Forex Brokers in Cyprus

Each country have their own forex brokers regulation to protected their investor and the trading process. And they are actually different one and others. At know, we talk about forex brokers regulation in Cyprus. Did you know, that many forex brokers chose Cyprus to open their door business in the last few years? Maybe it is because of their high security and privacy which applies to all registered companies in Cyprus. Cyprus that became a member of the EU in 2004 still has the merits of an offshore zone, and Cyprus forex companies take advantage from their tax free offshore status.

To be a broker at Cyprus, first you need to apply for a CIFs (Cypriot Investment Firms) license from CySEC (Cyprus Securities and Exchange Commission). It is needs long procedure and strict rules. Brokers need to be completely transparent, comply to strict regulatory rules, and they have procedures in place that would allow them to have an effective an-money laundering policy. Cyprus forex brokers have strictly rules on the leverage offered, where the company needs to hold asset to the value of  the liquidity offered. Okay, in simple word, it means  if broker offers 200:1 leverage, they need to hold 200 times the investment amount that the client deposit, so each $1 client’s deposit they must have $200 in their asset. Could you trusted it now?

AS a member of  CySEC, Cyprus forex brokers have to obey with all laws laid out by MiFID (Market in Financial Instrument Directive), in which the law across  the EU regarding most financial service and trading. CySEC regulated investment firms only so you can be sure that they are experienced in dealing with customer complaints. And it takes complaints seriously , and if your complaints are valide violations of the CySEC rules, the broker will lose their license, and you will receive your funds back.

CySEC website : http://www.cysec.gov.cy