Cyprus Securities and Exchange Commission
(CySEC)Regulatory Snapshot
The Cyprus Securities and Exchange Commission is the independent public supervisory authority responsible for the supervision of the investment services market and transactions in transferable securities in the Republic of Cyprus. As an EU member state regulator, CySEC-authorised firms benefit from MiFID II passporting rights, enabling them to offer services across the entire European Economic Area.
About CySEC
The Cyprus Securities and Exchange Commission (CySEC) was established in 2001 as the independent financial regulatory authority of the Republic of Cyprus. Since Cyprus joined the European Union in 2004, CySEC has aligned its regulatory framework with the European MiFID financial harmonisation directive, making it one of the most popular licensing jurisdictions for forex and CFD brokers seeking access to the European market.
Regulatory Framework
CySEC regulates investment firms, mutual funds, and other entities operating in the Cyprus securities market. Its regulatory framework is fully compliant with MiFID II requirements, meaning CySEC-authorised firms can provide cross-border services throughout the European Economic Area under the passporting regime. Cyprus's favourable fiscal environment and efficient licensing process have attracted over 200 regulated investment firms to the jurisdiction.
Investor Protection
The Investor Compensation Fund (ICF) provides coverage of up to €20,000 per eligible investor in the event of a CySEC-regulated firm's insolvency. Retail clients benefit from negative balance protection, mandatory fund segregation, and standardised risk warnings. CySEC has also taken an increasingly active enforcement stance, imposing fines and revoking licences for non-compliant firms.
- Investor Compensation Fund (ICF) — up to €20,000 per eligible investor
- Full MiFID II compliance with EU passporting rights
- Negative balance protection for retail traders
- Mandatory client fund segregation
| Instrument | Retail | Professional |
|---|---|---|
| Major Forex | 1:30 | 1:500 |
| Minor Forex | 1:20 | 1:400 |
| Gold | 1:20 | 1:400 |
| Indices | 1:20 | 1:400 |
| Shares CFDs | 1:5 | 1:200 |
| Crypto | 1:2 | 1:50 |
Passporting Regions
Restricted Countries
CySEC-licensed firms can passport services across 30 EEA member states under MiFID II.
Body: Financial Ombudsman of the Republic of Cyprus
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