078/07), the supervisory and regulatory authority for investment service firms in Cyprus.
Pros
- Low non-trading fees
- Easy and fast account opening
- Licensed and Regulated
- Security of Fund
Cons
- Only CFDs and forex
- Inactivity fee
- High Leverage Risk
- Limited Educational Resources
Tickmill
Best Online Forex Broker
Tickmill CySEC Regulation
Tickmill Europe Ltd is authorised and regulated by the Cyprus Securities and Exchange Commission as a CIF limited company. Licence number: 278/15.
Pros
- Non-Dealing Desk Trade
- Easy and fast account opening
- Free withdrawals and deposits
- Spreads as Low as 0.0 pips
Cons
- Not available for U.S. traders
- Limited Tradeable Assets
- High Leverage Risk
- No Proprietary Platform
XM
Best Forex and CFD Broker In Asia
XM CySEC Regulation
Trading Point of Financial Instruments Ltd is licensed by CySEC under license number 120/10.
Pros
- 1000+ Trading Instruments
- Trading Crypto CFDs
- Fast execution
- 24/7 Customer support
Cons
- Not available for U.S. traders
- No Fixed Spreads
- High Leverage Risk
- Limited education resource
