CySEC
Cyprus Securities and Exchange Commission - Popular EU regulator for forex brokers.
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.
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
Very common for forex brokers - verify on CySEC register
EU regulations apply including negative balance protection
Some brokers have CySEC plus other licenses
CySEC Example
Say you hold 30,000 euros with a CySEC broker that fails. The Investor Compensation Fund covers up to 20,000 euros, your balance was segregated, and negative balance protection applied. Partial safety net, real but capped.
How Traders Use CySEC
Treat CySEC as entry-level EU regulation: fine for starter accounts, worth verifying on the CySEC register. Above 20,000 euros, split across regulators or upgrade to FCA or ASIC supervision.
Related Terms
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