Foreign exchanges, or forex, operate constantly everyday all over the world through over-the-counter markets. The international characteristic of this border-less market leads to uninterrupted access. For instance, a French trader can trade in US dollars and euros (USD/EUR) through a broker based in the US in spite of the geographical barriers. Analytical trading in the retail forex market is growing stronger and more popular everyday. As a consequence, there could be a chance that mediators (like banks or brokers) are involved in financial violations, scams, outrageous prices, secret fees, high-risk exposure offered through high-leverage levels, or other crimes. Trading on the Internet and mobile apps allows things to go smoothly, but also brings dangers like unrecognized firms who run sites that can close unexpectedly and sneak away with traders’ money. Consequently, it is necessary to have regulations that are set by qualified authorities to make sure that those violations or scams are prevented. The aims of regulations should be protecting independent traders and guaranteeing fair operations to secure clients’ interests. Traders from anywhere obviously want security and safety. Exness understands this idea, so they have acquired the certificate from CySEC. Check here for more details. So what is CySEC and how secured is it?
CySEC and Exness
The Cyprus Securities and Exchange Commission, or more referred to as CySEC, is the financial regulatory agency of Cyprus. As a member state of EU, CySEC’s financial regulations and operations obey the MiFID financial harmonization law of Europe. There are a great deal of foreign retail forex brokers and binary options brokers having obtained registration from CySEC.
CySEC was established in 2001 as part of section 5 of the Cyprus Securities and Exchange Commission (Establishment and Responsibilities) Law of 2001 as a public corporate agency. In 2004, when Cyprus became a member of the European Union, CySEC at the same time became regulated by the European MiFID, leading to the fact that companies registered in Cyprus then can access to all markets within Europe. Nevertheless, joining the EU and adopting the Euro undoubtedly changed the financial administrative framework that CySEC policed for what had been previously regarded as a tax haven.
CySEC has the following responsibilities
- To supervise and control the operation of the Cyprus Stock Exchange and the transactions carried out in the Stock Exchange, its listed companies, brokers and brokerage firms.
- To supervise and control Licensed Investment Services Companies, Collective Investment funds, investment consultants and mutual fund management companies.
- To grant operation licenses to investment firms, including investment consultants, brokerage firms and brokers.
- To impose administrative sanctions and disciplinary penalties to brokers, brokerage firms, investment consultants as well as to in any other legal or natural person whom fall under the provisions of the Stock Market legislation.