Cyprus Securities and Exchange Commission is the financial regulatory authority in Cyprus. Since Cyprus have been a member of EU since 2004, CySEC follows Markets in Financial Instrument Directive or MiFID which is a standard for financial industry imposed by EU.
However, the rules and protocols of a CySEC broker is comparatively easy then other financial institutions. This is the first regulator who gave binary option the recognition of an investment service. Furthermore, it also facilitates the brokers who want to save money from tax with different aspects.But still it maintains a handsome set of protocols to preserve the rights & funds of investors with different rules. For example, if CySEC regulated brokers somehow become insolvent to run the trades, then all the retail broker’s fund is compensated by Investor Compensation Fund up to €20,000.
For a retail broker CySEC Regulated Broker means the following things:
The core mission of CySEC is the supervision of stock & financial market. And depending on this mission, CySEC possesses the following responsibilities:
CySEC regulation includes the terms those are best to protect the investor’s interest. More precisely we can consider the following reasons for what you can become sure of your protection:
Before applying for CySEC regulation, the broker must join Investment Compensation Fund Scheme. Under this scheme if a broker become bankrupt or violate any any obligation of the contract, a retail broker can claim a compensation up to 20,000 euro. So, choosing a CySEC broker means you are automatically gaining this compensation scheme.
In straight sentence, if you follow the directives of the authority, your application will be approved. But still, you can follow the guidelines / tips below:
To check whether your broker is CySEC regulated or not, please keep visiting the official website of CySEC. Here you’ll get the following info:
Finally, you also read blogs, news about investment market which can help you to identify the trend of authenticity.
It is easier for the brokers to get CySEC membership. And that’s why there are enormous number of broker under this regulator. However, whatever the number of broker is, the rules are same for all. And there is no backdoor for fake attempt.
CySEC may not be a globally powerful regulatory body. But if you want to penetrate into the financial market of Cyprus, then the best medicine for you to choose a broker who has a CySEC license & regulation. Because if you follow this way, then you can ensure both manipulation free trading for you & the safety of your fund.
CySEC or Cyprus Securities and Exchange Commission imposes a set of protocols for the brokers around the Cyprus FX market. According to this rules, all regulated brokers are monitored so that the market becomes free of unethical practices and the fund of retail traders becomes safe & sound.
It imposed compensation scheme to the broker for the consumers & always monitor for the fraudulent activities around the financial market of Europe those help consumer to trade those a safe corridor.
They have a team who always researches the status of customers. So, if somehow customer is not satisfied or any rule violation occur, retailers can file their complains to the authority.
You can directly submit your complain to CySEC via phone, email or their website. But be aware that you complain is related to CySEC protocol. Otherwise, you may not get responses from them.
First of all, Europe is the most popular in financial market. And then, CySEC is one of the most popular regulatory body in Europe. That’s why, in a nutshell everyone wants to know whether a broker is CySEC regulated or not initially. Furthermore, the directives & compensation scheme also makes it more popular & welcomed by retailers.
Although it is easier to get membership or CySEC that other regulator, still you can trust a CySEC broker. Because may be the rules are easy, but they are strictly maintained.
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