Forex trading is gaining more traders around the world.
A key criterion for traders is a broker's license, such as the Cyprus Securities and Exchange Commission (CySEC), as it is a global & reputable regulator. Read more to find out how to qualify for this license & its benefits.
- Eightcap, Competitive pricing + excellent daily videos.
- FXTM, Best all-around broker with high floating leverage and fast execution.
- FP Markets, ECN trading with leverage up to 1:500.
- eToro, Best broker for social traders and crypto traders : 74% of retail CFD accounts lose money.
Best CySEC Brokers Comparison
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Regulators | ASIC, CySEC, FCA, SCB | CMA, CySEC, FCA, FSC Mauritius, FSCA | ASIC, CMA, CySEC, FSCA | ASIC, CySEC, FCA, FSA |
Year Established | 2009 | 2011 | 2005 | 2007 |
Execution Type(s) | ECN/STP, Market Maker | ECN/STP, Market Maker | ECN/STP | Market Maker |
Minimum Deposit | ||||
Average Trading Cost EUR/USD | 1.0 pips | 0.1 pips | 1.2 pips | 1.0 pips |
Average Trading Cost GBP/USD | 1.2 pips | 0.2 pips | 1.4 pips | 2.2 pips |
Average Trading Cost Gold | $0.12 | $0.18 | $0.16 | $0.45 |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, Trading View | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | Proprietary platform |
Islamic Account | ||||
Negative Balance Protection | N/A | |||
| Visit Website | Visit Website | Visit Website | Get Started Visit WebsiteYour investment value may change. Capital is at risk. |
Eightcap
In Summary Competitive pricing + excellent daily videosCySEC-regulated Forex brokers fall within the ESMA regulatory environment, which consists of less flexibility and more stringent regulation. It makes offering a competitive Forex trading environment more challenging, but Eightcap has emerged at the top of CySEC-regulated Forex brokers. While it fully complies with the rules and regulations outlined by CySEC, including limiting retail Forex leverage to 1:30 and no bonuses, promotions, or rebates for retail Forex traders, it ensures low trading costs in its commission-based raw spread account.
Traders get MT5, 200 liquid assets spanning Forex, commodities, indices, equities, deep liquidity, and the Euro as the account base currency.
Pros & Cons
- Low minimum deposit and high leverage of up to 1:500
- Competitive cost structure
- Excellent technology infrastructure and seasoned management team
- Daily research and quality educational content
- Limited leverage in some areas
FXTM
In Summary Best all-around broker with high floating leverage and fast executionI rate FXTM among the best Forex brokers with a CySEC subsidiary for scalpers and algorithmic traders amid ultra-low trading fees and a liquid asset selection. For a €500 minimum deposit, traders get raw spreads from 0.0 pips or a commission of $0.80 and $4.00 per 1.0 round lot. The superb price improvement technology lowers trading fees by an average of $3.00 per lot, magnifying the FXTM cost advantage.
FXTM fully complies with ESMA rules and regulations and offers EU-resident traders an investor compensation fund covering up to €20,000 or 90% of deposits. Negative balance protection is also available.
Pros & Cons
- Excellent commission-based Forex pricing environment and transparency
- Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app
- Quality market research and educational content for beginner traders
- A highly regulated broker with a tier-1 license
- No cryptocurrencies and limited choice of commodities
FP Markets
In Summary ECN trading with leverage up to 1:500FP Markets offers traders a competitive commission-based pricing environment featuring spreads from 0.0 pips for a commission of $6.00 per 1.0 round lot. The trustworthy trading environment includes a choice of fast local payment processors with a minimum deposit requirement of only €50. Therefore, I rank FP Markets among the most accessible Forex brokers with a CySEC operating subsidiary.
The well-balanced asset selection includes cryptocurrency and ETF CFDs, and FP Markets offers MAM/PAMM accounts to licensed asset managers. The user-friendly FP Markets mobile app is ideal for copy traders, who get six providers plus TradingView for social trading.
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
eToro
In Summary Best broker for social traders and crypto traders : 74% of retail CFD accounts lose moneyeToro is one of the most well-known forex brokers in the world. This trustworthy broker was founded in 2007 and has since grown to over 17 million registered users, making it one of the largest trading platforms in the world. eToro offers new traders excellent educational content on their platform in order to guarantee that new traders can make educated decisions when it comes to trading stocks. The FCA in the United Kingdom, CySEC in Cyprus, ASIC in Australia, and the FSA in the Seychelles are the four regulators that regulate eToro. Users can trade over 49 currencies, 31 commodities, 93 cryptocurrencies, over 2000 equity CDFs, and much more using forex broker.
Pros & Cons
- Active investment community ideal for social trading
- Dedicated tools for social trading
- Broad cryptocurrency selection
- Expanding educational offering for beginner traders
- Internal withdrawal fees
Introduction to Forex Regulations
Regulators issuing licenses to brokers generally post information about the company on their website and maintain a database allowing traders to confirm the regulatory status. Most Forex brokers have a license, but not every license is equal. Traders must also weigh stricter regulation versus a trader-friendly environment, as most regulators fail to strike a balance.
Which regulators are the most reputable?
- FCA (UK)
- FMA (New Zealand)
- ASIC (Australia)
- MAS (Singapore)
- CySEC (Cyprus)
- CFTC (USA)
What is CySEC Regulation?
CySEC regulation refers to a broker operating with a license from CySEC (Cyprus Securities and Exchange Commission). As an EU member, the ESMA (European Securities and Markets Authority) is the super-regulator, and all CySEC-regulated brokers must comply with its rules and regulations.
A CySEC license aims to provide the following confirmation that:
- The broker operates legally.
- The broker’s activities are strictly regulated by European legislation.
- The broker’s financial activities are transparent.
CySEC's Responsibilities
This regulator is an extremely popular one in the professional environment. It combines the benefits of offshore registration with strict financial controls in line with EU standards.
CySEC was created with the aim to oversee the financial and investment sectors. Its functions include:
- licensing of companies involved in investment;
- control over the activities of brokerage and dealing companies;
- taking action to regulate and control the activities of the Cyprus stock exchange;
- supervision of issuers of securities;
- analysis of the activities of investment consultants and portfolio managers;
- taking actions to collect information about companies, subject to CySEC regulation;
- inspection actions in relation to companies operating on the stock exchange.
The regulator has a great amount of influence and rights. It can make a request to law inforcement regarding a particular company, to impose a restriction or completely terminate the activities of the company, to interfere with management or to request the freezing of accounts.
Among the extremely important advantages of the regulator is the amount of insurance coverage, reaching 22,000 euros for each client.
How CySEC Regulation Protects You
The presence of a CySEC license provides the following advantages to traders:
- Protection against illegal actions of the broker. Constant control and regular license renewal minimize illegal and fraudulent actions of the broker.
- You can be sure the broker is a reliable partner for trading, which reduces your risks and increases chances for profitable trading. Only the most progressive brokers with high-quality services receive the certificate.
- A safety guarantee for your funds in the event of a brokerage firm going bankrupt. Companies with CySEC certificates participate in the regulator's compensation fund, which means that in the event of bankruptcy, funds will be returned to traders by CySEC.
You can officially file a complaint against a broker who has a valid CySEC license. The procedure is as follows:
- Make sure that the broker really has a valid license by finding it on the regulator's website.
- Go to the appropriate section on the regulator's website and fill out the form at (https://www.cysec.gov.cy/en-GB/complaints/);
- Send a copy of the complaint to the Cyprus Financial Ombudsman.
Guidelines for CySEC-Regulated Brokers
Obtaining a license from the CySEC is not easy. Keeping it is even more challenging, as the CySEC checks all licensed firms annually for compliance with the requirements. The CySEC also issues fines for certain violations, and, in some cases, the regulator may even revoke the license and shut down the company.
Here are some guidelines for obtaining a CySEC license:
- Operational for at least three years.
- An initial membership fee and an annual fee to support the activities of the regulator.
- A high-quality trading platform with a certain number of registered trading accounts.
- A mandatory presence of a representative office in Cyprus.
Verifying the Authenticity of CySEC-Regulated Forex Brokers
Often, licensure can become an additional advertising tool for a broker that focuses on online trading. This information is usually indicated on the website with the certificate number and date of issue. It is advisable to additionally confirm this data on the official website of the regulator.
To check the license of any financial institution that claims to be CySEC-regulated, just go to this page, where you can search by license number. Do not be surprised if under the number indicated on the broker's website you find an unknown company name.
The regulator shows the legal name of the company and not the broker's trading name. You can find out the legal name of the broker in the support service or on the broker's official website.
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