Forex cypress
Anyone who has browsed a number of Forex comparison sites may have noticed that there are significant number of Forex brokers based in Cyprus. Today we are going to explain the reasons behind why so many Forex brokers choose the small island of Cyprus as a base for operations.
Being based in Cyprus has a number of benefits; one of the most obvious benefits is the low rate of corporation. The only other European Union country to charge such a low rate of corporation tax is Bulgaria, which itself has seen a small influx of Foreign exchange brokerages in recent years.
This makes Cyprus a very attractive destination for those who looking to open a brokerage, as company can reduce its overall tax bill significantly. MiFID stands for the Markets In Financial Instruments Directive and is a European law that harmonises investment regulation throughout the 30 states of the European Economic Area. Essentially MiFID sets out a minimum regulatory framework which must be adopted and followed by all the countries in the European Economic Area.
MiFID also maintained the passport principle introduced by previous European Union law, this principle means that a firm regulated in a MiFID country can offer its services to citizens and residents of other European Economic Area countries. Cyprus is a member of European Economic Area and the European Union, meaning that Cypriot based brokerages can offer their services to citizens of any other EEA country.
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While MiFID ensures a minimum standard of financial regulation, regulation does vary in each jurisdiction. It is not only low taxes and European Union membership which attracts many retail brokers to Cyprus, the island also boasts a large financial sector.
This means that brokerages are able to recruit all the staff they need without too much hassle. A large retail FX brokerage requires a number of specialist staff including traders, risk managers and compliance staff.
These specific needs leads to brokerages being drawn towards jurisdictions which have a strong financial services sector. In addition to the other factors mentioned above, Cyprus already has a strong telecommunications infrastructure in place. The nation is currently in the process of making fibre-optic broadband available nationwide and fibre optic broadband is readily available in a number of urban locations including Nicosia, Larnaca and Limassol.
One can easily imagine how important a strong telecoms infrastructure would be in running a serious Foreign exchange brokerage. The draw of Cyprus as a destination for Foreign exchange brokerages has been confirmed in recent months with a number of new brokers applying for licences.
As long as Cyprus continues to offer competitive rates of corporation tax and remains a member of the European Union, the island is likely to be favoured by many Forex brokers. Much appreciated, my regards, Frank L. ALL CYPRUS FOREX PLATFORM ARE FRAUD. SO BEWARE OF ALL CYPRUS PLATFORMS.
It happened with me that initially they approves withdrawals and later they hold capital and profit by putting conditions as they wish…I am in talks to resolve the matter amicably. Hope I will not have to complaint to authorities or take some recourse action. ITORO what are you on about?
Compliance is tight in Cyprus and CySEC does put brokers in place when they get out of line. Respect the other brokers on the island and dont go around posting things like that. I deal exclusively with Fx brokers located in Cyprus or the UK.
I had the misfortune to have 2 Fx brokers go bankrupt on me. First Alpari UK then SkyFx that was located in Cyprus. Since Cyprus and the UK have strong regulations and more importantly strong customer protection I recovered all the money that was in my accounts.
My funds were reimbursed directly to my bank account. The Cyprus Regulator is much better than the UK Regulator. It took me only 3 months to get my money back from the Cyprus Regulator and 16 months from the UK Regulator. Your email address will not be published. Leave this field empty.
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Why are there so many Forex Brokers in Cyprus. View The Top CySEC Brokers Choice Low Taxes Being based in Cyprus has a number of benefits; one of the most obvious benefits is the low rate of corporation.
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Large Financial Sector and Skilled Workforce It is not only low taxes and European Union membership which attracts many retail brokers to Cyprus, the island also boasts a large financial sector.
View The Top CySEC Brokers Choice. August 26, at March 11, at April 26, at 3: April 7, at 8: September 19, at January 26, at 7: February 9, at March 16, at April 10, at 1: Leave a Reply Cancel reply Your email address will not be published. All recommended firms on this website are supervised by one or more of the following regulatory bodies: Zulutrade Review Social Trading XM.
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