Cyprus’ growing Forex footprint: industry insights from Tickmill Group

While the past decades have seen a steady rise in Forex brokerages setting up shop in Cyprus, and employing a growing number of professionals, such companies’ day-to-day operations are still something of a mystery to the average person.

To demystify the work, regulatory considerations and upcoming developments in this highly-dynamic sector of the island’s economy, Careers Express put the following questions to Tickmill Group’s Global Head of Business Development, Carla Nemr.

Forex companies are sometimes accused of being scams, how would you reply to that?

“It’s definitely not the case that Forex companies are scammers. Unfortunately, most traders are too ambitious, not properly prepared to manage their risk, while also not totally compliant when on-boarding clients. This has led to a lot of companies shutting down and people losing their jobs.

“As a result, regulators have become strict and targeting brokers not treating their clients fairly.”

[The interview took place in the wake of the Cyprus Securities and Exchange Commission (CySEC) having suspended or withdrawn several Forex company licences during the last few months.]

What would you say to people who frame Forex trading as if it were gambling?

“Forex can only be described as gambling when clients are reckless, with no prior knowledge of how to trade, and believe Forex trading is always profitable – none of these things are actually true. That’s why Tickmill focuses on education and expand awareness of investment risks.

“There is always a risk in any start-up business ore investments. That’s why it is important for people to be aware and learn as much as possible before investing, like in any other financial industry.”

How do Forex companies make money?

Generally, they make money on the trading volume. It generates spreads and commissions that reflect the cost of the currency exchange.

How high is the risk for traders?

“The risk can be as high as the trader decides to manage it; they can set the risk according to their knowledge and experience in trading. That’s why client education is really important.”

What role does pricing transparency play in the forex market?

“Like other businesses, before purchasing any product, clients need to know the pricing and the cost they will encounter. In the Forex industry, there is a demo account that a trader can use to practise trading and experience the cost of the products that one is willing to invest.

“The demo account gives the trader the experience without any risk to their capital.”

Why has Cyprus become a home for Forex companies?

“There are several reasons. Firstly, Cyprus is a low tax jurisdiction; secondly, CySEC is a renowned EU regulatory body, which makes it attractive for international companies to come and be part of these regulators within the EU.

“Additionally,  the geographic location of Cyprus, which allows all types of international companies,  to have global reach, to enable brokers’ access to a number of markets.”

From Tickmill’s perspective, what is the future of Forex companies, both in Cyprus and abroad?

“To maintain a solid presence in the market and offer multi assets for all types of traders. It’s all about offering clients a safe way to trade, while catering for all their needs.”

Crypto is rising in popularity in terms of wealth management, especially among Millennials and Gen Z. Do you feel that crypto currencies are the new Forex?

“When considering the differences between these financial markets and advantages and disadvantages it is not likely that crypto is the new Forex. Crypto currencies are volatile, whereas Forex markets are more stable, and it is easier to control risk on Forex rather than crypto.

Speaking of younger people, could you say a little about Tickmill’s growing pool of young talent? How is it creating opportunities for young professionals?

“For younger talent in the industry, there are extensive growth opportunities in terms of career advancement and training. We also offer additional benefits to create an attractive and interesting work environment. Tickmill is all about people: we run multiple team-bonding and corporate events on a quarterly and yearly basis.

“We also have opportunities to travel and meet together, working on challenging projects, and so much more.

“I would like to add that, both as a trader, and as someone looking to work for a Forex broker, one should always consider the reputation of a company before making any final decision. Look into licences that a broker has and the long-lasting vision of the company, which ensure security and the trust of their traders – the most important factors.”

“You need to know that the broker is reputable, whether you choose to trade, or work with, that company.”