Cyprus

Cyprus offers access to the entire European Union (EU) market with a single CySEC license, a significant advantage for reaching a large client base. Cyprus is a well-recognized and mature hub for FX and CFDs brokers, attracting numerous companies due to its strong infrastructure and expertise.

The Cyprus Securities and Exchange Commission (CySEC) enforces a well-regarded regulatory framework, ensuring investor protection and market stability, moreover CySEC regulations are harmonized with EU regulations, providing a familiar framework for international brokers.

CySEC enjoys a positive international reputation for its professionalism and commitment to upholding high regulatory standards.

Transparency and Enforcement: CySEC is known for its focus on transparency and actively enforces regulations to maintain market integrity.
Competitive Tax Regime: Cyprus offers a competitive corporate tax rate of 12.5%, making it an attractive location from a tax perspective.
Cost-Effectiveness: Compared to some other EU jurisdictions, setting up and operating a brokerage firm in Cyprus can be more cost-effective.
Skilled Workforce: Cyprus boasts a well-educated and multilingual workforce with experience in the financial services sector.

Get in touch with us to learn more about Heaving a FX CFD license in Cyprus

Jurisdiction: Cyprus
Regulator: Cyprus Securities and Exchange Commission (CYSEC)
License Name: Cypriot Investment Firm (CIF)
Products Allowed (CFD on all/certain assets): FX and CFDs
Activities Allowed (Broker/MM): Market Maker & Broker
Passporting: To all EU member states
Leverage Limitations: In place, per ESMA's rules
Structure requirements (#shareholders / director/officers, MLRO): Local Company; Local Office; 2 Executive Directors (must be based in Cyprus); 2 Non-Executive Directors (at least 1 must be based in Cyprus since majority of the board must be based in Cyprus); Must retain many services providers (some must be in-house, some can be outsourced);
Basic requirements (business plan, website. demands from UBO, professional background: Detailed business plan incl. 3 years financial forecast; UBO to have several years of industry experience (or equivalent) and solid financial soundess and source of funds (must be able to show he can sustain the business for its initial years of operation); Executive Directors must have substantial experience in FX/CFDs and be approved by CYSEC; Non-executive directors are expected to have some relevant background but not as extensive as executive directors.
Local Physical Presence (Local Office and Local Staff): Local Company, Local Office, 2 Executive Directors, several local employees to handle onboarding, back office, risk managament and trading activities.
Insurance: Professional liability insurance is mandatory
Clients' Funds Segregation: Mandatory (must open 2 bank accounts - 1 Corporate and 1 for clients' funds)
Corporate Income Tax Rate: 12.50%
Minimum Capital Requirement: Broker – 150,000 EUR; Market Maker – 750,000 EUR
Time Frame for License Issuance (as of submission): 6-10 Months
Regulatory leniency level (basic, intermediate, complex): Complex
License Validity: No expiry date
Reporting Frequency (Monthly/Quarterly/Annualy): Periodic reports; AML and Compliance Reports; Annual Audited Financial Statements;

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