The search for a universal business solution in the European Union for brokerage and payment services often boils down to one thing – Cyprus. This is a jurisdiction that combines stable regulation, flexible licensing opportunities and clear rules for companies seeking to enter the market legally and effectively. Eternity Law International offers just such a comprehensive opportunity – a CIF turnkey Cyprus structure that includes an STP brokerage model and at the same time allows you to register a Cyprus payments firm.
Opportunities opened up by an investment company license in Cyprus
An investment company created in accordance with the requirements of CySEC gets the right to legally work not only with retail clients, but also with professionals and large institutions. It has a full range of tools at its disposal: currency, contracts for difference, derivatives, brokerage. All activities are regulated by the provisions of MiFID II, which guarantees compliance with EU financial market standards and access to cross-border services. But it is worth considering: the authority of the company directly depends on the type of license. If the basic model requires a minimum capital of €50,000, then for full-fledged brokerage activities in the STP brokerage format, at least €125,000 must be deposited. This scheme involves the execution of client orders through external sources of liquidity, which allows you to avoid storing client funds and at the same time maintain high efficiency in work. As a result, there is more flexibility, less risk and a controlled approach to the market.
Why integrate payment services into the investment company?
Modern brokers increasingly strive to be not only a platform for transactions, but also to independently control the financial flows of their clients — from replenishment of accounts to withdrawal of funds. In order to have such freedom of action, additional licenses are added to the classic CIF structure – PI license, EMI license or in certain cases AEMI license. Each of them opens up a separate set of opportunities — depending on what exactly the company plans to do. These licenses enable:
- to carry out local and international transfers;
- to create its own electronic wallets and issue payment cards under the company’s brand;
- to open accounts with IBAN numbers for customers;
- to integrate SEPA and SWIFT channels into a single financial system of the company.
If you combine this with a brokerage platform within the framework of CIF turnkey Cyprus and supplement it with a full-fledged Cyprus payments firm, you will get not just a licensed broker, but a fully functional financial project. This model is immediately ready to launch and works without the need to involve third-party providers to service payments.
How does the license process take place?
The procedure for obtaining a license in Cyprus is clearly regulated, but when the Eternity Law International team takes over the support, the path becomes much simpler and clearer.
It all starts with the preliminary strategic stage: together with the client, we determine which licensing model best suits the business goals – STP or another, what is the scope of services provided, and which corporate structure will be the most appropriate. Next, a full package of documentation is prepared – a business plan, a risk management scheme, anti-money laundering policies, a description of internal processes and organizational structure. At the same time, key people are selected for the company – directors, a compliance specialist, an auditor, a financial control specialist. All candidates must meet CySEC requirements for experience, qualifications and integrity. After that, a bank account is opened to deposit the necessary capital – its size depends on the chosen license model. And only then, when everything is ready, the application is submitted to the regulator. Our lawyers accompany the client throughout the entire review period, respond to CySEC requests, maintain contact with authorized persons, and monitor deadlines. In cases where the project has a high degree of preparation, you can use the accelerated procedure option – then instead of the typical 5–6 months, the license can be issued in 3–4 months.
Can the license be passported to EEA?
Yes, with notification to other regulators. Cyprus is a full EU member, so an investment license obtained in this jurisdiction can be “passported” to any country in the European Economic Area. This means that after formal notification to the regulator of another country, the company can start providing its services there without obtaining a separate national license. This greatly simplifies the scaling of business within the EU.
What client base can a CIF target?
Retail, professional, and institutional clients. CIF companies have the right to work with all major categories of clients. These can be private individuals without special training (retail), more experienced traders or small funds (professional), as well as large institutions – banks, insurance companies, venture funds. The versatility of this license allows you to customize the product for different audiences within the same structure.
What is the advantage of STP brokers?
Direct market access and faster execution. The main advantages of STP brokers are transparency and no interference with orders. Client orders are placed directly on the interbank or institutional market, which not only reduces execution time but also avoids potential conflicts of interest between the broker and the trader. That is why the STP model is considered more honest and beneficial for both clients and the business itself.