CySEC (Cyprus Securities and Exchange Commission)

The Cyprus Securities and Exchange Commission is Cyprus's financial regulator. Cyprus is a popular base for retail forex brokers because CySEC licenses are recognized across the entire European Union under MiFID II passporting rules. A CySEC-regulated broker can legally serve clients in any EU country without getting separate licenses. CySEC is generally considered a mid-tier regulator. It's stricter than offshore regulators (like Saint Vincent or Vanuatu) but less strict than the FCA or ASIC. It enforces EU rules including ESMA leverage caps (1:30 on majors), negative balance protection, and segregated client funds. Most European-focused retail brokers hold CySEC licenses as their primary regulatory foothold. While the regulation is reasonable, traders should know that CySEC enforcement is less rigorous than FCA enforcement, and disputes can take longer to resolve.