Forex in Malta can operate in the form of investment companies, not before obtaining the specific licenses for this industry. The Malta Financial and Services Authority or MFSA is the institution that supervises financial operations in Malta and approves activities in this field. If you want to open a Forex company in Malta, we invite you to discuss all aspects with one of our company formation agents in Malta. We have experience in this field and can take care of the formalities related to Forex in Malta.
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What can you do with Forex company in Malta?
Forex or foreign exchange is the largest financial market that involves trading that can exceed USD 2 trillion every day. Forex in Malta is not limited to a single currency because all currencies available in the world are accepted. Being a decentralized market, there is no physical location, and Malta Forex brokers can negotiate or mediate the listed businesses.
A Forex company in Malta can be involved in various investments and can offer specialized services to those interested in forex exchange. Malta Forex brokers can be of use to you in this regard, if they are licensed, first of all. As for opening a Forex company in Malta, here are some formalities:
- Application for an Investment Services License is an important document for this type of business. One of our agents can draft such a document.
- Articles of Association or Partnership Agreement are required to open a Forex company in Malta.
- A covering letter is needed as well as a supporting Board Resolution to be able to launch the business.
- It is necessary to prepare a profit and loss balance sheet for 3 years. You must also provide comprehensive information about the operational structure of the Forex company in Malta.
Our company formation agents in Malta can tell you more about Forex in Malta if you want to make investments of this kind. We can also help you apply for Malta Forex brokers licenses.
Malta Forex brokers – what licenses are required
The MFSA is the authority that issues the Forex broker license in Malta. Practically, this statute allows you to engage in exchange activities on the market and to coordinate foreign investments, according to clients interested in this aspect. There are 4 categories of Forex licenses in Malta, depending on the responsibilities of the applicant. Here is how these license categories are explained:
- Category 1 is necessary for agents who want to offer business advice, but without having control over the investors’ assets. This is the most popular category and chosen by Malta Forex brokers.
- Category 2 addresses Malta Forex brokers who can control the clients’ investments, money, or assets.
- Category 3 assumes the same responsibilities as category 2, with the mention that Malta Forex brokers can deal with their accounts.
- Category 4 addresses collective investments. They can be controlled and supervised by trustees or custodians.
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.
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.
Choosing the right services for Forex in Malta
Having an impressive status in the financial field, Malta is chosen by foreign investors for business safety, protection, and a stable climate. And to get an idea in this regard, you can browse the following statistical data:
- The real GDP in Malta is expected to reach 4.9% in 2022.
- Net exports and consumption are key elements for economic growth in 2022, in Malta.
- Inflation in Malta increased moderately in 2021, by approximately 0.7%.
- Around 97% of the total FDI in Malta was absorbed by the financial sector in 2020.
Do you want more information about Forex in Malta and how to activate in this field? You can contact our company formation agents in Malta for all the information.