Cyprus-regulated brokers - regulation | Page 2 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

FCA regulated or other reputably regulated Broker with 1:500 0 replies

MIFID Regulated Brokers 4 replies

Any Reputable Licensed/Regulated Brokers w/ 1:500 Margins 0 replies

Effects of Cyprus bailout deal on Cyprus-based Brokers 76 replies

Important Details For Major Regulated Forex Brokers 2 replies

Attachments: Cyprus-regulated brokers - regulation
Exit Attachments

Cyprus-regulated brokers - regulation

  • #21
  • Oct 15, 2015 11:50am Oct 15, 2015 11:50am
i dont trust them no more
focus while relaxed to see better
  • #22
  • Feb 18, 2016 11:02am Feb 18, 2016 11:02am
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? 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.
I think FCA is better and more reliable but SyCES is not bad too. Of course it's better than BVI or smth like that..
You have to make your own luck
  • #23
  • Feb 22, 2016 3:17am Feb 22, 2016 3:17am
Cyprus is an offshore zone and that usually means that brokers get licensed more easily there. But just because it's an offshore zone doesn't mean they don't have rules and regulations. Even Belize recently increased their capital requirements for a forex broker license and Cyprus' requirements are even higher than that, as far as I know. Still, if I had a choice (and thankfully I do) between working with a broker licensed in an offshore zone and a broker licensed by the FCA I'd always choose the latter.
  • #24
  • Feb 22, 2016 3:58am Feb 22, 2016 3:58am
Quoting mlawson71
Cyprus is an offshore zone and that usually means that brokers get licensed more easily there. But just because it's an offshore zone doesn't mean they don't have rules and regulations. Even Belize recently increased their capital requirements for a forex broker license and Cyprus' requirements are even higher than that, as far as I know. Still, if I had a choice (and thankfully I do) between working with a broker licensed in an...
I am stuck with a CySEC regulated broker from the past 6 months with a sizable amount of equity. The best part is even the CySEC is waiting that 1 day the broker will be in a better state to pay back the clients funds so they havent done anything about it.
Further, I keep talking to the broking firm just to realise that they have sacked all the employees and their license has been suspended and still there is no action from CySEC.
If you dont care for your money, give it up to CySEC regulated broker and you will realise that CySEC was a part in the loot.
  • #25
  • Feb 26, 2016 8:12pm Feb 26, 2016 8:12pm
Dont trust broker with multiple regulators if their head office is in Cyprus.
even FCA is in their lists of regulator. That is misleading paid advertising.

FCA will refuse if you complaint with reason you are under Cysec and You will be scammed by Cysec
look at ironfx victims.

Search #IronFx on tweeter, you will see a large number of victims cannot withdraw since Feb2015. Their complaints to Cysec and cyprus ombudsman were ignored

Look at this youtube video until the end, you will understand Cyprus is SCAM
https://t.co/Q6t49x23wT
  • #26
  • Feb 26, 2016 11:02pm Feb 26, 2016 11:02pm
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? 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.
I think they shift into offshore because of tax paradise - it's natural for company to look ways to reduce incidence of taxation. Personally I keep account with CySec regulated company (Hotforex) and its hard to call them a bucketshop.
Moreover Cyprus was pushed by US to get rid of their shady businesses so now this jurisdiction is at least worth to test, I think.
  • #27
  • Feb 27, 2016 9:32am Feb 27, 2016 9:32am
Quoting mlawson71
Cyprus is an offshore zone and that usually means that brokers get licensed more easily there. But just because it's an offshore zone doesn't mean they don't have rules and regulations. Even Belize recently increased their capital requirements for a forex broker license and Cyprus' requirements are even higher than that, as far as I know. Still, if I had a choice (and thankfully I do) between working with a broker licensed in an...
Frankly, I wouldn't become a client of a broker regulated in an offshore zone. It's not that I believe all those brokers are dishonest, it's just that I feel I would have very little control over the situation if it turns out that mine is. It's just taking unnecessary risk, I think.
  • #28
  • Mar 7, 2016 7:40pm Mar 7, 2016 7:40pm
whats its reason?
  • #29
  • Mar 17, 2016 7:11pm Mar 17, 2016 7:11pm
CySEC has been fining brokers left and right last couple of months. Looks like some spring cleaning is going on to improve its image.
@trader_umr
  • #30
  • Mar 17, 2016 11:07pm Mar 17, 2016 11:07pm
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.
If you trade size then you worry about regulation.

Cyprus is where the bucket shops live for a reason. Avoid.
  • #31
  • Mar 22, 2016 8:34am Mar 22, 2016 8:34am
Hi all,
Can someone publish an example for us to understand why we shouldn't trust the Regulator CySEC?
  • #32
  • Mar 22, 2016 9:07am Mar 22, 2016 9:07am
Quoting a.miller
Hi all, Can someone publish an example for us to understand why we shouldn't trust the Regulator CySEC?
They don't pay compensation when your 'broker' fails to pay or goes through. CySec is a money spinner for the government charging fees and imposing fines on the 'bucket shops'.

FCA authorised AND regulated is the way to go.

https://en.wikipedia.org/wiki/Cyprus...nge_Commission
  • #33
  • Mar 22, 2016 9:36am Mar 22, 2016 9:36am
Quoting claudia1
{quote} They don't pay compensation when your 'broker' fails to pay or goes through.
Thanks for the info. However, I don't understand.
Are they supposed to pay compensation when your 'broker' fails to pay or goes through?
I've been searching for some to find a post sharing the bad experience they had with CySEC and I can't find any.
  • #34
  • Mar 22, 2016 10:56am Mar 22, 2016 10:56am
Quoting a.miller
{quote} Thanks for the info. However, I don't understand. Are they supposed to pay compensation when your 'broker' fails to pay or goes through? I've been searching for some to find a post sharing the bad experience they had with CySEC and I can't find any.
They do not pay compensation. There's not much more to understand. Good luck but be careful.
  • #35
  • Mar 22, 2016 11:23am Mar 22, 2016 11:23am
I have accounts at some Cysec regulated brokers:
Hotforex
FXCC
Vi Pro markets
But honestly balances are not so high
I think that Cysec regulation on paper is good, as it should comply to EU Mifid rules, the problem is that maybe Cysec is not so strong in persecuting brokers chasing their customers. Also i think that there is not insurance on your funds if the broker goes bankrupt, but i am not sure on this, since i read on some Cysec regulate brokers websites that they are part of a fund which guarantee customers money, but i am sure that is not so reliable as for Uk FCA regulated brokers
Anyway i think that opening accounts with limited balances at Cyprous regulated brokers is OK
The best is as usual to split risk and to do so to slip trading capital among several different brokers
Of course the best is to deal with a FCA UK regulated broker and in secodn position with a Australian Asic regulated brokers.
  • #36
  • Mar 23, 2016 3:34am Mar 23, 2016 3:34am
Quoting claudia1
{quote} They do not pay compensation. There's not much more to understand. Good luck but be careful.
Again why shall a Regulator pay compensation?
As far as I know, when somebody fills a complain, they investigate and then they push the Brokers to pay compensations and force them to pay penalties. Am I mistaken?

@corre71 thank you for the explanation.
  • #37
  • Mar 23, 2016 5:48am Mar 23, 2016 5:48am
Quoting a.miller
{quote} Again why shall a Regulator pay compensation? As far as I know, when somebody fills a complain, they investigate and then they push the Brokers to pay compensations and force them to pay penalties. Am I mistaken? @corre71 thank you for the explanation.
CySec is regulator and doesn't pay compensation, it's paid by Investors Compensation Fund that all Cyprus regulated brokers are registered in. "The total payable compensation to each covered client of an ICFs member may not exceed 20.000, irrespective of the number of accounts held, currency and place of offering the investment service."

http://www.centralbank.gov.cy/nqcont...d=8159&lang=en

All clients money needs to be held on separate accounts, but as it was with IronFx, there were no separate accounts, so CySec regulatory is very weak. It will fine broker, but leave clients on their own.
  • #38
  • Edited Mar 24, 2016 4:19am Mar 23, 2016 5:56am | Edited Mar 24, 2016 4:19am
To succeed in trading the markets is for a big part, down to the preservation of capital and minimizing risk. This state of mind is very important. This should also reflect your choice of broker and their regulation.

Anyone playing down the importance of regulation, is doing this for a reason....

As a non-professional you are classified as a retail trader. This should give you an extra protection, also for a reason. The contracting/co-operation relationship between you and your broker(s) are ill-balanced in their favour.

That is why serious legislation tries to make this balance more even. You will find this in other areas where amateurs/retailers contract with professionals, such as laws protecting the consumers etc.

The forex broker/ industry can/is be a lot worse than the companies targeting the consumers for selling products/services. This is why you should pick a broker regulated by an serious regulator/legislator.

The opener of this posts stated, if you want to succeed in forex trading, you need the right mental approach to it. Start doing the right things from the beginning. One of this things is to not risk your whole deposit, no matter how small it is, by choosing brokers with bad regulation.

Who can claim that the CySec regulation is at a high standard and truly protects the funds of the clients of the brokers it regulates?
Do not let the cost of being wrong, exceed the prize of beeing right
  • #39
  • Mar 24, 2016 5:12am Mar 24, 2016 5:12am
I'd avoid all Cyprus based brokers all together for many reasons stated by other members already.

Just because they are EU member this doesn't mean they are safe and won't try to steal your money.

There are many tactics broker can try to apply to get your money - if not trade against you then tune his software to make you lose if you trade with small stops especially since trading forex is not done on just 1 exchange but globally.

This doesn't mean there aren't good brokers but better go with a broker that's UK regulated at least.

My strategy currently is to avoid all trading with spot and futures markets and just focus on trading 1 week and 1 month options.

This way no surge in intraday market volatility will harm you but only thing that matters is a settled price at time of option expiry (with ability to sell options before expiration at small profit or loss if I choose so).
  • #40
  • Mar 24, 2016 6:45am Mar 24, 2016 6:45am
If you had bad results with your broker this doesn't necessarily mean other newbies will get in the same situation. Some of us more smarter than others and will find a way how to trade with any broker. CySec companies are not the worst ones, I'm not talking about brokers only, I've been dealing them for last 3 years no scams or even a cause to suspect them in shady dealings.
So better to try and know by your own experience rather than lose opportunity.
0 traders viewing now