CySEC Regulation & Forex Brokers in Cyprus
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 ASIC regulated brokers:
Finding the best CySEC regulated 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 their 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 behaviour. Therefore, the MiFID constantly oversees the working of the CySEC to ensure that their 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 favour 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