Cyprus · CySEC · Tier-1 onshore (EU)
Cyprus forex licence (CySEC Cyprus Investment Firm)
The main EU gateway for forex and CFD brokers: a MiFID II licence with passporting across the EEA, top-tier recognition and heavy compliance. Available on request.
Updated
A Cyprus Investment Firm (CIF) licence from CySEC is a MiFID II authorisation that can be passported across the EU/EEA. It requires full mind and management in Cyprus, a four-eyes board, compliance, AML and risk staff, EU retail CFD limits and typically 6–12 months; corporate tax rose to 15% from 2026.
Key facts
| Regulator | Cyprus Securities and Exchange Commission (CySEC) |
|---|---|
| Licence | Cyprus Investment Firm (CIF) |
| Legal basis | Investment Services and Activities and Regulated Markets Law 87(I)/2017 (MiFID II); IFR/IFD |
| Entity | Cyprus limited company |
| Typical timeline | Typically 6–12 months |
| Capital | Yes, initial capital under the EU Investment Firms Directive, highest for dealing on own account |
| Tax | 15% corporate income tax from 1 January 2026 |
| Recognition | Highest: EU regulator with passporting |
| Client markets | EU/EEA via passporting; not the UK, US, Canada or Australia without local authorisation |
| EU passport | Yes |
| Our service | On request via partners |
Indicative information for comparison only, reviewed on the date shown. Requirements change and depend on your structure; confirm with the regulator and local counsel before deciding.
Overview
CySEC authorises Cyprus Investment Firms under the EU MiFID II framework. A CIF can passport its services across the EU/EEA, which makes Cyprus the most common EU base for forex and CFD brokers.
In exchange, CySEC expects a real firm in Cyprus: governance, staff, systems and strict conduct rules for retail clients.
Substance and people
- Full mind and management in Cyprus
- Board with at least two executive directors (four-eyes) plus independent non-executives
- Compliance officer, AML compliance officer and risk manager
- Head of dealing, back office and accounting
- Robust IT and governance
Ongoing obligations
- Annual audited accounts
- IFR prudential reporting and ICARA
- MiFIR/EMIR transaction reporting
- Investor Compensation Fund contributions
- ESMA-derived retail CFD limits (leverage, negative balance protection)
Advantages
- EU passport
- Top-tier recognition by banks, LPs and PSPs
- Clear rulebook
Drawbacks
- High cost and capital
- Strict retail CFD limits
- Long approval and heavy ongoing compliance
Recent changes
Corporate income tax rose from 12.5% to 15% on 1 January 2026. MiCA now governs crypto-asset services in the EU, and CySEC has increased scrutiny of marketing, affiliates and prop-trading models.
Frequently asked questions
Can a CySEC licence serve all EU clients?
Yes, through MiFID II passporting, after notifying CySEC and the host regulators.
What leverage can retail clients get?
ESMA-derived limits apply, for example up to 30:1 on major currency pairs, with negative balance protection.
Official sources
Primary sources we rely on. Rules change; always confirm current requirements with the authority.
Similar jurisdictions
Dubai & UAE
DFSA (DIFC), Capital Market Authority (federal, formerly SCA), FSRA (ADGM)
DFSA Category 3A (or 2); CMA dealing licence or Category 5 introducer; FSRA Category 3A
View profileSouth Africa
Financial Sector Conduct Authority (FSCA)
FSP Category I/II; ODP authorisation for principal CFD providers
View profileMauritius
Financial Services Commission (FSC)
Investment Dealer (Full Service Dealer excluding Underwriting)
View profileNot sure which licence is right for you?
Tell us your business model and target markets. We will shortlist jurisdictions and send a fixed, itemised proposal.