Last update: 29 September 2020
6 min read

Best CIMA Regulated Forex Brokers

Are you on the lookout for the best CIMA regulated brokers available in the Cayman Islands? Not only can we help you find them, but our experts are also here to share tips and advice on trading via the best brokers regulated by CIMA.

The Cayman Islands is a British Overseas Territory located in the Western Caribbean Sea and has gained a reputation for being a major international financial center. It has also become a very popular tax haven for large multinational companies and the financially elite. The reason for this is there is no corporate or income tax on money earned outside of the Islands territory. Rather than having to pay taxes, offshore companies pay an annual licensing fee direct to the Cayman Islands government. Privacy laws also make this a popular location because individuals and business owners are able to hide their assets and identities from prying eyes. Regulation and supervision of the financial services industry fall under the remit of the Cayman Islands Monetary Authority.

Here’s our experts’ best CIMA regulated broker:


HYCM
HYCM is one of the oldest, and most respected, forex brokers around. As a part of Henyep Markets, this broker has over 40 years of experience and thousands of satisfied clients worldwide. With HYCM you can trade over 300 instruments, enjoy spreads from as low as 0.2 pips and lightning-fast execution times. Available instruments include forex currency pairs, stocks, crypto, commodities, indices, and ETFs. This broker also comes with licenses from the FCA and CySEC, you can trade in confidence with HYCM today.Read review ›

Best broker regulated by CIMA

The CIMA is wholly owned by the Government of the Cayman Islands in accordance with the Monetary Authority Law (2013 Revision). The Governor appoints all the Authority’s Board of Directors and also has the power to direct the Authority, after consultation with the board. The Governor is also able to appoint an independent review of the Authority’s actions and performance.

This means that all CIMA regulated brokers can be trusted, so the best broker regulated by CIMA is a matter of personal opinion. Our experts are huge fans of HYCM which is well worth your time. You can check out our full review of HYCM here.

Are CIMA regulated brokers safe?

Whether you’re looking for the best CIMA regulated brokers in the Cayman Islands or brokers in any other country, it’s important to understand the importance of choosing one which is licensed and regulated. You will encounter a number of unregulated brokers when looking for a partner and by understanding the risks you are in a better position to make an informed decision.

There are a number of important factors to consider when looking for a broker, but by far the most important relates to regulation. Choosing an unregulated broker means you will be putting yourself and your investment at much greater risk. And let’s face it, trading is a risky enough form of investment, without adding to your troubles.

Lack of regulation means lack of protection

There will be very little recourse offered by an unregulated broker, and you will find yourself with no one to turn to for help. You will also have very little in the way of legal protection from fraud. And, should the unregulated broker go bankrupt, it’s very likely you will lose some or all of your deposit.

We should stress that regulation on its own is not the be all and end all. You should be looking for a broker regulated in a country where the regulations are followed and legal protection is strong. Most countries have their own regulatory agency but they in no way offer the same level of service and protection.

What does CIMA do?

Cayman Islands Monetary Authority logoThe Cayman Islands Monetary Authority (CIMA) is the leading regulator of financial services in the Cayman Islands. It is also responsible for the supervision of its currency board which maintains fixed exchange rates with other currencies. The CIMA has four main functions:
Regulatory – The CIMA regulates and supervises financial services, including forex brokers in the Cayman Islands. It also monitors compliance with money laundering regulations, issues a regulatory handbook which contains policies and procedures, rules, and statements of principles and guidance for CIMA regulated brokers and other financial entities.
Monetary – The CIMA issues and redeems the Cayman Islands currency and is responsible for managing currency reserves.
Advisory – The CIMA advises the government in relation to monetary, cooperative and regulatory matters.
Cooperative – The CIMA helps overseas regulatory bodies to promote consolidated supervision of financial markets.

What is a CIMA regulated broker, and what are their responsibilities?

The public is able to access different types of records held by the Cayman Islands public authorities and the CIMA is committed to openness, transparency, and accountability. As part of this transparency, a trader is able to check a list of Securities Investment Business Licenses when considering forex brokers in the Cayman Islands. There are a number of obligations a CIMA regulated broker has to comply with. These include:

  • Accounts have to be audited annually
  • A certificate of compliance has to be submitted along with the annual accounts
  • Any changes in the company information have to be conveyed to CIMA
  • An auditor has to give their opinion of the internal controls of the license holder
  • Licensed broker/dealers have to submit monthly statements
  • Provide details of current insurance
  • Reconciliation on an annual basis between balance sheet figures

The CIMA and international relations

The CIMA operates with due regard to international standards and is also represented in a number of different bodies including:

  • International Organization of Securities Commissions (IOSCO)
  • Association of Supervisors of Banks of the Americas (ASBA)
  • Offshore Group on Cross Border Banking
  • Caribbean Financial Action Task Force (CFATF)
  • Working Group on Cross Border Banking

The CIMA is also a participant in the International Monetary Fund’s Information Framework Initiative that requires it to provide statistical information to the IMF. The IOSCO is a significant organization in the world of securities trading, so let’s look at what it does.

The significance of the IOSCO and forex trading

The International Organization of Securities Commissions (IOSCO) is a group of organizations responsible for regulating securities and futures markets across the globe. The members of the organization tend to be made up of the main financial regulators from every country. There are members from more than 100 different territories, which together account for the regulation of more than 95% of the world’s securities markets.

The role of IOSCO is to help members promote high standards of regulation and provide a forum for regulators to cooperate with each other and any other relevant international organizations. The organization meets several times a year in different locations across the globe, but has a permanent secretariat with a base in Madrid.

What if I need to complain to CIMA about a broker?

The Cayman Islands might have a reputation for being elusive, but this certainly isn’t the case when it comes to making a complaint with CIMA. If you visit their website you’ll see the full complaints procedure in detail, right down to the name of the Deputy Managing Director who will oversee your complaint.

You can submit your complaint either online or in person, at CIMA’s Cayman Islands office. You can also send your complaint to their office via post. If you do it online or by post, you can expect to receive a response within five days acknowledging your complaint.

How can I check for CIMA regulation?

Finding out whether a broker is regulated is a simple case of sending an email or checking on the regulatory body’s website. Determining whether the regulatory body is reliable is a little more difficult. But we have to stress that choosing a regulated broker is a much better decision than choosing an unlicensed and unregulated broker.

Best and most trusted forex brokers in March 2024

92.5
Points
Users
Used by
17,000,000+ Traders
Min. Deposit
$1
Bonus
100%
Help!
Exit tooltip
Trading Instruments
70+
Help!
Trading instruments, or securities, are the various market types you can trade. Examples include CFDs, stocks, currencies, metals, and commodity futures. Exit tooltip
Type of Brokers
STP/ECN
Trading Platforms
Check MT4
Help!
Platform for trading Forex, analysing financial markets and using expert advisors. Exit tooltip
Check MT5
Help!
Multi-asset platform for trading Forex and CFDs. Exit tooltip
Check Mobile App
Check WebTrader
Help!
Trade online without downloading any software. Exit tooltip
Check Private
Deposit Methods
Bank transfer, Visa, Skrill, Neteller, PerfectMoney, bitwallet
Min. Spread
1pips
Max. Leverage
1:3000
Currency Pairs
35
Regulated By
FCAFCA
CySecCySec
ASICASIC
IFSCIFSC
Customer Support
24/7
94.8
Points
Users
Used by
100,000+ Traders
Min. Deposit
$100
Bonus
No Information
Help!
Exit tooltip
Trading Instruments
10,000+
Help!
Trading instruments, or securities, are the various market types you can trade. Examples include CFDs, stocks, currencies, metals, and commodity futures. Exit tooltip
Type of Brokers
STP/ECN/DMA
Trading Platforms
Check MT4
Help!
Platform for trading Forex, analysing financial markets and using expert advisors. Exit tooltip
Check MT5
Help!
Multi-asset platform for trading Forex and CFDs. Exit tooltip
Check Mobile App
Check WebTrader
Help!
Trade online without downloading any software. Exit tooltip
Deposit Methods
Bank transfer, Visa, MasterCard, Skrill, Neteller, PayPal and more
Min. Spread
1.1pips
Max. Leverage
1:500
Currency Pairs
61
Regulated By
CySecCySec
ASICASIC
Customer Support
24/5
94.7
Points
Users
Used by
100,000+ Traders
Min. Deposit
$1000
Bonus
No Information
Help!
Exit tooltip
Trading Instruments
2,200+
Help!
Trading instruments, or securities, are the various market types you can trade. Examples include CFDs, stocks, currencies, metals, and commodity futures. Exit tooltip
Type of Brokers
STP/NDD
Trading Platforms
No Check MT4
Help!
Platform for trading Forex, analysing financial markets and using expert advisors. Exit tooltip
No Check MT5
Help!
Multi-asset platform for trading Forex and CFDs. Exit tooltip
Check Mobile App
Check WebTrader
Help!
Trade online without downloading any software. Exit tooltip
Check Private
Deposit Methods
Bank transfer, Visa, MasterCard, Skrill, Neteller, Revolut, PayPal and more
Min. Spread
3pips
Max. Leverage
1:400
Currency Pairs
47
Regulated By
FCAFCA
CySecCySec
Customer Support
24/5
92.8
Points
Users
Used by
140,000+ Traders
Min. Deposit
$-
Bonus
No Information
Help!
Exit tooltip
Trading Instruments
1,800+
Help!
Trading instruments, or securities, are the various market types you can trade. Examples include CFDs, stocks, currencies, metals, and commodity futures. Exit tooltip
Type of Brokers
STP/ECN
Trading Platforms
Check MT4
Help!
Platform for trading Forex, analysing financial markets and using expert advisors. Exit tooltip
No Check MT5
Help!
Multi-asset platform for trading Forex and CFDs. Exit tooltip
Check Mobile App
Check WebTrader
Help!
Trade online without downloading any software. Exit tooltip
Check Private
Deposit Methods
Bank transfer, Visa, Mastercard, E-wallets
Min. Spread
1.4pips
Max. Leverage
1:500
Currency Pairs
49
Regulated By
FCAFCA
CySecCySec
IFSCIFSC
Customer Support
24/5

Frequently Asked Questions (FAQs)

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