Forex Licensing - Cyprus

About Cyprus

Obtaining a forex licence in Cyprus can be a time-consuming and costly procedure, but it gives a forex brokerage firm credibility and legitimacy, which can be appealing to clients and investors.

Cyprus is a global financial and Forex trading powerhouse. Cyprus, as an EU member state with strong economic foundations, it boasts an appealing low corporation tax rate, making it a natural choice for enterprises seeking solid commercial opportunities across Europe.

Cyprus is located in the eastern Mediterranean Basin, 44 nautical miles south of Turkey, 64 nautical miles west of Syria, and 150 nautical miles north of the Nile Delta. Its strategic location at the crossroads of Europe, the Middle East, and Africa facilitates travel to those regions.

Cyprus’s current population is 1,260,138, growing 0.69% from 2022.

The official languages of Cyprus are Greek and Turkish. The island is divided into two parts, with the Turkish Cypriots to the north and the Greek Cypriots to the south. Around 2.7% of each also speak Armenian and Arabic, and the majority of these also speak Greek.

Cyprus is a common law jurisdiction, and its court system is adversarial in nature. The vast majority of Cypriot law is based on English common law, the fundamental concepts of which are directly applied by Cyprus courts (section 29, Courts of Justice Law).

The country’s favourable tax regulations are one of the key reasons why forex brokers opt to operate from Cyprus. Cyprus has one of the lowest corporation tax rates in the European Union, at 12.5%.

The Cyprus forex licencing framework is noted for its high standards and stringent rules, which contribute to the safety and security of traders and investors that utilise forex brokerage services in Cyprus.

Gov. Capital Req. Timing Tax Rate
EU125,000 / EU730,000 6 months 12.5 %

The following are some of the benefits of having a forex licence in Cyprus:

1. Access to the EU market

Cyprus is a part of the European Union, and a CySEC forex licence permits businesses to sell their services across the EU, providing them access to a wide market of potential clients.

2. Credibility 

A CySEC forex licence lends credibility and validity to a forex brokerage firm. CySEC is a renowned regulatory authority, and being licenced by them indicates to clients and investors that the company follows high standards.

3. Tax advantages

Cyprus offers a favourable tax structure, with a corporation tax rate of 12.5% that can benefit forex brokerage firms.

4. Efficient regulatory framework

Cyprus’s regulatory environment is efficient and streamlined, allowing businesses to receive a licence in a timely manner.

5. Strong Infrastructure

Cyprus has a strong financial infrastructure, including banking services and access to international markets, which might be advantageous for forex brokerage firms.

6. Investor protection

Cyprus’s regulatory structure is intended to protect investors, and includes regulations for client fund segregation, negative balance protection, and compensation schemes.

License: Investment Firm
Timeframe for Approval: 5 to 9 months
Regulator: The Cyprus Securities and Exchange Commission (CySEC)
Authorised Activities: Forex, Business, Education, Health Services, Real Estate, Tourism, Agricullure, Energy, Transport
Corporate Structure: A Forex broker with a Forex licence in Cyprus has the following corporate structure: general director; a board of two managing directors; at least two certified traders; secretary; CTO; CFO; CRO; MLRO; internal auditor; compliance officer; and the head of the brokerage department.
Corporate Tax Rate: 12.5%
Currency: Euro
Capital Requirement: €125,000 being required for a Standard License and €730,000 for a Full License
Paid-up Capital: €125,000
Economic Support: Corporate tax incentives,
Startup incentives,
Employment incentives,
Investment incentives,
Research and development incentives,
Tourism incentives
Local Director/s: 4 directors, including the managing director
Local Shareholder/s: Only one shareholder (can also be a legal person, no nationality restriction)
Local Registered Officer: Required
Local Staff: Required (3 and more)
Compliance Officer: Required
AML/KYC: Required
Audit: Required
Main Benefits: You will be allowed to lawfully engage in a variety of activities if you receive a licence. They are as follows:

Services for investment
Conducting business at your expense
Providing securities investment advising services
Orders for various financial instruments are processed.
Except for investment purposes, currency exchange
Credit-based funding issuing

The following actions will be taken in order to receive a licence:

  • Gathering and arranging all papers for preliminary verification
  • Establishment of a company in Cyprus
  • Obtaining a licence from CySec
  • Additional documents will be required by CySec during the procedure in order to back up certain data.
  • Ad hoc document preparation and communication with CySec
  • The application will be reviewed by CySec.
  • CySec will provide conditional approval.
  • Managing financial instruments
  • Making loans to investors in deals in which the creditor participates.
  • Advice on a variety of topics, including capital structure, obligation purchasing, and business strategy.
  • Investment-related operations in the foreign currency market.
  • Financial analysis of transactions and capital expenditures.
  • Services related to customer duties.

For each beneficial owner, shareholder, director, authorised signatory and secretary must provide:

  • A notarized copy of valid passport
  • A copy of proof of residential address (ex. utility bill that is not older than 3 months)
  • A notarized copy of Letter of Reference form Bank, Attorney or Accountant

For each beneficial owner, shareholder, director, authorised signatory and secretary must provide:

  • Curriculum Vitae
  • A notarized copy of valid passport
  • A copy of proof of residential address (ex. utility bill that is not older than 3 months)
  • Professional letter/bank reference
  • A notarized copy of a University Diploma
  • For shareholder – bank statement with enough funds to cover the capital requirements. Funds should be from the provable source


  • Form a Cyprus business corporation
  • Creating and revising shareholder and officer agreements
  • Planning and writing a narrative business strategy
  • Current financial statement preparation and drafting.
  • Prepare and draw three-year financial predictions
  • Creating and preparing personal financial statements for owners
  • Application preparation and submission to the appropriate regulatory authority.
  • Preparation and preparation of regulatory authority answers
  • Identification and hiring of an auditor and a forex prime broker.
  • Make it easier to open bank accounts and payment processors.
  • Creating and revising AML/KYC policies and procedures
  • Client agreements and disclosures are prepared and drafted.

1. Establish international business corporation.
2. Preparation and drafting of shareholder and officer agreements.
3. Preparation and drafting of narrative business plan.
4. Preparation and drafting of current financial statements.
5. Preparation and drafting of 3 years financial projections.
6. Preparation and drafting of personal financial statements for owners.

7. Preparation and submission of application with appropriate regulatory authority
8. Preparation and drafting of responses to regulatory authority
9. Identification and engagement of auditor and forex prime broker.
10. Facilitate opening of bank accounts and payment processors.
11. Preparation and drafting of AML/KYC policies and procedures.
12. Preparation and drafting of client agreements and disclosures.