There are several Forex companies in Cyprus, hence the need for so many forex brokers. Most of these Forex companies in Cyprus appear under forex comparisons. Ever since the Cypriot pound was exchanged for the Euro in 2008, the country has witnessed a general increase in the total number of forex companies.
WHY THERE ARE MANY FOREX COMPANIES IN CYPRUS
Theses forex companies in Cyprus are characterized by low taxes rate, regulated by the Markets In Financial Instrument Directive (MiFID), and enjoy a good internet infrastructure and provision of manpower.
1. LOW TAX RATE:
All the forex companies in Cyprus enjoy low tax rate, as well as traders that trade their currencies. As a matter of fact, Cyprus has the lowest rate of corporation tax in the European Union. Naturally, when the tax rate of a nation is low, both local and foreign investors are attracted to make investments with hopes of good yields. That is why a lot of forex companies set up base in Cyprus; to render efficient forex services to traders while they enjoy low tax rates.
2. GREATER REACH:
Many forex companies tend to the need of clients from all over the world, but traders are to be careful in such cases as there is the possibility of being scammed. All forex companies in Cyprus stand a chance to reach out to a greater number of traders from any part of Europe (an other continents that recognizes this regulation) so long as they are regulated by the MiFID. This regulatory body sets a standard that must be adopted by all countries in the European Economic area.
3. CYPRUS IS KNOWN TO HAVE LARGE FINANCIAL SECTOR AND SKILLED WORK FORCE:
Another reason why there are a lot of forex companies in Cyprus is that the island is known to have, not just low tax rate, but a lot of skilled workers in the area of forex (and others). As anyone can rightly guess, there is need for efficient workers in any firm that wants to set enviable standards. This is one thing a lot of brokerages can find very easily in Cyprus.
4. INTERNET AND TELECOMMUNICATION INFRASTRUCTURE:
It is not possible to run an efficient forex company in Cyprus or anywhere for that matter without an efficient telecommunication infrastructure in place to provide good internet connection and other forms of communication that may be needed in the course of executing a trade. Cyprus has all of these in place, therefore, traders and brokerages do not have to bother about it.
All forex companies in Cyprus stand a chance to run top notch forex activities, and from what has been said about then so far, a lot of the have good reputation. This is not to say that traders should go in blindly, and pick just any broker to trade with. There is need for research in order to avoid scam, and land a forex company that will really offer you what you want.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.