HOW TO OBTAIN FOREX LICENSE IN MALTA
As a member of the European Union, since 2004 Malta operates according to European standards and requirements.
The applicant who is willing to obtain financial license in Malta, will obtain license in an organized country with a highly developed economy and attractive tax environment.
Obtaining a brokerage license in Malta allows its recipient to work throughout Europe according to the EU certification Directive.
In order to obtain a brokerage license in Malta, company should have a paid authorized capital and a physical office in Malta.
An important requirement for the obtaining a forex license is employing a qualified staff.
Company that obtained forex license in Malta is required to deliver regular financial reports.
The holder of a forex license is required to strictly follow the legislation and authority regulations of a central of financial and investment services regulator.
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Regulating Authority in Malta
The Malta Authority responsible for obtaining license, permissions, including banking and forex services.
• Reception and transmission of orders concerning one or more financial instruments;
• Implementation of orders on behalf of clients;
• Working with private account;
• Investment management;
• Trustee, keeper services;
• Investment advice;
• Underwriting of financial instruments and / or placing of financial instruments on a firm obligation basis;
• Placing of financial instruments not on firm commitments basis.
The main categories of forex licenses in Malta
Category 2 license - STP, broker acting as principal without risk ( 'white label partner')
According to this forex license category brokers send orders directly from their clients to liquidity providers that are international banks with open access to the real market traders, as well as for market prices.
Category 3 license - Market maker, the broker has the right to set prices, manage clients' funds at his discretion, work directly (dealing on his own account).
Any of the categories above is suitable for online forex and binary options.
The authorized capital of the company with the forex license
Category 2 - 125 000 euros
Category 3 - 730 000 euros
Authorized capital must be formed in a local bank before obtaining a license.
Authorized capital must always be maintained at a level no less than the minimal, but at the same time, the company may invest it in highly liquid assets, meaning it cannot be spent, but it is allowed to invest, for example, in government bonds.
Timeframes for obtaining forex license in Malta
Preview company documents in the MFSA and approval of documents in MFSA - approximately 4 to 6 weeks.
Pre-licensing stage, deciding about obtaining a license by MFSA, the stage before starting direct investment activities - from 6 to 12 weeks.
The whole process of obtaining a license takes about 5-7 months.
Financial reporting with forex license
• Daily reporting on transactions / clients trades (only for Category 3 license);
• Monthly financial statements (only for category 3 licenses);
• Quarterly financial statements (only for category 2 licenses);
• Annual audited financial statements;
• Annual unaudited financial statements.
SBSB offers qualified assistanse in obtaining brokerage licenses in Latvia and other jurisdictions.
Please check all the list below on page.
If any help in obtaining brokerage license need, please, feel free to contact our specialists via phone-call (numbers required can be found in contact list on the internet page) or by submitting a form located on the left side of the page.
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