Even a novice Forex investor knows how dangerous it is to deal with an unregulated broker. After all, in the event of controversial legal issues, there will be no one to protect the traders and their funds. One of the most authoritative regulators today is СySEC (Cyprus Securities and Exchange Commission).
Traders Union experts understand the need for safe trading. Analysts have compiled a rating of 10 best CySEC brokers.
A detailed rating can be found at the link above. According to it, the best brokers with a CySEC license are:
- IC Markets;
- XM Group;
- Admiral Markets;
Why does CySEC license matter?
CySEC is one of the most severe and reputable regulators in the European Union. The regulator was established in 2001, as a mandatory element of integrating Cyprus with the EU. All financial and investment companies, registered in Cyprus, are subject to the regulation of CySec, and Forex brokers are no exception. The Commision controls the activity of the above companies. If a violation of laws, regulations or investor rights is detected СySEC has the right to fine the broker or even revoke its license.
Not every broker can get this license. First, the Forex company needs to prove its reliability. In order for the Commission to consider a broker’s license application, it is important to comply with several mandatory rules.
A broker who applies for a CySEC license must have at least three years of experience in the market. The broker should pay a one-time membership fee to prove its ability to pay. The company needs to have at least one representative office in Cyprus. Also, the license is issued only to brokers whose set of tools, functions, and assets is convenient for traders, and the platform has decent usability. Only if these conditions are met, the Commission will consider the applicant. But even then CySEC’s decision may be negative, as it depends on many factors.
If the broker is included in the list of companies licensed by CySEC, it means that it is already trustworthy. Traders Union analysts went further and chose the top ten CySEC brokers. But even among them, experts have their favorites, like IC Markets.
IC Markets as the best CySEC-regulated Forex broker
The advantages of the Australian broker IC Markets include instant execution of orders and very low spreads. The company has extensive market geography and deep liquidity. Traders will enjoy a wide range of trading assets and additional tools. The broker is also notable for taking care of novice traders - the IC Markets ecosystem includes an impressive educational base, consisting of expert articles and video tutorials.
Trading with IC Markets broker is legally safe, convenient in terms of usability, and suitable for both beginners and professional traders.