CySEC Cautions Against Five Unauthorized Brokers
One of Europe’s top regulators, the Cyprus Securities & Exchange Commission, has added five websites to its list of unauthorized trading platforms. The latest brokers to be flagged are not registered Cypriot Investment Firms (CIFs).
Illegal Trading Websites
inforexeu.com, emporiumcapital.ltd, et-fx.com, metexo.com, and nbimarkets.com were added to CySEC’s warning list on 25 January 2023. The websites are offering risky products to retail traders, including CFDs, forex, and cryptocurrencies. Some of the firms are also offering leverage above the level permitted by the EU regulator (1:30).
Four of the websites continue to solicit and encourage sign-ups while inforexeu.com is no longer responsive. Despite slick marketing materials and the promise of low fees, prospective traders should avoid the four websites that are still operational.
The statement from the European regulator noted: “The Cyprus Securities and Exchange Commission wishes to inform investors that the websites do not belong to an entity which has been granted an authorization for the provision of investment services and/or the performance of investment activities, as provided for in Article 5 of Law 87 (I)/2017.”
How To Avoid Unauthorized Trading Firms
Regulators are constantly working to identify and caution retail traders against illegal platforms. Cyprus, in particular, has become a hotspot for aspiring brokers, enabling them to target traders throughout the European Economic Area (EEA). Many firms falsely claim to hold a license from the CySEC in an attempt to elevate their profile and credibility.
Fortunately, traders can take several steps to verify the legitimacy of a broker and find a secure provider:
- Check licensing details – The CySEC, as well as other leading regulators like the UK’s FCA and US FINRA, have an online database where traders can check whether a brokerage is registered.
- Read reviews – Trusted brokers come recommended and have positive reviews from credible sources. Be wary of firms with limited publicly available information and a short track record.
- Be wary of misleading advertising – Avoid trading firms that promise easy money or huge returns. Online trading is risky, and many traders lose money. CySEC-regulated brokers should publish a warning on their website that shows the percentage of their customers that lose funds.
- Look for safety measures – EU-regulated brokers offer negative balance protection, meaning you can’t lose more than you deposit into your account. Trustworthy firms also use segregated accounts, meaning company capital is kept separate from traders’ funds.
Most Trusted Brokers
#1 - Forex.com
Forex.com boasts a global reputation with multiple awards and 20+ years experience. Regulated in the US, EU, UK and Canada they provide a huge range of markets, not just forex, and offer competitive fees on a cutting-edge platform. The brand also provides a suite of additional tools, from performance analytics and SMART Signals to advanced charts and strategy builders.
"Forex.com is an excellent broker for forex traders with over 80 currency pairs, tight spreads, low commissions and powerful platforms. The brand is also heavily regulated while its parent company is listed on the NASDAQ, giving it a high trust score."
- DayTrading Review Team
- Instruments: Forex, Spot Metals
- Regulator: NFA, CFTC
- Platforms: MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral
- Min. Deposit: $100
- Min. Trade: 0.01 Lots
- Leverage: 1:50
Pros
- Free demo account for prospective traders
- Respected and trusted broker overseen by tier-one regulators including the US SEC
- Low minimum deposit of $100
Cons
- $15 monthly inactivity fee
- Investment offering varies between countries
- No copy trading platform
#2 - Interactive Brokers
Interactive Brokers is a leading global brokerage that provides access to a comprehensive offering of stocks as well as forex, futures, metals, bonds and cryptos. The firm has over 40 years experience in the online trading industry and is heavily regulated by SEC, FCA, IIROC, and SFC. Traders use the proprietary Trader Workstation and can access powerful tools and data feeds as well as comprehensive educational resources.
"Serious traders seeking a regulated broker with unparalleled access to stock markets should look at IB. Their range of stocks can't be beaten."
- DayTrading Review Team
- Instruments: CFD, Forex, Stocks, Crypto, Futures, Options, Commodities
- Regulator: SEC, FCA, IIROC, SFC
- Platforms: AlgoTrader, OmniTrader, eSignal, TradingCentral
- Min. Deposit: $0
- Min. Trade: $100
- Leverage: 1:50
Pros
- Gives retail traders unmatched access to global stocks with tens of thousands available from 100+ market centres in 24 countries
- You can trade from multiple account types, such as IRA, single registered, joint
- Direct market access, including to the FTSE 100 index, the CAC 40 and Germany’s DAX 40
Cons
- Due to the pricing structure, this firm can be more expensive for aggressive traders who trade over $100,000 shares a day
- Accessing products like CFDs is not straightforward compared to competitors
- Mediocre customer support
#3 - NinjaTrader
NinjaTrader is a US-headquartered and regulated brokerage that specializes in futures trading. There are three pricing plans to suit different needs and budgets, as well as ultra-low margins on popular contracts. The brand's award-winning charting software and trading platform also offers a high-degree of customization and superb technical analysis features.
"We recommend NinjaTrader for high-volume futures traders looking for low fees and premium analysis tools."
- DayTrading Review Team
- Instruments: Forex, Stocks, Options, Commodities, Futures, Crypto
- Regulator: NFA, CFTC
- Platforms: eSignal
- Min. Deposit: $50
- Min. Trade: 0.01 Lots
- Leverage: 1:50
Pros
- Low fees with $50 day trading margins & commissions from $.09 per micro contract
- Industry-leading futures broker with multiple awards
- Easy account opening that takes a few minutes
Cons
- Premium platform tools come with an extra charge
- Non forex and futures trading requires signing up with partner brokers
- Withdrawal fee on some funding methods
#4 - eToro USA
eToro is a social investing platform that offers stocks, ETFs, options, and crypto. The broker is well-known for its user-friendly community-centred platform and competitive fees. With FINRA and SIPC oversight and millions of users across the world, this brand is highly respected. eToro securities trading is offered by eToro USA Securities, Inc.
"eToro is a top pick for users looking for social investing and copy trading. With a low deposit, zero commissions and an intuitive platform, the broker will meet the needs of newer traders."
- DayTrading Review Team
- Instruments: Stocks, Options, ETFs, Crypto
- Regulator: SEC, FINRA
- Platforms: Own
- Min. Deposit: $10
- Min. Trade: $10
Pros
- A free demo account means new users and prospective traders can try the broker risk-free
- The $10 minimum deposit and straightforward account opening process means beginners can get started quickly
- The online broker offers an intuitive social investment network with straightforward copy trading on cryptos
Cons
- Narrower range of instruments than some competitors
- No MetaTrader 4 platform integration
#5 - OANDA US
OANDA is a popular brand offering exceptional execution, low deposit requirements and advanced charting and trading platform features. The top-rated brand has over 25 years of experience and is regulated by trusted agencies, including the NFA/CFTC. Around the clock support is available, alongside flexible contract sizes and automated trade executions.
"OANDA is a top-rate broker for US traders seeking a user-friendly platform with premium market research and a straightforward joining process. OANDA is a particularly good pick if you want a heavily regulated broker with a secure trading environment."
- DayTrading Review Team
- Instruments: Forex, Crypto
- Regulator: NFA, CFTC
- Platforms: MT4, TradingView, AutoChartist
- Min. Deposit: $0
- Min. Trade: 0.01 Lots
- Leverage: 1:50
Pros
- Transparent pricing structure with no hidden charges
- API facilitates access to 25 years of historical data and rates from 200+ currencies
- Feature-rich app with 50 indicators, 11 drawing tools and 9 charting styles
Cons
- Customer support not available on the weekend