The Malta Financial Services Authority or MFSA
is the authority responsible for overseeing foreign investment, but also for issuing Forex licences in Malta
. There are several conditions and formalities that applicants for this license must consider. But all the details can be provided by our company formation agents in Malta
, who can handle the documents required to apply for this type of license.
What are the conditions for a Forex broker licence in Malta?
Forex broker licence in Malta is issued taking into account the protection of investments, to avoid money laundering and other related situations. Among the formalities for a Forex broker licence in Malta we mention:
- Supporting documentation, including specific application forms.
- Required meeting with the MFSA.
- Audited financial projections might be involved during the application process.
- “In principle” approval is then made by the MFSA.
- The applicant must consider the “Standard License Conditions”.
- Ad hoc requirements must be observed post-licensing.
- The required capital for a market making business model is around €730,000.
Alongside the European Securities and Markets Authority, MFSA recommends investors to choose to work only with companies that present valid investment licenses, such as the Forex broker licence in Malta. You can find out more about this type of license and the process of obtaining it from our specialists.
Categories of Malta Forex License
Investment services licences are of 4 types as follows:
- • Category 1 - Licence holders who can receive various orders regarding the instruments used in investments. There are also licensed agents, authorized to offer business advice, but without having control over their assets.
- • Category 2 - Forex broker licence in Malta involves the provision of investment services, with control over money or assets. They cannot deal with their own account.
- • Category 3 - These are the same services like the ones in category 2, with the mention that the authorized ones can deal with their own account.
- • Category 4 - Licencees may act as custodians or trustees for collective investment schemes.
It is important to note that companies offering advice on foreign exchange products need to apply for category 1 licences. Therefore, a licensed Forex broker in Malta must be well acquainted with the legislation and prepare the documents in order to obtain the necessary license.
What does passporting of Forex licenses in Malta mean?
Passporting of Forex Licence in Malta
implies the right of a person to register a branch or to provide services in Malta or in an EEA country, other than the one in which it has its headquarters. This right is governed in Malta by the European regulations on passport rights for investment firms, namely Directive 2004/39 / EC on markets in financial instruments.
The advantage is that the passport can reduce costs and bureaucracy and also allow markets to open up. This helps to maintain investor confidence in high regulatory standards. It is advantageous for potential Forex investment service providers to obtain a licence in Malta to be able to offer their services in the EU and EEA, according to the legislation in force.
Here are some interesting facts about Malta's economy:
- • Total FDI stock for Malta in 2020 exceeded USD 240 billion.
- • In the same year, over 99% of total FDI was directed to financial and insurance activities in Malta.
- • In 2020, the position of the stock of direct investments abroad was approximately EUR 58.8 billion.
Do you want to apply for a Forex broker licence in Malta
? You can contact
our company formation agents in Malta
and discover our services.