TradeFW is the trade name of ITRADE GLOBAL (CY) LIMITED, a brokerage company which is authorized and licensed by Cyprus Securities and Exchange Commission (CySEC), under the license No.298/16. As a regulated company under CySEC, TradeFW is also a MiFID compliant broker, and a member of the Investment Compensation Fund (ICF) group – both aiming to guarantee a safe and transparent trading environment.
What is the CySEC regulation?
The Cyprus Securities Exchange Commission, commonly known as CySEC, is the regulatory body for the financial industry in Cyprus, which has the mission to exercise effective supervision in order to ensure investor protection and a prosperous development of the securities market. Although it was launched in 2001 as a public legal entity, once Cyprus became a European Union member state (2004), CySEC’s regulations and operations had to comply with the Europe financial regulatory framework, giving the companies registered in Cyprus access to all European markets.
CySEC is administrated by a five-member Board named by the Council of Ministers; and it is one of the major and most reputable financial regulatory agencies in Europe.
Which are the main responsibilities of CySEC?
The responsibilities of CySEC are stated in Art. 25 of the Securities and Exchange Commission (Establishment and Responsibilities) Law of 2001. Some of its main duties are the following:
• To rigorously examine applications before granting operating licencses to entities (brokers, investment firms, consultants) under its supervision.
• To supervise and control the operations of the Cyprus Stock Exchange, as well as other organized markets in the Republic.
• To monitor all transactions carried out within the Cyprus Stock Market.
• To monitor the conduct and activities of all listed companies and financial services under its supervision.
• To impose administrative and disciplinary sanctions provided by the law in case of non-compliance of regulatory requirements.
• To demand the termination of practices which are contrary to the securities market laws.
How TradeFW protects its clients as a CySEC Regulated Broker
Since TradeFW is a voluntarily CySEC regulated broker, the demands imposed by this major European regulatory body are in line with our commitment to providing our clients with complete transparency as to the way we operate, as well as a secure and reliable trading environment. In accordance to the regulatory requirement, TradeFW must turn the protection of its clients’ interests into a top priority.
Some of these obligations are:
• To keep the capital of our clients in high-profile banks and segregated accounts; which forbids us to use the money for our own operational needs.
• To maintain the capital adequacy ratio requirement, in order to fulfill the contractual obligations of our clients at all times.
• To submit regular financial statements to CySEC, with the purpose of maintaining the interests of our clients in accordance to the guidelines imposed by the regulatory agency.
• To submit an independently audited financial report to CySEC.
• To adhere to all new regulations enforced by the CySEC and the MiFID.
TradeFW is also part of the Investor Compensation Fund (ICF) group, a program that protects investors in case of unexpected events, such as: the bankruptcy of the broker, cancellation of profits, or abuse of funds. The maximum amount of compensation paid to eligible applicants is 20.000 EUR, and it is granted only by submitting supporting evidences. The operation of ICF is regulated by the CySEC.