Cyprus Securities and Exchange Commission (CySEC)
The Cyprus Securities and Exchange Commission (CySEC) is the financial regulatory authority of Cyprus, responsible for supervising investment firms, forex brokers, and financial service providers. As an EU member, Cyprus enforces ESMA's guidelines, making CySEC one of the most popular regulatory bodies among forex brokers operating in Europe.
The Cyprus Securities and Exchange Commission (CySEC) plays a key role in regulating forex brokers across Europe under ESMA guidelines. Its attractive licensing environment and investor protections have made Cyprus a major hub for forex brokers. Always choose a CySEC-regulated broker for a balance of safety and flexibility.
- 30:1 for major currency pairs
- 20:1 for non-major currency pairs, gold, and major indices
- 10:1 for commodities other than gold and non-major indices
- 5:1 for equities
- 2:1 for cryptocurrencies
- Licensing and monitoring of Cyprus Investment Firms (CIFs)
- Enforcing ESMA rules and investor protection standards
- Monitoring of compliance with anti-money laundering (AML) laws
- Taking disciplinary actions against non-compliant brokers
- Visit the CySEC Public Register.
- Enter the broker’s name or license number.
- Check the status and permitted services.
- Verify that the broker complies with ESMA’s leverage and compliance rules.
- Minimum Capital Requirements: Minimum capital of €730,000 for CIFs.
- Segregation of Funds: Clients' funds must be kept in segregated bank accounts.
- Negative Balance Protection: Mandatory for retail traders.
- Leverage Limits & Margin Rules: In line with ESMA requirements.
- Ban on Bonuses & Incentives: No deposit bonuses or promotions for retail clients.
- Standardized Risk Warnings: Brokers must disclose loss percentages clearly.
Advantages
- EU-wide passporting for brokers (MiFID II compliance)
- ESMA-backed investor protections
- Access to compensation scheme (up to €20,000 per client under ICF)
- Transparent broker directory and regulatory actions
Limitations
- Lower compensation coverage than FCA's FSCS
- Attracts brokers seeking flexible regulatory setups
- Limited enforcement resources compared to larger regulators
Country
Cyprus
Established
2001
Contact
+357 22506600
Complaint bodies
Cyprus Securities and Exchange Commission (CySEC) Financial Ombudsman of Cyprus (for unresolved complaints)
Hotline
+357 22506600
Complaint email
Last updated on: March 25, 2025
High Risk Warning : Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.