The Cyprus Securities and Exchange Commission (CySEC) is the regulatory body for the provision of financial services in Cyprus. They regulate a range of financial service firms on the island, including retail foreign exchange brokers and binary options brokers along with the supervision and regulation of the Cyprus Stock Exchange.
CySEC is perhaps best known in foreign exchange markets since a large number of forex brokers have chosen to base their operations in Cyprus, thereby falling under CySEC regulation. It is estimated that close to 80% of European retail foreign exchange transactions are now processed by Cypriot based brokers.
Why do so many forex brokers base themselves in Cyprus?
Cyprus has become a hub for foreign exchange brokers for a number of reasons, not least of which is a favourable corporation tax rate of just 12.5%. This rate is one of the lowest rates in the European Union, with only Bulgaria offering a lower rate at just 10%.
The fact that Cyprus is also a member of the European Union also makes it a popular choice for brokers due to the European Markets in Financial Instruments Directive (MiFID) law, which sets out a regulatory framework which must be followed by all countries in the European Economic Area.
Crucially, MiFID also provides passporting rights, enabling brokers based in Cyprus to offer their services to citizens based in other European Economic Area countries, without incurring further regulatory expenses.
Cyprus also has a reliable telecoms infrastructure, with ultra-fast fibre-optic broadband rolled out across the island. This enables brokers to host their platforms without the risk of failure, which would prove costly to both their bank balance and reputation, especially if an outage takes place during a busy trading period.
Forex companies are in need of skilled workers
But financial services firms need more than strong regulation and good telecoms infrastructure, they also require a skilled workforce. Forex brokers in particular require large numbers of experienced staff, including brokers, account managers, traders, risk analysts, business development managers and auditors. With such a large number of brokers based on the island, Cyprus has a large pool of qualified staff to choose from.
This is where Cyprus Job Market comes in, as one of the largest job listing based on the island. Both employers and jobseekers can register with us and post their jobs in Cyprus or CV respectively. This is the right place to find the financial services job in Cyprus, with roles available in Limassol, Nicosia or Larnaca. Both trainee and experienced positions are waiting to be filled, so if you are currently working in the financial services sector or are looking to enter the field, get in touch with us.