| Updated: December 13, 2024- Jump to:
- Main features of the best CySEC Forex brokers
- CySec Forex Brokers
- CySec Forex Brokers Compared by Spread
- CySEC
- CySEC’s Responsibilities
- Guidelines to Comply With
- Customer Protection
- CySEC Forex Brokers
- XM.com
- eToro
- Markets.com
- easyMarkets
Оne of the most important factors when it comes to online Forex trading is regulation and beginner traders would probably wonder how this affects them. Interestingly, the foreign exchange market is a decentralized, over-the-counter market where trades occur directly between two parties without the supervision of an organized exchange. Since this type of trading does not fall under one single jurisdiction, many novices believe that it is not regulated at all. This misconception is further fueled by the large number of online brokers who operate without a proper license. However, many countries do regulate Forex brokers locally through governmental and independent supervisory bodies that are responsible for setting certain standards and rules in this industry.
AxiThe vast majority of retail client accounts lose money- FP Markets73.85% of retail investor accounts lose money
- Pepperstone75.5% of retail investor accounts lose money
- eToro51% of retail investor accounts lose money
- Libertex74.91% of retail investor accounts lose money
- XM Group72.82% of retail investor accounts lose money
Below you can find a comparison table of forex brokers that are regulated by the Cyprus Securities and Exchange Commission (CySEC). We rank them based on several factors including: regulation, spreads and commissions, Trustpilot rating, trading instruments, trading platforms, deposit and withdrawal methods.
Main features of the best CySEC Forex brokers
- Min Deposit$50 (AU$100)Trading InstrumentsForex CFDs, Shares CFDs, Metals CFDs, Commodities CFDs, Indices CFDs, Crypto CFDs, ETF CFDsRegulatorsASIC, CySEC, FSA (Seychelles), FSCA, FSA (St. Vincent and the Grenadines)Trading PlatformsMetaTrader4, MetaTrader5, WebTrader, IRESS, cTrader, TradingViewSpread1.0 pips Standard; 0.0 pips RawLeverage1:30Deposit MethodsVisa, Mastercard, Neteller, Bank Transfer, Skill, Sticpay, Fasapay, Virtual Pay, Perfect Money, Pagsmile, Dragonpay, Crypto, Apple Pay, Google Pay, Online Banking, Broker to Broker, PayPal, XPay, RapydWithdrawal MethodsVisa, Mastercard, Bank Wire, Neteller, Skrill, Paytrust88, PayPal73.85% of retail investor accounts lose money
Operates in the EU under a CySEC license (number 371/18). CySEC regulation requires mandatory negative balance protection for retail traders. Maximum allowed leverage on forex pairs is 1:30 (major) or 1:20 (minor).
- Min Deposit$0Trading InstrumentsForex, Indices, Commodities, Cryptocurrencies, Share CFDs, ETFsRegulatorsUK FCA (No.684312), CySEC (No. 388/20), ASIC (No. 414530), BaFin (No.151148), DFSA, CMA, SCB (Bahamas)Trading PlatformsTradingView, MT5, MT4, cTraderSpreadFrom 0.0 pips (Razor Accounts), 1 pip (Standard Accounts)Leverage1:30Deposit MethodsVisa, Mastercard, PayPal, Bank Transfer, BPay, Neteller, SkrillWithdrawal MethodsVisa, Mastercard, PayPal, Bank Transfer, BPay, Neteller, Skrill75.5% of retail investor accounts lose money
Has obtained a CySEC license (No. 388/20) among other legal authorizations issued by top-tier financial regulators. EU retail traders will have a cap on the allowed leverage (up to 1:30) but will also have access to additional investor protection tools.
- Min Deposit$50 or $100 based on country ($10 for the UK)Trading InstrumentsCrypto, CFDs on Forex, Stocks, Commodities, Crypto, ETFs, and IndicesRegulatorsFCA, CySEC, ASIC, MFSA, ADGM, FSA, FINRA/FinCEN, AMF, SEC, GFSCTrading PlatformseToro Investing, eToro App, TradingView, eToro CopyTraderSpread1 pipLeverage1:30Deposit MethodseToro Money, Visa, Mastercard, Neteller, PayPal, Skrill, iDeal, Klarna, Bank Transfer, Trustly, Przelewy24Withdrawal MethodsPayPal, Skrill, Visa, Mastercard, Neteller, Trustly, Bank Transfer51% of retail investor accounts lose money
Operations of eToro (Europe) Ltd are authorized from CySEC under license No. 109/10. Retail forex traders from the EU and EEA countries cannot trade forex with leverage higher than 1:30.
- Min Deposit$5Trading InstrumentsForex, Stocks, Indices, Commodities, Thematic IndicesRegulators(ASIC) (ref. No. 443670), FSC (license no. 000261/397), DFSA (ref. no. F003484), CySEC (license no. 120/10), CFTC; Registrations for EU passporting: - BaFin, CNMV, MNB, CONSOB, ACPR, FIN-FSA (Finland), KNF, AFM, FSA (Sweden)Trading PlatformsMetaTrader 4 and 5, MetaTrader 4 and 5 on mobile, MT4 WebTrader, MT5 WebTrader, MT4 MultiterminalSpreadFrom 0.0 pips (Zero Account), 0.6 pips (Standard and Micro Accounts)Leverage1:30Deposit MethodsVisa, Mastercard. Skrill, Bank Transfer, Neteller, Apple Pay, Google Pay, UnionPay, MaestroWithdrawal MethodsVisa, Mastercard, China Union Pay, Skrill, Neteller, Bank Transfer72.82% of retail investor accounts lose money
Operations in Europe are possible thanks to license issued by the tier-1 regulator CySEC (license no. 120/10). European retail traders will have a cap on leverage available on different products. CySEC regulations require negative balance protection and other investor protection measures.
- Min Deposit$100Trading InstrumentsForex, CFD's on Stock, CFD's on IndicesRegulatorsASIC (license no. 424008), FCA (license no. 481853), CySEC (license no. 092/08), FSCA (license no. 46860), FSC (license no. SIBA/L/14/1067), FSA (license no. 27030 BC 2023)Trading PlatformsMetaTrader 4, MetaTrader 5, WebTrader, Mobile App, TradingViewSpreadfrom 0.6Leverage1:30Deposit MethodsVisa, Mastercard, PayPal, Apple Pay, Skrill, Neteller, Bank TransferWithdrawal MethodsVisa, Mastercard, PayPal, Apple Pay, Skrill, Neteller, Bank Transfer74.2% of retail investor accounts lose money
Facilitates forex and CFD trading in Europe under license no. 092/08, issued from CySEC. Negative balance protection, investor compensation scheme, and customer funds segregations are among the measures Markets.com provides to its European clients.
- Min Deposit$100Trading InstrumentsRegulatorsCySEC (license no. 079/07), ASIC (license no. 246566), FSA (license no. SD056), and FSC (license no. SIBA/L/20/1135).Trading PlatformseasyMarkets, MetaTrader 4, MetaTrader 5, TradingViewSpreadLeverage1:30Deposit MethodsVisa, Mastercard, JCB, Amex, Skrill, Neteller, Fasapay, Sofort, iDEAL, Web Money, BPay, Bank TransferWithdrawal MethodsVisa, Mastercard, JCB, Amex, Skrill, Neteller, Fasapay, Sofort, iDEAL, Web Money, BPay, Bank Transfer71% of retail investor accounts lose money
One of the first brokerages licensed by CySEC (license no. 079/07). Offers top-notch funds protection through mandatory negative balance protection, funds segregation, and investor compensation scheme – all available to retail European customers.
- Min Deposit$200Trading InstrumentsCFDs on Forex, Commodities, Index, Bond, Cryptocurrencies, Stock, FuturesRegulatorsFSA (Seychelles), CySEC, ASICTrading PlatformsMetaTrader4, MetaTrader5, cTrader, ZuluTradeSpread0.8 pips Standard, 0.0 pips Raw AccountsLeverage1:30Deposit MethodsBank transfer, Visa, Mastercard, PayPal, Skrill, Neteller, Visa Direct, SafeCharge, Transact365, eCommPay, CardPay, Bpay, FasaPay, Poli, RapidPay, Klarna, NuveiWithdrawal MethodsBank transfer, Visa, Mastercard, PayPal, Skrill, Neteller, Visa Direct, SafeCharge, Transact365, eCommPay, FasaPay, Poli, RapidPay, Klarna70.64% of retail investor accounts lose money
EU entity is compliant with regulations imposed by CySEC (license number 362/18). Emposese leverage cap of between 1:2 and 1:30, depending on the tradable products. Offers various investor protection tools to retail EU traders.
- Min Deposit$100 ($1 for Invest MT5 Account)Trading InstrumentsCFDs on Forex, Indices, Stocks, Commodities, Bonds, ETFs, CryptocurrenciesRegulatorsCySEC (No. 201/13), ASIC (No. 410681), FCA (No. 595450), JSC (No. 57026), FSCA (No. FSP51311), EFSA (No. 4.1-1/46), CMA (No. 178), CIRO, FSA (No.SD073)Trading PlatformsMT4, MT5, WebTrader, MT Supreme Edition, StereoTraderSpreadFrom 0.0 pips (Invest and Zero Accounts), 0.5 pips (Trade Accounts)Leverage1:30Deposit MethodsVisa, Mastercard, Skrill, Klarna, Bank Transfer, PayPal, Neteller, iDeal, POLi, Perfect Money, CryptocurrenciesWithdrawal MethodsBank transfer, Visa, Mastercard, PayPal, Neteller, Skrill, Perfect Money73% of retail investor accounts lose money
Under license number 201/13, issued from CySEC, Admirals is authorized to operate in the EU and EEA regions. That particular regulation ensures additional client protections, which also involve risk-management through leverage caps of up to 1:30.
- Min Deposit$100Trading InstrumentsForex CFDs, Commodity CFDs, Shares CFD's, Index CFDs, Crypto CFD'sRegulatorsSCB (No. SIA-F220), ASIC (No.391441), CySEC (No. 246/14), FCA (No. 921296)Trading PlatformsMT4, MT5, WebTrader, TradingView, Capitalise.ai, FlashTraderSpread0.1 pips on Standard and TradingView Accounts; 0.0 pips Raw AccountsLeverage1:30Deposit MethodsVisa, PayPal, Mastercard, Wire Transfer, Neteller, Skrill, Tether, Bitcoin, BPAY, Dragonpay, Fasapay, Interac, Pix, UnionPayWithdrawal MethodsMastercard, Visa, PayPal, Skrill, Neteller, Bitcoin, Tether, Wire Transfers, BPAY, Fasapay, Pix, Interac, UnionPay76.09% of retail investor accounts lose money
Eightcap EU Ltd is registered in Cyprus and operates under license no. 246/14, issued from CySEC. This top-tier regulator requires mandatory negative balance protection for retail traders and additional risk-management through leverage caps of up to 1:30, depending on the traded instrument.
- Min DepositVaries based on methodTrading InstrumentsForex, CFD's on Stock, CFD's on IndicesRegulatorsCySEC, FCA, FSC (Mauritius), FSA (Seychelles), CBCS (Curacao), FSC (BVI)Trading PlatformsMT4, MT5, Exness Terminal (Proprietary)SpreadFrom 0.2 pips (Standard), 0.0 pips (Zero, Raw)Leverage1:2000Deposit MethodsBank Wire, Visa, MasterCardWithdrawal MethodsBank Wire, Visa, MasterCard
Regulated by multiple authorities, Exness’ European operations are regulated by CySEC (license number 178/12). While retail traders from within Europe will have restrictions on the allowed leverage, they will also have access to instruments like negative balance protection and an investor compensation scheme.
CySec Forex Brokers Compared by Minimum Deposit, Leverage and Trading Platforms
| Broker | Licence № | Min Deposit | Max Leverage | Trading Platforms | Trustpilot Rating |
|---|---|---|---|---|---|
| 1. Axi | 433/23 | $0 | 1:30 (Retail)1:500 (Professional) | MT4 Desktop, MT4 WebTrader, Axi Mobile | 4.8 |
| 2. FP Markets | 371/18 | $50 (AU$100) | 1:30 (Retail)1:500 (Professional) | MetaTrader4, MetaTrader5, WebTrader, IRESS, cTrader, TradingView | 4.7 |
| 3. Pepperstone | 388/20 | $0 | 1:30 (Retail ASIC, CySEC, FCA); 1:500 (Professional); 1:400 (CMA) | TradingView, MT5, MT4, cTrader | 4.6 |
| 4. eToro | 109/10 | $50 or $100 based on country ($10 for the UK) | 1:30 (FCA, ASIC, CySEC); 1:50 (FINRA); 1:500 (FSA) | eToro Investing, eToro App, TradingView, eToro CopyTrader | 4.2 |
| 5. Libertex | 164/12 | $10 | 1:30 (EU)1:1000 (Non-EU) | Libretex Trading Platform, MT4, MT5 | 4.0 |
| 6. XM Group | 120/10 | $5 | 1:30 for CySEC and ASIC Entities (1:1000 for Other Jurisdictions) | MetaTrader 4 and 5, MetaTrader 4 and 5 on mobile, MT4 WebTrader, MT5 WebTrader, MT4 Multiterminal | 2.9 |
CySec Forex Brokers Compared by Spread
| Broker | EUR/USD | USD/JPY | GBP/USD | USD/CHF | AUD/USD | EUR/GBP | USD/CAD |
|---|---|---|---|---|---|---|---|
| 1. Libertex | 0.1 | 0.3 | 0.4 | 0.1 | 0.3 | ||
| 2. XM Group | 0.8 | 0.9 | 0.9 | 2.1 | 0.75 | 1.5 | 2.4 |
| 3. eToro | 1.0 | 1.0 | 2.0 | 1.5 | 1 | 1.5 | 1.5 |
| 4. Pepperstone | 1.00 (min) | 1.0 | 1.00 (min) | 1.1 | 1.2 | 1.2 | 1.42 |
| 5. FP Markets | 1.1 | 0.30 | 1.2 | 1.8 | 1.2 | 0.20 | 1.5 |
| 6. Axi | 1.2 | 1.4 | 1.2 | 1.5 | 1.3 | 1.1 | 1.4 |
In order to enjoy fair and enthicall trading experience, traders are advised to always resort to regulated brokers. That way, one can be certain they are making orders on a platform that abides by strict regulatory rules, ensuring safe and fair trading conditions for its clients. One of these regulators is the Cyprus Securities Exchange Commission or CySEC. But rather than providing licensing services and oversight for local brokers only, its licenses give Forex brokers access to the financial markets within the entire European Union.
Cyprus Securities Exchange Commission
The Cyprus Securities Exchange Commission, usually referred to by its abbreviation CySEC, is one of the major financial regulators in Europe. It was established in 2001 under section 5 of the Cyprus Securities and Exchange Commission (Establishment and Responsibilities) Law of 2001. It is an independent public supervisory authority that is obligated to submit an annual report of activities to the Minister of Finance. All seven members of the CySEC Board are appointed by the Council of Ministers following a proposal of the Minister of Finance.
As the main financial regulatory agency in Cyprus, CySEC supervises the investment services market, the securities market, and the collective investment and asset management sector in the Republic of Cyprus. It regulates multiple entities and markets, including the Cyprus Stock Exchange and all participants in it, investment services companies, collective investment funds, investment consultants and mutual fund management companies. Of course, the agency supervises the operation of all brokerage firms and Forex brokers in the country, too.
In 2004, Cyprus joined the European Union and started harmonizing a large portion of its legislation with EU laws. This included financial legislation and CySEC regulations which had to be amended as to correspond to EU rules, requiring operation in accordance with the Markets in Financial Instruments Directive (MiFID II). Still, the country was considered a tax haven for a long time and many European brokers preferred relocating there due to the better tax conditions and the more liberal rules. After CySEC became a part of the European MiFID II regulation, the financial regulatory framework in the island country changed significantly.
Following amendments in the regulatory framework, stringent measures were introduced and CySEC licensees now need to comply with much stricter regulations than they had to a decade ago. Still, Cyprus is a preferred destination for many businesses and Forex brokers since the jurisdiction offers easier registration and license application process. The taxes are also much more attractive here, compared to almost anywhere else in Europe. Currently, brokerages based in Cyprus are allowed to provide their services across the European Union thanks to the Markets in Financial Instruments Directive (MiFID II), which we have already mentioned. At the same time, these firms need to comply with the rules set by CySEC rather than follow the national regulations of each and every country in the EU.
CySEC’s Responsibilities
CySEC supervises the operation of the Cyprus Stock Exchange and of all other organized markets in the country. This means that it regulates all companies listed in it, brokerage firms and other intermediaries participating in the transactions carried out in the exchange. The agency also reviews applications and grant operating licenses to entities under its supervision, including Forex brokers.
It has the full authority to launch investigations against suspected offenders, require and obtain information necessary for CySEC’s duties, and suspend and revoke licenses. CySEC can impose administrative and disciplinary sanctions where malpractices have been identified. Overall, the authority is responsible for the monitoring and regulation of all market participants and investment services providers in Cyprus. Its main objective is to ensure that the securities market is fair and that investors are protected.
Guidelines CySEC Brokers Need to Comply With
All Forex brokers licensed by CySEC are required to comply with a list of rules and guidelines set up by the relevant authorities. They need to operate with transparency and in a fair manner following the regulatory framework in Cyprus and in the EU. Of course, the guidelines are constantly being updated to ensure they can adequately protect investors.
To provide Forex brokerage services, companies need to obtain a Cyprus Investment Firm (CIF) license. To be approved for this type of operation, entities need to have and maintain a minimum of €50,000 to €730,000 in operating capital. The minimum depends on the type of license the forex broker is applying for. Obtaining a CIF license a relatively new requirement and its purpose is to ensure that brokers have enough capital to hold their clients’ positions without a risk resulting from a volatile market.
Brokers who apply for a basic broker license must have an initial capital of at least €50,000, but if they handle their clients’ funds, Forex brokers are required to hold an initial share capital of at least €125,000. However, depending on the nature of the services provided by brokers, the requirement for initial share capital may go all the way to €730,000. These funds need to be transferred to a bank account in a Cypriot banking institution. When brokers apply for a CySEC license, they must provide a comprehensive list of all the services and products they wish to offer. Of course, they also need to submit regular financial statements to the Commission for review, as well as annual financial reports.
Customer Protection
Along with the many rules for fair trade and security every CySEC licensee needs to follow, there are additional guidelines that deal with investor protection. This is probably the most important aspect of Forex regulation as it directly affects clients and their funds. Traders should know that whenever they wish to complain or report a Forex broker, they need to file their complaint to the correct authority and in the proper manner.
CySEC says that it does not have restitution powers, which means that it cannot investigate individual complaints. Still, traders can submit their complaints to the agency if they wish to. What they have to do is first, to contact the CySEC-regulated broker, who is required to respond within 5 days and even if the issue is not resolved, traders will at least receive a unique reference number for their complaint.
If they are not satisfied with the response they get from the firm, they can submit their complaint with the Financial Ombudsman. This is an independent institution that deals in protecting customers’ and investors’ rights, mediating in disputes between financial services firms and their clients, etc. Another option, which is much more complex, money and time-consuming, is to start a civil action in the District Court.
Still, CySEC has a couple of important requirements regarding licensees and they are designed to protect clients from different malpractices and compensate them for financial losses of a certain nature. First of all, Forex brokers are required to keep their clients’ capital in tier-1 European banks and in segregated accounts. The main purpose of this rule is to make sure that investors’ funds are protected and cannot be used by the broker for unauthorized activities. This way, transparency is guaranteed.
Additionally, CySEC requires licensees to protect their clients in case of a broker’s insolvency. The firms need to make sure investors’ money is secure under the Investor Compensation Fund. The maximum amount of compensation paid to traders eligible for compensation is €20,000. The coverage, however, applies to the total amount of claims by an applicant against CySEC licensee and ICF member. This includes all client accounts the individual may have with a broker.