If you have ever searched for sites that compare forex brokerages, you surely noticed that the number of forex brokers that are based in Cyprus is huge.Probusfx forex Cyprus is one of many companies based on a small island. In this article, we will explain why there are so many brokers that choose this small island for a base.
Very low taxes
One of to most important benefits that Cyprus offers is the low company tax. Being the part of the European Union, Cyprus has the lowest company tax of all countries. The rate of the company tax on Cyprus is only around 10%. This fact is what makes this small island on the Mediterranean sea to be an attractive destination for new companies
Bulgaria is the only country in the European Union that has a similar company tax to Cyprus, and this country also had an increase in new exchange brokerages in the past few years.
Huge financial sector
The low taxes and the membership in the EU are not the only reasons why Cyprus attracts new brokerages, the island is also offering a huge financial sector. The Cyprus banking sector is one of the best because of so many investors, but these companies tend to be accused in their own country for not paying taxes the right way.
The financial sector started to grow rapidly after the USSR broke up back in 1991. This means that the companies are now able to sign up as many staff as they need to without having too much trouble doing so. to get more information.
A big brokerage needs to have a lot of compliance staff, traders, and risk managers in order to succeed.
Telecommunication and Internet infrastructure
Cyprus already has a very good telecommunication infrastructure structure. A little downfall is that this small island doesn’t actually offer the best internet infrastructure, but in the recent years, Cyprus really improved the infrastructure of telecommunication.
The country is in the process of installing fiber-optic broadband that is going to be available throughout the whole country, and it is already available in a lot of areas. Anyone that has at least some knowledge on brokerages knows how important telecommunication and internet is for a forex brokerage.
The rumors are saying that the economic crisis that hit Cyprus in the recent years will result in a decrease of the brokerages on this small island, but this has not been the case so far. Mainly, the reason why this hasn’t happened is that the clients didn’t lose any money during the crisis. Find more info on this page.
The increase in the new brokers has been reported in the past few years as there are a lot of new companies that are applying for broker licenses on Cyprus. As long as this small island is offering such low company taxes and good services, it will continue to be a favorite place for new brokerages.