Key facts
- Regulator: CySEC
- Compensation: Investor Compensation Fund up to €20,000
- Retail leverage: up to 1:30 on major FX pairs
Why Cyprus has so many brokers
EU membership, an English-speaking financial sector and the MiFID II passport made Cyprus a hub for online brokers serving the whole EEA. Many firms are Cyprus Investment Firms (CIFs) authorised by CySEC.
For Cypriot residents
- Choose a CySEC-authorised firm or a passported EEA broker.
- Check CySEC's register for permitted website domains.
- Read CySEC's announcements on fines and suspensions.
Protections
- ESMA leverage limits, 50% margin close-out, negative balance protection
- Client money segregation
- ICF compensation up to €20,000
- Complaints escalation to the Financial Ombudsman of Cyprus
Tax
Cyprus's tax treatment of trading gains depends on factors such as residence, domicile and whether the activity is considered trading. Seek local advice before assuming any exemption applies.
More detail in our CySEC regulation guide.
Forex brokers to compare in Cyprus
Pepperstone (EU entities supervised by CySEC and BaFin) and IG (IG Europe GmbH, BaFin) serve clients in many EEA countries. Check that each broker accepts residents of Cyprus before applying, and see our European broker rankings.
| Broker | EU entity | Retail loss rate |
|---|---|---|
| Pepperstone | CySEC / BaFin | 72.9% |
| IG | IG Europe GmbH (BaFin) | 74% |
Frequently asked questions
Is forex trading legal in Cyprus?
Yes, through CySEC-authorised firms or brokers passported from other EEA countries.
What compensation applies to CySEC brokers?
The Investor Compensation Fund covers eligible clients up to €20,000 if a member firm fails.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Most retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Tax treatment depends on your residence and domicile status and the nature of your trading. Consult a Cypriot tax adviser.