Joined: 19 Jan 19
19 Jul 20 12:08 am
I wouldn't consider this issue from this perspective only. You see, the NFA requires that all brokers must have at least 20 million dollars of their own cvapital invilved to support the liquidity and stability of the brokerage itself.
Moreover they charge some crazy fees so that brokers can be covered with their regulations. Inevitably this results in extra trading fees as customer have to pay for it all in the end.
CySEC works for EU customers, they also imply some limitations on the brokerage yet in some sense this regulator is preferable as they offer a balanced set of restrictions and advantages on the other side of the stick. THis is why customers from all over the work like it when the broker has got a CySEC regulations. On the one hand hey know there is a decent broker's yearly audit, on the other hand this regulation is not expensive enough to result in outrageous trading fees like it happens with NFA regulations.
Please not that non-EU customers won't be subjects to SySEC limitations on leverage, etc, as they will work with the other branch of HY, regualted by even less strict authorities. FOr them the CYSEC regulation will be nothing but a quality mark that the parent company wears.