Best CySEC-Regulated FOREX Brokers

If you're a new trader in the FOREX market, it's normal to be concerned about the safety of your investments. The attractive user interfaces and persuasive marketing strategies often don't reveal the whole picture. It's crucial to understand how well you can trust your FOREX broker or any financial institution where you deposit your funds.

However, you are at the mercy of what your FOREX broker tells you because it is impossible to fully understand the inner workings of these firms. Think of it like dining at a fancy restaurant. The front of the house may be perfect, with impeccable service and a charming atmosphere, but as a customer, you are not aware of the chaos or calm that happens in the kitchen. Similarly, concerning FOREX brokers, what happens behind the scenes may not always be evident from their public image.
However, just as you might rely on restaurant reviews and food safety ratings, in FOREX trading, regulatory bodies can guide you in choosing a reputable broker. It is the job of regulators to take a good long look at the workings of registered financial companies. For this reason, knowing who the most strict regulators are can benefit you. In what follows, we present all the relevant information about Cyprus's tier-one FOREX regulatory body, the Cyprus Securities and Exchange Commission (CySEC). We will also give you a list of the Best CySEC-regulated brokers according to our research.

Why is Cyprus an Important Financial Center?

To begin, it's worth noting that CySEC-regulated brokers are not limited to serving clients from Cyprus alone. You don't need to reside in Cyprus to benefit from CySEC's exceptional regulatory oversight.

Cyprus is an important financial capital on the global stage. Several factors contribute to its prominence as a financial center and a hub for trading markets:

Economically stable: Cyprus has developed a reputation for economic resilience and stability, building a trustworthy environment for depositors like you.

Financial privacy: Traditionally, Cypriot financial laws have emphasized privacy, thus attracting rich individuals and corporations from around the globe. Despite recent adjustments toward greater transparency due to global standards, the commitment to protecting financial information remains strong.

Advanced financial systems: Cypriot banks are among the leading and most influential in the region, with Nicosia and Limassol emerging as key centers for wealth management and private banking. Despite facing challenges, such as the past decade's financial crisis, Cyprus's financial sector continues to be durable.

Currency resilience: Cyprus uses the Euro (EUR), which is obviously a resilient currency, attracting investors during periods of global economic turbulence, thus underscoring Cyprus's financial significance.

Regulatory framework: These aspects emphasize why Cyprus offers a well-defined and stable regulatory environment. CySEC plays a big role in ensuring a secure and transparent financial market.

CySEC in Brief

CySEC is the sole regulatory body overseeing the financial sector in Cyprus. This includes regulating banks, insurance companies, stock exchanges, FOREX brokers, and other financial intermediaries operating within the country.

CySEC is an independent commission with its own legal structure, based in Nicosia. It operates independently of the Cypriot government and the Ministry of Finance, reporting directly to the Cypriot Parliament.

For FOREX brokers, CySEC fulfills two primary roles. The first is to ensure transparency in financial dealings. The second is to protect consumers by preventing scam brokers from defrauding their clients. Owing to its stellar reputation, numerous FOREX and binary options brokers from around the world seek registration with CySEC.

What Protection Does CySEC Provide FOREX Traders?

For FOREX Traders, CySEC Provides Multiple Layers of Protection

Licensing and regulation: In Cyprus, FOREX brokers must hold a Cyprus Investment Firm (CIF) license issued by CySEC. This significant regulatory requirement ensures that only entities with sufficient capital and solid business models can operate, providing traders with an immediate layer of security.

Protecting clients’ money: CySEC mandates that brokers must segregate client funds from the company's operational funds. If a broker faces insolvency, your funds as a client are protected and cannot be used to settle the broker’s debts.

Risk disclosure: Under CySEC's regulations, brokers must offer clear and thorough risk disclosures to their clients. This requirement ensures that traders are fully aware of the potential risks involved in FOREX trading.

Market conduct rules: CySEC establishes standards for market conduct to cut down the instances of fraud, manipulation, and other dodgy practices. This regulation creates a trading environment that is both transparent and fair for investors like you.

Resolving disputes: Although CySEC does not directly intervene in disputes between brokers and their clients, it requires that brokers have the right procedures for addressing customer complaints. Later in this article, we’ll guide you on how you can file a complaint with CySEC should the need arise.

While CySEC's regulatory framework provides a serious layer of protection for FOREX traders, it's important to remember that FOREX trading always carries risks. You must perform your due diligence before selecting a broker and fully understand the trading risks involved.

Best CySEC-Regulated FOREX Brokers 2024

How to Verify that a Broker Is CySEC-Regulated

Each FOREX broker you're considering should be licensed by CySEC and should have their regulatory disclosures readily available on their website. Thus, if a company claims it is licensed by CySEC, you can pretty easily verify this by visiting the CySEC website: https://www.cysec.gov.cy/en-GB/home/ – By entering the the company name, you can check the legitimacy of the company's licensing claims. If the search yields results, the company's claims are valid. Otherwise, if no results are found, the company is not licensed by CySEC and should be considered unreliable and avoided at all costs. A quick note – although Greek and Turkish are the official languages of Cyprus, English is widely spoken and the CySEC website has an English version.

Top CySEC Regulated Forex brokers

• ICM Capital-91.10: Best Deposit and Withdrawal Broker

• Tradeview - 90.00: Trusted broker that offers very low trading costs as well as comprehensive financial literacy materials for its clients.

• XTB - 85.55: Best Customer Service Broker

• IG - 85.45: Best Regulations Broker plus Convenient Platform

• Saxo Bank - 80.09: Excellent Private Trading Platform

• CMC Markets - 80.07: More than 9,000 Assets

• ThinkMarkets - 80.05: Aimed at the Audience of Traders

How Much Money Do You Need to Get Started?

You don’t need much to get started. Some of the best FOREX brokers for beginners allow you to start trading with as little as $50. Of course, you need to capitalize your account with at least some money that will allow you to place trades. The amount is really up to you. However, it is recommended that you start by placing small trades to get to grips with the practice of trading, as well as your broker’s website, before you move on to placing trades with more money.

How to Avoid Scams Through CySEC

CySEC takes several proactive steps to help traders and investors avoid scams and uphold the integrity of the Cypriot financial marketplace.

Public warnings: If CySEC becomes aware of entities operating without the required licenses, it issues public warnings. The regulator maintains a warning list on its website, alerting the public to brokers conducting unauthorized activities.

Regular supervision: CySEC continuously monitors licensed institutions to ensure they adhere to Cypriot financial regulations. This ongoing supervision reduces the likelihood of licensed entities engaging in scams or fraudulent activities.

Consumer education: Although CySEC does not directly intervene in disputes between brokers and clients, it requires that brokers have effective procedures for addressing customer complaints. This framework helps protect consumer rights and ensures that grievances are handled appropriately.

While CySEC plays a critical role in protecting traders and investors from scams, it's equally important for individuals to do their homework. Being well-informed and vigilant significantly lowers the risk of falling prey to scams or fraudulent operations.

What to Look for Among the Best CySEC-Regulated Brokers?

Here’s how we suggest you go about choosing the best CySEC-regulated broker for your needs:

CySEC-Regulated: It sounds obvious, but check and double-check that every broker you consider holds the esteemed CySEC license.

All Traders Welcome: Make sure the broker you choose is Cyprus-based and accepts local traders and foreign traders, too.

Reputation Is Paramount: Be careful to only consider brokers with an ironclad reputation, meeting, if not exceeding, the industry's stringent safety benchmarks.

Competitive Fees: You should zero in on brokers boasting low floating spreads and competitive per-trade commissions. For more information on how spreads work, read our article here.

Sleek, Feature-Packed Platforms: Beyond usability, try to find a broker whose platform is packed with analytical tools to give you that cutting edge.

Diverse Account Offerings: Recognizing that one size doesn't fit all, consider brokers with a broad spectrum of account types—catering to newbies and elite traders with varied strategies.
Diverse Instruments for Every Trader: Every broker should ensure traders have access to a rich mix of instruments across multiple asset classes.

Commission and Fees

This is an important area on which to focus and requires your close attention. First, CySEC-regulated brokers must provide you with a competitive fee package. Tracking trading fees can sometimes be challenging, so make sure to compare these fees with industry standards.

Two main types of spreads exist in trading: fixed and variable. In trading, the spread is the difference between two prices, such as the bid/ask rate in a currency exchange. For example, a good spread for the EUR/USD pair is 1.4 pips. A narrower spread is generally better, so a 1.4 pip spread is preferable to a 2 pip spread. To find out more about pips, go here.

Commission: This is simply the fee that brokers charge for executing transactions on behalf of their clients.

Rollover fees: When you leave a trade open overnight, the broker usually charges a rollover fee for holding your trade open during that period. This is because it assumes the risk of the market changing unfavorably.

Withdrawal and deposit Fees: Some platforms might charge fees for depositing or withdrawing funds. Pay attention to this. It's important to be aware of these and any associated limits or conditions.
Subscription or inactivity fees: Keep in mind that some platforms may charge monthly fees for inactive accounts. It's important to be aware of these potential costs.

Using Leverage with CySEC-Regulated Brokers

This ties back to our point on regulation. Different regulators have distinct policies regarding leverage. CySEC adheres to the European Securities and Markets Authority (ESMA) guidelines, which impose strict leverage limits on Contracts for Difference (CFD). Under ESMA's regulations, CySEC-regulated brokers must adhere to the following leverage limits:

• 30:1 for major currency pairs

• 20:1 for non-major currency pairs, gold, and major equity indices

• 10:1 for commodities other than gold and non-major equity indices

• 5:1 for individual equities and other unmentioned underlying assets

• 2:1 for cryptocurrencies

These restrictions look to protect retail traders from excessive risk and potentially significant losses. CySEC's adoption of ESMA's leverage limits reflects its commitment to aligning with high regulatory standards and enhancing investor protection within the EU framework.

CySEC's regulatory framework ensures that brokers operating under its jurisdiction follow stringent risk-management practices. These measures include mandatory client fund segregation, comprehensive risk disclosures, and regular monitoring to ensure compliance. By imposing these regulations, CySEC helps create a safer trading environment, reducing the likelihood of brokers engaging in fraudulent activities or exposing traders to unmanageable risks.
Understanding these leverage limits is crucial for traders like you. While higher leverage can amplify potential profits, it equally increases the risk of significant losses. Therefore, CySEC's measures are built to ensure that traders are well-informed and protected, promoting a more stable and transparent financial market.

CySEC and Negative Balance Protection

CySEC has implemented specific rules regarding negative balance protection for retail clients trading CFDs with regulated brokers. 

With negative balance protection, the client cannot lose more than the balance in their account.

This protection aims to safeguard retail clients in exceptional circumstances where there is a sudden price change in the underlying asset that prevents the broker from closing out the position as required by margin close-out rules.

CySEC requires CFD providers to offer negative balance protection on a per-account basis to retail clients. The negative balance protection must be triggered whenever the margin close-out protection (which closes positions when funds drop to 50% of required margin) cannot be effectively applied due to extreme market events affecting the underlying asset.

This ensures that your maximum losses from trading CFDs are limited to the total funds in your CFD trading account.

Tradable Assets and Instruments

Some of the most common assets include FOREX, commodities, crypto, and bonds. All the top CySEC-regulated brokers normally have these bases well covered. Some brokers choose to concentrate on FOREX, while others may be strong in other areas. It depends on your interests. When comparing brokers, a handy hint is to create a spreadsheet where you compare the numbers of the tradable assets you may want to trade.  Remember that the availability of tradable assets varies depending on the broker and trading platform being used.

Payments, Deposits, and Withdrawals

The payment deposit-and-withdrawal process among CySEC-regulated brokers should be straightforward and convenient. Cyprus boasts a modern financial infrastructure and an advanced banking system, making transactions, including withdrawals from brokerage accounts, relatively smooth for all traders. 

CySEC-regulated brokers offer multiple withdrawal methods to cater to the diverse needs of their clients. These methods typically include bank wire transfers, credit/debit card transactions, and online payment systems such as Skrill and Neteller. The efficiency of these methods can vary. Bank wire transfers to Cypriot banks usually take several business days to process, while transactions via online payment systems tend to be much quicker, often completing within a few hours. 

This efficiency ensures that traders can access their funds with minimal delay, enhancing the overall trading experience.

The Importance of Customer Service

Remember the following text:

Good customer service from FOREX brokers is crucial for several reasons. Effective customer support ensures that you can resolve technical issues or account-related problems as soon as they arise. Given the breakneck speed of the FOREX trading world, any delays can result in missed trading opportunities or financial losses. Reliable customer service helps minimize downtime and ensures you can execute your strategies without interruptions.

Ask Other Traders on Our Network

Here at Arincen, we’ve gone to extensive lengths to create an enabling environment of networks, where traders of all backgrounds can take part in a vibrant trading space. After all, Arincen’s goal is to simplify the world of trading. Our website provides an unrivaled selection of tools, like our market-leading signals, rolling news, and a thriving community where traders of all levels of experience can learn and profit from each other.

Trading Platforms, Tools, and Features

In the dynamic Cypriot trading environment, brokers are in constant competition to offer a variety of tools to improve your trading journey. Given the competitive nature of the market, innovation is the name of the game.

Many brokers feature unique, proprietary trading platforms, while others rely on industry-proven platforms like MT4, MT5, and cTrader, which are favorites for their reliability and comprehensive features. For an insightful comparison of the MetaTrader platforms, read our article here. Cyprus's technological infrastructure is robust, providing the necessary support for brokers managing high-volume trading with the need for rapid network capabilities

When you choose a broker regulated by CySEC, you're typically gaining access to cutting-edge platforms that offer extensive market access and boast exceptionally high rates of platform reliability. It's crucial to investigate these aspects thoroughly before deciding on the broker that best fits your trading needs.

Tips to Get Started Trading with an CySEC-Regulated Broker

Opening a FOREX trading account is easy. Once you have chosen your preferred CySEC-regulated broker, you must start by filling out an application form as part of the “open account” process. Typically, you will be asked to provide two documents. These are usually your national identity documents and proof of address. This is part of Know Your Customer (KYC) regulations. Remember that some brokers have slightly different requirements from others.

Once your account has been approved, normally one to two days after you make the application, you will be able to fund your account by making the first deposit. After your account is funded, you can start to trade.

How to Improve Your Knowledge of FOREX Trading

A trading website like en.Arincen.com is a great place to start. We have a large list of curated articles that can give you all the information you need on common FOREX trading terms, like pips, spreads, leverage, and support and resistance. We have also taken the time to prepare detailed articles on important topics, such as FOREX trading strategies. Additionally, once on our Website, you will find helpful video courses that cover the basics of FOREX trading. With this range of knowledge, you will be well on your way to trading success.

Your broker typically has an extensive educational and research database. It's a valuable resource for expanding your knowledge of the foreign exchange market. Additionally, the information provided by your broker is tailored to its platform and resources, making it especially beneficial for your trading activities.

As such, it’s relatively easy to improve your knowledge of FOREX trading. All the following items should be part of an CySEC-regulated broker arsenal, and they should all help you improve your knowledge of FOREX trading.

Educational Content: For beginners, educational resources are crucial. Watch for platforms offering webinars, tutorials, articles, and even demo accounts to familiarize users with trading concepts.

Analytics Tools: The platform should offer robust analytical tools and many methods to evaluate trader performance. This includes historical returns, risk metrics, trading strategies, and more.

Community Engagement: A vibrant community can provide peer reviews, insights, and discussions, which can be invaluable for both novices and experienced traders.
Real-time Data: This is the lifeblood of social trading. Make sure your broker gives you access to live market data, news updates, and economic calendars that can help in making informed decisions

Filing a Complaint Against a FOREX Broker

In the rare cases where your FOREX broker has unlawfully tampered with your account, then you can file an official complaint with CySEC by visiting: https://www.cysec.gov.cy/en-GB/home/. 

It is unlikely that a company licensed by CySEC would risk tampering with your account due to the potentially severe consequences. These could involve the rescinding of the company's CySEC license and/or the complete shutdown of its operations. 

Let’s Recap

Cyprus is widely known for its efficient and reliable financial sector. When it comes to FOREX brokers, Cyprus has strict regulations to ensure smooth operations throughout its financial landscape. As a result, CySEC is highly respected as a tier-one regulator and also one of the most authoritative financial regulators worldwide. This reputation brings benefits to all retail traders active in this market. It should be clear that choosing a FOREX broker regulated by CySEC provides an extra level of security and protection, whether you're a Cypriot resident or an international client.

Arincen’s Review Methodology

The team at Arincen collected more than 120 pieces of data covering more than 100 licensed FOREX companies. Data collection was done in three ways:

1. Companies’ websites.

2. Other websites that have ranked FOREX companies.

3. A survey questionnaire (called Survey “1”) was sent to the companies invited to participate in the exercise. We have identified 13 criteria for our assessment, each containing several aspects and carrying its relative weight. These include licensing, deposits and withdrawals, and the number of assets.     

Afterward, we validated the data by:

1. Registering with FOREX companies as a secret shopper and/or as Arincen.

2. Survey number “2,” in which we asked these companies’ customers for important feedback and experience.

The next step was to evaluate and rank each company, relying on the hard work of 15 Arincen employees. We were cautious in ensuring the most accurate assessment possible, including considering different languages and the various mobile-app operating systems, e.g., Apple, Samsung, etc.

To add credibility to our research project, we sent a third and final survey (referred to here as Survey “3”) to enable participating FOREX companies to evaluate our research and whether it accurately reflects the realities on the ground. We were fortunate enough to receive a mark of 9.9 out of 10! We have kept the margin of error to a minimum, which stood at a measly 1%. To learn more about how we came up with the evaluation, please click here.