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CySEC Regulated Forex Brokers likely account for the largest part of the legally authorized FX brokers out there. While it is certainly the right decision to go for an authorized FX broker, one should certainly keep in mind that CySEC regulation is rather easy to obtain and, hence, a broker with this license should still be chosen with care. Simply put, there is quite a big difference between the reputation among brokers with CySEC regulation.
CySEC Regulated Forex Brokers Comparison Table
We at TopForexBrokers have listed and analyzed all of the Forex brokers with this type of regulation, both reputable and notorious ones, so you have to do less research for yourself. It is quite common for brokers to have more than one regulation, so below you can see the list of CySEC FX Brokers which are at least regulated in Cyprus.
What is CySEC
CySEC, or The Cyprus Securities and Exchange Commission, is the budgetary administrative organization of the Republic of Cyprus. As CySEC is a part of the well known Europen MiFID, a major regulation directive, it has pulled in various international firms to enroll in Cyprus, to benefit from what is perceived as comparably light regulations, which offer access to the majority of Europe. What is truly striking is the critical number of foreign retail Forex expedites, that have acquired enrolment from CySEC, hence becoming CySEX FX Brokers. The primary reason for this is that brokers, for the most part, see this as the easiest approach to get a permit, without the need to meet stringent necessities enforced by other European budgetary controllers, while still qualifying under MiFID, thus fully enabling them to work in all of Europe.
CySEC was formed in 2001 as an open corporate body, under section 5 of the Cyprus Securities and Exchange Commission Law. As a result of Cyprus joining the EU in 2004, CySEC came under the regulation of MiFID, which meant, that firms with CySEC license could now operate throughout the entirety of the EU, which became the catalyst for foreign firms to register in Cyprus to benefit from this opportunity. However, adoption of the Euro by Cyprus back in 2008 brought fundamental changes to the monetary administrative structure, that was under CySEC supervision, forever altering what had previously been seen as a tax haven.
A significant policy change by CySEC came in 2012 when the matter of the classification of binary options, as financial instruments was raised. The new policy stated that platforms offering binary options, the majority of which were already, in fact, located in Cyprus, were now to be regulated, making CySEC the first regulator internationally to recognize binary options as legitimate financial instruments, and subsequently, to regulate them.
The speculation administration division is growing quickly in Cyprus, with the number of authorized Cyprus Investment Firms (CIFs) now amounting to more than 150. The late pattern incorporates the authorizing of a developing number of Forex representatives, that become CySEC Forex brokers. The current judicial and assessment structure makes Cyprus one of the most alluring spot for building up a CIF, as it offers the most reduced corporate expense rate compare to anywhere else in the EU, and a solitary identification to give speculation benefits over the EU.
What Does CySEC do
The Cyprus Securities and Exchange Commission has the following responsibilities:
- Supervision and management of transactions and activities at the Cyprus Stock Exchange, as well as all the companies and brokerages listed there;
- Supervision and management of licensed Investment companies, funds, consultancy, and financial management companies;
- Issuing licenses to Forex brokerages, financial consultancies, and investments firms;
- Issuing penalties and sanctions to companies under its legislation, who are found to be violating terms of regulations;
- Assistance with authorizing application for the procurement of venture administrations, including permitting of Forex intermediaries;
- Administering internal audits;
- Providing training on all pertinent administrative matters.
How is CySEC administered
The administration of CySEC is done by a board of five members, which include the Chairman and the Vice-Chairman, in addition to three other members on the board. All members of the board are proposed by the Minister of Finance of Cyprus and are selected for a five-year-long period by Council of Ministers. In addition to the five members of the board, the Governor of the Central Bank of Cyprus acts as an additional, non-voting member.
