| Updated: September 1, 2025Finding a reliable and trustworthy forex broker can be a daunting task, given the numerous options available. One’s choice should be governed not only by favourable trading conditions and competitive spreads but also by the level of security and regulatory compliance a given broker provides.
Brokers carrying the stamp of approval of tier-one regulators such as the Cyprus Securities and Exchange Commission (CySEC) are widely regarded as an excellent choice. They adhere to one of the strictest regulatory frameworks in the world, imposing retail-leverage caps, offering negative-balance protection, segregating client funds, and providing investor compensation in the event of insolvency. Read on for more information on CySEC brokers and the regulations to which they adhere.
Expert opinion by Christopher Lewis:Below you can find a list of 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 InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
-
Plus500
- Multi-Level Regulated Broker
- Proprietary trading platforms
- Easy to use mobile app
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Energy CFDs
- ETF CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Share CFDs
- Stock CFDs
- US Stock CFDs
-
FP Markets
- Australia and CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Energy CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
-
Pepperstone
- Australia and CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Energy CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
-
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
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Energy CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
-
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 InstrumentsDeposit Methods- Bonds CFDs
- Commodities CFDs
- Crypto CFDs
- Energy CFDs
- ETF CFDs
- Forex CFDs
- Forex Options
- Index Options
- Indices CFDs
- Metals CFDs
- Share CFDs
- Stock CFDs
- Stock Options
- US Stock Options
Brokers Compared by Spread
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 | |
1:500 (Elite Account), 1:400 (Pro Account), 1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:30 (DFSA | Retail Account), 1:30 (FCA | Retail Account), 1:500 (SVGFSA) |
| Plus500 | |
1:300 (Pro Account), 1:30 (ASIC | Retail Account), 1:30 (BaFin | Retail Account), 1:30 (CySEC | Retail Account), 1:30 (FCA | Retail Account), 1:30 (FMA | Retail Account), 1:30 (SFSA | Retail Account), 1:30 (DFSA), 1:300 (FSAS), 1:20 (MAS), 1:300 (SCB) |
| FP Markets | |
1:500 (CySEC | Pro Account), 1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:500 (FSAS | Retail Account) |
| Pepperstone | |
1:500 (CySEC | Pro Account), 1:500 (SCB | Pro Account), 1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:30 (DFSA | Retail Account), 1:30 (FCA | Retail Account), 1:200 (SCB | Retail Account) |
| FxPro | |
1:30 (CySEC | Retail Account), 1:30 (FCA | Retail Account), 1:10000 (SCB | Retail Account) |
| XM Group | |
1:30 (CySEC | Retail Account), 1:1000 (IFSC | Retail Account) |
Forex Brokers Platform Availability
| Brand | FX pairs to trade | |
|---|---|---|
| Axi | |
MetaTrader 4 |
| Plus500 | |
Proprietary Mobile, Proprietary Web |
| FP Markets | |
cTrader, TradingView |
| Pepperstone | |
MetaTrader 4, MetaTrader 5, Proprietary Mobile, Proprietary Web |
| FxPro | |
cTrader, MetaTrader 4, MetaTrader 5 |
| XM Group | |
MetaTrader 4, MetaTrader 4 MultiTerminal, MetaTrader 5, Proprietary Mobile, Proprietary Web |
Comprehensive Comparison of the Best CySEC Forex Brokers
| Brand | Min. Deposit | Trading Platforms | Spread | Regulation | Trustpilot |
|---|---|---|---|---|---|
 |
$0 |
|
AVG 0.1 pips |
|
|
 |
$100 |
|
AVG 1.3 pips |
|
|
 |
$50 (AU$100) |
|
AVG 1.2 pips |
|
|
 |
$0 |
|
AVG 1.1 pips |
|
|
 |
$100 |
|
AVG 0.5 pips |
|
|
 |
$5 |
|
AVG 1.2 pips |
|
In this article, we will delve into the world of CySEC-regulated Forex brokers, exploring the benefits and advantages of trading with them. We will also cover the licensing conditions and costs, how to confirm licence legitimacy, leverage limits, and whether using CySEC-licensed brokers involves taxes. Whether you are a seasoned trader or just starting out, this article will assist any forex enthusiast looking to trade with a CySEC-regulated Forex broker.
History and Overview of CySEC
CySEC was created in 2001 to regulate and oversee the country’s financial-services industry. Following Cyprus’s accession to the European Union, CySEC evolved into a robust and effective regulatory body that enforces European standards of 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, the regulator’s role and responsibilities increased accordingly. Today, CySEC is one of the most respected and influential regulatory bodies in the European Union, with a wide range of powers. It plays a crucial role in promoting a safe and transparent market environment for traders in Cyprus and across Europe.
CySEC is responsible for issuing licences to financial institutions such as banks, investment firms, and brokerages. It also oversees each licensee’s conduct to ensure compliance with both European and local regulations. Further duties 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 authority. As the financial-services sector continues to evolve, CySEC remains at the forefront, providing guidance and oversight to ensure a safe and transparent market for all.
Licensing Conditions and Costs
CySEC’s licensing process is designed to ensure that financial institutions meet strict regulatory requirements, thereby providing a safe and transparent market environment for European traders. To obtain a licence from CySEC, financial institutions must satisfy several criteria. The most important are:
- Fees: Paying the required licensing fees is mandatory for any CySEC broker.
- Minimum Capital: Entities need to maintain 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 must have a physical presence in Cyprus.
- Risk Management: Implementing robust risk-management and compliance procedures is also important.
- Protection of Client Funds: Fund segregation and contributions to the Investor Compensation Fund are 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 licence from CySEC can be significant, with application fees ranging between €7,000 and €12,000, depending on the type of licence and the size of the entity. In addition to the initial fee, financial institutions must pay an annual charge, which also amounts to several thousand euros.
Another key requirement for CySEC-licensed financial institutions is the segregation of client funds. This ensures that client money is held in a separate account and is not commingled with the institution’s own funds. Clients are further protected by the Investor Compensation Fund, which provides up to €20,000 in compensation should a broker become insolvent.
How to Confirm License Legitimacy
The vast majority of Forex brokers include information regarding their licences on their websites. Traders can also contact a broker’s support team and inquire about its regulatory status. We advise against relying solely on information provided by brokers, as this could result in dealing with a fraudulent entity masquerading as legitimate.
To verify whether a Forex broker is licensed by CySEC, follow this straightforward process. You will need to ensure that the broker’s name appears on the official list of authorised investment firms published by CySEC and obtain the licence details by doing the following:
- Visit the CySEC website: Head to the official CySEC website, where you can find the list of authorised investment firms.
- Check the list: Look for the broker’s name on the list of authorised investment firms. You can search by firm name, licence number or category, or use the search bar.
- Verify the licence number and the broker’s domain: Once you find the broker’s name, make sure that the licence numbers match and that the broker link on the CySEC page redirects you to the broker you are researching.
By following these simple steps, you can easily check whether a Forex broker is licensed by CySEC and ensure that you are trading with a reputable and regulated firm.
Instrument Restrictions
Some regulators have chosen to ban certain trading instruments. In the United States, for instance, CFDs are completely prohibited. UK traders, on the other hand, can legally access most CFDs. Crypto derivatives are banned for non-professional traders, and this includes CFDs on cryptocurrencies.
While CySEC has numerous rules governing how markets can be offered at online brokerages, it 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 and the risks associated with using leverage. The European Securities and Markets Authority (ESMA) has implemented leverage caps 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 on major currency pairs. Other currency pairs (minors and exotics) are capped at 1:20. These limits apply to all retail investors, regardless of trading experience or risk tolerance. Only professional traders may use higher leverage, with ratios sometimes reaching 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, as it involves using money borrowed from the broker. Substantial losses can be incurred even from small market movements, which may lead to a margin call requiring you to deposit more funds to cover the losses. In other words, traders who use leverage can lose more money than they initially invested in the position.
As a retail trader, you should carefully consider your risk tolerance and trading experience before using leverage. It is also essential to monitor your account balance and adjust your leverage accordingly to minimise potential losses. In general, novice traders are advised to start with lower leverage ratios and either adhere to a cautious trading strategy or gradually increase leverage as their experience and risk tolerance grow.
Do Traders Using CySEC-Licensed Brokers Pay Taxes?
Whether you will be taxed on your trading activity depends entirely on where you live and the local laws governing forex trading. In Cyprus, gains and losses from forex trading are not subject to capital-gains tax. Elsewhere in Europe, however, some countries require forex traders to pay taxes of this nature.
To stay up to date with the latest taxation rules in your country of residence, it is best to consult a local tax adviser who can provide all the necessary information.
Conclusion
As the Forex industry continues to grow and evolve, CySEC-regulated Forex brokers remain excellent trading destinations for enthusiasts in Cyprus and other EU member states. The regulator’s commitment to client protection and transparency ensures that, by choosing a CySEC-regulated 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
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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 feedback@rationalfx.com or contact us through our social media accounts here: Facebook, YouTube, or leave a feedback here.