Last update: 7 December 2020
6 min read

CySEC Regulation & Forex Brokers 

Are you looking for the best brokers regulated by CySEC? Good news – you’ll find a complete list right here. We’ll also give you background information on CySEC’s history, how you can trade safely, and what to look for if you want to find the very best CySEC regulated brokers.

CySEC is among the most popular regulatory agencies in the world when it comes to regulating all types of financial companies operating out of Cyprus. The Cyprus Securities And Exchange Commission was introduced way back in 2001 and is a subsidiary of the European MiFID regulatory organization, thereby enabling all CySEC members to carry out business across the European continent.

Cyprus is a highly popular attraction for Forex brokers as it offers a lot of advantages when it comes to setting up a corporate headquarters. CySEC brokers are completely accountable to the CySEC under the MiFID directive.

Here’s our list of the best CySEC regulated brokers:

  • FXTM
  • AvaTrade
  • Oinvest
  • HotForex

FXTM
FXTM is a great choice for both new and experienced traders. This broker offers over 250 instruments, including currency pairs, commodities, shares, and cryptocurrencies. Beginner’s will benefit from FXTM’s range of demo accounts and easy registration process, whilst veteran traders will be impressed by the broker’s fair-trading fees, research tools and analysis. Clients can also rest assured they’re trading with a responsible and reputable broker, as FXTM boasts licenses from top-tier authorities such as CySEC and the UK’s FCA. Join FXTM today to trade with a high-quality broker.Read review ›

AvaTrade

AvaTrade


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Choose to trade with AvaTrade, and you’ll be choosing an award-winning broker that serves over 300,000 clients. Regulated by 9 different authorities, including the CBI and ASIC, AvaTrade is one of the most reputable and secure brokers around. You can trade over 750 instruments in 8 asset classes. This includes currency pairs, stocks, indices, commodities, ETFs, and cryptocurrencies. The broker also boasts a great learning academy and a proprietary trading platform, making it suitable for all types of traders.Read review ›

Oinvest

Oinvest


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Traders from South Africa shouldn’t look further than Oinvest, an award-winning broker with an FSCA license. Oinvest offers 350+ instruments including currency pairs and cryptocurrency pairs for forex traders, and stocks and CFDs for more experienced clients. At Oinvest you’ll also benefit from competitive spreads, account types suited to your needs and a comprehensive education center. Oinvest is the perfect choice if you want to trade safely from South Africa today.Read review ›

HotForex

HotForex


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HotForex, or HF Markets for EU traders, is an industry-leading forex broker that offers over 100 tradable assets. This includes currency pairs, cryptocurrencies, shares and indices. HotForex also comes complete with a license from the FCASVG, whilst HF Markets is supported by the UK’s FCA and CySEC. All of this adds up to a broker you can trust, and that’s suitable for all different types of traders. If you’re in the EU, trade safely with HF Markets now, or visit HotForex if you’re elsewhere.Read review ›

Finding the best CySEC Forex brokers

Because CySEC is one of the most popular regulated markets in the world, it’s easy to find a selection of the best brokers available. Having compared the best brokers, our experts recommend you try FXTM, AvaTrade, Oinvest, and HotForex. All of these particular brokers have an excellent track record and can provide you with a top trading environment.

How are you protected by CySEC?

Since 2012, CySEC has continuously updated its regulatory framework to incorporate several new initiatives that are designed to safeguard consumers against financial crimes and abuse. CySEC now works extensively with the European MiFID to create guidelines that concentrate on ensuring that all compliant members are honest in their dealings with the general public, which helps ensure the integrity of the markets.

No direct complaints

Unlike the NFA or CFTC, CySEC does not entertain consumer complaints directly. The CySEC has instructed all regulated members to address their clients’ complaints in an efficient manner through a dedicated customer support channel. Therefore, a trader should contact their broker directly regarding any complaints and await further instructions on a problem resolution. In case the client does not receive an amicable solution, CySEC recommends contacting the Financial Ombudsman, or the Court as a last resort.
The primary mission of CySEC is to regulate the markets and to supervise the conduct of financial organizations operating in Cyprus. While investor protection is a top priority in their updated mission, consumers cannot contact the CySEC directly for any complaint resolution or arbitration services.

What is CySEC and what makes them special?

CySEC is the main regulatory agency for Cyprus. It has relatively easy regulatory guidelines and a fast approval process that allows CySEC regulated brokers to set up camp in Cyprus with minimum formalities. Cyprus was also formerly known as a tax haven before being admitted into the EU, which provided additional incentives for companies who wished to save on taxes and increase their revenue.

Previously, CySEC was broker-friendly in terms of fines or suspension of licenses for misdeeds, which attracted criticism. CySEC regulated brokers were known to indulge in financial malpractices and fraud, which had resulted in clients losing millions of dollars on an annual basis. However, this forced the CySEC to reform its regulatory guidelines to ensure that all regulated brokers adhere to the most stringent laws to protect clients’ funds and interests. These days, CySEC regulated brokers are among the best in the world.

A pioneer in the field of regulations

While CySEC received wide-spread criticism for its governing policies during the initial days, CySEC is clearly a pioneer in terms of delivering ground-breaking regulatory guidelines that changed the financial markets for the better.

CySEC is the first regulatory agency in the world to regulate binary options by terming it as a valid financial instrument. It’s also at the forefront of regulating a majority of leading binary options brokers across the world.

CySEC paved the way for all the other regulatory agencies to quickly follow in their footsteps by recognizing binary options as a valid financial instrument and regulating related brokers in their respective countries.

Criticism & way forward

There is criticism of CySEC in some quarters. Some regulators feel that the fines levied on members for non-compliance is small, and companies are let off with a simple warning for fraudulent behavior. Therefore, the MiFID constantly oversees the working of the CySEC to ensure that its regulatory guidelines are continually adjusted to bring financial firms in line with standard protocols.

Despite the fact that CySEC has a long way to move forward in terms of regulation, it is indeed one of the most popular regulatory organizations that have achieved a tremendous growth rate. Financial companies still favor CySEC over other agencies due to the relative ease of regulation and lesser formalities. However, all of that is set to change in the next few years if CySEC hopes to be taken seriously by the MiFID.

Verifying the authenticity of CySEC regulated brokers

Current CySEC regulations state that all forex brokers are required to quote the five-digit CySEC license number prominently on their website. Consumers are also encouraged to verify the authenticity of a broker by confirming the license information through the official CySEC website.
CySEC frequently updates its circulars and warning notices to inform the public about members that have been fined or had their licenses revoked for any financial wrongdoings. In case the consumers are confused about the status of any particular company, they can directly contact the CySEC to get more information.

Brokers by regulation authority

  • FMA forex brokers
  • NFA forex brokers
  • CFTC forex brokers
  • ASIC forex brokers
  • BaFin forex brokers
  • Banque de France forex brokers
  • FINRA forex brokers
  • SIBA forex brokers
  • FINMA forex brokers

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