|UK, Cyprus, South Africa, UAE||/5||$1||Read the review|
|South Africa||/5||$1||Read the review|
|Cyprus||/5||$250||Read the review|
|Cyprus, Australia||/5||$100||Read the review|
|Cyprus||-||$100||Read the review|
CySEC is one of the most authoritative and respected financial license issuers in Europe, which puts it in the top 5 agencies for the job globally.
CySEC is the sole independent public supervisory entity in Cyprus that carries the regulation of the financial market. The watchdog consists of a five members board, all appointed by the Council of Ministers that goes under the direct orders of the Minister of Finance. This directly links CySEC to the Cypriot government, establishing a sense trust and security.
Seeing as most renowned brokers are proudly regulated by CySEC, one can imagine the increasing burden of responsibility this overseer carries. Before it grants a license it must first examine an application with utter scrutiny, and then decide if the broker(s) covers all the necessary requirements, such as a €730 000 proof of financial stability, and if the broker(s) keeps segregated bank accounts for its traders. CySEC is also responsible for supervising the Cyprus Stock Exchange and all transactions that occur within.
But most importantly CySEC is responsible for monitoring, and in a sense, ruling all brokers under its wing. It must insure that they follow the strictest of guidelines, that they do not work above the law, only below it. Moreover, it has the right and responsibility to impose any disciplinary actions when called for, to request information and regular report from its firms, and to demand and execute the termination of all unlawful practices.
Furthermore, CySEC is affiliated with the Investor Compensation Fund, meaning that all brokerage firms overseen by it are members of the €20 000 compensation to it clients. Should a broker fall into insolvency or cannot pay back what it owns to its clients, then the compensation fund is appropriately applied.
Once a broker is authorized to conduct legitimate financial services, it is registered as a Cyprus Investment Firms or CIF, and is added to an online public registry where anyone can verify its legality.
Every single authorized entity is announced to the European Securities and Market Authorities (ESMA). A Cyprus Investment Firm can conduct Forex and CFDs trading in the European Union, by branching out and establishing offices in other EU countries.
As of August 2018 ESMA has limited every EU broker leverage to a maximum value of 1:30, and what’s more, bonus promotions tied to trading volume requirements have been suspended. Furthermore, as of March 2019, ESMA, as part of its renewal of restrictions on CFDs, has reestablished the negative balance protection policy ensuring that traders will not lose more money than they have deposited.