Breaking: CySEC Warns Brokers Issuing Bonuses to Clients
A number of complaints against brokers incorporated in Cyprus and their bonus conditions have been circulating around the web.

Coincidentally or not, just a day after the Cypriot regulatory regime was tarnished by one of the top executives in the industry, the watchdog has issued a new circular. The Cyprus Securities and Exchange Commission (CySEC) has informed Cyprus Investment Firms (CIFs) about certain considerations when trading bonuses are issued to their clients.
According to the circular, all companies which are crediting so- called “trading benefits” to their customers have to meet certain criteria. The regulator highlights that a number of CIFs are not issuing bonuses in full compliance with the rules and regulations which are supposed to be enforced by CySEC.
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Brokers who are crediting bonuses do not explain sufficiently well to their clients the conditions associated with receiving them
The warning that CySEC is relaying to the CIFs hardly comes as a surprise. What is surprising is why the regulator has done nothing thus far to protect the interests of clients who have suffered from unclear and misleading marketing messages.
CySEC details that in many cases, brokers who are crediting bonuses do not explain sufficiently well to their clients the conditions associated with receiving them. In accordance with Cypriot law, brokers have to clearly illustrate with simple examples how the bonus can be used, if it can be withdrawn, etc.
This has been far from the standard practice across the industry for the past several years. It remains unclear why CySEC has merely issued a circular reminding firms to comply with already existing rules and regulations.
Any self-respecting regulator should have already been in the process of issuing fines to brokers who abuse bonus rules, rather than just issuing yet another warning in the form of a circular.
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CySEC also explains in the document that clients need to explicitly consent in written form to any bonus added to their account. The current practice is quite different – all clients of a brokerage are getting the funds added to their account without knowing about the conditions attached.
The regulator also explains that any short-term trading goals associated with the bonus credited to the account of the broker have to be reasonable. That said, CySEC only highlights what in many cases isn’t the case without defining what’s reasonable and what isn’t.
Clearly, there is no lack of understanding what the regulator means. The volume turnover on a trading account, which has been credited with a bonus, encourages traders to spend an obscene amount of time in opening and closing new positions. This eventually leads to them losing their credited bonus and their principal.
Aside from that, CySEC mentions that bonus conditions are frequently changed on the fly with the broker taking the decision to change the terms without the customer’s consent. Frequently, clients are not even informed about the changes.
CySEC ends the communique issued to CIFs urging brokers to review their trading conditions and begin complying with existing rules and regulations. Will this be the final warning before some action is actually taken?
Following is the full text of the circular distributed by CySEC to CIFs today.
If they really issue fines its probably going to be ridiculously low amouts again. Like their $2000 fines last time.
Cysec have totally missed the mark with this warning. Surely the real issue regarding this whole bonus fiasco is not relating bonus incentives that are tagged to trading volume, but actually the bonus’ that are applied to client balances as ‘tradable’ margin BEFORE the clients has made a single trade! It is these bonus incentives that allow clients to hedge risk-free across two broker accounts, meaning that one broker is always on the losing side of the hedge. The REAL issue which clients are appalled with is that once these brokers are fed up of being on the losing side… Read more »
I have currently beein involved with bd Swiss and they are exactly pulling stunts as explained in article. What really is bizarre in this matter is Cysec issuing writting agreement between client and broker. I can honestly say bdSwiss has failed dramatically. They are even hiding behind the fact they are not market maker, but merely Spotoption so they are not to be accountable for scams in quotes when is few seconds left on option expiring.
Is there anyone else who has experienced same problems with them? I know few more already.
oh and i just fall into the trap.. roboforex .. what a scam.. tradeabl bonus 50% you make a profit they use this 50% to deduct from your winnings when you want to cash out , this cant be true … i want to be the one to make a disput and kill them