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Cyprus-regulated brokers - regulation

  • #1
  • First Post: Nov 28, 2014 11:46am Nov 28, 2014 11:46am
Cyprus is a popular country for forex brokers (I don't know why), and thus there are many CySEC-regulated brokers. They gain the fact that Cyprus is part of EU, and then, they are regulated at EU level.

Is CySEC as reliable as FCA?

Cyprus is a country in which banks bankrupts, then how much regulatory protection is reliable?

There are some good brokers (services and specifications based in Cyprus, and it is not easy to ignore them, but Cyprus-based fact makes it a little bit shaky.
  • #2
  • Nov 28, 2014 12:02pm Nov 28, 2014 12:02pm
I'm not an expert but :

1) As Cyprus is part of EU Cyprus brokers clients may be protected by EU if the broker collapses.

2) Problem is that it's very easy to get a regulation by CySEC. There is nothing in common with FCA, AMF or FINMA.

Wait for other's opinion.
  • #3
  • Nov 28, 2014 12:23pm Nov 28, 2014 12:23pm
Cyprus = offshore
  • #4
  • Nov 28, 2014 12:31pm Nov 28, 2014 12:31pm
Quoting etrade
Cyprus is a popular country for forex brokers (I don't know why), and thus there are many CySEC-regulated brokers. They gain the fact that Cyprus is part of EU, and then, they are regulated at EU level. Is CySEC as reliable as FCA?
No, this is not the same. But anyway I don't understand why people worries so much about regulation. It's important but I would not choose broker based only on regulation. It's like with many other things... it can be not original but still good.
  • #5
  • Nov 28, 2014 1:57pm Nov 28, 2014 1:57pm
Quoting Max FX
{quote} No, this is not the same. But anyway I don't understand why people worries so much about regulation. It's important but I would not choose broker based only on regulation. It's like with many other things... it can be not original but still good.
Definitely, regulation is not the only factor; but jurisdiction in which the broker operates is the main factor for judging that a broker is reliable. There are many factors to be considered for selecting a broker, but what are factors you consider for judging that a broker is reliable?

A strict regulation can give us a degree of confidence that our funds are safe regardless of the broker business model (of course, to some extent).

A non-regulated (or weakly regulated) broker can take the money and run OR file for bankruptcy. Who can stop the broker?
  • #6
  • Nov 28, 2014 2:57pm Nov 28, 2014 2:57pm
Quoting bodypip
Cyprus = offshore
just to be a bit more specific...
10% corporate tax. a lot better what most country offers. and still EU end of the day.
there is always, always another trade!!
  • #7
  • Nov 28, 2014 9:18pm Nov 28, 2014 9:18pm
I'm currently in the process of filing a lawsuit against a regulated cyprus broker, my lawyer deals with the licencing and register action of these guys and understands the market, knows what they must do and how they should operate. The problem he has never done this before. People don't understand their legal rights when it comes to investing and it is no different in cyprus. The broker I'm dealing with did a number of illegal things, and they keep doing this stuff. But because their is so many small time traders that don't hold them accountable no one wants to pay for a lawyer. To me it's my money and im getting it back.
Learn, a forex trader must, unlearn and relearn he will.
  • #8
  • Nov 28, 2014 11:09pm Nov 28, 2014 11:09pm
Quoting COGSx86
I'm currently in the process of filing a lawsuit against a regulated cyprus broker, my lawyer deals with the licencing and register action of these guys and understands the market, knows what they must do and how they should operate. The problem he has never done this before. People don't understand their legal rights when it comes to investing and it is no different in cyprus. The broker I'm dealing with did a number of illegal things, and they keep doing this stuff. But because their is so many small time traders that don't hold them accountable...
well said
people leave, but this thread will go on for ever
  • #9
  • Dec 1, 2014 2:08pm Dec 1, 2014 2:08pm
Being regulated by an entity based on an offshore location does not give any significant protection in my opinion. I have been scammed by two brokers in the last two months and both were licensed by an offshore regulator in Belize and in British Virgin Islands, respectively, but no help from them has come. They probably do nothing when you happen to be scammed. My e-mails have not been answered for over two weeks now. When you choose such a broker you must take into account that if something happens, those "regulators" wonīt do anything and you are on your own to solve the issues.
  • #10
  • Dec 2, 2014 3:16am Dec 2, 2014 3:16am
This is why reputation of broker is more important than his regulation. It's possible that you will be scammed buy big regulated broker as well as offshore broker. Many people trade with offshore brokers and don't have problems at all. Maybe you just wasn't lucky enough with broker choice. It's nice to feel additional protection by regulator in case of broker bankruptcy but don't expect that any of your trading complain will be solved in your favour by regulator.
  • #11
  • Dec 25, 2014 3:17pm Dec 25, 2014 3:17pm
Quoting COGSx86
I'm currently in the process of filing a lawsuit against a regulated cyprus broker, my lawyer deals with the licencing and register action of these guys and understands the market, knows what they must do and how they should operate. The problem he has never done this before. People don't understand their legal rights when it comes to investing and it is no different in cyprus. The broker I'm dealing with did a number of illegal things, and they keep doing this stuff. But because their is so many small time traders that don't hold them accountable...
GOGSx86. Wish you good luck. I might need to take that road myself. There is many laws that are here for us, the consumer. The brokers only talk about their Unfair T & C but forgett MIFID. Can you give me the lawyers name?

Tarzan
  • #12
  • Oct 12, 2015 6:26am Oct 12, 2015 6:26am
Guys recently theres a CySec Regulated broker that will most likely declare itself Bankrupt on the 23rd October 2015. I have been dealing with guys and my Investment is far more than the insured amount. What will Cysec do in such cases? Further will I get anything more than the insured amount?
  • #13
  • Oct 12, 2015 9:12pm Oct 12, 2015 9:12pm
Hallo Voipey,

what is the name of the broker?

Thanks,



Quoting Voipey
Guys recently theres a CySec Regulated broker that will most likely declare itself Bankrupt on the 23rd October 2015. I have been dealing with guys and my Investment is far more than the insured amount. What will Cysec do in such cases? Further will I get anything more than the insured amount?
  • #14
  • Oct 12, 2015 9:47pm Oct 12, 2015 9:47pm
cyprus=offshore =scam
as i mentioned on fxpro thread,
i did open account fxpro uk website.
but i noticed they passed my account to cyprus office.(FxPro Financial Services Limited below cysec)
Stay away cyprus brokers!.
cysec is useless.
http://www.forexfactory.com/showthre...57#post8452157
  • #15
  • Oct 12, 2015 10:55pm Oct 12, 2015 10:55pm
Quoting Voipey
Guys recently theres a CySec Regulated broker that will most likely declare itself Bankrupt on the 23rd October 2015. I have been dealing with guys and my Investment is far more than the insured amount. What will Cysec do in such cases? Further will I get anything more than the insured amount?
what is the insured amount and has anybody ever been paid and how long did that take?

am shifting my IB account to various forex brokers preferably in UK for their gbp50k government guarantee per person per firm.
joint account = gbp100k guarantee I suppose.
trading at the moment with Interactive Brokers, but margins even higher than quoted by cme.
  • #16
  • Oct 13, 2015 1:22am Oct 13, 2015 1:22am
Quoting antonsatu
Hallo Voipey, what is the name of the broker? Thanks, {quote}
Falcon Brokers Limited.
  • #17
  • Oct 13, 2015 2:13am Oct 13, 2015 2:13am
Stay away ....


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  • #18
  • Oct 13, 2015 2:39am Oct 13, 2015 2:39am
Many brokers are Cyprus regulated, in the list I noticed many well-known brokers and many unknown names? Are they all really cheated, scam, fraud?

http://www.cysec.gov.cy/en-GB/entiti...firms/cypriot/
  • #19
  • Oct 14, 2015 1:52am Oct 14, 2015 1:52am
Well the license of Falcon Brokers gets terminated on 23rd October. I guess we will have utmost clarity on that time as to how good a CySEC regulation is.
  • #20
  • Oct 15, 2015 10:42am Oct 15, 2015 10:42am
Quoting hoangforex
Many brokers are Cyprus regulated, in the list I noticed many well-known brokers and many unknown names? Are they all really cheated, scam, fraud? http://www.cysec.gov.cy/en-GB/entiti...firms/cypriot/
Most if not all. Cyprus gets chosen as they have lax laws and low tax rates, but are at the same time an EU country. So if you get a license from there, you effectively can operate in the rest of Europe.
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