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CySEC

Cyprus Securities and Exchange Commission - Popular EU regulator for forex brokers.

Quick answer

CySEC is Cyprus's financial regulator and the licensing body behind most EU brokers. Since 2018 it enforces ESMA leverage caps, so CySEC brokers offer the same 30:1 retail limit as any EU firm.

Definition

CySEC (Cyprus Securities and Exchange Commission) is the financial regulator of Cyprus. As an EU member, CySEC-licensed brokers can passport services across Europe. It's one of the most common regulators for retail forex brokers due to Cyprus's business-friendly environment. CySEC brokers must join the Investor Compensation Fund, which covers up to 20,000 EUR per client if a firm collapses. The practical point: a CySEC licence means EU-standard leverage and protection, not looser rules.

How It Works

  • EU member - MiFID II compliant
  • Brokers can passport to all EU/EEA countries
  • Investor Compensation Fund up to €20,000
  • Leverage capped at 30:1 for retail forex

Trading Tips

1

Very common for forex brokers - verify on CySEC register

2

EU regulations apply including negative balance protection

3

Some brokers have CySEC plus other licenses

Related Terms

Sources

  • CySECCyprus regulator, register of CIF firms
  • ESMAEU-wide product intervention measures
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