Why do so many Forex Brokers love Cyprus?

[jackcm]

I've just read an article since some days. It wrote that most brokers were regulated by CySEC because of its easy regulations. Well I neither know about easiness or hardness but I prefer regulated brokers by FCA.

 

[sindarin]

That is right since it is easy regulation and doesn't need much thing like other regulations that is why many brokers love it, and also this country is tax haven also make them more easier to expand their business through internet, and actually this kind of broker is quite dangerous if something bad happening to them, they could dissapear so easily.

 

[kaiceaziz]

the reason is the low taxes

From what i see the reason for brokers to choose cybrus is the low fees and taxes. Business goal is money then money costs are the main effect on the companies decision makers. And they are giant companies as maysus.

 

[budado]

I guess its because we all going to make good income in forex without the hustle of the strict rules of US broker sites. In Cyrus the broker sites are good broker site but same time are trader friendly especially for newbies. I do hope that in the long run we all going to make good income in here without any worries.

 

[gkintl]

Cyprus is very near to Europe mainland where as regulations are quite easy to follow. This lures a lot of forex companies to setup base in Cyprus. Also, getting through regulations is not an easy task in Europe and USA. There are so many stringent rules which forex brokers find very difficult to abide considering the nature of the business. Thus, Cyprus remains the best choice of brokers.

 

[FXZoK]

It's simple: Lower tax + Looser regulation.

 

[budado]

I'm really expecting to make some good income in here. I do hope that in the long run I can really make it big in here. I'm tired and sick of losing money in forex trading and I do hope that in the long run I can really become a successful trader. Who knows I can end up having big trading account in here if I can.

 

[sindarin]

It's simple: Lower tax + Looser regulation.

Like other tax have country, what did you said above is totally right dude, low tax or even there is nearl zero tax country like in cyprus is a good place for many broker, with that place they will gain a lot of profit in short time because they don't have to pay so much bucks for tax and i am sure many brokers will like it, also the regulation is not that strict.

 

[gkintl]

Cyprus falls under European union. This gives a lot of credibility to the country. On the other hand, the registration process is little bit easy. Thus, Cyprus offers a double advantage to the forex brokers. As a forex broker, the main concern would be to run the business without any regulatory difficulties. Secondly, having a bank account in main land Europe is an easy task as well. The business can be run from Cyprus while finance related matters can be handled safely through a bank in main land Europe. Considering all the factors mentioned above, Cyprus is usually selected. It is similar to shipping business in which Greece is always the preferred choice to register flag.

 

[sindarin]

I guess its because we all going to make good income in forex without the hustle of the strict rules of US broker sites. In Cyrus the broker sites are good broker site but same time are trader friendly especially for newbies. I do hope that in the long run we all going to make good income in here without any worries.

The strictier they are i think that is better, you can see that if some brokers have problems our money will be protected by the regulator like in FCA, but in CYCSE, it is not that strict and you know if your money is lost because of that broker playing you then say good bye to your money, also aside from less strict regulator, cyprus is well known as tax haven with the low rate tax.

 

[Decub]

I have also thought about this sometime ago and I feel it might be because of their low tax rate. In most cases, whenever Cyprus is talked about, so many people relate it with Forex. I'm not sure if they are that strict when it comes to regulations and approval of brokers to practice under their license.

 

[sindarin]

@Decub: not only their low tax rate, but the regulator that Cyprus has, it is not as strict as FINMA, FCA, or even CFTC/NFA. so that is why many broker really love it since they don't even pay as much as those regulations that i talked about.