| Updated: January 22, 2025In the fast-paced world of Forex trading, finding a reliable and trustworthy broker can be a daunting task. With numerous options available, it is essential to choose a broker that not only offers competitive trading conditions but also prioritizes the safety and security of your investments. This is where Forex brokers licensed by CySEC (Cyprus Securities and Exchange Commission) come into play.
CySEC-regulated Forex brokers are the gold standard of Forex trading, offering a safe and secure trading experience that is backed by robust regulatory oversight. With a strong focus on investor protection and risk management, CySEC regulated Forex brokers provide a level of security and stability that is unmatched in the industry.
Below you can find a list with Forex brokers regulated by CySEC:
Top 6 Forex Brokers Regulated by CySEC
-
Axi
- Raw spreads start from 0.0 pips
- Offers order execution faster than standard ECN model
- Axi Select Funded Trader Program offers funding up to $1 million
Trading Instruments- Forex
- Stocks
- IPOs
- Indices
- Commodities
- Cryptocurrencies
-
Plus500
- Multi-Level Regulated Broker
- Proprietary trading platforms
- Easy to use mobile app
Trading Instruments- CFDs on: Forex
- Crypto
- Indices
- Commodities
- Stocks
- Options
- ETFs
-
FP Markets
- Australia & CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading Instruments- Forex CFDs
- Shares CFDs
- Metals CFDs
- Commodities CFDs
- Indices CFDs
- Crypto CFDs
- ETF CFDs
-
Pepperstone
- Australia & CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading Instruments- Forex
- Indices
- Commodities
- Cryptocurrencies
- Share CFDs
- ETFs
-
FxPro
- NDD broker offering deep liquidity and ultra-fast execution
- Over 99% instant order executions with no requotes
- Supports MT4, MT5, cTrader, and a proprietary platform
-
XM Group
- XM provides great trading experiences using MetaTrader 4 and MetaTrader 5, which are improved by personalized features.
- Zero commission accounts are available
- Top-tier regulation from CySEC, ASIC, FSC, and DFSA oversee XM's operations, assuring transparency and client safety.
Trading Instruments- Forex
- Stocks
- Indices
- Commodities
- Thematic Indices
Brokers Compared by Spread
| Brand | Commission per lot | |
|---|---|---|
| Axi | 1.2 | $0 on Standard Account; $7 round trip on Pro Account |
| Plus500 | 1.2 | $0 |
| FP Markets | 1.1 | $0 Standard Account; $6 round turn on Pro Account |
| Pepperstone | 1.00 (min) | $0 (Standard Account), $7 round-turn (Razor Account) |
| FxPro | 0.25 | $0 on Standard Account; $3.5 per side on Raw+ and Elite Accounts |
| XM Group | 0.8 | $0 Ultra Low Micro and Ultra Low Standard Accounts; $3.50 per side XM Zero Account |
FX Brokers Deposit Method Comparison
| Brand | Minimum deposit | |
|---|---|---|
| Axi |  |
$0 |
| Plus500 | |
$100 |
| FP Markets |  |
$50 (AU$100) |
| Pepperstone | |
$0 |
| FxPro | |
$100 |
| XM Group | |
$5 |
The Best Forex Brokers by Regulator
| Brand | Maximum leverage | |
|---|---|---|
| Axi | |
1:30 |
| Plus500 | |
1:30 |
| FP Markets | |
1:30 |
| Pepperstone | |
1:30 |
| FxPro | |
1:30 |
| XM Group | |
1:30 |
Forex Brokers Platform Availability
| Brand | FX pairs to trade | |
|---|---|---|
| Axi | |
80 |
| Plus500 | |
60+ |
| FP Markets | |
70+ |
| Pepperstone | |
90+ |
| FxPro | |
70+ |
| XM Group | |
50+ |
Comprehensive Comparison of the Best CySEC Forex Brokers
| Brand | Min. Deposit | Trading Platforms | Spread | Regulation | Trustpilot |
|---|---|---|---|---|---|
 |
$0 |
|
1.2 |
|
|
 |
$100 |
|
1.2 | ||
 |
$50 (AU$100) |
|
1.1 |
|
|
 |
$0 |
|
1.00 (min) |
|
|
 |
$100 |
|
0.25 |
|
|
 |
$5 |
|
0.8 |
|
In this article, we will delve into the world of CySEC-regulated Forex brokers, exploring the benefits and advantages of trading with these brokers. We will also cover the licensing conditions and costs, how to confirm license legitimacy, leverage limits, and whether using CySEC-licensed brokers involves taxes. Whether you are a seasoned trader or just starting out, this article will be of assistance to any forex enthusiast looking to trade with a CySEC-regulated Forex broker.
History and Overview of CySEC
CySEC was created to regulate and oversee the country’s financial services industry, and its history dates back to 2001. In the aftermath of Cyprus’s accession to the European Union, CySEC evolved into a robust and effective regulatory body that enforces European standards in security and transparency.
In its early days, CySEC was responsible for regulating a relatively small number of financial institutions. However, as Cyprus’s financial services industry grew and expanded, the regulator’s role and responsibilities also increased. Today, CySEC is one of the most respected and influential regulatory bodies in the European Union, with a wide range of powers and responsibilities. CySEC plays a crucial role in promoting a safe and transparent market environment for traders in Cyprus and across Europe.
CySEC is responsible for issuing licenses to financial institutions like banks, investment firms, and brokerages. It also oversees each licensees’ conduct to ensure that it complies with European and local regulations alike. Its responsibilities also include promoting market integrity, protecting investors and consumers from financial harm, and fostering a competitive and stable financial services industry.
CySEC’s commitment to regulatory excellence has earned it a reputation as a trusted and respected regulator. As the financial services industry continues to evolve and grow, CySEC remains at the forefront, providing guidance and oversight to ensure a safe and transparent market environment for all.
Licensing Conditions and Costs
The licensing process of CySEC is designed to ensure that financial institutions meet strict regulatory requirements, providing a safe and transparent market environment for European traders. To obtain a license from CySEC, financial institutions must meet a range of requirements. The following are some of the most crucial ones:
- Fees: Paying the required licensing fees is mandatory for any CySEC broker.
- Minimum Capital: Entities need to maintain a minimum capital of €75,000, €150,000, or €750,000, depending on the services offered. The highest capital requirement is reserved for market makers.
- Local Presence: Any CySEC licensee needs to have a physical presence in Cyprus.
- Risk Management: Implementing robust risk management and compliance procedures is important as well.
- Protection of Client Funds: Fund segregation and contribution towards the Investor Compensation Fund is crucial.
- AML and KYC: Brokers must implement anti-money laundering (AML) and know-your-customer (KYC) procedures designed to prevent financial crime and ensure that customers are properly identified and verified.
The cost of obtaining a license from CySEC can be significant, with application fees between €7,000+ and €12,000. The exact sum relies on the type of license and the size of the entity. In addition to the initial licensing fee, financial institutions must also pay an annual fee, which also amounts to thousands of euros.
Another key requirement for CySEC-licensed financial institutions is the segregation of client funds. It ensures that client funds are held in a separate account and are not commingled with the financial institution’s own funds. Another measure that aims to help clients is the investor protection fund, which reserves €20,000 in compensation for clients of an insolvent broker.
How to Confirm License Legitimacy
The vast majority of Forex brokers make sure to include information regarding their licenses on their websites. Traders can also contact a given broker’s support team and inquire about its regulatory status. We advise against trusting only the information provided by the brokers, seeing as otherwise, you risk working with a fraudulent entity that only pretends to be legitimate.
To verify if a Forex broker is licensed by CySEC, you can follow a simple and straightforward process. Essentially, you will need to ensure that the broker’s name is on the official list of authorized investment firms published by CySEC, and find the license itself by doing the following:
- Visit the CySEC website: Head to the official CySEC website, where you can find the list of authorized investment firms.
- Check the list: Look for the broker’s name on the list of authorized investment firms. You can search by firm name, license number, or category. You can also use the search bar.
- Verify the license number and the broker’s domain: Once you find the broker’s name, make sure to check if the license numbers match, and whether the broker link on the CySEC page will redirect you to the broker you are looking up.
By following these simple steps, you can easily check whether aForex broker is licensed by CySEC and ensure that you are trading with a reputable and regulated firm.
Instrument Restrictions
Some regulators have made the decision to ban certain trading instruments. In the US, for instance, CFDs are completely prohibited. UK traders, on the other hand, can access most CFDs legally. Crypto derivatives are banned for non-professional traders, however, and this includes CFDs on cryptocurrencies.
While CySEC has a number of rules that determine how markets can be offered at online brokerages, the entity does not explicitly ban specific instruments outright. This, of course, only applies to licensees. Entities that are not regulated by either CySEC or another European regulator cannot target Cyprus-based traders with any trading products, nor are they suitable for traders from other European countries.
Leverage Limits
When trading with CySEC-regulated brokers, it is essential to understand the leverage limits imposed on brokers and the risks associated with using leverage. The European Securities and Markets Authority (ESMA) has implemented leverage limits to protect retail investors from excessive risk-taking and potential financial losses.
As a retail investor in Europe, you can trade with a maximum leverage of 1:30 when it comes to major currency pairs. Other currency pairs (minors and exotics) have leverage limits of 1:20. We should stress that these limits apply to retail investors, regardless of their trading experience or risk tolerance. The only individuals who will be given the freedom to make use of higher leverage are professional traders. For them, spreads can be capped at 1:100 or even higher, depending on the broker.
Using high leverage can amplify gains, but it can also significantly increase one’s risk exposure since it involves the usage of money borrowed from the broker. Substantial losses can be incurred even from small market movements, and this can lead to a margin call, where you’re required to deposit more funds to cover the losses. In other words, traders who use leverage stand to lose more money than what they used to open the leveraged position.
As a retail trader, you should carefully consider your risk tolerance and trading experience before using leverage. It’s also essential to monitor your account balance and adjust your leverage accordingly to minimize potential losses. In general, novice traders are advised to start with lower leverage ratios and either stick to a cautious trading strategy or gradually increase the leverage as their trading experience and risk tolerance grow.
Do Traders using CySEC-Licensed Brokers Pay Taxes?
Whether you will be taxed for your trading activity is entirely reliant on where you live and the local laws that are tied to forex trading. In Cyprus, gains and losses from forex trading are not subject to a capital gains tax. Elsewhere in Europe, however, there are countries where forex traders are obligated to pay taxes of this nature.
To make sure that you can stay up to date with the latest taxation laws of your country of residence, it is best to contact a local tax advisor who will provide you with all of the information necessary.
Conclusion
As the Forex industry continues to grow and evolve, CySEC-regulated Forex brokers will remain excellent trading destinations for Forex enthusiasts in Cyprus and other EU members. The regulator’s commitment to client protection and transparency ensures that by choosing a CySEC Forex broker, traders can enjoy a seamless and secure trading experience. Therefore, if you are in the process of trying to find your broker of choice, brands that boast CySEC’s seal of approval are definitely worth considering.
Why You Should Trust RationalFX
When it comes to making informed decisions about forex brokers, it's essential to rely on trustworthy sources. RationalFX, a company with over 17 years of experience since its founding in 2005, has established itself as a credible authority in the industry. With an impressive collection of over 2500 reviews on Trustpilot, boasting a score of 4.2, it's clear that Rational FX has built a reputation for providing reliable and unbiased information.
What sets Rational FX apart is its rigorous evaluation process, which considers over 30 different criteria when selecting forex brokers. This comprehensive approach ensures that every aspect of a broker's service is taken in consideration, including regulation, forex spreads, trading platforms, deposit methods, and reputation. With its wealth of experience, transparent review process, and outstanding customer feedback, Rational FX is a trusted source for anyone seeking reliable information on forex brokers. You can reach us via e-mail at [email protected] or contact us through our social media accounts here: Facebook, YouTube, or leave a feedback here.