CySEC License

About that Country :

Cyprus offers a very positive environment to establish a forex broker firm within. It is a well established and respectable jurisdiction in regards to the issuing of a financial licensing. It follows very strict rules and regulations as implemented by the financial services authority of Cyprus (CySEC – The Cyprus Securities and Exchange Commission). Therefore, having a Cyprus forex license can prove to be a very positive investment, as it gives your traders the peace of mind that you are a fully licensed and regulated FX broker in an honest and reliable European jurisdiction.

Cyprus forex licenses are issued by the same body, CySEC. This is a highly stringent licensing and regulatory body, and is renowned for being one of the top licensing bodies in the world. Many of the world’s largest forex brokers hold a CySEC license. Without it, a Cyprus-based forex business will not be considered as a serious and professional institution.

Advantages :

A CySEC license is recognized by EU countries (Cyprus is member of the EU)

Currently, Cyprus is the leading jurisdiction for Forex regulations

Respectable license

Fast and easy procedure

Affordable to obtain and maintain

Allows the players/investors to complain directly to CySEC

Minimum Initial Capital Requirement – EUR 125,000

About that Regulating Body :

Cyprus has brought together a comprehensive list of CySEC guidelines that are continually tweaked and updated to keep brokers in line. Forex brokers regulated by the CySEC should conform to the following rules to be able to receive a valid CySEC license :

CySEC Forex brokers should maintain at least €750,000 in operating capital, which was not required during the early years of CySEC regulation. The new operating capital requirement is enforced in line with the MiFID derivative that requires brokers to be able to hold their clients’ positions without succumbing to market volatility.

All CySEC member firms should keep regular financial statements and submit them to the CySEC for review on a periodic basis. Brokers should send in yearly audit reports that are performed through certified independent third-party auditors.

Traders’ capital should be kept in high-profile and tier-1 banks in Europe in segregated accounts. No part of trading capital should be mixed with the broker’s operating capital, which further increases the transparency of operations.

CySEC brokers should adhere to all new rules and regulations enforced by the CySEC and the MiFID from time to time. In case the CySEC finds any

Cyprus FX brokers should protect their traders from broker insolvency or bankruptcy by providing protection under the ICF (Investor Compensation Fund). The ICF compensates clients up to €20,000 if a broker is rendered insolvent, therefore, helping clients to protect a significant portion of their trading capital.

Procedure :

CySEC Application Form

Declarations

Bank Application Forms

AML (Anti Money Laundering) Procedures

Business Plan

Financial projection of your business

Balance sheet with forecast description