The Cyprus EU crisis and bailout seems a distant memory as Forex brokers continue to flock to the country.
It was less than four months ago that people in the forex industry (including us) were wondering whether or not the sector would survive at all in Cyprus, which until then had been one of the world centers for forex. Cyprus’ low corporate tax rate, membership in the EU, and history as a Mediterranean banking center all made Cyprus a choice destination for forex brokers. But after the EU bailout of Cyprus brought along with it the confiscation of bank deposits, the big question was how this would affect the island’s many forex brokers.
Well, the subsequent months seem to have given us a very strong, and positive answer. First, as we exclusively reported, Cyprus’ forex brokers were able to avoid the dreaded ‘haircut’, and no clients of Cyprus forex brokers lost any money.
Second, strong forex industry volumes in Q2 certainly helped as well.
And now — although some Cyprus forex brokers seek to expand their regulation outside the country and rebrand as non-Cyprus firms — it seems as if the general trend has remained, of global forex brokers continuing to seek CySEC regulation and a Cyprus home as a base for Europe operations. Cyprus regulatory advisory firm Map S.Platis, run by Stelios Platis, has announced that no less than four of their clients have just received a CySEC CIF license during June 2013.
One of the new entrants to the EU scene is New Zealand MT4 forex broker FXGlobe. FXGlobe, as soon as it activates its CySEC CIF license and registers with MiFID, will be able to start taking EU clients. We also recently that Monex of Indonesia also received a CySEC license, and will soon be launching EU service.