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16
MAY
12
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Can Limassol topple London as a leading FX trading centre? |
This question was recently posed by one of Cyprus's business newspapers, prompted by the fact that Cyprus, and specifically Limassol, has seen a significant increase in foreign currency trading, with its forex market currently valued at US$ 3.5trillion per year, a figure which is expected to rise to US$ 5 trillion by the end of 2012. As turnover in the London foreign exchange market is around US$2 trillion per day, the question was no doubt tongue-in cheek, but nevertheless the recent influx of foreign exchange brokers into Limassol has created a significant new market.
The reasons why major brokers including FXPro , Alpari and newcomers Saxo Bank elect to base their operations in Cyprus include low start-up capital requirements for Cyprus Investment Firms, a simple licensing process, a clear and transparent legal framework aligned with EU directives, the capability to passport services within the EU, competitive operating costs and, most importantly, one of the most favourable tax regimes in the EU with low corporate and personal tax, no tax on dividends to non-residents and no Cyprus tax on disposal of securities for investors.
Our firm has a specialist financial services department which will be glad to provide further information on the advantages of Cyprus as a forex trade centre and, if required, advise on the establishment and operation of Cyprus Investment Firms and submit applications for licences.
For further information please contact Elias Neocleous, Stephanos Evangelides or Varnavas Playbell.
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