CySEC · Cyprus (EU)
Cyprus Securities and Exchange Commission
The EU's busiest hub for retail brokers. A solid framework with EU-wide passporting, though quality varies across a large number of licensees.
- Retail leverage
- EU (ESMA-aligned) retail caps: 30:1 major FX, 20:1 minors, gold and major indices, down to 2:1 on crypto. Negative balance protection.
- Compensation
- Investor Compensation Fund: the lower of 90% of the covered claim or €20,000 per client.
- Capital
- €750,000 initial capital for firms dealing on their own account; €150,000 for brokers holding client money.
- Supervision & substance
- Cypriot company directed by at least two qualifying persons, with compliance and risk functions.
- Stocks, futures & crypto
- MiFID II covers stocks, futures, and options as well as CFDs. Crypto service providers are now licensed under the EU's MiCA regulation, which CySEC administers in Cyprus, and retail crypto CFDs are capped at 2:1.
- Trade-off
- A very large number of licensees, and a wider financial sector that has drawn EU criticism over Russian money: ICIJ's 2023 Cyprus Confidential investigation called Cyprus firms key cogs in Russia's offshore financial machine. CySEC has also deferred a management ban on a Russia-linked broker's director five times since 2023.
What it means for you: The EU rulebook gives retail clients real protections, but the badge alone tells you little. Look hard at the firm and its owners behind the licence.
Common questions about CySEC
Is CySEC a good regulator for forex brokers?
In our view, CySEC is a strong international regulator (Tier 2 · Strong international). The EU's busiest hub for retail brokers. A solid framework with EU-wide passporting, though quality varies across a large number of licensees. The EU rulebook gives retail clients real protections, but the badge alone tells you little. Look hard at the firm and its owners behind the licence.
What leverage can brokers regulated by CySEC offer retail clients?
EU (ESMA-aligned) retail caps: 30:1 major FX, 20:1 minors, gold and major indices, down to 2:1 on crypto. Negative balance protection.
Is there a compensation scheme if a broker regulated by CySEC fails?
Investor Compensation Fund: the lower of 90% of the covered claim or €20,000 per client.
Does CySEC regulate stocks, futures, or crypto?
MiFID II covers stocks, futures, and options as well as CFDs. Crypto service providers are now licensed under the EU's MiCA regulation, which CySEC administers in Cyprus, and retail crypto CFDs are capped at 2:1.
A licence only protects you if your account is with the entity that holds it. Many broker groups hold several licences and onboard clients through an offshore entity. Check your client agreement, and verify the licence on the regulator's own register.
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Tiers and ratings are M1 Strategic's own assessment, based on public sources listed in our regulator guide. Rules change: always verify with the regulator directly. Not financial advice.