Forex Brokers in Cyprus

Forex trading in Cyprus is regulated by the Cyprus Securities and Exchange Commission (CySEC). CySEC is responsible for the regulation of all financial services providers, including Forex brokers operating in Cyprus.

Cyprus has become an attractive destination for Forex brokers as it offers a low corporate tax rate, a favorable business environment, and a large pool of talented professionals. Additionally, the country's membership in the European Union allows Forex brokers to access the entire EU market.

Forex traders in Cyprus have access to a wide range of currency pairs, as well as CFDs on various financial instruments, such as stocks, commodities, and indices. Forex brokers in Cyprus are also required to comply with strict regulations and have to meet strict capital requirements.

However, it's essential to conduct thorough research before choosing a Forex broker to ensure that they are regulated and have a good reputation. Traders should also be aware of the risks involved in Forex trading and ensure that they understand the terms and conditions of the broker before opening an account.

CySEC regulation

In Cyprus, Forex brokers must be regulated by the CySEC, the Cyprus Securities and Exchange Commission. Even if there are serious requirements to have a licence from the CySEC, this juridiction is still seen as friendly and attractive for Forex brokerage firms. Due to the fact that Cyprus is a state of the European Economic Area, CySEC take part of the European MiFID regulation. That is why a lot of Forex brokers choosed to be domiciled in Cyprus. There are also a lots of supplying companies that can serve brokerage firms there, Cyprus is still one of the most attractive country for Forex brokers. From the point of view of a trader, Cyprus-based forex brokers can be well considered.
CySEC brokers must conform to the following rules:

• Funds of traders must be kept in segregated accounts.
• There is an insolvency protection under the Investor Compensation Fund, compensating clients up to €20,000.
• Financial statements of brokers must be reviewed on a periodic basis.

What is Forex?

Forex is a shortened term used for "FOReign EXchange" (commonly known as FX), it is typically used to describe the process of buying and selling currencies. Forex is a global market for the trading of currencies, it is the largest market in the world, opened 24 hours a day from Sunday evening until Friday night. Forex is also the most liquid financial market, there is a huge trading volume: each day, more than 5 trillion dollars are exchanged, there are always a lot of trades.

Forex trading

Currency values rise and fall against each other due to a number of economic, technical and geopolitical factors. The common goal of forex trading is to profit from these changes in the value of one currency against another. All forex pairs are quoted in terms of one currency versus another, Forex trading is the act of simultaneously buying one currency while selling another. Each currency pair has a "base" currency and a "counter" currency. The base currency is the currency on the left of the currency pair and the counter currency is on the right. For example, in EUR/USD, EUR is the "base" currency and USD the "counter" currency. A forex trader will buy a currency pair if he expects its exchange rate will rise in the future and sell a currency pair if he expects its exchange rate will fall in the future.

What is a broker?

Traders must conduct their trading activities through a forex broker. A broker acts as an intermediary between the buyer and the seller involved in a forex transaction. They provide trading platforms that allow traders to buy and sell foreign currencies. Traders have to take the time to research and compare options to find the broker that best fits their needs.