What is CySEC and why does it matter for forex traders?
How this answer was verified
- Cross-checked against broker-published fact sheets, regulator licensing databases, and ESMA product intervention notices.
- Reviewed by the FX-Brokers EU editorial desks (Markets, Platforms, Regulation). Desk structure disclosed at /about/editorial-desks.
- Refreshed quarterly. The most recent verification date is shown above. Read our methodology.
Related
What is BaFin and which forex brokers are regulated by it?
BaFin (Bundesanstalt fur Finanzdienstleistungsaufsicht) is the German federal financial supervisor, widely considered the strictest EU regulator. Only a handful of retail CFD brokers hold a direct BaFin licence for their EU operations — the notable ones are Pepperstone (Pepperstone GmbH), IG (IG Europe GmbH) and CMC Markets (CMC Markets Germany GmbH). Most other EU-facing brokers passport in from CySEC instead. BaFin regulation is often preferred over CySEC by risk-conscious EU traders.
Is Exness a safe broker?
Exness scores 9.0/10 on regulation in our assessment, but the verdict is conditional on where you live: it does not accept EU, EEA or UK retail clients, having closed onboarding to them in 2019. Where it does onboard, clients contract with its Seychelles FSA entity (licence SD025) — outside ICF and FSCS compensation.
What are the ESMA leverage limits for retail forex traders?
ESMA limits retail forex leverage to 30:1 on major currency pairs, 20:1 on minors and major indices, 10:1 on commodities and non-major indices, 5:1 on individual equities, and 2:1 on cryptocurrencies. These limits apply to all EU/EEA regulated brokers since 1 August 2018.
Article: CySEC vs BaFin: Which EU Regulator Offers Better Protection?
Cyprus and Germany are the two most popular EU regulatory hubs for forex brokers. We compare CySEC and BaFin on enforcement, compensation schemes, oversight rigour, and what it all means for your trading account.
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