Top Forex brokers in Malta

The Republic of Malta is an archipelago in the Mediterranean Sea, right next door to the South of Italy, Tunisia, and Libya. Being located at the crossroads between Europe and North Africa, it seems like this island state has combined the best of the two worlds and ended up with a unique, vibrant culture and fascinating ancient history. For a long time, this country has primarily served as one of the most popular travel destinations, and thousands of tourists from all over the world were attracted by its antique architecture, picturesque scenery, and great nightlife. However, it was not until recently that Malta became known for something other than being a popular vacation spot.

With the entire territory amounting to 316 square meters and a population of over half a million people, Malta is the one of the most densely populated countries in the world. Although the country’s national economy has never been particularly viewed as a shining example of success, it has definitely come a long way to become what it is right now – stable, fast-developing, and full of opportunities. Such a notion is no accident, as the Maltese government has been very dedicated to leveling up the national economy, and making the local economic environment attractive to both the local and foreign investors. More and more people get interested in investing in financial assets. And in this guide, we’ll help you pick the best brokers.

Maltese Forex brokers we chose for you

Choosing the broker that is right for you always takes a lot of energy and time. There are so many brokers to pick from and they all have different offerings. As a trader, first you need to think about what you are looking for. For instance, if you plan on active trading, it’s best to pick a broker with low spreads. In case you wish to swing trade, it’s better to go for a broker that offers low commissions. In addition, trading platforms, regulations, available assets, and customer support needs to be taken into account. To aid you in selection, we have made a top list.

Forex trading regulations in Malta

The main regulatory body in Malta is the Awtoritàgħas-Servizzi Finanzjarji ta’ Malta, or the Malta Financial Services Authority ( MFSA). Created back in 1988, this entity has been undergoing a lot of changes, with the most significant being the assumption of the responsibilities of the Malta Financial Services Centre, Central Bank of Malta and Malta Stock exchange. The MFSA is completely autonomous and reports directly to the Maltese Parliament. On top of that, the body enjoys a large amount of power in the country’s financial sector. The MFSA has the power to regulate, monitor, and oversee the smooth and secure functioning of the financial sector, as well as advise the government on the relevant policies and instigate investigations into the potentially harmful and illicit practices.

The main sectors that the MFSA oversees are the securities market, insurance, pensions, banking, investment, and, of course, the Forex trading brokers in Malta. When it comes to the main strategy that drives the operations of this regulatory body, it is mostly revolved around two key factors  – consumer protection and ensuring the market’s growth and expansion. Given the overall state of the country’s national economy, the financial sector, and the Forex market in specific, it is easy to see that the body is doing an amazing job of meeting both of its key goals. We will now take a closer look at how the MFSA manages to remain one of the most efficient FX regulatory bodies in Europe.

The Forex trading brokers in Malta who wish to offer their services to the local traders are required to obtain an official license from the MFSA. In order to do that, the broker will have to demonstrate that they are sufficiently qualified to operate in this fast-growing market. Moreover, after the license is obtained, the MFSA continues to closely monitor its licensees to ensure that the requirements that it put forward are met at all times. This is achieved via constant audits and reviews that the brokers have to submit for the MFSA’s periodic reviews. Such reports mostly, but not exclusively, focus on the breakdown of all financial activities, traders’ success rated, and many more.

A required level of operational capital

One of the most common regulatory measures that various entities demand their licensed brokers to abide by is the minimum operating capital that the broker needs to possess in order to provide its services. This particular regulatory measure is a great way for the MFSA and other entities of a similar nature to ensure that the broker is not operating on the verge of bankruptcy, and, indeed, is a legit broker as opposed to being a scam scheme. When it comes to Malta, brokers there are required to possess a minimum of 730 000 EUR, and, in order to obtain the license from MFSA, they need to provide sufficient paperwork that proves it. Although simple at first sight, such a measure did actually prove to be highly effective, as the amount of con artists among the legit Forex trading brokers in Malta has reduced drastically.

Popular trading platforms in Malta

Choosing the right trading platform is essential for success, especially for beginners. Platforms help conduct technical analysis, automate trading, copy trade, and place various order types. Some of the most popular software for trading CFDs (Contracts for Difference) in Malta are: MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader. These platforms are super reliable, support algorithmic trading, come with desktop, mobile and web trading versions, and are popular throughout the world. It should be mentioned that MT5 is a multi-asset software, while the MT4 and cTrader are mostly used for trading FX, indices, commodities, and crypto derivatives.

Summary

Overall, we can say that Forex and CFD trading in Malta is becoming increasingly popular. The local regulator, the Malta Financial Services Authority (MFSA), oversees the financial markets in the country. However, it should be mentioned that the number of local brokers is limited, and the regulator is not highly experienced hen it comes to regulating brokers. On the upside, residents of Malta are free to open accounts with international brokers with great reputation and amazing trading conditions, such as XM, AvaTrade, Plus500, and others.

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