The CySEC license is the most popular among broker licenses. Let's see what it is and whether traders can trust brokers with this license. Forex brokers have their own regulators, terms and conditions. In addition, it is normal for traders to check the broker and want to review their licenses, legal information, etc. Most brokers are licensed by CySEC. Let us highlight a detailed look at the license of CySEC brokers and traders. Following these useful tips, you are just a few steps from the Best CySEC Forex Brokers. So read, compare, feel free to open an account now!
About the CySEC regulator
The CySEC (Cyprus Securities and Exchange Commission) is an organization with the function of controlling the activities of a stock exchange (OTC) broker registered in Cyprus, as well as giving licenses to brokers and financial investment companies. In other words, it is an organization that controls the financial services market in Cyprus.
What is the value of CySEC?
Let’s start with the fact that CySEC is a regulator in Cyprus. Cyprus has been a member of the European Union since December 1999. Thus, CySEC has the right to control the financial sector, in accordance with the laws of the European Union. Therefore, CySEC is a legitimate organization in Cyprus, like the FCA (regulation of financial management and supervision) which is located in the EU. In addition, CySEC complies with European laws and must comply with its obligations, which indicates the seriousness of this organization.
Now let’s define the main activities of CySEC:
- To monitor the activities of investment companies licensed by CySEC;
- Control over the activities of the Fund and no stock brokers and dealing centers;
- Issue licenses for investment activities;
- To control financial transactions on the Cyprus Stock Exchange;
- Monitor the activities of the Cyprus Stock Exchange (and comply with trading rules);
- To manage issuers located in Cyprus (rules for the issue of securities and their further placement);
- To monitor the activities of portfolio managers working in Cyprus;
- Manage investment projects licensed by CySEC;
- In order to verify claims and to collect materials related to violations, as well as transferring materials for further proceedings to state supervisory authorities;
- To cancel the license in case of violation of the requirements of the rules, as well as violation of the law.
Thus, when searching for a broker, the existence of a CySEC license is an important criterion. A CySEC licensed broker is obviously interested in long-term cooperation with investors.
Such a broker does not have the goal to steal the trader’s money and disappear, because then CySEC, being a mandatory regulator, begins the process of canceling the license and terminating the broker’s activity. In addition, in any case, the broker must return all the money to the trader.