Cyprus Forex License

Cyprus is the most popular and recognized jurisdiction for obtaining a forex broker license in the European Union. Because a CySEC forex license allows brokers to market, accept client funds, and legally establish a presence in all 28 EU member states, it carries a significant amount of prestige in all corners of the globe. If you are looking to apply for a Cyprus forex license, our team of experts are more than happy to guide your broker through every step of the process. Additionally, we are also able to assist investors with the acquisition of a fully licensed CySEC brokerage.

How to Get a Forex Broker License in Cyprus?

  1. Initial Consultation: We begin with a discussion to understand your business model, goals, and licensing needs. Prior to this, we’ll request basic details about your company and its directors/shareholders.
  2. Assessment & Quotation: After reviewing your information, we provide a complete overview of the CySEC license application process, a detailed cost estimate, and expected timelines.
  3. Company Incorporation: Once you engage our services, we proceed with registering a new business entity in Cyprus under CySEC requirements.
  4. License Application Submission: With the company incorporated, we begin the official CySEC forex license application process.
  5. Regulatory Coordination: Throughout the review period, we provide ongoing communication and support, responding to additional requests from CySEC as needed.
  6. License Approval & Banking: Once the license is approved, we assist in opening a corporate bank account in Cyprus to support your brokerage operations.

    Cyprus Forex Broker License Requirements

    • Brokers wishing to operate an STP / A-Book model require €150,000
    • A physical office in Cyprus
    • For a market making model, €750,000 in capital is needed
    • MiFID II guidelines requires a minimum of 3 directors; 4 is recommended
    • Estimated time to obtain a license varies between 12 – 16 months

    Cyprus vs. Offshore Comparison

    Criteria Cyprus Offshore
    Leverage 30:1 > 100:1
    Capital Requirements €750,000 Significantly lower, average = $150,000
    Credibility & Reputation One of the highest Lower
    License Approval Period 12 months+ 6 – 8 months on average
    Monthly Costs Expensive Affordable
    Regulator Requirements Strict More Flexible
    Taxes 12.5% Lower and in most cases 0%

    How Much Does It Cost to Obtain a Forex License In Cyprus?

    Cost Overview
    Minimum Capital €150,000
    Market Making Capital (Optional) €750,000
    Office Rental (estimated) €1,000 / month
    Estimated Monthly Director Salaries €15,000
    Monthly Compliance & Accounting Starting at €2,500

    Estimates only — contact our team to discuss specifics costs.

    CySEC Forex License – Key Takeaways

    • The most recognized forex license jurisdiction in Europe
    • The Cyprus Securities & Exchange Commission (CySEC) regulates forex & CFD trading in Cyprus
    • Ability to passport across all EU member states
    • Due to ESMA, leverage on foreign exchange is set at 20:1 for retail traders
    • 2 permission types: STP & Market Making / Dealing On Own Account
    • CySEC requires that all applicants submit proof of funds
    • A physical office in Cyprus is required

    Why Consider Obtaining a Cyprus Forex License?

    Given its global recognition as one of the top regulatory jurisdictions for FX trading, any forex brokers looking to establish a presence in Europe should strongly consider applying for a forex broker license in Cyprus.
    Cyprus remains one of the most sought-after and respected jurisdictions for securing a forex broker license within the European Union. A license from CySEC grants brokers the ability to operate, accept client funds, and promote services across all 28 EU member states, providing global credibility and recognition. For firms interested in obtaining a Cyprus forex license, our team of specialists can guide you through each stage of the application process. In addition, we also assist investors in acquiring fully licensed CySEC-regulated brokerages.

    Looking to Apply for a FX Broker License in Cyprus? – Check Out Our YouTube Channel

    Atomiq Consulting – Your Cyprus Forex Trading Broker License Partner

    If your brokerage is looking to obtain a forex license in Cyprus, don’t hesitate to contact Atomiq Consulting today. After receiving some basic information about your business plans, we are happy to provide a price for our forex license consultation services as well as comprehensive overview of the license application process.

    Founded in 2014, our team of license consultants at Atomiq Consulting have decades of experience in the foreign exchange industry. Headed by CEO Jonathan Baumgart, Atomiq Consulting is the  ideal partner for consultation regarding a forex license in Cyprus. Our team has extensive experience with local Cypriot regulations as well as a successful track record of global license, banking and crypto applications. Finally, via our Forex Marketplace we can aid your business with the acquisition of a currently licensed CySEC forex broker.

    To Learn More About Obtaining a Forex Broker License in Cyprus, Contact Us Today!

    To learn more about applying for a forex broker license in Cyprus, discuss ongoing fees, and address any other questions you may have, don’t hesitate to contact us today!

      About the Author

      This article was written by Jonathan Baumgart, Founder and CEO of Atomiq Consulting. With over a decade of experience in the forex industry, Jonathan specializes in helping businesses launch brokerages and navigate global licensing requirements.


      Connect with Jonathan on LinkedIn

      Additional Resources

      If you’d like to learn more about forex licensing in Cyprus, check out these helpful resources.

      Cyprus FX Broker License FAQ

      Are there any ready made CySEC licenses for sale?

      Via our Forex Marketplace, we list the current Cyprus forex license we have on sale.

      What is the maximum amount of leverage that CySEC licensed forex brokers are able to offer?

      20:1 on CFDs and 30:1 on FX.

      How is forex trading regulated in Cyprus?

      The Cyprus Securities and Exchange Commission (CySEC) is the regulatory body that oversees all forex & CFD trading in Cyprus.

      Is forex trading legal in Cyprus?

      Yes. Forex trading is overseen by the Cyprus Securities and Exchange Commission (CySEC). Following the guidelines set forth by MifID II, Cyprus offers a comprehensive legal framework for forex & CFD activity.

      What is the CySEC “Fast Track” examination scheme and how does it work?

      CySEC has recently brought back the “fast track” authorization process for new forex broker license applications. License applicants that are willing to pay an additional fee of €25,000 will receive priority review of their application by CySEC in order to speed up the application process.

      Can Atomiq Consulting assist in becoming a Tied Agent in Cyprus?

      Absolutely. In addition to guidance in obtaining a CySEC forex license, we can also help you to become a CySEC Tied Agent.

      How do I get a forex license in Cyprus?

      Yes, obtaining a forex license in Cyprus regulated by CySEC is considered reputable and beneficial for FX brokers.

      • Step 1: Meet the minimum criteria set forth by CySEC which includes qualified directors, proof of funds, and a sound business plan.
      • Step 2: Submit an official application with CySEC for review.
      • Step 3: Await CySEC’s feedback and respond accordingly to their requests.
      • Step 4: Open a local office in Cyprus and employ the required staff members.
      • Step 5: Establish a bank account in order to deposit capital and operate the brokerage.

      Is it possible to find a directory of all forex brokers regulated in Cyprus?

      Yes, the Cyprus Securities and Exchange Commission offers a complete list of all licensed brokers on their website.

      What are the capital requirements needed in Cyprus?

      The capital requirements for obtaining a Cyprus Investment Firm (CIF) license vary based on the type of brokerage activities:

      • Straight-Through Processing (STP) Brokers: A minimum paid-up capital of €150,000 is required.
      • Market Makers / Dealing on Own Account: A higher capital threshold of €750,000 is mandated.

      These funds must be deposited into a corporate bank account in Cyprus and are typically frozen during the licensing process to demonstrate financial stability.

      Additionally, firms are required to contribute to the Investor Compensation Fund (ICF), which provides protection to clients in case of broker insolvency.

      Can Atomiq Consulting assist with locating an office in Cyprus and appointing local directors?

      Absolutely. As part of our services, we’ll help to locate office space and guide you in selecting the required directors.

      Why Are There So Many Forex Companies in Cyprus?

      Cyprus has emerged as a premier destination for forex brokers due to its strategic combination of regulatory advantages and business-friendly environment. Key factors include:

      • EU Membership & MiFID Compliance: As an EU member state, Cyprus adheres to the Markets in Financial Instruments Directive (MiFID), allowing firms licensed by the Cyprus Securities and Exchange Commission (CySEC) to operate across the European Economic Area (EEA) through passporting rights.
      • Attractive Tax Regime: With a corporate tax rate of 12.5%, Cyprus offers one of the most competitive tax environments in Europe, appealing to financial services companies seeking cost efficiency.
      • Efficient Licensing Process: CySEC provides a streamlined and relatively swift licensing procedure compared to other EU regulators, enabling quicker market entry for forex brokers.
      • Skilled Workforce & Infrastructure: The country boasts a well-educated, multilingual workforce and robust financial infrastructure, supporting the operational needs of forex firms.

      How Much is a Forex License in Cyprus?

      The cost of a forex broker license in Cyprus depends on the type of permissions required. For example, a dealing on own account license, often known as “market making,” will require €750,000 in capital. Additional cost considerations are office rent, local staff, accounting, and government fees. In order to obtain a full price quote, we suggest contacting our team of consultants.

      Which license jurisdictions are similar to Cyprus?

      Brokers seeking regulatory options in Europe should also consider a forex broker license in Malta. Another jurisdiction in the European Union worth exploring would be a forex broker license in Bulgaria.

      Is a CySEC License Good?

      Yes, obtaining a forex license in Cyprus regulated by CySEC is considered reputable and beneficial for FX brokers.

      • Market Access: A CySEC license allows firms to offer services across the EEA, leveraging passporting rights to expand their client base within the EU.
      • Investor Confidence: Being regulated by CySEC enhances a firm’s credibility, as the commission is known for its rigorous oversight and enforcement actions against non-compliant entities.
      • Operational Efficiency: CySEC’s licensing process is noted for its efficiency, providing a balance between thorough regulatory scrutiny and timely approvals.
      • Regulatory Credibility: CySEC operates under EU financial regulations, ensuring that licensed entities adhere to stringent standards for investor protection and market integrity.

       



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