Forex White Label broker  in Cyprus

The country island of Cyprus has been established as a centre and hub for financial services and as such it is home to hundreds of Forex companies, which are attracted by the country’s attractive tax regime and thus flock there to set up shop. Due to the fact that a Forex company is considered an investment firm, all Cyprus-based Forex companies are regulated by the Cyprus Securities and Exchange Commission (CySEC).

Obtaining a relevant license to operate by CySEC is a requirement for setting up a regulated Forex company. Obtaining such a license is not a very complex process but it nevertheless entails a series of steps to be followed and conditions to be met. Admittedly, up setting a Forex company is more time consuming and demanding than setting up a common type company and this is because a high degree of responsibility expected of and assumed by investment firms.

Therefore, if you decide to set up a Forex company in Cyprus you should bear in mind the key procedural elements involved in the process. In terms of the time required the obtaining of a CySEC license usually takes between three to four months, while the regulator has a maximum of six months within which to process an application. Prior to the submission of an application for a CySEC license, any company must have already registered as a Cyprus company, with an actual physical presence in the country and submit the relevant corporate documents as a requirement at the time of application.

Moreover, the applicant Forex company must also submit at the time of its application a detailed business plan for the first three years, along with a detailed -operations manual, while comprehensive anti-money-laundering (AML) as well as know-your-client (KYC) policies need to be formulated and also accompany the application. In terms of the people involved, al

Why you should…go white in Cyprus?

The country island of Cyprus has been established as a centre and hub for financial services and as such it is home to hundreds of Forex companies, which are attracted by the country’s attractive tax regime and thus flock there to set up shop.

Due to the fact that a Forex company is considered an investment firm, all Cyprus-based Forex companies are regulated by the Cyprus Securities and Exchange Commission (CySEC). Obtaining a relevant license to operate by CySEC is a requirement for setting up a regulated Forex company. Obtaining such a license is not a very complex process but it nevertheless entails a series of steps to be followed and conditions to be met.  Admittedly, up setting a Forex company is more time consuming and demanding than setting up a common type company and this is because a high degree of responsibility expected of and assumed by investment firms.  

Therefore, if you decide to set up a Forex company in Cyprus you should bear in mind the key procedural elements involved in the process. In terms of the time required the obtaining of a CySEC license usually takes between three to four months, while the regulator has a maximum of six months within which to process an application. 

Prior to the submission of an application for a CySEC license, any company must have already registered as a Cyprus company, with an actual physical presence in the country and submit the relevant corporate documents as a requirement at the time of application.

Moreover, the applicant Forex company must also submit at the time of its application a detailed business plan for the first three years, along with a detailed -operations manual, while comprehensive anti-money-laundering (AML) as well as know-your-client (KYC) policies need to be formulated and also accompany the application.

In terms of the people involved, all the members of the board of directors, as well as all shareholders and employees need to have clean criminal records and proof of these also needs to be submitted at the time of application for a CySEC license. Furthermore, the person assuming the role of executive director of a Forex company is required to have a solid investment background, while there is an added requirement for a minimum of one individual who is a Cyprus resident to act as executive director.

As far as share capital requirements are concerned, these vary depending on the type of investment firm to be set up and the services it will be providing. For example, a company that will limit its activities to mere portfolio management and the offer of investment advice, is only required to hold a minimum share capital of 50.000 Euros. On the other hand, if an aspiring CySEC-licensed Forex company will operate multilateral trading facility, then it is required to have a share capital of 730.000 Euros.

Due to the fact that a large number of documents and volume of information needs to be gathered and compiled to accompany the application, be prepared that it may take you one month or so in order to get ready to simply file the application.

This being said, there is still room for success, returns and profit in the past paced and highly competitive Forex brokerage business. As such, we don’t aim to discourage anyone from engaging in this endeavour, not doing so in Cyprus, since this has proven a very hospitable jurisdiction and home for numerous successful Forex companies and investment companies in general. What we could perhaps suggest as a good idea is that anyone interested should also examine the possibility and the many benefits to be had when “buying a ready-made Forex company” instead of setting up a new one from scratch. For a more detailed analysis of the option of a White Label Forex company read our enlightening post here

As far as share capital requirements are concerned, these vary depending on the type of investment firm to be set up and the services it will be providing. For example, a company that will limit its activities to mere portfolio management and the offer of investment advice, is only required to hold a minimum share capital of 50.000 Euros. On the other hand, if an aspiring CySEC-licensed Forex company will operate multilateral trading facility, then it is required to have a share capital of 730.000 Euros. Due to the fact that a large number of documents and volume of information needs to be gathered and compiled to accompany the application, be prepared that it may take you one month or so in order to get ready to simply file the application.

This being said, there is still room for success, returns and profit in the past paced and highly competitive Forex brokerage business. As such, we don’t aim to discourage anyone from engaging in this endeavour, not doing so in Cyprus, since this has proven a very hospitable jurisdiction and home for numerous successful Forex companies and investment companies in general. What we could perhaps suggest as a good idea is that anyone interested should also examine the possibility and the many benefits to be had when “buying a ready-made Forex company” instead of setting up a new one from scratch. For a more detailed analysis read our enlightening post of the option of a White Label Forex company.

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George Milios

George Milios is the founder of onlineforextrading.net, the binary options and forex news portal which is dedicated to providing you with all the information you need to successfully trade.

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