The Malta Financial Services Authority (MFSA) is the only official regulator for financial services in Malta. It was established in 2002 and is in charge of trustees, pension funds, insurance companies, and the Forex market. One of its duties includes not only protecting consumers but also to educate them in the financial services sector. The MFSA has over 312 employees including lawyers, accountants, and different specialists. Malta is steadily developing into an international financial center.
It helps in the process of developing best practices and participates in modeling global regulatory policies with the EU and others. Malta is one of the countries that ranked high in categories of solid banking systems and financial markets. The Republic of Malta fosters an open-type economy with liberal economic policies. As an EU member state, it has to comply with all laws, regulations, and directives adopted in the EU, including the MiFD directive which directly defines financial markets.
The MFSA controls the business conduct of the Forex companies seated in Malta and enables transparency, fair market conditions, and consumer protection. It also keeps a department for consumer complaints where you can report on misconduct, misbehavior, or illegal activities of a broker. If you are looking for a secure, well-regulated, and sound market than try out one of the MFSA Forex brokers in Malta who operate according to the best practices.
What Makes Malta Excellent Choice for Forex Brokers?
According to many analysis’ results, Malta has a bright future awaiting the country. We already said that Malta has a solid banking system, but it actually occupies position 10 regarding the Global Competiveness Index 2009/2010. According to the Global Financial Services Index 2008, Malta is predicted to be one of the most significant financial markets (ranked 4th) in the upcoming period and the future hotspot for organizations to open their businesses (ranked 5th). It also offers a stable political situation and economic benefits which are ideal for any kind of business. Malta is well-respected and recognized by the EU and is a part of many EU organizations. International companies believe that Malta provides a perfect business climate for investments. Malta is also known for a practical and contemporary legal and tax framework. Malta is an all-around country offering many advantages and a flourishing economy. The country is fertile for investments of any kind which can bring in large revenues to international companies. Many Forex companies realized the benefits on time and opened their regional offices in Malta to pioneer as dominant corporations in the country which aspires to greatness.
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Tight Regulation for Forex Brokers in Malta
Malta tightened the rules on Forex companies’ registration in the last couple of years. Starting capital requirements are now higher. Forex brokers also have to identify a local human resources unit and apply relevant control procedures. Regarding platforms, Malta requires now that the platform is certified by an independent IT Auditor on an annual basis, regardless of the platform type. Still, renowned platforms will be more favored by MFSA. Also, only regulated companies in the financial sector can act as the liquidity provider, which was also authorized by a relevant EU body.
These rules have been in place for quite some time in other countries, and Malta makes an effort to follow the best examples. The new policies are widely accepted and represent a maturing process of the Forex industry in Malta. Maybe some international companies will be discouraged by the higher capital requirements or other tightened rules, but the majority of professional brokers will remain unaffected given that they already meet these standards in other EU countries. This is definitely good news for traders, Maltese and international ones alike. The new rules provide for more security in the decentralized market. Malta has great potential to become one of the Forex market leaders due to all of the above mentioned (liberal economy, neat regulation, increased number of Forex companies, etc.).
MFSA registered Forex Brokers
Besides national, there are many international Forex brokers with regional offices in Malta. All of them have to respect the new amendments to the regulation policy, and they count to reliable professional companies. MFSA regulated brokers can operate in all EU member states given that the MFSA regulation policy is in line with the MiFD. Many traders in Malta enjoy their right of protected and safe trading and the fair conditions in the market. Nevertheless, one has to be careful because the Forex market will always be risky and there is always a chance to bump into a badly regulated broker who only has the goal to take your money.
Top Forex Brokers in Malta
Top Forex brokers will always be licensed by the highest regulatory authority of the country they operate in. The same is true for the best Maltese brokers who will always be registered with MFSA. That is the first thing you should be looking for when registering with a Maltese Forex broker. Always look for the MFSA license on their website. In addition, just to be sure, you may also contact MFSA directly to make inquiries about the broker of your choice.
Even if Malta enjoys the trust of the EU institutions and evolved significantly in recent years, bad Forex brokers are still everywhere and traders should look out for them even in the most regulated countries. Unfortunately, the market still leaves enough room for manipulation and malversation which take their toll on numerous traders. In the case of Malta, you can contact the MFSA to find out which companies have never been banned or sanctioned and which have been blacklisted. The information can save you from making a bad decision.
Malta Forex Market – A Safe Bet
With the establishment and progressive work of the MFSA, Malta has become one of the desired destinations for Forex companies and Forex traders. The small country offers a safe and comfortable environment for all traders around the world. The MFSA enjoys a great reputation in the industry as one of the neatest authorities in the EU. If you are a trader looking for a new market, we would kindly suggest a well-known, reliable and reputable broker seated in Malta.