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5 Best CySEC-Regulated Forex Brokers for 2024

By:
Plamen Stoyanov
Reviewed By:
Aviva Gurevich
Updated: Feb 21, 2024

List of Top CySEC-Regulated Brokers

MiFIDII compliant. Very low trading fees. Fast order execution, suitable for automated trading.

Tight regulation. Strong educational content. Platform with an easy learning curve. Low Commission trading. Choice of tradable instruments.

Over 3,000 tradable instruments across multiple markets. Fast order execution under 32 milliseconds. Best execution policy. Suitable for copy and automated trading.

Broad range of instruments. Best execution guidelines complied. Access to multiple markets. iRESS platform.

Sentiment indicators and real-time market news on the app. CFD and investing accounts. MT4 and MT5 platforms. Great choice of instruments. Competitive prices.

What is CySEC?

CySEC, the Cyprus Securities and Exchange Commission, is the financial regulatory body in Cyprus that licenses and oversees forex and CFD brokers. It ensures that they adhere to strict financial standards in line with European MiFID regulations, aiming to protect investors and ensure market integrity.

The commission supervises brokers’ operations, mandates segregation of client funds, and enforces compliance with financial regulations. CySEC also provides an Investor Compensation Fund to offer a safety net for investors in case a regulated firm fails, solidifying its role as a guardian of trader security and broker accountability in the financial markets.

How Did FX Empire Select the Best CySEC-Regulated Brokers?

FXEmpire's Methodology

  • CySEC regulation. I checked a broker’s authorizations and whether it complies with the Cyprus Securities and Exchange Commission (CySEC), operating under MiFID 2. I also looked for direct trading protections, such as negative balance protection, and indirect ones, like compensation schemes.
  • Offices in Cyprus. I preferred brokers (and broker entities) that are headquartered in Cyrpus, which is necessary for obtaining CySEC regulation and serving traders from the European Economic Area (EEA).
  • Deposit and withdrawal. I verified if brokers accept payments in EUR.
  • Local customer support. Due to the specific needs of traders based in Europe, I confirmed if brokers provide customer support during the European trading session.
  • Trading fees. I measured how competitive the trading fees offered by a broker are, whether commission-free trading is available, and how low the floating spreads are.
  • Trading software. I analyzed the usability and efficiency of a broker’s trading platforms and tools by counting the available technical indicators, drawing tools, order types, and more. I also assessed the ease of use of a platform in terms of how clearly price action behavior is represented.
  • Trading instruments. I evaluated the range of markets a broker provides and whether traders can exploit various trading opportunities in multiple ways (with CFDs, futures, options, etc.).
  • Order execution. I determined whether a broker has a ‘best execution policy’ and whether the broker’s pool of liquidity providers is deep enough to facilitate a steady liquidity supply. I also measured the average speed of order execution.
  • Account types. I assessed whether a broker offers versatile accounts for the different needs and experiences of traders. I also looked for swap-free trading (Islamic accounts), minimum deposit requirements, and available base currencies.
  • Supporting content. I conducted qualitative and quantitative tests of a broker’s research and educational content that equips traders with the knowledge and skills needed to make informed trading decisions.

Our team of experts has identified each broker’s strengths and weaknesses using FX Empire’s comprehensive methodology. Here’s how we test.

Now, let us go over the selected brokers for each category.

Best Overall

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
  • Min Deposit
    $200
  • Tradable Instruments
    2251
  • Fees
    Low

IC Markets is MiFID II-compliant, making it one of the most trusted derivatives brokers in the online trading industry. It was founded in 2007 and is headquartered in Sydney, Australia, with global offices in Limassol and elsewhere.

  • CySEC regulation, License No. 362/18.
  • Office in Limassol, Cyprus.
  • Instruments denominated in EUR – 7 FX pairs, 2 metals, 9 indices, 4 bonds, 175 shares.
  • Accepts payments in EUR, USD, GBP.

IC Markets’ Standard account type provides commission-free trading and floating spreads starting from 0.6 pips, which I deem quite competitive. Those looking for extra quality can open a Raw Spreads account supporting the professional and features-rich cTrader platform. This account type has a $3.0 commission per lot and raw spreads starting from 0.0 pip which is also favorable. For comparison, most of the brokers I have reviewed offer twice as big a commission on their ECN accounts.

In addition to the seamless cTrader platform, which is better fitted for seasoned traders, IC Markets incorporates the customizable MetaTrader 4&5. The two have gradually become a staple of CFD trading with their intuitive designs and practicality. However, what I dislike about MetaTrader is that it is rather cumbersome, and price action manipulation is difficult.

IC Markets also provides ultra-fast order execution in under 40 ms, which is crucial for decreasing the risk of negative slippage and allowing high-frequency trading.

Pros
  • Great trading fees.
  • Penetrating research and educational materials.
  • Multiple platforms available.
  • Access to deep liquidity.
Cons
  • The platforms have a learning curve.

Best for Beginners

CFD’s are complex instruments come with a high risk of losing your money rapidly due to leverage. Between 74%-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
  • Min Deposit
    $100
  • Tradable Instruments
    763
  • Fees
    Low

Eightcap is an Over-the-Counter (OTC) broker that is headquartered in Limassol and was founded in 2009. It offers access to over 700 tradable instruments from different asset classes.

  • CySEC regulation, License No. 246/14.
  • Offices in Limassol, Cyprus.
  • Instruments denominated in EUR – 7 FX pairs, 3 indices, shares.
  • Accepts payments in EUR, USD, GBP.

One of the things that impressed me about Eightcap’s offering is its comprehensive educational content. In addition to all the materials dedicated to studying technical and fundamental analysis, Eightcap also examines in detail the intricacies of trading psychology.

Based on my experience, mastering oneself and adopting a proper attitude and mentality are crucially important for all types of trading. And so, I appreciated Eightcap for providing beginners with the right tools they need to succeed in their learning endeavors.

I opened a Standard account with Eightcap, which is a popular choice among novice traders. It features commission-free trading and floating spreads from 1.0 pips. This combination meets the industry average.

I also probed the renowned MetaTrader 5 platform with its easy-to-navigate design, making it easy to grasp even for first-time traders. The platform supports nearly 100 technical indicators, drawing tools, and other customizable options. My opinion of MetaTrader 5 is that it is a good starting platform for novices wanting to learn about technical analysis.

Pros
  • Top-tier licensing by CySEC.
  • Robust educational materials.
  • Reliable customer support.
  • Beginner-friendly platform.
Cons
  • No alternative platforms.

Best MT4

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84.01% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
  • Min Deposit
    $20
  • Tradable Instruments
    4342
  • Fees
    Medium

Capital.com is an up-and-coming forex and CFD broker founded in 2016 and headquartered in Limassol, Cyprus. It adheres to the most stringent safety requirements in the industry, and it has also opted to issue a ‘best execution policy’, ensuring the delivery of the best price quotes under prevailing market conditions. Capital.com offers over 3,000 instruments across lower-risk and higher-yield/risk markets, thus presenting traders with an opportunity to better diversify their positions.

  • CySEC regulation, License No. 319/17.
  • Headquarters in Limassol, Cyprus.
  • Instruments denominated in EUR – 20 FX pairs, 6 indices, 472 shares2, 4 cryptocurrencies.
  • Accepts payments in EUR and USD.

What makes Capital.com such a great choice for trading on MetaTrader 4 is its comprehensive offering of supporting tools and features. The broker provides research materials that help traders stay on top of the latest market developments and spot viable trading opportunities. Additionally, Capital.com achieves ultra-fast order execution speeds of under 32 milliseconds, which I consider the broker’s standout feature, and provides API trading solutions.

MT4 features over 50 technical indicators and drawing tools, which can be used for basic technical analysis. Automated trading is also possible via MT4’s Expert Advisors (EAs) features.

I tested Capital.com’s trading fees by opening a CFDs Leverage trading account. It features commission-free trading and floating spreads starting from 0.6 pips. I assessed this combination to fall below the industry average.

Pros
  • Superior trading conditions.
  • Fast and precise order execution.
  • Diverse educational content.
  • Choice of over 3,000 instruments .
Cons
  • Unreliable customer support.

Best for Professional Traders

Contracts for Difference (CFDs) are leveraged over-the-counter derivative products and carry a high level of risk to your capital. You should only risk capital that you can afford to lose. In certain circumstances, due to fluctuations in market value you may not get back your initial investment amount. You may not only lose your initial investment but you may incur a liability to pay a further amount to cover losses. This means you can lose more money than you have invested.
  • Min Deposit
    $100
  • Tradable Instruments
    8977
  • Fees
    Low

Established in 2005, FP Markets’ professional-grade services are ideal for experienced traders looking for an edge. In addition to its top-tier licensing in multiple jurisdictions, I found the broker quite transparent.

  • CySEC regulation, License No. 371/18.
  • Office in Limassol, Cyprus.
  • Instruments denominated in EUR – 17 FX pairs, 2 metals, 5 indices, 125+ share and ETF CFDs.
  • Accepts payments in EUR, USD, GBP.

The broker incorporates the renowned MetaTrader 4&5 retail platforms that offer advanced functionalities such as instant trade execution, technical analysis tools, automated trading with custom Expert Advisors, and mobile trading. Seasoned stock traders could benefit from sophisticated IRESS because of its professional design and feature-rich interface.

FP Markets has a ‘best execution policy’ and provides free VPS hosting, which I appreciated as they are both important for guaranteeing superior order execution.

I checked FP Markets’ Raw account, which has spreads starting from 0.0 pips and a $6 round-turn commission. In my estimation, FP Markets’ fees are below the industry average. This combination is particularly useful for implementing high-frequency trading strategies, such as scalping.

Pros
  • 800+ instruments from different asset classes.
  • Fast order execution.
  • Very competitive spreads.
  • Free deposits and withdrawals.
Cons
  • No proprietary platform.
  • Limited research content on the EU entity.

Best Trading App

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.1% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
  • Min Deposit
    $100
  • Tradable Instruments
    327
  • Fees
    Medium

Established in 2012 and headquartered in Limassol, Cyprus, Libertex is a rapidly growing derivatives broker serving retail and professional traders. What I really appreciated about Libertex is its intuitive pricing mechanism and a choice of lower-risk securities like bonds and ETFs and higher-yield/risk assets like share CFDs and cryptocurrencies. This allows traders to better hedge their risk.

  • CySEC regulation, License No. 164/12.
  • Headquarters in Limassol, Cyprus.
  • Instruments denominated in EUR – 14 FX pairs, 1 metals, 10 indices, 1 cryptocurrency, 2 ETFs, 1 option.
  • Accepts payments in EUR, CHF, GBP, PLN.

Libertex offers the well-known and popular MT4 and MT5 trading platforms and its own proprietary Libertex app. The app is available on iOS and Android and is a quick and easy trading method. The trading ticket features multiple order types, including stop, limit, and market orders. The charts offer a good range of timeframes, although they lack technical analysis indicators. I found the inbuilt trader sentiment indicators useful to understand how many Libertex traders are long and short in a market. This can help to identify overbought and oversold trading conditions.

I opened a Libertex account, which features raw spreads from 0.1 pips and a €5 round-turn commission per traded lot (100,000 units). This combination falls below the industry average and is suitable for high-frequency trading.

Pros
  • Intuitive pricing mechanism.
  • Over 320 trading instruments.
  • Sentiment indicator in Libertex app.
  • Robust supporting content.
Cons
  • Poor educational content.

How to Choose a Forex Broker Regulated by CySEC?

Now that we have outlined our top picks for each category, it is time to delve deeper and examine all the small details in a broker’s offering that traders need to consider before deciding to move forward and opening a trading account with the company.

What protections do you have under ESMA regulation?

As mentioned in the introduction, CySEC operates under ESMA’s MiFID II. What that means for retail traders is that they are entitled to certain protections mitigating their trading and non-trading risks. To understand what those protections are, consider the following:

  • Segregated funds. In order to reduce the risk of accounting errors, brokers are mandated to keep their clients’ funds in separate bank accounts from the ones used for their corporate capital.
  • Negative balance protection. This safety mechanism prevents a trader’s losses from exceeding their account balance. In case a trader’s margin is running dangerously low and a sudden upsurge in market volatility causes their running losses to exceed their account balance, the negative balance protection will be triggered, and the broker will cover the resulting negative markup. In that regard, negative balance protection is a retail trader’s last line of defense in a volatile market environment.
  • Leverage. The advantages of trading leveraged products are twofold – instantaneous entries into trades since there is no need for physical delivery and bigger profits. That is, the leverage multiplies the profits generated from winning trades and the losses incurred from losing ones. In that regard, leverage is the key determinant of a trader’s market exposure, which is directly affected by market volatility. That is why under MiFID II, the maximum leverage afforded to retail traders is capped at 1:30.
  • Compensation scheme. Compensation schemes and private indemnity insurance protect clients of a broker against the company’s credit risks and liabilities. In the unlikely event that a broker should go bankrupt, a trader will be compensated for any losses incurred as a consequence of the insolvency by up to a certain amount. Brokers regulated by CySEC participate in the Investors Compensation Fund (ICF), which covers their clients by up to EUR 20,000.

Read more about Best regulated forex brokers.

What are the differences between retail and professional traders?

Under MiFID II, brokers are mandated to classify their clients in two categories: as ‘retail’ or ‘professional’. Retail traders are protected by the above-mentioned safety mechanisms, whereas the same may not be applicable to professionals. They are classified as such when they have sufficient trading experience and capital to take on larger risks. I would advise against opening a pro account unless you have at least 5 years of experience trading leveraged products.

A professional trader with a CySEC-regulated broker can opt for a maximum leverage of 1:500 in order to gain bigger market exposure, whereas the maximum leverage for retail traders is capped at 1:30. Accordingly, the risks faced by professional traders are also multiplied. And since they usually trade much larger volumes compared to retail traders, professionals are excluded from the negative balance protection mechanism.

Choosing whether to be classified as a retail or professional trader essentially boils down to means, goals, aspirations on the market, and a trader’s risk aversion. Traders are ultimately responsible for deciding whether they are ready to face larger risks to make bigger profits.

Explore Best MiFID-regulated forex brokers.

How to choose a trading account based on its pricing?

A broker may have several account types, each with different pricing mechanisms. The question is, how to know which one is best fitted for your particular style of trading? I will try to answer this question by providing an example with two distinct accounts, one STP and the other ECN:

The biggest difference between STP and ECN accounts, apart from the execution model, is the pricing mechanism. Usually, STP accounts afford commission-free trading and floating spreads, whereas ECN accounts have fixed commissions and raw spreads (typically starting from 0.1 pips). At first glance, the former sounds more favorable because you only have to pay one cost – the spread – rather than two.

Read more about Best STP forex brokers and Best ECN forex brokers.

Many brokers recognize the psychological significance of this sort of thinking and seek to exploit it by raising the spreads on their STP accounts to the point where they are no longer the more competitive option. I will now demonstrate how to do a quick test for yourself to evaluate the competitiveness of a broker’s ECN and STP accounts.

Pick an instrument, say, the EURUSD. Suppose also that the spread on the pair is 0.9 pips on a broker’s STP account and 0.1 pips on its ECN account. There is also a $6 commission for trading 1 lot (100,000 units) contract. If the EURUSD pip value is $10, you can do a simple calculation to determine the value of a hypothetical position on the EURUSD executed on both account types. The formula is the value of a trade = spread x pip value + commission. When we pop in the above values, this is what we discover about our hypothetical broker:

Account Type Spread Commission Net Cost
STP 0.9 pips $0 $9
ECN 0.1 pips $6 $7

This is just a hypothetical example, but hopefully, it illustrates how more can be less in trading. So it’s worthwhile evaluating the costs of a broker you consider opening an account with for yourself before doing so. And if you are still uncertain, you can always check out our database of reviews to sort out the most competitive brokers.

Check out our list of Best lowest spread forex brokers.

What should you consider when it comes to liquidity?

Market liquidity, in short, relates to the ease with which brokers can execute trading orders. The more liquid the market, the smaller the discrepancy between the requested price and the price where the order gets filled. Accordingly, the risk of negative slippage is more significant in illiquid markets. That is why traders must select a broker with access to deep liquidity that can guarantee fast order execution in under 100 milliseconds.

The most common brokers operate on a No-Dealing-Desk (NDD) basis, meaning they obtain their liquidity from external providers, such as banks and large financial institutions. The most reliable brokers tend to have a large pool of liquidity providers to ensure quality order execution at most times.

To make sure you choose a broker that guarantees order execution under the most favorable market conditions at all times, look for a ‘best policy execution’ in the legal docs section of the website. This is a legal mandate and commitment by the broker to provide traders with the most favorable price feeds at all times. I have always sought to work with brokers with such a policy to decrease the likelihood of negative slippage.

Check out our guides on best gold trading brokers and best oil trading brokers.

How to choose a trading platform?

Trading platforms are used to observe price action behavior and determine viable opportunities for entries into the market. Traders use technical indicators, drawing tools, and other features to examine various price patterns, changes in volatility, liquidity, and so on to gauge the underlying market sentiment.

The best platforms, in my experience, are also the most versatile ones. They include a wide spectrum of technical indicators, such as Fibonacci retracement levels, oscillators, trend-based and range-based indicators, and others, as well as drawing tools, such as trend lines, channels, wedges, and so on. Their design is also important. The most user-friendly platforms are the ones that afford price action to be manipulated with ease.

Traders should also consider whether their broker’s platform accommodates easy and fast order execution via one-click trading, supports algorithmic trading via Expert Advisors (EAs); and supports complex orders, like market, limit, and limit and stop orders, etc.

Check out our dedicated guide on best forex trading platforms.

Here are some popular trading platforms you could find on the market today:

MetaTrader 4 (MT4): MT4 is one of the most widely used trading platforms in the forex market. It offers a user-friendly interface, advanced charting capabilities, and a wide range of technical indicators and expert advisors (EAs). MT4 is known for its stability and is compatible with Windows, Mac, iOS, and Android devices. Read more about best MT4 brokers.

MetaTrader 5 (MT5): MT5 is the successor to MT4 and offers additional features and improvements. It provides enhanced charting options, a built-in economic calendar, more order types, and access to other markets like stocks and commodities. Like MT4, MT5 is available on various operating systems. Read more about best MT5 brokers.

cTrader: cTrader is a popular trading platform known for its advanced order execution and transparency. It offers a customizable interface, multiple charting options, and a wide range of technical analysis tools. cTrader also provides access to a community of traders where you can share strategies and indicators. Read more about best cTrader brokers.

TradingView: Although not a dedicated trading platform, TradingView is widely used for its powerful charting capabilities and social trading features. Many forex brokers integrate TradingView charts into their platforms or offer them as a standalone option. TradingView allows you to analyze charts, create and backtest trading strategies, and engage with a community of traders. Read more about Best TradingView brokers.

NinjaTrader: NinjaTrader is a platform primarily used by futures and forex traders. It offers advanced charting, analysis tools, and strategy development capabilities. NinjaTrader provides a range of order types and integrates with various data providers. It is known for its algorithmic trading capabilities.

Read more about best NinjaTrader brokers.

Also, some brokers offer proprietary trading platforms, which are developed in-house and unique to their brokerage. These platforms are designed to provide a tailored trading experience with specific features and functionalities.

What to Avoid When Choosing a CySEC-Regulated Broker?

When it comes to protection, CySEC-regulated brokers offer almost the same safety mechanisms across the board because they are all made to comply with MiFID II. Hence, traders can focus more on other aspects of a broker’s offering when looking for the right partner.

Here are several things to avoid in a broker:

  • Classic (STP) accounts with spreads starting from 1.5 pips or Raw (ECN) accounts with round-turn commissions above $7. These are considered above the industry average.
  • Brokers that do not offer access to all major markets including FX, commodities, CFD shares, and indices.
  • Brokers that cannot guarantee average order execution speeds under 100 milliseconds.

How to Avoid Forex and CFD Scams?

Scammers rely on the gullibility of traders. A commonly employed tactic by fraudsters is to promise quick and easy profits at no risk to the trader. Often, scammers would use labels that closely resemble the brands of real and legitimate companies.

To make sure you are not falling victim to such a scam, always check CySEC’s registry before funding an account with a broker. You can check if a broker’s URL matches the one listed on the website, which is a sure way of knowing you are not dealing with a clone firm.

Another thing to remember is that you must be careful where you leave your information online. Registering your details on suspicious pop-ups promising you enormous profits could result in your contact details ending up in a scammer’s dialing list. Remember, no licensed broker would make unsolicited cold calls.

The next time you get contacted out of the blue with promises of becoming the next Warren Buffet, you must remember that you are most likely speaking to a scammer. In my experience, nowhere is the “if something sounds too good to be true” saying more accurate than in the world of trading. That is why you should do your due diligence before opening an account with a broker.

Our Methodology

FX Empire has pioneered a unique methodology for evaluating Over-the-counter (OTC) derivatives brokers worldwide. Our goal is to provide highly sophisticated content outlining the advantages and disadvantages of a broker’s service so that our readers can make informed trading decisions.

The trading industry is continuously evolving, necessitating regular updates to our methodology so that we can ensure it stays up-to-date with all the latest developments. Our team of dedicated professionals ensures that our reviews reflect all the latest changes and market trends.

We test each broker systematically by employing over 250 variables across nine categories:

  • Trust
  • Fees
  • Account Types
  • Tradable Instruments
  • Platforms and Tools
  • Deposits and Withdrawals
  • Customer Support
  • Research
  • Education

Our aim is to be as objective as possible when we carry out our reviews. We check the licenses of all broker entities operating under the same trade name and the Client Agreement’s clarity to ensure the company is fully transparent. Moreover, we assess the competitiveness of a broker’s trading and non-trading fees.

We collect information by opening a live account with a broker entity and testing its services in real time. We measure the spreads, swaps, and commissions on its most popular account type and compare our findings to the industry average.

We also assess the functionality of the available platforms and supporting tools, the number and class of tradable instruments, and the reliability of the customer support. Finally, we carry out а qualitative and quantitative analysis of the research and educational materials. In all of these aspects, we look for diversity and functionality.

For this guide, we only considered brokers authorized by the Securities and Exchange Commission in Cyprus (CySEC) that have a physical presence in Cyprus, accept deposits and withdrawals in EUR, and provide customer support during the European trading session. Other parameters include a high transparency level, trading fees below the industry average, and user-friendly and feature-rich platforms.

We abide by our strict guidelines for editorial integrity based on the objective standards we have set for our reviews. You can read more about our review process here.

Meet Our Writers

The team of forex and CFD analysts and editors at FXEmpire is composed of trading industry professionals and seasoned financial journalists. Our experts have been published on leading financial websites such as Investopedia and Forbes. In addition, they all have extensive trading experience.

Get to Know Our Authors

Dan BlystoneBroker Analyst

Dan Blystone began his career in the trading industry in 1998 on the floor of the Chicago Mercantile Exchange. Later Dan gained insight into the forex industry during his time as a Series 3 licenced futures and forex broker. He also traded at a couple of different prop trading firms in Chicago. Dan is well-equipped to recommend the best forex brokers due to his extensive experience and understanding of the brokerage industry.

Jitan SolankiBroker Analyst

Jitan Solanki is a professional trader, market analyst, and educator. He day trades major currency and index markets and focuses on swing trading US equities and commodities. A qualified Market Technician, Jitan also works with trader education and brokerage companies on various projects. These include market analysis, live trading events, and broker reviews. As an experienced trader and educator, Jitan brings all his qualities in action when reviewing and recommending brokers.

Plamen StoyanovBroker Analyst

Having been a retail trader since 2013, Plamen has gained an in-depth understanding of the challenges that novice traders face today. His expertise is swing trading and day trading with a heavy emphasis on psychological and fundamental analysis. Plamen’s favourite trading instruments include FX majors and gold. He earned a Bachelor's degree in Economics and International Relations. Plamen's broad experience has equipped him with the expertise to recommend the best forex brokers.

Vladimir ZernovBroker Analyst

In more than 15 years of trading in the financial markets, Vladimir dealt with a wide range of brokers and financial instruments. His career as a day-trader at a proprietary trading firm goes back to 2007. Later, Vladimir turned to longer time frames and became an independent trader and analyst managing his own portfolio. Using his experience, he helps traders find the best broker in his reviews.

CySEC is the financial regulatory authority in Cyprus responsible for overseeing and regulating the country's financial markets. It operates under the framework of the European Securities and Markets Authority (ESMA) and the Markets in Financial Instruments Directive (MiFID). CySEC regulates investment firms, brokers, and other financial service providers, aiming to ensure fair markets, protect investors, and maintain the integrity of the Cypriot financial system. Many forex and CFD brokers seek CySEC regulation to operate within the EU and provide services to clients across member states. We rank CySEC as a Tier-1 regulator on our system, ensuring the highest level of protection.
In order to be licensed by CySEC, a broker has to agree to comply with the Markets in Financial Directive II (MiFID II) framework mandated by ESMA. Additionally, brokers must have a minimum capital of EUR 750,000 to meet their credit risk.
There is essentially no difference between the two. Being licensed by CySEC means the broker has met its requirements and agreed to comply with them. And after the broker obtains its license, it is up to CySEC to regulate its financial operations. In cases of conflict of interest, traders can contact the regulator to weigh in on issues relating to the broker’s conduct.
Broker entities that are regulated by CySEC are given a licensing number, which traders can double check on CySEC’s registry https://www.cysec.gov.cy/en-gb/registers/. You can also check a list of regulated entities on the broker’s website which is usually situated at the bottom of the page.
Clients of a CySEC-regulated broker can expect segregated funds, negative balance protection, and a cap at 1:30 on the maximum leverage allowed. Additionally, CySEC-regulated brokers are required to participate in the Investors Compensation Fund (ICF), ensuring traders against the broker’s liabilities by up to EUR 20,000.
Licensed brokers are required to have a ‘Complaints Handling Policy’, which can be found in the legal documents section of the broker’s website. To understand the procedural steps needed to submit a complaint, refer to your broker’s respective policy.
The European Securities and Markets Authority (ESMA) is the overarching regulatory body in the European Union. ESMA’s main responsibility is to ensure the stability of European financial markets, including dealings in financial securities.
CySEC-regulated brokers operate under the oversight of a reputable regulatory authority with strict standards and investor protections, such as the segregation of client funds and participation in compensation schemes. In contrast, offshore-regulated brokers, often subject to less stringent regulations, may lack these protections, increasing the risks for traders. Also, the maximum leverage allowed offshore could be up to 1:2000.
Yes, but you will not be liable for the same protections guaranteed under MiFID II.
Based on my research, Eightcap is the best CySEC-regulated broker for beginners as it offers favorable conditions and a broad range of supporting tools.
I concluded that professional traders can gain the most favorable conditions from FP Markets. The broker incorporates sophisticated platforms, has favorable pricing mechanisms and a wide range of instruments, and affords fast order execution.
Yes, trading cryptocurrency CFDs is permitted under MiFID II. There could, however, be some differences in the margin requirements from broker to broker.
Negative balance protection is a safety mechanism that ensures a trader’s losses cannot exceed their account balance.
he broker has to state it ensures negative balance protection in its Client Agreement, which is usually found in the Legal Docs section of the website.
The fund serves as a guarantee to traders against the credit risks and liabilities of an investment firm (broker) participating in the fund. All CySEC-regulated brokers participate in the ICF. In the unlikely event that a broker should become insolvent, its clients can be compensated for their incurred losses.
Traders can be compensated by an amount of up to EUR 20,000.
It means that client funds are kept in separate bank accounts from the accounts the broker uses for its corporate capital. Keeping client and broker funds segregated is essential for mitigating the risk of accounting errors.

About the Author

Plamen StoyanovBroker Analyst

Having been a retail trader since 2013, Plamen has gained an in-depth understanding of the challenges that novice traders face today. His expertise is swing trading and day trading with a heavy emphasis on psychological and fundamental analysis. Plamen’s favourite trading instruments include FX majors and gold. He earned a Bachelor's degree in Economics and International Relations. Plamen's broad experience has equipped him with the expertise to recommend the best forex brokers.

Why you can trust FX Empire

At FXEmpire, we strive to provide unbiased, thorough and accurate broker reviews by industry experts to help our users make smarter financial decisions.

Why you can trust FX Empire

FXEmpire was founded in 2011, making us one of the first forex broker review sites. You can trust FXEmpire because of our thorough and unbiased review process. With over a decade of experience, we have a team of industry experts who conduct rigorous tests to ensure our reviews are accurate and unbiased. Our reviews are designed to bring clarity and confidence to the process of choosing a broker, and are based on objective criteria and measurable data. Our editorial team is composed of trading industry professionals and seasoned financial journalists, who ensure that our reviews are accurate and unbiased. Additionally, our review system is based on 9 core categories and over 250 distinct variables, which ensures that all aspects of a broker are considered before giving a final rating. So, you can trust FXEmpire to provide you with honest and informative reviews that will help you make an informed decision on which broker will best enable you to reach your financial goals.