If you want to serve EU/EEA retail clients, CySEC (the Cyprus Securities and Exchange Commission) is the route founders reach for most — an EU regime with passporting across the bloc and strong client trust. It’s also one of the more demanding licenses to win and run. Here’s the independent picture.
Who CySEC is for
CySEC suits you if EU/EEA retail clients are central to your plan. Its big advantage is MiFID passporting — authorise once in Cyprus and you can market across the EU — plus a credible, recognised regulator and a competitive (~12.5%) corporate tax rate. If the EU isn’t essential yet, the cost may not be justified.
Capital requirements by model
Regulatory capital scales with what you’re permitted to do. Indicative bands:
| License type | Indicative minimum capital |
|---|---|
| Reception/transmission or execution-only (agency/STP) | ~€75k–€150k |
| Dealing on own account (market-maker / B-book) | ~€730k |
A large part of this is capital you must hold, not money you spend — but it’s capital you can’t deploy elsewhere, so treat it as a real cost of the choice. Your A-book vs B-book vs hybrid decision drives which band you fall into.
Cost and timeline
- First-year all-in (indicative): ~€150k–€300k+, including legal, setup, local substance and the early compliance function.
- Timeline: roughly 6–12 months to authorisation — start it in parallel with your technology build, which is far faster.
- Substance: expect requirements for a local office, local directors and qualified staff.
The trade-offs, honestly
CySEC buys you EU access and credibility that offshore licenses can’t match. The price is higher capital, a longer runway, real local substance, and an ongoing compliance burden that doesn’t let up. For a flagship EU brand, that’s the cost of doing it properly; for testing a model, it’s overkill.
Is it right for you?
If you must reach EU retail, there’s no cheap-but-legal shortcut — budget for CySEC and do it properly. If you want credibility and banking without EU passporting, the Mauritius forex license is often the better cost-to-credibility ratio. Compare all routes in what a forex license really costs.
Working out whether CySEC fits your plan and budget — independently, with no vendor steering you — is exactly what Broker Origin does.
Part of our independent guide to launching a brokerage. See also: How to start a forex or multi-asset brokerage · What a forex license really costs · The Mauritius forex license.
Broker Origin provides commercial and strategic advisory. It is not a law firm and does not provide legal or regulated financial advice. Capital requirements, fees and timelines vary by model and change over time — confirm current figures with CySEC or a licensing lawyer before relying on them.