This material is not intended for viewers from EEA countries. Binary options are not promoted or sold to retail EEA traders.
CySec is a license that IQ Option holds. You may have already seen it mentioned on the IQ Option website itself, but the importance and role of this license is not mentioned. See why this license is important and why it is important for you as a user of the platform.
You have most likely come across the acronym “Cysec” on IQ Option and possibly not understood what it represents or what it means. And not knowing this is okay, as it will not directly influence your operations.
But then, you might be wondering why you should know what Cysec is for at IQ Option.
If you have any doubts about the reliability of this trading platform, we recommend reading this article to understand why Cysec is important in terms of security when opening an account, operating or even recommending IQ Option to those friends who are a bit skeptical. in relation to her.
What is Cysec?
The Cyprus Securities And Exchange Commissions (CySec) is a company that regulates financial activities in Cyprus, a small country located in the Mediterranean Sea on the European continent. This country is not among the main ones in the financial market, however, the fact that Cyprus has joined the European Union gives greater approval and credibility to its regulatory institutions.
Why is this regulation important?
Institutions like Cysec play an important role in the financial market to help traders identify good brokers to invest their money.
In Brazil, the institution that regulates the financial market is the CVM (Securities Commission) and it has not yet authorized IQ Option operations in Brazil, which may cause distrust on the part of many.
It is true that the CVM is an important and respected institution, and its approval in the financial market is really relevant. However, operating on IQ Option on a computer or cell phone in Brazil is permitted and until this approval from the CVM occurs, checking the existence of other regulations is important.
After all, a platform like IQ Option involves depositing and moving money, which you should always take seriously to avoid losses.
How important is Cysec in IQ Option
Cysec’s role is to regulate financial trading activities on platforms such as IQ Option and others that wish to be licensed by it. In addition to establishing parameters and obligations that IQ Option must comply with to obtain and maintain the license, Cysec also has the autonomy to sanction IQ Option if it does not comply with the regulations.
In other words, from the customer’s point of view this is fundamental, as this way you will not put yourself in a position to blindly trust IQ Option and you will be able to count on an additional alternative to turn to if you have a problem that the company has not resolved.
Cysec Functions
So that you can better understand the extent of Cysec’s autonomy in relation to IQ Option, we have listed below a summary of its 4 main responsibilities:
- Supervise and control transactions carried out on the Cyprus Stock Exchange, which includes listed companies, brokers and services.
- Oversee and control Collective Investment Schemes, Licensed Investment Service Companies, mutually managed fund companies and investment consultancies.
- Grant operational licenses to investment consultants, brokers and brokerage companies.
- Impose sanctions and penalties on investment consultants, brokers, brokerage companies and anyone else who violates Financial Market legislation.
In relation to IQ Option, the last 2 topics are certainly the most relevant, consisting of the issuance of a license to operate and the punitive nature if it violates any financial market rules.
With CySec, IQ Option is more reliable?
IQ Option already has an established name in the market, in addition, it has many traders who report their experiences and who operate daily on this trading platform, including us at Binário Invista.
In any type of online business we consider that licenses are important, even more so when they are issued by serious and respected bodies and entities. In this case, Cysec is a regulatory body of one of the member countries of the European Union, an economic bloc that itself creates many requirements for countries and companies operating there, especially when dealing with regulatory bodies.
Therefore, in our opinion, Cysec’s license on IQ Option is very relevant to give the company more credibility and confidence for users who want to operate there.
Does CySec regulate the binary options market?
Yes and no. CySec does not regulate the binary options market as a whole, but brokers that operate in it, such as IQ Option.
Therefore, we recommend being very careful when choosing the broker where you want to carry out trading operations, as not all of them are regulated and this can incur greater risks for you and your money.
If you are interested in brokers that are regulated by other institutions, it is important to analyze whether these institutions have the relevance and credibility to grant licenses so that you avoid falling for scams. Keep in mind that it is not only Cysec that has the credibility to regulate the market, but it is certainly one of the main ones.
Does CySec really work?
Many suspect that institutions like CySec only play a superficial role, turning a blind eye to the bad practices committed by the companies they regulate.
We looked into CySec’s shares in IQ Option and other companies it regulates and discovered that it has suspended the license of a broker called Boursotrade Ltd.
For us, it was important to see this type of action taken and announced by CySec, as it proves that it is not just another figurative institution and that it will act if the companies it licenses commit errors or misconduct.
After reading this article, you can benefit from CySec by opening a demo account on the IQ Option platform, and learn about the most interesting trading strategies.
