CySEC Imposes €50K Fine on IC Markets for Violations

The Cyprus Securities and Exchange Commission (CySEC) has imposed a €50,000 fine on IC Markets (EU) Ltd for multiple violations of the Investment Services and Activities and Regulated Markets Law. The fine was announced following a board meeting held on July 1, 2024, and marks the latest in a series of penalties against the broker. This follows an earlier €200,000 fine issued by the regulator for breaching leverage rules under EU regulations.

CySEC imposed the bulk of the fine, €30,000, for IC Markets’ failure to secure the best possible outcomes for its clients during order execution. The regulator highlighted that the company did not sufficiently consider critical factors like price and size to determine execution quality. CySEC penalized the broker €10,000 for failing to implement effective measures that meet client order execution obligations, as required by regulatory standards.

CySEC imposed another €10,000 fine on IC Markets for failing to provide clients with clear and comprehensive information about costs and charges. It emphasized that this lack of transparency hindered clients’ understanding of the full impact of the expenses on their investment returns, a crucial part of their decision-making process.

CySEC Imposes €50K Fine on IC Markets for Violations

IC Markets vehemently denied the regulator’s findings in response to the fines. The company stated, “We firmly disagree with CySEC’s conclusions, particularly the assertion that we did not take sufficient steps to achieve the best possible execution results for our clients.” The broker stressed that it maintains “robust internal systems,” including thorough pre-trade checks to ensure competitive pricing, and has taken corrective actions whenever necessary.

IC Markets also criticized CySEC’s process, arguing that the penalties do not accurately reflect the firm’s operational standards. The broker announced plans to appeal the decision, arguing that the conclusions were unjustified.

This recent fine follows a €200,000 penalty imposed on IC Markets in 2024. In that case, CySEC found that the broker violated EU regulations limiting leverage to 30:1 for retail FX and CFD traders. CySEC accused IC Markets of offering leverage up to 1000:1 through an offshore entity, violating EU rules to protect retail traders from excessive risk.

IC Markets has challenged the earlier ruling, claiming that the regulator based its decision on biased testimony from a former employee and ignored audited financial records. The firm has criticized the overall fairness and transparency of CySEC’s regulatory process, calling into question the impartiality of the decision-making.

Despite its challenges, IC Markets continues to face increased scrutiny as European regulators tighten oversight on retail trading practices.

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