Cyprus is one of the most popular regulatory jurisdictions for Forex & CFD brokers, A combination is offered here of the protection of EU law with a relatively light regulatory touch. We have painstakingly reviewed every Cyprus-regulated Forex broker of consequence, and we present the details of the best on offer.
- AvaTrade, Highly regulated, choice of fixed or floating spreads.
- FP Markets, ECN trading with leverage up to 1:500.
- Pepperstone, Great ECN execution on MT4/5, cTader, TradingView and Pepperstone proprietary platform.
- BlackBull Markets, Best ECN trading environment, with scalping and hedging.
- XM, Exception range of assets + negative balance protection.
Best Cypriot Brokers Comparison
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Regulators | ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID | ASIC, CMA, CySEC, FSCA | ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB | FMA, FSA | ASIC, CySEC, DFSA, FSC Belize |
Year Established | 2006 | 2005 | 2010 | 2014 | 2009 |
Execution Type(s) | Market Maker | ECN/STP | No Dealing Desk, NDD | ECN/STP, No Dealing Desk | Market Maker |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | 0.9 pips | 1.2 pips | 1.1 pips | 1.3 pips | 0.1 pips |
Average Trading Cost GBP/USD | 1.5 pips | 1.4 pips | 1.4 pips | 2.0 pips | 0.2 pips |
Average Trading Cost Gold | $0.29 | $0.16 | $0.15 | $0.90 | $0.19 |
Trading Platform(s) | Other, MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based+ | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | Other, MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Trading View+ | MetaTrader 4, MetaTrader 5, cTrader, Trading View | MetaTrader 4, MetaTrader 5, Proprietary platform |
Islamic Account | |||||
Negative Balance Protection | N/A | N/A | |||
| Visit Website | Visit Website | Get Started Visit Website75-95% of traders on margin lose | Visit Website | Visit Website |
AvaTrade
In Summary Highly regulated, choice of fixed or floating spreadsAvaTrade offers traders a well-balanced asset selection, including cryptocurrencies, ETFs, and options. It also shines with its trading platform choices, featuring its proprietary WebTrader and mobile app AvaTradeGO with Trading Central services, the specialized AvaTrade trading platforms, Ava Option and Ava Social, and MT4/MT5, which enable algorithmic trading with embedded copy trading services. It makes AvaTrade one of the best Forex brokers in Cyprus on my listing.
Beginner traders get excellent education via the AvaTrade Academy and the Guardian Angel MT4 plugin. The high-paying affiliate program with 145,000 registered partners and $300,000,000+ commission payouts caters to passive income seekers.
Pros & Cons
- High quality educational offering via AvaAcademy
- Excellent choice of trading platforms catering to various trading needs
- Broad asset selection and cross-asset diversification opportunities
- Well-regulated and trusted broker with oversight from a central bank
- Trading costs competitive but nothing special
FP Markets
In Summary ECN trading with leverage up to 1:500FP Markets has been in the financial services and forex brokering market for 16 years, during which time they have amassed a significant list of accolades, regulatory certificates, and, of course, a large asset selection. Whether you're a novice trader or a seasoned pro, FP Traders will provide you with the features and alternatives you've been looking for. This trustworthy forex broker is authorized by the Australian Securities and Investments Commission in Australia and the Cyprus Securities and Exchange Commission in Cyprus, providing you peace of mind that they are supervised by a respected regulator.
Pros & Cons
- Choice of trading platforms and auxiliary trading tools
- Very competitive cost structure and excellent asset selection
- Low minimum deposit requirement and leverage of up to 1:500
- Well-regulated and trustworthy
- Availability of Iress geographically restricted
Pepperstone
In Summary Great ECN execution on MT4/5, cTader, TradingView and Pepperstone proprietary platformThe MT4, MT5, and cTrader platforms support algorithmic trading and have embedded copy trading services depending on jurisdictions. Pepperstone also connects social traders to TradingView, where they can socialize with 50M+ traders and share ideas, as well as offering proprietary Pepperstone Trading Platform. The well-balanced selection includes cryptos and ETFs, and the commission-based account offers raw spreads from 0.0 pips for a €5.20 per lot commission.
Pepperstone offers VPS hosting for low-latency 24/5 Forex trading and API trading for advanced algorithmic traders with custom trading solutions. It makes Pepperstone one of the best Forex brokers in Cyprus on my listing for active traders using algorithmic trading.
Pros & Cons
- Excellent choice of trading platforms consisting of MT4/MT5, cTrader, TreadingView and Pepperstone Platform
- Market-leading MT4/MT5 upgrade package, Autochartist, and API trading
- Social trading support via Signal Start, MetaTrader Signals, Copy Trading by Pepperstone, DupliTrade
- Leverage of up to 1:400 depends on jurisdiction and superb trade execution
- Demo accounts have 60-day time limits
BlackBull Markets
In Summary Best ECN trading environment, with scalping and hedgingI rank BlackBull Markets among the best Forex brokers in Cyprus due to its cutting-edge trading infrastructure, including superb data feeds from 66+ third-party providers and deep liquidity pools. It also ensures market-leading diversification via 26,000+ assets featuring 200+ currency pairs, while traders benefit from competitively priced, commission-free, and commission-based ECN trading accounts.
BlackBull Markets upgrades MT4/MT5 with the Autochartist plugin, but traders additionally get cTrader and the proprietary mobile app BlackBull Trader. Copy traders can explore the in-house proprietary BlackBull Markets alternative, ZuluTrade, and Myfxbook Autotrade. BlackBull Markets also connects social traders with 50M+ peers at TradingView.
Pros & Cons
- ECN/NDD execution model with deep liquidity
- Institution-grade pricing for retail traders via proprietary price aggregation
- ZuluTrade and Myfxbook for social trading
- Leverage of up to 1:500
- Limited deposit options
XM
In Summary Exception range of assets + negative balance protectionI rank XM among the best Forex brokers for beginners as it provides exceptional education, with the live education room available Monday through Friday between 06:00 and 15:00 GMT at its core. Beginners also receive actionable trading recommendations, and the $5 minimum deposit ensures accessibility to all traders, boosted by deposit bonuses.
XM rewards active traders with a four-tier loyalty program and supports algorithmic traders with VPS hosting. The well-balanced asset selection exceeds 1,000 assets, and the proprietary copy trading service pays signal providers up to 50% profit share. Swap-free trading and low trading fees ensure a competitive edge.
Pros & Cons
- Outstanding trading tools and loyalty program
- Low minimum deposit, high leverage*, and competitive trading cost
- Excellent research and education
- Trustworthy and transparent with generous bonuses and incentives
- Inactivity fee
Forex Trading in Cyprus
Cyprus was the center of the online Forex trading world, regulated by the Cyprus Securities and Exchange Commission (CySEC) and with competitive trading conditions. After the regulatory changes enforced by the European Securities and Markets Authority (ESMA), which crippled competitiveness, a mass exodus of trading-related business materialized, leaving Cyprus as the top destination for EEA-resident traders. Cyrus has an excellent trading infrastructure and support system, and brokers that cater to the EEA use it as a regional hub. Traders benefit from high-speed internet, a choice of ESMA-compliant brokers, and excellent auxiliary services like accountants, lawyers, and amenities enabling the trader lifestyle.
Cyprus Forex Regulations
The Cyprus Securities and Exchange Commission (CySEC) originally created a balance between a business-friendly regulatory and tax environment. It combined this with ensuring good protection for traders, resulting in an inflow of Forex brokers. CySEC-regulated Forex brokers must comply with the European Securities and Markets Authority (ESMA), despite regulating its financial system capably.
The ESMA regulates the EU single market and supersedes national regulators such as CySEC. Following the 2008 global financial crisis, followed by the now-defunct binary options industry and the surging popularity of cryptocurrencies, the ESMA imposed some major regulatory changes. They consisted of banning bonuses and limiting retail leverage to 1:30.
The ESMA acted under the belief that leverage increases risk, and that Forex brokers with bonuses reward aggressive marketing campaigns with more substantial deposits. The first part is arguably incorrect, as many analysts see an absence of risk management as the primary cause of excessive losses, not overleveraged trading accounts. There is also a distinct difference between advertised maximum leverage and the applied one.
Following the ESMA regulatory changes, many Cyprus Forex brokers established regulated subsidiaries in other jurisdictions. Today, Cyprus tends to cater almost exclusively to EEA resident traders. There are no restrictions on traders from the EEA opening accounts with international brokers.
How to Verify CySEC Authorization
Verifying if your broker is CySEC-regulated is simple and takes less than 30 seconds.
Here is how to verify CySEC regulation:
- CySEC-regulated brokers provide their license number at the footer of their homepage
- Go to the CySEC website and check the broker’s license number with the CySEC database to ensure it is valid
Noteworthy:
- CySEC-regulated brokers must display the retail trader loss percentage on their homepage, and if it is missing, it is a red flag
Tips for Choosing a Forex Broker in Cyprus
While traders have different preferences and requirements, I focused on the below aspects during my best Forex brokers in Cyprus listing, as they apply to all traders.
Traders should look for the following:
- Regulation - A clean regulatory track record with the CySEC spanning 10+ years.
- Low trading fees - A competitive cost structure and low swap rates, including positive ones. Commission-free Forex spreads on major currency pairs should not exceed 0.9 pips, while raw spread commissions should max out at $7.00 per lot.
- Trading platforms - Traders should ensure algorithmic, copy, and mobile trading capabilities. Many traders will want to use MT5 brokers or MT4 brokers.
- Asset diversity - A balanced, liquid asset selection.
- Deposits/Withdrawals - No deposit fees and low minimum transaction requirements.
What to Avoid When Choosing a Forex Broker in Cyprus?
CySEC-regulated brokers must follow strict standards, but there are always a few bad choices among them. Below is my list of things to avoid.
Traders should avoid the following:
- Unregulated brokers who may claim regulation, but it does not exist after checking the CySEC website or their license has been suspended or revoked
- CySEC-regulated brokers with a history of fines
- Market makers, as fees are the highest and the order execution is poor
- High trading fees, which many CySEC-regulated brokers have to pay for high fees of running an ESMA-compliant brokerage (major currency pairs exceeding 0.8 pips or $8.00 per 1.0 standard round lot is expensive)
- Brokers that cold call traders under the guise of assisting them (quality brokers never call traders)
Is Forex Legal in Cyprus?
As a former international Forex trading hub, Forex trading is legal in Cyprus. While the 2018 ESMA regulatory changes diminished its standing globally, Cyprus continues to play a crucial role in Forex trading across the EEA. During my best Forex brokers in Cyprus listing and research, I found that many international Forex brokers prefer Cyprus as their EEA hub, as it combines a business-friendly tax environment, in-depth knowledge, support services, and infrastructure.
CySEC requires all Forex brokers to segregate client deposits from corporate funds, offer negative balance protection, and maintain an investor compensation fund protecting up to €20,000 or 90% of client deposits.
Trading Forex in Cyprus – Pros & Cons
Traders should consider the pros and cons of Forex trading in Cyprus before funding a trading account with a CySEC-regulated broker.
The pros of trading Forex in Cyprus include the following:
- A well-regulated choice of brokers
- An excellent trading infrastructure
- Superb trading support services
- An excellent time zone to trade during the most liquid trading periods
The cons of trading Forex in Cyprus include the following:
- A history of fraud and misleading advertising from CySEC-regulated brokers
- More expensive trading fees
- Restrictive trading conditions for retail traders
- Insufficient quality beginner education
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