Forex license in Cyprus
Activity in financial and stock markets, including Forex markets, for brokerage activity or securities management special license is required. Obtaining the Cyprus Forex Broker license is the best option for companies intending to operate in EU countries.
To obtain a license you should register a Cyprus Investment Firm (CIF). Company registration and its activity is regulated by The Cyprus Investment Services and Activities and Regulated Markets Law of 2007. The investment company should be authorized and licensed by Cyprus Securities and Exchange Commission (CySEC). In this case, the company’s activity can be performed in the EU.
Since 2009, the regulating authority of investment activity in Cyprus is the Cyprus Securities and Exchange Commission (CySEC).
Our specialists provide a full range of services for registering investment companies in Cyprus, opening bank accounts, and obtaining various types of forex licenses in accordance with the requirements of the CySEC.
The license is issued for the following activities:
- The execution of orders on behalf of clients
- Carrying out transactions at one's own expense
- The reception and transmission of orders related to financial instruments
- Providing investment advice
- Securities management
- Investment services
- Currency exchange (if it relates to investment activities)
- Underwriting financial instruments and their place in firm commitments
- Granting credits or loans for transactions concerning financial instruments
Stages of obtaining a license:
- Registration of investment companies specializing in brokerage and dealer activities in the securities market, investment consulting, etc.
- Opening a bank account
- Transmission of the registered capital confirmed by bank document
- Submission of documents to the CySEC for license
- Applying to the Cyprus Securities and Exchange Commission for forex license.
- Submission of Memorandum and Articles of Association, business plan, AML and risk management manual, documents confirming the absence of disciplinary proceedings and bankruptcy of employees and shareholders.
- Support until obtainment of a license
Timeframe for obtaining a license:
The timeframe of company registration and obtaining a license is about 6 months.
Personnel requirements:
- The Board of Directors should consist of four persons (including two managing directors), three of them should be residents of Cyprus; directors must have adequate business reputation and professional experience
- Risk Manager and Compliance Specialist
- Auditing staff (internal (residents of Cyprus) and external)
- Legal Department
- Secretary
- 2 certified traders
- The head of the brokerage department
- Chief Accounting Officer
- Head of the IT Department
- Senior Accountant
Traders should have certificates evidencing their professional qualities. One person can hold several posts at the same time. Nominee service is not available.
Office Requirements:
The investment company established in Cyprus must have a locally registered office.
The minimum cost of office services excluding payroll of chief executive officer and chief accountant is about 170 000 EUR per year.
Registered Capital Requirements:
Minimum required registered capital ranges from 80 000 to 1 000 000 EUR.
Over 80,000 EUR - for companies providing consulting services in the field of forex investment and who do not hold clients’ money or clients’ financial instruments.
Over 125 000 EUR - for companies performing as financial brokers and who do not hold clients’ funds at their discretion.
1 million EUR - to perform market maker function - the company offers a full range of investment services and has the right to hold and dispose of clients’ money.
The amount of registered capital is blocked on the bank account. The funds may be used to test investments in liquid assets and should be disclosed in the financial statements.