Cyprus has traditionally been one of the most popular jurisdictions for all kinds of finance companies in Europe, and that of course included forex & CFD brokers. Today, however, forex brokers in Cyprus are subject to the exact same regulations as those in the rest of the EU, thanks to regulations imposed by the European Securities and Markets Authority (ESMA), which are locally enforced by Cyprus’ own regulator, CySEC.
Still, however, Cyprus remains an attractive country for many forex brokers and other types of financial services firms. Particularly because of the business-friendly tax policies there, many regulated forex brokers continue to use Cyprus as a regional base to serve EU-based forex traders.