CySEC Regulated Forex Brokers with the Lowest Spread
Cyprus has traditionally been one of the most popular jurisdictions for all kinds of finance companies in Europe, including forex & CFD brokers. This is particularly because Cyprus has business-friendly tax policies there. Any brokers that are based in Cyprus will then be regulated by Cyprus Securities and Exchange Commission (CySEC).
A s a popular jurisdiction for all types of online brokers, there have been many forex brokers headquartered there, including low spread forex brokers. This low spread condition can help traders in cutting their costs while trading on the forex market. If you want to trade on CySEC forex brokers with the lowest spread, here are some recommendations.
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Why do scalpers need low spreads?
A scalper can open and close 30 positions in a day. Say the broker charges a spread of 3 pips for every position, the profit average is 5 pips, the loss average is 3 pips, and the scalper makes 20 winning trades and 10 losing trades. The total profit and loss without the spread are:
(20 x 5) - (10 x 3) = 70 pips
If the spread is charged:
((20 x 5) - (10 x 3)) - (30 x 3) = -20 pips
The result is disappointing, right? Although they have made twenty profitable trades, the total profit/loss turns to minus once the spread is applied.
Continue Reading at The Secrets of Successful Scalping Strategy
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)
Why is it important for day trader to choose low spread broker?
Given the importance of spreads in day trading, it is essential to find a broker that offers low spreads. Lower spreads can help day traders reduce their trading costs, which in turn can lead to increased profits.
It is noteworthy that IC Markets stands out in this regard because it offers lower spreads compared to its counterparts. For instance, the average spread on the EUR/USD for IC Markets' standard account is around 0.62 pips while FP Markets' is around 1.2 pips.
Continue Reading at Broker for Day Trading: FP Markets or IC Markets?
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)
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