If you are conversant with Forex comparison sites, you may have come to notice that there are significant numbers of Forex brokers in Cyprus. Since the replacement of the country’s Cypriot pound with the Euro in 2008, at a fixed exchange rate 0.585274 CYP per 1 euro the country has witnessed increase in the number of forex companies in general.
The Forex brokers in Cyprus have a lot of benefits to enjoy from. These benefits are related to the value of the currency and the economy of the nation. Here is a summary of the benefits Forex companies in Cyprus enjoy;
1. LOW TAXES:
Living in Cyprus comes with a number of benefits some of which are most obvious in the low rate of corporation. The Forex companies in Cyprus enjoy the European Union’s lowest rate of corporation tax. At the moment, the rate of corporation on the island is fixed at 10%. After Bulgaria, the next country to charge a low rate of corporation is Cyprus, thus, making it a very attractive destination for forex companies since the overall tax bills can be significantly reduced.
2. EUROPEAN UNION MEMBERSHIP AND MIFID
Markets in Financial Instrument Directive (MiFID) are a European law which harmonizes the regulation of investments throughout the 30 states of the European Economic Area. Forex broker in Cyprus tends to enjoy this benefit since Cyprus is a member of the European Economic Area, thus, meaning that Cyprus based brokerages can put up their services to citizens in other EEA countries.
3. LARGE FINANCIAL SECTOR AND SKILLED WORKFORCE
Forex brokers in Cyprus leverage on the fact that the country does not only have low taxes and European Membership which can attract potential retail brokers to Cyprus but also a large financial sector. The financial sector of Cyprus has been growing rapidly since 1991. With this, the workforce needed by the Forex broker in Cyprus is easily made available. In some nations of the world, getting adequate skilled manpower is always a thing of challenge but not with Cyprus.
4. INTERNET & TELECOMS INFRASTRUCTURE
Forex broker in Cyprus also taps from the strong and efficient telecommunications infrastructures in place. Cyprus has in recent years improved on its telecoms infrastructures to suite the running of a serious Forex brokerage.
As a general rule the Forex brokers in Cyprus enjoy this benefit to the fullest, thus, the reason for the increase in the total number of Forex companies in Cyprus.
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.