Despite the fact that Forex trading is gaining immense popularity globally, many people are still afraid of taking a risk and starting their trading careers. This phenomenon is absolutely understandable considering the fact that there are a large number of scams and unregulated brokers in the market.
In this article we are going to talk about regulation – why is it important and what you must know about CySEC regulated brokers.
So let’s start now.
What is CySEC regulation?
The CySEC (the abbreviation of Cyprus Securities Exchange Commission) is a regulatory authority that ensures investor protection and development in the financial industry. CYSEC helps to prevent money laundering and offenses in the market. The regulator also makes sure that investors and traders are safe. This is done by monitoring brokerage companies’ actions and transactions to make sure they comply with the law.
Generalizing its activities, we can say that the responsibilities of CySEC include:
- to check the applications of brokers or other companies before giving the license
- to monitor the transactions that are carried out by the regulated companies
- to forbid activities that are contradicted the law
Note that there is a CySEC regulated brokers list freely available. If you are interested in a specific broker, you can check to see if it is licensed on the CySEC website. For our part, we offer to have a look at the list of the best forex brokers to make a smart choice.
Benefits of choosing a CySEC regulated broker
Choosing the CySEC regulated broker has a number of benefits we would like to talk about in more detail.
That’s why we have outlined 3 main of them and decided to go through each point:
- Clients are completely supported
CySEC ensures that a broker is always ready to help you with any situation. They provide you with the necessary instructions on trading and also have a working support desk to resolve any problem you might have. Most brokers also have a 24/7 support chat in your local language. They also help you to manage your money and risk skills before you start trading offering demo accounts to practice the knowledge you have.
Traders who prefer trading with CFD brokers can find out the CySEC is regulated as well. Check out the best CFD brokers if you’re still looking for one.
- Everything is transparent and fair
Honesty and fairness are the first things that need to be valued in a broker.
Financial relations are a complex thing.That’s why it is important for a CySEC regulated broker to be transparent.
The regulator watches over the broker to make sure everything is honest. If the broker does something bad, like cheat or stealing from the customers, the regulator can punish them by imposing sanctions and even losing the license.
- Clients are secured
Every CySEC broker went through the verification processes and is very safe.
To be sure of your safety you need to upload some documents about yourself, your workplace, accommodations, and other personal data. This makes it harder for scams to use fake or stolen documents to open accounts and steal your identity or money.
Verification is also important so the brokerage company can follow the laws and regulations. This makes things clear for everyone involved.
While there are many factors to consider when choosing a broker, regulation is the most important of all.
The CySEC regulator has strict rules and regulations in place to protect investors’ interests. By choosing a CySEC-regulated broker, you can be sure that your money is safe and that you will receive fair treatment. So, be careful and take your time to check all the necessary data and license availability and make the wise choice in your favor.