Why Is ProbusFX Cyprus Forex The Safest Online Trading Brokerage?
The main problem with online trading websites and services over the years was bad reputation due to different regulations that weren’t important. Some people even thought of it as gambling. However, nowadays the trading industry completely contains regulations.
You have probably heard about CySEC Regulation. However, most people don’t have an idea what is it for. First, let us say that ProbusFX Cyprus Forex includes all regulations that you will need to trade safely. The reason for that is because it has CySEC regulation.
What is CySEC Regulation?
Cyprus Securities and Exchange Commission or CySEC started back in 2001 with the idea to regulate Cyprus financial market. After Cyprus became the member of EU in 2004, (For more information on membership click here) CySEC had to become a partner of European MiFID regulations. These regulations gave firms that had registration in Cyprus access to EU markets.
That is the main reason why numerous foreign and overseas companies decided to register in Cyprus so that they can get the safe road to entire Europe. Finally, ProbusFX gained Cyprus regulation as a financial instrument.
The banking law in Cyprus and the EU membership status attracted numerous financial institutions such as Binary Options, banking, and Forex firms to move to Cyprus. Due to a wide array of financial institutions operating out of Cyprus, they had to regulate these companies.
What Are Main Responsibilities of CySEC?
The first thing that they must do is to control and supervise transactions that happen in Cyprus Stock Exchange. To find more information on Cyprus Stock Exchange check: https://en.wikipedia.org/wiki/Cyprus_Stock_Exchange This includes the brokers, listed companies, and brokerages.
They control and supervise Licensed Investment Service Companies, Collective Investment Schemes, investment consultants and mutual fund management companies.
It have the responsibility to grant operation licenses to brokers, investment consultants, and brokerage firms.
They have to ability to impose penalties and sanctions to brokerage firms, brokers, consultants and everyone who falls under Stock Market legislation.
Why Is Important To Have CySEC Regulation?
CySEC regulation is a big deal because this regulation means that every transaction on your account will be under supervision. Everything you do such as trades, withdrawals, and even deposits will be transparent.
In case that you start trading with a regulated broker, they have to keep your money in a segregated account that other brokers cannot use for business needs. Therefore, you can rest assured, because your money will always be secure.
Apart from legitimacy and reliability, there are other reasons why you should consider brokerages that have CySEC regulation:
Note: For more information on CySEC regulation click here.
- All money is on a trust account, and if the broker doesn’t have regulation, he will not be able to deposit trading account into the trust That will reduce the possibility of fraud, theft and poor business practices.
- Brokers must have the third party that will overlook all operations. This is a fair play, but if you choose an unregulated broker or brokerage, you will reduce the transparency and enter the risk.
Conclusion on Online Trading
We can conclude by saying that CySEC main mission is to protect investors. That is the main reason why you should choose Brokerage Company that has this particular regulation because the license will increase transparency and authenticity that will guarantee you the highest standards possible.
In case that you decide to trade with a regulated brokerage company, you will safeguard your possibility to trade. It is simple as that.
If you want to learn more about brokerage regulations check this website: here.