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Forex and CFD brokers serving European retail and professional clients choose Cyprus for an English-speaking regulator, a fee directive that prices each permission and EU-wide passporting.
Selected engagements from more than 250 licences obtained since 2013, for payment, e-money and cryptoasset firms.
Volkswagen
Payment InstitutionObtained Nexpay’s FCA Authorised Payment Institution licence.
Electronic Money InstitutionObtained Dzing Finance’s FCA Authorised Electronic Money Institution licence.
Obtained Orbital’s FCA Authorised Payment Institution licence.
Our realistic timeline from submission to decision.
Client money and liquidity provider accounts opened alongside the application, so you trade on authorisation.
We assemble your team: two Cyprus directors and an AML compliance officer.
The licence, the requirements, the cost and the timing for your business.
You will need two directors running the business from a head office in Cyprus, a board assessed for fitness, and compliance, risk, internal audit and AML officers.
One programme, from scoping to launch. Speak to an expert about this licence.
Requirements, capital, timing, fees and common questions, drawn from the regulator’s own publications.
Any person providing investment services or performing investment activities as a regular occupation or business in Cyprus, or across the EU from Cyprus, must first hold a CIF authorisation from CySEC under the Investment Services and Activities and Regulated Markets Law of 2017. Forex and CFD brokers are the largest group of applicants: an agency or straight-through broker holds reception and transmission and execution permissions; a market maker adds dealing on own account. A CIF may not carry on business outside its licensed services unless the activity is ancillary or CySEC approves it. Cyprus is the EU base most often chosen by brokers serving European retail and professional clients, with an English-speaking regulator and a fee directive that prices each permission.
| Class | Services | Initial capital |
|---|---|---|
| Advisory and agency, no client money | Reception and transmission, execution, portfolio management, investment advice and placing without firm commitment (MiFID II Annex I, Section A, points 1, 2, 4, 5 and 7), without holding client money or securities | €75,000 |
| Agency, holding client money | The same services where the firm holds client money or securities | €150,000 |
| Dealing on own account | Dealing on own account, underwriting or placing on a firm commitment basis (points 3 and 6), and operating an OTF that deals on own account | €750,000 |
Market-making forex and CFD brokers that deal on own account need €750,000; agency-only brokers that hold client money need €150,000.
| Requirement | Amount |
|---|---|
| Advisory and agency services, no client money | €75,000 |
| Agency services, holding client money | €150,000 |
| Dealing on own account, underwriting, OTF with own-account dealing | €750,000 |
| Ongoing own funds | Under the Investment Firms Regulation: the higher of the permanent minimum, the fixed overheads requirement (one quarter of annual fixed overheads) and the K-factor requirement |
CySEC grants authorisation only where the applicant holds sufficient initial capital under Article 9 of the Prudential Supervision of Investment Firms Law for the services sought.
| Figure | Value | Source |
|---|---|---|
| Statutory decision period | 6 months from a complete application; no extension provision | Law 87(I)/2017, section 7(3), and MiFID II, Article 7(3) |
| Application preparation | 6 to 8 weeks | From instruction to submission, including banking in parallel |
| Our realistic timeline | 6 to 8 months after submission | Our own figure, from the regulator’s published data and our applications |
Regulator figures are quoted as published and converted to months. Our realistic timeline assumes a complete, well-prepared application.
| Item | Amount | Notes |
|---|---|---|
| Application fee | €7,000 | Investment services 1 to 7; €25,000 where MTF or OTF operation is requested; €500 per ancillary service; €2,000 more where the firm uses algorithmic trading |
| Crypto-asset or crypto-CFD services | €5,000 | Application to add the services |
| Extension of authorisation | €3,500 | Services 1 to 7; €25,000 for services 8 and 9; €500 per ancillary service |
| Annual subscription | €5,000 to €10,000 fixed | By category, plus a variable charge on turnover above €500,000 (0.75% falling to 0.0975% by band), €3,000 where the firm provides CFDs and €2,000 for algorithmic trading; capped at €150,000; due within four months of year end, pro-rated in the year of authorisation |
| Investor Compensation Fund | €2,000 per service | Initial contribution; €35,000 for the safekeeping ancillary service; annual contribution 0.5% of eligible client funds and instruments; annual fixed fee €700 for members holding eligible funds, €100 otherwise |
| Board changes, holdings and passports | €2,000 to €3,500 | Change of board composition €2,000; qualifying holding notification €3,500; branch or tied agents in another Member State €3,000 |
| Initial capital | €75,000 to €750,000 | By class |
| Professional fees | Fixed | Quoted after scoping |
A CIF provides services throughout the EU and EEA on a cross-border basis under Article 34 of MiFID II and through branches under Article 35, on notification to CySEC. Branch and tied-agent notifications carry a CySEC fee of €3,000. CySEC enters each CIF on its register and notifies ESMA. The authorisation does not cover the UK; groups serving both markets hold an FCA authorisation and a CIF authorisation, and we obtain both.
The Law sets out what CySEC looks for before granting. It must be fully satisfied that the applicant meets the Law, CySEC’s directives and the MiFID II delegated acts; the six-month period runs only from a complete application. It looks for board members of good repute with adequate knowledge, skills, experience and time, and for initial capital at the level the services require. In our experience the three causes of delay are the same as in every EU regime: incomplete submissions, insufficient substance in Cyprus, and business plans whose trading model, liquidity arrangements and flows of client money are not clear.
A CIF needs segregated client money accounts with credit institutions, an operating account and settlement accounts in the currencies it serves, and liquidity provider or prime-of-prime relationships before it trades. Banks and liquidity providers review the licence scope, the client money arrangements and the financial crime framework before onboarding. We open each alongside the application, so you trade on authorisation. See banking and payment processing.
Six months from a complete application by statute, with no extension provision. We plan for six to eight months after submission.
€150,000 for an agency or straight-through broker that holds client money; €750,000 for a market maker dealing on own account; €75,000 for advisory or agency services without client money.
€7,000 for investment services 1 to 7, plus €500 per ancillary service and €2,000 where algorithmic trading is used; €25,000 where the firm will operate an MTF or OTF.
At least two persons who meet the fitness requirements must effectively direct the business, with the head office in Cyprus. CySEC assesses the repute, knowledge, experience and time commitment of every board member and is notified of each change.
The compulsory compensation scheme for CIF clients: €2,000 per investment service on joining, an annual contribution of 0.5% of eligible client funds and financial instruments, and cover of at least €20,000 per investor.
A regulatory advisory firm to payment, e-money and cryptoasset companies since 2013, with more than 250 licences obtained in more than 60 countries. The firm builds licensed payment, e-money, crypto and stablecoin businesses: the licence, the team, the technology, the bank accounts and card issuing.
This guide is general information, not legal advice. Requirements and fees change, and the regulator’s own publications take precedence.
The licence, your team, banking and technology, delivered as one programme.