Getting a Cyprus Forex License

At a summary, an application can be filled with the Cyprus Securities and Exchange Commission (CySEC) for the following investment and ancillary services:

Investment Services:

  • Reception and transmission of orders in relation to one or more financial instruments;
  • Execution of orders on behalf of investors/clients;
  • Dealing in financial instruments on own account;
  • Portfolio management;
  • Investment advice;
  • Underwriting of financial instruments and/or placing of financial instruments on a firm commitment basis;
  • Placing of financial instruments without a firm commitment basis;
  • Operation of Multilateral Trading Facility.

Ancillary Services:

  • Safekeeping and administration of financial instruments for the account of clients (includes custodianship and related services such as cash-collateral management);
  • Granting credits or loans to an investor (to allow investors to carry out a transaction in one or more financial instruments, where the firm granting the credit or loan is involved in the transaction);
  • Advice to undertakings (relating to capital structure, industrial strategy and related matters and consulting, and services in relation to mergers and the purchase of undertakings);
  • Foreign Exchange services (in cases when they are connected to investment services);
  • Investment research and financial analysis (relating to transactions in financial instruments);
  • Services relating to underwriting.

Share Capital:The share capital for the applicant Company must be fully paid up (at the latest stage of the CIF application).  The necessary share capital for investment services is:

EURO 125,000 for:

  • Reception & Transmission
  • Execution of orders on behalf of clients
  • Portfolio management
  • Investment advice

EURO 730,000 for (in addition to the above):

  • Dealing on own account (market maker)
  • Provision of underwriting services in respect of issues of financial instruments

Requirement for the application:The application needs to be followed by an internal operations manual, a business plan, a policy manual and anti-money laundering procedures in order for these to comply with the requirements of CySEC.

Personnel:The following experienced personnel, who must be approved by CySEC as persons having the reputation and knowledge to hold their respective positions, must be in place:

  • 4 directors including managing director, two executive and two non-executives, 3 of them must be Cyprus residents;
  • Money laundering, risk manager and compliance officer;
  • Internal auditors (Cyprus resident);
  • External auditors;
  • Legal consultants.