Cyprus is one of the most popular countries to register a forex broker in Europe, and the last few years have seen strong growth in the number of forex brokers in Cyprus. As a very small country, it’s safe to assume that forex brokers choose Cyprus not for access to the local market, but as a hub for all of its European forex brokerage business.
Forex brokers in Cyprus are regulated by the Cyprus Securities and Exchange Commission, better known as CySEC. Although the oversight by CySEC is considered looser than in many other European countries, it still falls under EU jurisdiction. This means that all rules from the European Securities and Markets Authority (ESMA) also applies to forex brokers registered in Cyprus, including restrictions on trading leverage.