ActivTrades CySEC Regulation 2024: Supervision, Investor Protections, and More

ActivTrades is a forex and CFD broker offering online trading services to traders and investors worldwide. The broker provides a diverse range of trading instruments, including Forex, shares, indices, cryptocurrencies, ETFs, commodities, and bonds. It also supports multiple trading platforms and tools such as MT4, MT5, ActivTrader, and Tradingview.

Although ActivTrades is regulated by several authoritative bodies such as SCB, FCA, CMVM, BACEN, and CVM,  it is not regulated by CySEC (Australian Securities and Investments Commission). In this article, we will explore ActivTrades’ regulations, and its features, and provide a list of alternative brokers that are regulated by CySEC.

Does ActivTrades Operate Under CySEC?

No, ActivTrades does not operate under CySEC (Cyprus Securities and Exchange Commission) regulation. However, the broker is regulated by several other reputable financial authorities including ASIC, FCA, JFSA, SFC (Hongkong), FSCA, MAS, FMA, GmbH, FINMA. These regulatory bodies ensure compliance with various standards for financial stability, transparency, and investor protection, though they do not provide the specific protections offered by the CySEC in the EU.

What Other Regulations Does ActivTrades Have?

SCB (Securities Commission of The Bahamas):

ActivTrades is also regulated by SCB. Established in 1995, SCB  regulates and oversees the financial services industry. The SCB ensures that ActivTrades follows guidelines for maintaining adequate capital, protecting client assets, and ensuring transparent operations for clients from various regions, particularly those outside Europe and Australia.

CVM

ActivTrades is regulated by the Comissão de Valores Mobiliários (CVM). The CVM, established in 1976, is Brazil’s securities and exchange commission, responsible for regulating and supervising the securities and financial markets.

The CVM ensures that ActivTrades adheres to rigorous standards for transparency and security, particularly for clients in Brazil. This includes requirements for proper management of client funds, keeping them separate from the company’s assets, and maintaining regular financial reporting. CVM’s oversight helps protect investors and ensures that ActivTrades operates with integrity and trustworthiness in the Brazilian market.

CMVM

ActivTrades is regulated by the Comissão do Mercado de Valores Mobiliários (CMVM) in Portugal under license number 3991. Established in 1991, the CMVM is responsible for overseeing financial markets and firms in Portugal, ensuring they operate within a secure and transparent framework.

The CMVM mandates that ActivTrades comply with rigorous standards of financial conduct, including the maintenance of sufficient capital reserves, the protection of client funds, and the transparency of its operations. This involves keeping client funds in segregated accounts, separate from the company’s own assets, and adhering to strict reporting requirements.

Regulation by the CMVM provides an added layer of security for clients, as it ensures that ActivTrades operates with integrity and fairness. This oversight fosters a high level of trust among clients in Portugal and throughout Europe, ensuring that their interests are protected in the competitive forex trading environment.

BACEN

BACEN operates under the regulatory oversight of the Central Bank of Brazil (Banco Central do Brasil, BACEN), which is responsible for supervising financial markets and institutions in Brazil. BACEN, established in 1964, plays a key role in maintaining financial stability, ensuring that firms like BACEN comply with the necessary legal and financial requirements.

Under BACEN’s regulation, BACEN is required to meet stringent financial guidelines, including maintaining adequate capital reserves, segregating client funds, and ensuring transparency in its financial operations. These measures help protect clients’ funds and ensure that BACEN operates with integrity and in accordance with local regulations. BACEN’s oversight contributes to the reliability and security of BACEN’s services, reinforcing trust among clients in Brazil and across the region.

Best CySEC Regulated Forex Brokers: Alternatives to ActivTrades

ActivTrades is one of the leading forex and CFD brokers. The broker is not regulated by CySEC. It is regulated by other top-tier regulators including SCB, FCA, CMVM, BACEN, and CVM. There are several CySEC  regulated brokers that can serve as alternatives to ActivTrades. These brokers include: 

These brokers operate under CySEC regulation. According to CySEC rules, they offer leverage up to 30:1 and provide negative balance protection for retail traders. To learn more about CySEC-regulated forex brokers, you can read our content on the best CySEC-regulated forex brokers.

How Can I Verify If My Broker is CySEC-regulated or not?

You can find a CySEC-regulated broker’s profile on the CIF Regulated Entities List on the CySEC website. To verify if your broker, such as ActivTrades, is regulated by the CySEC follow these steps:

1. Get Broker Details

Start by finding the broker’s license number or name. This info is usually on the broker’s website. Having the right details is key for the next steps.

2. Visit the CySEC Website

Go to the CySEC Regulated Entities List. This is where you can verify if your broker is regulated.

3. Conduct the Search

Enter the license number or broker name into the search bar. This will bring up the broker’s profile on the CySEC website, showing important details about their regulatory status.

4. Check Authorization

Make sure the broker is authorized to offer specific services:

• Look for “9 – Financial contracts for differences” under Investment Services.
• Check for “Foreign exchange services connected to investment services” under Ancillary Services. This confirms they can legally offer forex and CFD trading.

5. Match Firm Details

Finally, ensure that the information on the CySEC website matches what you see on the broker’s site. Check the website, email, and other contact info. If anything doesn’t match, it could mean the broker isn’t authorized, and you should stay away to protect your money

Frequently Asked Questions ( FAQs)

What is ActivTrades?

ActivTrades is an online forex and CFD broker that offers MT4, MT5, and the ActivTrader proprietary web and mobile trading platforms. Alex Pusco founded ActivTrades as a stock brokerage in Switzerland in 2001. Later he moved to London in 2005. The broker added MetaTrader 4 in 2007. It also added CFDs on indices and commodities to its offer in 2008. ActivTrades offers over 45 currency pairs, Indexes, ETFs, as well as Commodities and Shares CFDs for your personal investment and trading options.

Is ActivTrades Considered Safe?

Yes, ActivTrades is considered safe. The broker is regulated by multiple top-tier regulatory authorities, including SCB, FCA, CMVM, BACEN, and CVM. It offers negative balance protection and holds client funds in segregated bank accounts. 

Does ActivTrades Offer Negative Balance Protection?

Yes, ActivTrades offers negative balance protection. All CySEC-regulated brokers must offer negative balance protection. Negative balance protection means that traders are protected from losing more money than they have in their trading accounts. If a trade results in losses that exceed the amount of funds in the account, negative balance protection ensures that the trader’s balance cannot go below zero. This prevents the trader from owing the broker any additional money.

Is ActivTrades regulated in Cyprus?

No, ActivTrades is not regulated in Australia. The broker is not regulated by CySEC, the Australian regulator. However, it accepts Australian clients under its global entity. ActivTrades is regulated by several other authorities, including SCB, FCA, CMVM, BACEN, and CVM.