A new retail broker called Godo has obtained authorisation from the Cyprus Securities and Exchange Commission, marking a notable counterpoint to the recent trend of brokers abandoning European Union licensing in favour of offshore jurisdictions. The firm was founded by Mohamed Ahmed and Ebieraja Alex, former senior executives at AvaTrade’s Dubai office, who initially launched operations in 2021 under a Mauritius licence while maintaining a Dubai hub.
The move comes as numerous established brokers have withdrawn from EU regulatory frameworks in recent years, citing mounting compliance burdens imposed by ESMA and the FCA. Operators including Orbex, entities connected to BDSwiss, HTFX, and FXDD have all relinquished European licences to concentrate on less restrictive offshore markets. FXDD surrendered its Malta authorisation as recently as August.
Despite this exodus, a minority of brokers continue pursuing onshore European credentials to enhance credibility with regional clients. UK broker Trade Nation recently secured Portuguese licensing through CMVM to strengthen its continental footprint. Portuguese operations chief Luis Dos Santos emphasised that European regulation provides clients greater confidence in fund safety and reduces perceived risk in the trading relationship.
The divergence illustrates a strategic split in the retail brokerage sector between firms prioritising regulatory flexibility and those betting on jurisdictional legitimacy to attract quality client flows. For Cyprus, Godo represents fresh interest in a licensing regime that has seen net outflows in recent periods.
FXnCO Insight
Brokers entering CySEC now face less competition but must justify higher compliance costs against smaller addressable markets and tighter product restrictions than offshore alternatives offer.
Source: Finance Magnates