CySEC Regulated Brokers

The Cyprus Securities and Exchange Commission is a forex regulator which was founded in 2001. Many forex brokers registering for CySec regulation because of its easier requirements compared to other regulators such as FCA or NFA. Therefore, CySec become famous as one of the largest forex broker regulators in the world.

In 2004, Cyprus was accepted to become part of the European Union. With the country's new status, CySEC automatically becomes a subsidiary of MiFID, a European regulatory organization. CySEC regulated brokerages are permitted to carry out their business activities in the European region.

CySEC is a regulator that has caused a lot of controversies. Before joining the EU, it was considered a tax haven, so a reference was made to companies and businesses from all over the world who wanted to save their funds abroad. Although it has become one of the authorities related to financial company legislation, the CySEC legislation regulates binary options as financial instruments.

Advantages and Disadvantages of Trading in CySEC Regulated Brokers

The main focus of CySEC is to provide oversight to companies operating in Cyprus. Protection for clients is limited to clarifying whether an entity is registered or not. Therefore, traders who want to register with a CySEC regulated broker must be very thorough. Many forex scam brokers claim to be regulated by CySEC. To anticipate this, the Cypriot regulator requires its official brokers to include the applicable regulatory numbers on the website and distributed promotional material.

There are CySEC regulated forex broker brokers who offer their services throughout the world. Providing large leverage, affordable minimum deposits, and a simple registration process become the selling points of CySEC regulated broker. For traders who want to start with limited funds and looking for brokers that require simple registration but are still regulated by Europe, CySEC brokers are approved as a reference.

But keep in mind, the protection provided by CySEC approves the application of Separate Accounts and regular financial reporting. CySEC is also known to have a loosen capacity for supervision and light punishment. CySEC regulated forex brokers generally only need to pay a fine to remain regulated, while refunds in the form of refunds are not handled by CySEC. If there is a loss or broker bankruptcy, traders should contact the broker independently.

If you are interested to open an account in one of the brokers in the list above, make sure to try the forex demo account before proceeding to register in the live account.