CySEC Regulated Forex Brokers with the Highest Leverage
Forex brokers in Cyprus are regulated by the well-known Cyprus Securities and Exchange Commission (CySEC). However, since a new regulation (which is ESMA or European Securities and Markets Commission) is introduced, there are no high leverage forex brokers left in Cyprus.
According to the ESMA rules, forex brokers can offer a maximum leverage of 1:30 on major forex pairs to clients categorized as “non-professional” traders. This restriction is aimed to check the broker’s requirements for being a “professional,” but this usually requires a trading account of significant size. Nevertheless, some CySEC regulated brokers who are registered under other offshore jurisdictions can still offer the flexibility of trading with high leverage.
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How much leverage is categorized as too high?
When a market maker offers a leverage of up to thousands and even reaches 1:2000, instead of helping you, it may plunge your trading account to a very quick loss.
Continue Reading at Forex Broker Cheats and How to Anticipate Them
What is the structure of CySEC?
CySEC is run by a board of five people, along with two full-time staff members, a chairman, and a vice chairman. On the highest part of that, the Central Bank of Cyprus is represented by a board member who does not have a vote. The government is also attached to CySEC, in which the Minister of Finance makes suggestions to the Ministerial Council about who should be on the boards of directors.
Continue Reading at A Guide to Cyprus Securities and Exchange Commission (CySEC)
What are the obligations of CySEC?
The following are the obligations that fall under the Securities and Exchange Commission of Cyprus:
- Control and direction of all business dealings and other activities carried out in Cyprus.
- The Stock Exchange, in addition to all the businesses and brokerages listed there.
- Control and management of licensed investment firms, funds, and other financial institutions
- Consult firms and businesses specializing in financial management.
- Grant licenses to brokerages dealing in foreign exchange, financial consultants, and investment enterprises.
- Impose fines and other punishments on businesses that, under its legislation, are supposed to be in violation of the rules, terms, and conditions.
- Help with submitting the authorizing applications for the acquisition of venture administration, including obtaining authorization to act as forex brokers.
- Manage the company's internal audits.
- Educate employees on all relevant administrative issues through training.
Continue Reading at A Guide to Cyprus Securities and Exchange Commission (CySEC)
What kind of power does CySEC have?
CySEC is widely recognized to have a weak ability to keep an eye on things and give out light punishments. Forex brokerage firms that CySEC usually regulates only have to pay the penalty to stay regulated. CySEC does not handle refunds, so when there's a loss or the broker goes out of business, traders would have to reach the broker on their own.
Continue Reading at A Guide to Cyprus Securities and Exchange Commission (CySEC)
