National Flag of Republic of Cyprus
Cyprus Securities and Exchanges Commission (CySEC) is by far the most popular among the regulatory agencies around the world. The agency has a framework for regulating all types of financial services companies that set up operations in Cyprus. The CySEC was established in 2001, prior to Cyprus joining the European Union (EU) in 2004. After Cyprus joined the EU, the CySEC has become a subsidiary of MiFID, the regulatory authority in Europe. This enables CySEC members to conduct businesses across Europe.
CySEC is a pioneer when it comes to establishing ground-breaking regulatory guidelines and bringing in changes in the financial markets. It is the first regulatory agency in the world to establish a regulatory framework for forex trading, saying that it is a valid financial instrument.
Many forex brokers have set up operations in Cyprus because of the broker friendly framework provided by CySEC. The country’s investor friendly approach also encourages brokers to set up corporate headquarters in Cyprus. The operations of forex brokers that set up headquarters in the country are overseen by the CySEC as per the MiFID directive. If they do not comply with the requirements of the regulatory agency, the legal action initiated against them could include payment of hefty fines and suspension of licenses.
The popularity of CySEC regulated brokers can be attributed to the fact that the regulatory authority has drawn up relatively easy guidelines and established a quick approval procedure. As a result, the formalities to be met for setting up operation in Cyprus are not very extensive. Further, Cyprus was a tax haven before it became a part of the EU. This also was an incentive for companies to establish offices in the country. They could save on taxes and enhance their revenues.
Top Trusted Forex Brokers Regulated By CySEC
| Broker | Min Deposit | Spread | Leverage | Regulation | Open Account |
|---|---|---|---|---|---|
 | $5 | From 0.2 Pips | 1000:1 | Mwali International Services Authority | Visit Broker |
 | $1 | From 0 Pips | 2000:1 | FCA UK, CySEC, FSP, BaFin, CRFIN | Visit Broker |
 | $1 | From 0 Pips | 3000:1 | CySEC, ASIC, IFSC | Visit Broker |
 | $5 | From 0 Pips | 888:1 “*This leverage does not apply to all the entities of XM group.” | ASIC, CySEC, IFSC Belize | Visit Broker |
 | $0 | Starting 0 Pips | 500:1 | ASIC, FCA, DFSA, The Financial Commission | Visit Broker |
 | $100 | Starting 0 Pips | 500:1 | ASIC, CySEC, FSCA, FSA, FSC | Visit Broker |
  | $100 | Starting 0 Pips | up to 400:1 | FCA UK, NFA, CFTC, ASIC, IIROC, FSA, CIMA | Visit Broker |
 | $200 | From 3 Pips | 400:1 | NFA, FCA, CySec | Visit Broker |
 | €100 | The Spread can be as low as 0.01%” (0.01% = spread for EUR/USD) | 1:294 | ASIC, CySEC, FCA (UK) | Visit Broker |
 | $1 | Fixed Spread From 3 Pips | Up to 1:1000 | BVI FSC | Visit Broker |
From 2012 onwards, the regulatory agency has been consistently updating the regulatory framework in order to incorporate a number of new initiatives to safeguard consumers against financial abuse and crimes. Now it works with the MiFID to create and implement guidelines and focuses on ensuring the trustworthiness of all members that comply with their rules and regulations.
Unlike the CFTC or NFA, the CySEC does not directly deal with consumer complaints. The agency CySEC deals with customers complaining about regulated members through a customer support channel. As such, a trader is expected to contact their forex broker regarding complaints and await instructions for resolution of the problem. If an amicable solution is not provided to the client, he/she can contact the Financial Ombudsman as recommended by the CySEC. A client can contact the Court as the last resort.
It is very easy to verify the authenticity of a CySEC regulated broker. This is because it is mandatory that a CySEC regulated broker to display the five-digit CySEC license number on their website at a prominent place. Consumers can go through the official website of the regulatory agency and confirm the same.
The CySEC also issues updates, circulars and warning notices to bring to the notice of the general public as to which of the members have been fined or their licenses revoked in view of any financial wrongdoings.
Having discussed a little bit about the regulatory environment in Cyprus, here are some of the CySEC regulated forex brokers that you can consider for trading currencies. However, you must do some more research prior to deciding to working with any one of them
XM.com
XM.com, a trade name of Trading Point Holdings Ltd, is owned as well as operated by Trading Point of Financial Instruments Ltd, which is regulated by CySEC. It is also European Union-registered forex broker. XM has its headquarters in Limassol, Cyprus.
Broker Type – DMA/STP, MM
Minimum Deposit – $5
Deposit Options: Bank Wire, Neteller, Skrill, WebMoney, Credit Card, WesternUnion, MoneyGram, SOFORT, UnionPay (China), etc.
Maximum Leverage – 888:1
Minimum Lot Size – 0.01
Spreads – Variable
Lowest Spreads for EUR/USD – more than 1
Plus500.com
Plus500 forex trading platform is provided by Plus500CY Ltd., which is a company based in Cyprus and the headquarters in Limassol. This broker is authorized as well as regulated by the Cyprus Securities and Exchange Commission.
Broker Type – Market Maker
Regulation – Cyprus Securities and Exchange Commission (CySEC), Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC)
Platforms – Windows Trader, WebTrader
Minimum Deposit – $100
Deposit Options: Bank Wire, PayPal, Credit Card, Skrill, etc.
Maximum Leverage – 50:1
Minimum Lot Size – 0.01
Spreads – Fixed
Lowest Spreads for EUR/USD – 2
eToro.com
eToro, an online forex broker, offers trading in currencies, indices, commodities and CFD stocks. More than 4.5 million users from over 170 countries around the world make use of the online forex broker’s website. Founded in 2006 in Tel Aviv, the multi-asset brokerage company has registered offices in Israel, the United Kingdom and Cyprus. One of the key features of eToro is the social investment platform with Copy-Trading feature that it offers.
Broker Type – Market Maker
Regulation – Cyprus Securities and Exchange Commission (CySEC), Markets in Financial Instruments Directive (MiFID), Commodity Futures Trading Commission (CFTC), Financial Conduit Authority (FCA), National Futures Association (NFA), Australian Securities and Investments Commission (ASIC)
Platforms – eToro OpenBook, eToro WebTrader, eToro Mobile Trader
Minimum Deposit – $50
Deposit Options – Bank Wire Transfer, Credit/Debit Card, Skrill, Moneygram, PayPal, Neteller, Webmoney, Western Union
Maximum Leverage – 400:1
Minimum Lot Size – 0.01
Spreads – Fixed
Lowest Spreads for EUR/USD – 3
Exness
Exness Group, founded in 2008, has a trading volume of more than $180 billion and as many as 15,000 people from around the world open trading accounts with the forex broker every month. Currently, Exness makes available over 120 financial instruments for trading.
Broker Type – ECN/STP and Market Maker
Regulation – Cyprus Securities and Exchange Commission (CySEC), Markets in Financial Instruments Directive (MiFID),
Platforms – MetaTrader 4, MetaTrader 5, Mobile Platforms
All EAs and Scalping Allowed – Yes
Minimum Deposit – $1
Deposit Options – Bank Wire Transfer, Visa, Skrill, Neteller, WebMoney, YuuCollect, EXCARD, Internal Transfer, Perfect Money, CashU
Maximum Leverage – 2000:1
Minimum Lot Size – 0.01
Spreads – Fixed
Lowest Spreads for EUR/USD – 0.1 to 0.2
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