Introduction to CySEC
The Cyprus Securities Exchange Commission is the regulator of the financial markets in Cyprus. You’ve probably heard or noticed that a lot of Forex brokers are based in Cyprus and regulated there too. While Cyprus is a small island with a small population, it’s not an attractive domestic market for forex brokers. They choose to set up in Cyprus for other reasons. The main one being the capability to passport to Europe. The CySEC has been generous with the number of licenses it’s granted. Currently, there are over 200 Cyprus Investment Firms active today. It’s not common to see brokers with their main license being from the French AMF or German BaFin. Cyprus is somewhat of a popular destination for forex brokers.
If you are interested in knowing why forex brokers choose Cyprus over other countries, we’ve got that covered. We looked into this in a previously answered FAQ titled “why are there so many forex brokers in Cyprus”.
cTrader Forex Brokers in Cyprus
As mentioned previously, there are is an abundance of forex brokers based in Cyprus. Even IC Markets, one of the largest Australian forex brokers recently got a license in Cyprus. It’s not only the brokers who chose Cyprus for there home. MetaQuote software, the developer of MetaTrader4 and MetaTrader5 is based in Cyprus. Spotware is also based in Cyprus. Check out the review of leading CySEC broker FxPro.
Are CySEC Brokers Bad?
There has been a lot of bad publicity about CySEC brokers in the past few years. Most notably they have been criticised for not punishing brokers appropriately for their misconduct and for allowing incidents to go unnoticed and uncorrected for long periods. However, that’s all in the past. So there, there have been some controversies in the past. No government department or business regulator has a completely clean slate. In recent years much stricter oversight has come into play. CySEC is no longer on its own. They answer to the European Securities Markets Authority. ESMA has a lot to say when it comes to rules and regulations imposed on companies which operate within Europe and not just Cyprus. Now all regulated financial services providers in Europe have to play by the same rulebook, thus standardizing the market. We don’t think CySEC brokers are bad just because of where they are. That’s our opinion, always do your own research and make your own opinions.