Regulated forex brokers in cyprus

Forex brokers in Cyprus.

Cyprus offers a number of benefits to forex and binary options brokers. That is why so many of them are drawn to this small sunny island.

First of all, Cyprus is a jurisdiction with a solid financial services sector. Very much like the UK , Cyprus has strong regulations and more importantly strict customer protection rules.

Cypriot Investment Firms (CIFs) are required to report their transactions to the local financial watchdog, the Cyprus Securities and Exchange Commission (CySEC) on a regular basis. Besides, CIFs must hold at least €730 000 as a proof of their financial stability and keep client funds in segregated accounts, separated from company’s operational funds.

The Cypriot financial watchdog is on the alert, imposing fines on regulated companies, withdrawing licenses, where necessary, and regularly updating its warning list of non-licensed forex and binary options brokers.

Furthermore, CySEC applies a compensation scheme as an additional guarantee to clients’ funds. All licensed brokers are members of the Investor Compensation Fund, which may cover a maximum of 20,000 EUR per person in the event of broker insolvency.

Of course, speaking of the benefits of forex regulation is Cyprus, we also have to mention the European Union Membership. Under the MiFID regulations every CySEC-regulated investment company is entitled to offer its services to citizens of all EEA countries.

Forex brokers in Cyprus.

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Dragon Options Ltd., owner of the forex brokerage TaoTrade and former owner of the DragonOptions binaries broker, has renounced its investment services provider authorization, the Cyprus Securities and Exchange Commission (CySEC) said in an official statement. Read more.

CySEC slams Interactive Options managers with €200 000 fine.

The Cyprus Securities and Exchange Commission (CySEC) has announced several board decisions penalizing some of the former senior managers of the Pegase Capital company that operated the binary options brokerage Interactive Options. Read more.

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The Cyprus Securities and Exchange Commission (CySEC), which probably has the largest number of forex and CFD brokers under its regulation in Europe, has set limitations on the trading conditions of CFDs on cryptocurrencies, offered by its charges. Read more.

CySEC withdraws suspension of OptionRally's license.

The Cyprus Securities and Exchange Commission (CySEC) has announced its October 2 board decision to withdraw the suspension of the license of the binary option broker OptionRally. Read more.

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Looking for a Cyprus Based Broker? Learn About CySEC-Regulated Brokers.

Cyprus has become a very popular location for financial service companies, due in no small part to its low levels of taxation and easy entry requirements. There are actually more Forex brokers with a base in Cyprus than in any other jurisdiction. CySEC stands for the Cyprus Securities and Exchange Commission, which is the body charged with the regulation of financial services in Cyprus, and the popularity of this location means it’s definitely got its work cut out. Nevertheless, it manages to do a more than reasonable job, and we’ll give you all the pertinent details should you be looking to invest with one of the many CySEC Forex brokers.

A brief introduction to CySEC.

When Cyprus became a European Union member country in 2004 CySEC became part of the European MiFID regulation. But CySEC was actually launched in 2001 with the following aims:

To supervise and control the local stock exchange and related companies and brokerage firms To grant licences allowing investment and brokerage firms to operate, along with investment consultants in the local stock market and the Forex and CFD market To enforce, sanction and issue penalties to any that were found to be breaking the rules and regulations.

Before 2004, Cyprus-based Forex brokers were only authorised to operate in their own country, but following the entry of Cyprus into the EU they were able to expand their operations across all European countries. These Cyprus-based Forex brokers weren’t subject to the stringent requirements of other European regulatory bodies, but still qualified to operate freely in all EU member countries under MiFID.

CySEC introduced a number of guidelines to preserve investor confidence and protect the good nature of the Forex market.

CySEC Forex brokers have to follow certain guidelines.

We haven’t got enough room to give you all the specifics of the relevant guidelines, but we can give you a few examples.

A CySEC Forex broker has to be licensed by CySEC as a Cypriot Investment firm. There must be at least two people in charge of the administration of the investment firm, and they have to be listed in the appropriate register. Once a CySEC licence has been issued a CySEC regulated broker is unable to expand its scope of services without notifying CySEC first. It is in a Forex broker’s best interest to include all the services it plans to offer when first applying for a licence. CySEC-regulated brokers also have certain financial requirements that have to be met regarding initial share capital, indemnity insurance, underwriting and operations.

Any Forex broker regulated by CySEC found not complying with these and any other requirements will be severely punished.

How to assess the standing of CySEC Forex brokers.

CySEC has tried very hard to keep on top of brokerage operations, but Cyprus has nevertheless become a haven for scam brokerage firms. More recently, however, CySEC has upped its game and now comes down heavily on any offenders. One recent improvement has been the development of a register that lists all investment firms with a good reputation with CySEC, as well as those who are not faring so well.

The list is easily accessed via the website of CySEC. A number of details are included in the list for each CySEC-licensed Forex broker. These include the broker’s address, licence number, registration number, telephone, and fax numbers. Any Forex brokers regulated by CySEC are required to state their five-digit licence number on their website, and we would advise anyone considering a particular regulated broker to confirm the licence information through the official CySEC channels. We will, of course, be mentioning whether a broker is licensed and regulated by CySEC when sharing our Forex brokers reviews, but it is also advisable to check for yourself. If you find yourself confused in any way, then don’t hesitate to contact CySEC for more information or clarification.

CySEC has received a lot of bad press but things are improving.

There are a number of other regulatory bodies that will happily criticise the way in which CySEC works. This could be in relation to the non-compliance fines being on the small side, or the fact that a number of companies have escaped infringements with just a rap on their knuckles. We feel that a lot of the bad press is unjustified. After all, MiFID constantly oversees the operations of CySEC and ensures that regulatory guidelines are regularly updated and improved to bring any Cyprus-based firms into line with standard industry practices.

CySEC may still have a way to go to catch up with more reputable regulatory bodies such as the FCA in the UK, and the CFTC in the USA, but it is still one of the most popular bodies, and has managed to achieve a significant rate of growth. Many new Forex companies still prefer CySEC because it is still seen as relatively easy to become licensed with, and has far fewer formalities. Despite this, CySEC is still looking to improve its operations in the hope that it will be taken more seriously.

On a final note, there is one downside to choosing a CySEC regulated broker. Currently, there is no line of communication with regard to investor complaints. Unlike the NFA or CFTC, any complaints a trader might have will have to be directed to the broker. This means a lengthy wait while the broker considers the issue, and no real certainty it will be resolved. However, CySEC does advise clients to contact the Financial Ombudsman, or the court as a last resort, should they be unhappy with the broker’s decision. The Commission’s aim is to regulate financial markets and supervise the conduct of various financial organisations that operate out of Cyprus; but is not prepared to deal directly with any complaints or offer resolution or arbitration services. This is not a good thing, and isn’t doing CySEC any favours in the eyes of other regulatory bodies or investors; but hopefully, it will eventually change for the better.

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Cyprus Forex Brokers - a comprehensive list of Cyprus regulated Forex Brokers.

All the brokers appearing on this list are licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC), which was established in accordance with section 5 of the Cyprus Securities and Exchange Commission (Establishment and Responsibilities) Law of 2001, as a public corporate body.

Cyprus is the choice of many Cyprus Forex Brokers because of the very low corporate tax rates, which are very attractive for Forex Brokers. Furthermore, the regulatory requirements in Cyprus are more flexible than elsewhere and this has caused many highly regarded brokers to headquarter their business in Cyprus. Our web site offers you the chance to have all the information you need, presented through a simple and clean layout. Click on the Review button next to each Broker to view their trading conditions, info and promos, select a Forex Broker and click on the Apply button to open an account with the Broker of your choice and start trading.

Our ambition is to become your starting point when it comes to Forex trading, by concentrating all you need to know about Brokers under one roof. Focusing mainly on traders who want to open a new account, our purpose is to offer up-to-date information through a simple and clean layout. Our visitors can easily see and compare what the various Brokers can offer and select a Broker to open an account with. The team of Forex. cy wishes you a successful trading experience.

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CySEC Regulated Forex Brokers.

CySEC is one of the most popular regulatory agencies in the world when it comes to regulating all types of financial companies operating out of Cyprus. The Cyprus Securities And Exchange Commission was introduced way back in 2001, even before Cyprus joined the European Union in 2004. Ever since Cyprus became a part of the EU, the CySEC also became a subsidiary of the European MiFID regulatory organization, thereby enabling all CySEC members to carry out business across the European continent.

Cyprus is a highly popular attraction for Forex brokers who wish to set up base in a relatively easy and convenient location. Cyprus offers a lot of advantages when it comes to setting up a corporate headquarter, which is one of the main reasons why Cyprus sees the maximum number of Forex brokers offering financial services for traders across the world. CySEC Forex brokers are completely accountable to the CySEC under the MiFID directive, and are liable to legal action, including hefty fines and suspension of licenses, for non-compliance of the stipulated laws and guidelines.

Why Are CySEC Regulated Brokers Popular?

CySEC has relatively easy regulatory guidelines and a fast approval process that allows CySEC regulated brokers to set up camp in Cyprus with minimum formalities. Cyprus was also formerly known as a tax haven before being admitted into the EU, which provided additional incentives for companies who wished to save on taxes and increase their revenue.

CySEC also used to be broker friendly in terms of fines or suspension of licenses for misdeeds, which attracted criticism from all quarters of the globe, especially from other European Union members and their regulatory agencies. CySEC regulated Forex brokers have been known to indulge in financial malpractices and fraud, which had resulted in clients losing millions of dollars on an annual basis. This forced the CySEC to reform its regulatory guidelines to ensure that all regulated Forex brokers adhere to the most stringent laws to protect clients’ funds and interests.

Top Regulated Forex Brokers.

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CySEC Regulated Forex Brokers.

CySEC Regulated Forex Brokers.

A Pioneer In The Field Of Regulations.

While CySEC received wide-spread criticism for its governing policies during the initial days, CySEC is clearly a pioneer in terms of bringing ground-breaking regulatory guidelines that changed the financial markets for the better. CySEC is the first regulatory agency in the world to regulate binary options by terming it as a valid financial instrument and is at the forefront of regulating a majority of leading binary options brokers in the entire world. CySEC paved the way for all the other regulatory agencies to quickly follow in their footsteps by recognizing binary options as a valid financial instrument and regulating related brokers in their respective countries.

How Are The Consumers Protected?

Since 2012, CySEC has been continuously updating their regulatory framework to incorporate several new initiatives that are designed to safeguard consumers against financial crimes and abuse. CySEC now works extensively with the European MiFID to create guidelines that concentrate on ensuring that all compliant members are honest in their dealings with the general public to ensure the integrity of the markets.

Unlike the NFA or CFTC, CySEC does not entertain consumer complaints directly. The CySEC has instructed all regulated members to address their clients’ complaints in an efficient manner through a dedicated customer support channel. Therefore, a trader should contact their broker directly regarding any complaints and await further instructions on a problem resolution. In case the client does not receive an amicable solution, CySEC recommends contacting the Financial Ombudsman, or the Court as a last resort.

The primary mission of CySEC is to regulate the markets and to supervise the conduct of financial organizations operating on Cyprus soil. While investor protection is a top priority in their updated mission, consumers can not contact the CySEC directly for any complaint resolution or arbitration services.

Verifying The Authenticity of CySEC Regulated Forex Brokers.

The relatively easy CySEC regulations provided scam Forex brokers to make false regulatory claims and trick unsuspecting users. Current CySEC regulations state that all Forex brokers are required to quote the five digit CySEC license number prominently on their website. Consumers are also encouraged to verify the authenticity of a Forex broker by confirming the license information through the official CySEC website.

CySEC frequently updates its circulars and warning notices to inform the public about members that have been fined or have their licenses revoked for any financial wrongdoings. In case the consumers are confused about the status of any particular company, they can directly contact the CySEC to get more information.

Criticism & Way Forward.

CySEC can be considered as a controversy’s play child since most EU regulators often criticise the way CySEC works. Most regulators often feel that the fines levied on members for non-compliance is small, and companies are let off with a simple warning for financial frauds that can get them banned in other countries. Therefore, the MiFID constantly oversees the working of the CySEC to ensure that their regulatory guidelines are continually adjusted to bring financial firms in line with standard protocols.

Despite the fact that CySEC has a long way to move forward in terms of regulation, it is indeed one of the most popular regulatory organizations that have achieved a tremendous growth rate. Financial companies still favour CySEC over other agencies due to the relative ease of regulation and lesser formalities. However, all of that is set to change in the next few years if CySEC hopes to be taken seriously by the MiFID.

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