Can CySec act on non-regulated brokers?

Investment ForumCategory: General QuestionsCan CySec act on non-regulated brokers?
Anonymous asked 5 years ago
How can we report misconduct by brokers to CySec to act on them, whether they are regulated or not?

1 Answers
Scam Trading Brokers Staff answered 5 years ago
No you cannot.
 
Cysec is the financial regulator in Cyprus and their goal is only to protect citizens of Cyprus. The license they give to brokers is accepted in a EU countries, so the protection extends to Europeans. You can see on their warning page various warning they write about unlicensed brokers.
 
Unregulated brokers are all operating off shore. This makes it that there is no way to track them down or prosecute them.
 
It is for this reason that traders should only trade with a licensed and regulated broker, see here.
 
The only reason people use unlicensed brokers is because they did not do proper research and did not know that there are many online scams.