Forex trading companies

The setting up of a Forex company is more complex than the setting up of a usual company as it is then classed as a Cypriot Investment Firm and must comply with the laws regulating such activities as well as the Cyprus Companies Law.

The first step must be the incorporation of a normal company and after this, an application must be made for obtaining a Forex Trading Company Licence, which is governed by the Cyprus Securities and Exchange Commission (CYSEC).

We estimate that our approximate fees for the actual application to the CYSEC for a licence for the Forex Company are in the region of €25,000, plus reasonable expenses which could range €5,000 and €10,000.

Once we have incorporated the Cyprus company, we will have to set up a bank account for you with a bank here in Cyprus and pay in the amount which you require for the share capital of the company.

The share capital requirement depends on the type of Forex company which you wish to establish. We will need you to provide us with further details as to the type of activities that the proposed company will be carrying out so that we can advise you as to the minimum share capital requirements. For example, the most basic Forex company is one which offers investment advice and reception and order transmissions and does not handle the clients' money. For this type of company, an upfront share capital of €80,000 will be required.

However, if you wish to set up a Forex company which will handle the clients' money and which will offer trades through its own forex trading platform, a share capital of €200,000 will be required.

Please note though that if one or more of the following services will be taking place, a share capital of €1,000,000 will be required:

(a)   Dealing on own account
(b)   Underwriting
(c)   Placing of financial instruments without a firm commitment basis
(d)   Operation of Multilateral Trading Facilities

Furthermore, it will be necessary to have a business plan, an operations manual and the completion and submission of all the necessary forms and documents that need to be submitted to the CYSEC and other Cypriot authorities but we will be able to assist and advise you on this.We estimate that it will take approximately 2-4 months from commencing the procedure until the issuing of the licence which will allow you to operate.

It is worth noting that under the laws here in Cyprus, the relevant authorities are under an obligation to reply to the application within a period of 6 months.

For prices of forex companies in other jurisdictions, see below:

BVI - 14,000 euro

Malta - 25,000 euro

Seychelles- 8000 euro

Please note that the above prices do not include disbursements and VAT.