The Cyprus Securities and Exchange Commission (CySEC) regulates investment firms based in Cyprus. Because Cyprus is an EU member state, CySEC-licensed brokers operate under the EU-wide MiFID II framework and can “passport” their services across the European Economic Area — which is why many international brokers choose Cyprus as their EU base.
What CySEC regulation means for traders
CySEC applies the harmonised European rulebook enforced by ESMA:
- Investor Compensation Fund (ICF): eligible retail clients are covered up to €20,000 if the firm fails.
- Segregated client money held separately from company funds.
- Negative balance protection for retail clients.
- Leverage caps aligned with ESMA — 30:1 on major FX pairs, lower on other instruments.
How to verify a CySEC broker
Licensed firms hold a CIF (Cyprus Investment Firm) licence number and appear on CySEC’s public register. You can confirm a broker’s status on the official CySEC website. As with other groups, check exactly which entity your account is opened under — EU protections apply only to the CySEC-licensed entity, not to an offshore sister company.
In short
CySEC is a credible, EU-aligned regulator that gives traders MiFID II-level protections and pan-European reach. It is often considered a step below the FCA or ASIC in strictness, but it remains a genuine tier-one European framework. See CySEC-regulated brokers in our broker reviews.