Why do so many Forex Brokers love Cyprus?

[Taha Nizam]

basically I also wonder why many fx agent select become controlled in cyprus than other nation like UK or US. formerly I believe that the price being controlled very low than other nation but after study the content above, I discovered more sensible purpose.

 

[Hugejack]

This is really informative article.. also good thread
thank you

 

[Taha Nizam]

I don't think that scams issue should come in here what I know is that in currency trading you control how the unexpected happens to you and its like malta is less with regards to law and guidelines which regulate foreign exchange market

 

[kasual]

basically I also wonder why many fx agent select become controlled in cyprus than other nation like UK or US. formerly I believe that the price being controlled very low than other nation but after study the content above, I discovered more sensible purpose.

I heard that being regulated in cyprus save lots of money than being regulated in UK or US. even though actually all traders more like if those brokers being regulated in UK or US, seems like the cost issue become main reason why many brokers prefer to being regulated in cyprus than in UK or US.

 

[rexway]

Well I dont really know about this since because there are also alot of broker in cyrus and aswell some other nation but for me I think that maybe the broker that reside there just chose to be there.

 

[ryuken]

I think there are many reasons why the forex brokers are going to love the cyprus. I think we have to consider that the tax free country and many other things that makes it easy to keep anonimity for the countries that ends up in showing them have some money.

 

[rexway]

Oh no this is my first time to notice that such nation is a tax free nation then if that is true then all the broker will even prefer to be there because no broker will even love to pay high level of tax.

 

[ryuken]

I think the reason has to be about the tax avoidance because costa rica and cyprus are know for the tax avoidance type of the countries, why would you invest in other country than these in that case. so there you go, you can see how that it is going to affect most of the people.

 

[budado]

I guess since Cyrpus is located in europe and using euro currency its easy for those who live in euro to trade using broker sites that is located in cyrpus and the good thing is that even though its located in europe the country rules is lenient and that an advantage to an online sites like broker sites.

 

[mnmkforex]

consider tax issue, select to regulate in Cyprus is reasonable. I saw many borkers have good reputation. they also were regulated in Cyprus. I can not tell what potential problem they have. I prefer to select a borker with good historic record

 

[ryuken]

Regulation is fake in almost every tax free country or tax avoidant country. Because most of the time, there are some of the things to consdier while making money over a period of time. I don't consider that selecting countries like that is going to be any good.

 

[Taha Nizam]

I think there are many factors why the foreign exchange agents are going to really like the cyprus. I think we have to consider that the tax 100 % free nation and many other factors that enables you to keep anonimity for the nations that finishes up in displaying them have some cash.

 

[ryuken]

Most of the forex brokers are in the country where there is tax deduction and the tax avoidance beneit. that is one reason i guess people are going to be using the cyprus. but then again it always happens to have the forex brokers in most fo the unknown suspicious countries.

 

[Orli]

Well that is really correct cyrus is tax free nation I do believe that that is the reason why so many business are base there and broker prefer there rather than any other thing.

Serious?! They do not pay taxes at all???

 

[budado]

Oh no this is my first time to notice that such nation is a tax free nation then if that is true then all the broker will even prefer to be there because no broker will even love to pay high level of tax.

May I know how you come up with cyprus as take free nation? As far as I know its only those wealthy oil producing countries that has some tax incentives. But I don't know if Cyrus is one of them. As far as I know Cyrus economy is not that good and in fact Cyrus has 32,610,000,000 dollars debt right now. A country with that much debt can't afford to have free taxes. lols.

 

[kasual]

maybe true some of wealthy country set tax free for local company and their resident, but I guess the story will be different if it related with foreign company. and as far as I know, brokers that being regulated and open office in Cyprus mostly is foreign broker. if Cyprus set tax free for international company, I think Cyprus is really paradise for many of businessman and company.

 

[PROPENSITY100]

Yes many Forex brokers appear interested to go with cyprus rather than us or uk because in my opinion getting regulated with cyprus is financially cheap as well as cyprus has relatively less strict laws. Previously I checked only whether a broker is regulated or not but now on wards I will do more research regarding this.

 

[rexway]

So its not really a tax free nation well that is very much good and correct I think that its the best option and step to take since the tax over there is very small and can be affordable for them to pay.

 

[ryuken]

Well they do have a lot of ways to avoid the tax llike indirect investment into the another country. I would surely consider how the people are going to be making the money. I don't think that it would be good if we spend the money on how the people are going to be making that way.

 

[W.Jones]

Yes many Forex brokers appear interested to go with cyprus rather than us or uk because in my opinion getting regulated with cyprus is financially cheap as well as cyprus has relatively less strict laws. Previously I checked only whether a broker is regulated or not but now on wards I will do more research regarding this.

US and UK have really strict regulation for Forex business, the broker cannot just simple run away or do whatever they want with our money if they based in US or UK.


For those who interest:

Companies in the low tax haven of Cyprus pay taxes worth 10% of their annual profits. There is no withholding tax applied to the payment of dividends in tax haven Cyprus. Cyprus also has no wealth tax. Tax Haven Cyprus

The basic Corporate tax rate in 2012 is 10%. http://www.worldwide-tax.com/cyprus/cyprus_tax.asp