Forex is one of the most popular ways to trade on the international market. A forex license gives a person the right to operate as a Forex broker in Cyprus and offer financial services for clients. Obtaining a forex license is essential if you want to start a business in this field. In this article we will give an overview of how to get a Forex license and what other legal aspects need consideration during company formation process in Cyprus.
Types of Forex License
Foreigners who want to trade on the forex market in Cyprus can do so by applying for a Forex license. There are four main types of licenses:
- Forex Broker’s License – This allows you to act as an intermediary between buyers and sellers of currency, meaning that you will buy currency from one party and sell it on at a higher price in order to make a profit; you may also be able to offer advice about trading strategies or trends in the market.
- Forex Company License – This enables your company (which must be registered as such first) to carry out all these functions without needing separate individuals within your organization with each type of license.
- Forex Agent License – Agents represent companies which have been granted either broker or company licenses; they buy and sell currencies on behalf of their principals (the brokers/companies), but do not speculate themselves nor provide any other financial services except buying/selling foreign exchange products for clients’ accounts only after receiving instructions from those clients via telephone calls or emails etcetera.
How To Get a Forex Licence in Cyprus
In order to obtain a forex license, you will need to register a company in Cyprus. This can be done through our partner company Formation Experts who have helped set up thousands of companies throughout Europe. Once your company is registered and you have an address in Cyprus, you can apply for your Forex licence at the Central Bank of Cyprus (CBC).
The CBC requires that applicants provide proof of identity and residency along with evidence of good standing with no criminal record or sanctions against them from any financial authority. Some documents required include:
- Your passport photo page or national ID card (both sides)
- Proof of permanent residence in Cyprus such as rental agreement or utility bill from within one year prior to application submission date
You will also need two witnesses who are 18 years old or older who know you personally and can verify that all information provided during registration process is true.
How to purchase a forex license from a broker?
The first step to obtaining a forex license is to contact a broker. Once both parties agree on terms and conditions, proceed with payment of license fees as well as any additional expenses (such as bank transfer charges). Finally, confirm receipt of your forex trading license by checking that it has been activated by logging into your personal account at the Cyprus Securities Exchange.
Foreigners can opening a company in Cyprus for foreigners with the Cyprus Registry of Companies (CRC), which provides all the necessary documents, such as the Memorandum and Articles of Association (M&A) or the Certificate of Incorporation (COI).
If you’re looking for somewhere warm and sunny where people speak English but are still close enough to home without being too far away from family and friends, then Cyprus might be just what you’ve been searching for!
