Best MFSA (Malta) Regulated Forex Brokers 2018

Consumer protection is one of the most important things to consider before signing up and depositing your hard earned money with any broker. For investors looking for a reputable broker in Malta, MFSA regulation is the first thing you should check before even thinking about their bonuses or other terms and conditions. Here’s our list of the very best MFSA brokers based on our research and that of our users. 

Introduction to MFSA Regulation

Malta has proven itself to be very proactive in its efforts to be recognised as a top tier financial center in Europe. The country has incorporated new technologies in the financial markets and has created a strong banking system. In addition to these, the country has implemented a quality regulatory system known as the Malta Financial Services Authority (MFSA). 

MFSA is Malta’s main regulator of the financial system. It is responsible for the licencing of every brokerage in Malta, as well as the regulation of services they provide. MFSA was first introduced in 1988 and has since had numerous reforms regarding their financial policies and regulations, the latest one being in 2014. As well, since Malta is apart of the European Economic Area, it is required to follow the guidelines laid out by the MiFID derivative. Malta’s government places high priority on the protection of their investors, and appoints the MFSA to fulfill this need. However, the MFSA is an independent regulatory agency that reports directly to the Malta Parliament. 

The MFSA is the sole independent and autonomous supervisory authority for financial services in Malta. These financial services include stocks and investment firms, insurance companies, credit institutions and pension schemes.   It was established in mid-2002 upon resolution that this function was to be devolved from the Central Bank of Malta. The two other institutions that were involved in this type of regulation are the Malta Financial Services Sector and the Malta Stock Exchange.  

MFSA Responsibilities 

The MFSA carries out many responsibilities, including the responsibilities that the Central Bank of Malta once had. The MFSA has taken these over, and now regulates and oversees various financial entities such as the banking, insurance, pensions, securities, as well as other sectors. This makes the MFSA responsible for the regulation and enforcement of guidelines, as well as the licensing of forex brokers. Malta requires that all forex brokers residing in Malta are to be licensed and regulated by them.  

It is the duty of the MFSA to create and amend the legal framework that is to be followed my brokers in their operations. Owing to the fact that the MFSA provides licenses to brokers, it is their duty to perform background checks to ensure that the brokers are carrying out legal business. It is also is responsible for analysing both local and international markets and providing periodic reports so as to keep market participants in the know of potential opportunities as well as how to best address risks. Investor/consumer education is also part of their mandate in that they are required provide insight about the markets that will attract as many participants into this sector. This responsibility is tied to the fact that they must create a transparent and reputable market environment that is will help investors achieve success in their undertakings. 

MFSA is required to report their findings in terms of performance of local industry players as well as the state of the market on an annual basis.  

How MFSA Regulation Protects You 

Investor protection is the greatest goal of the MFSA and the organization takes it very seriously. The agency has numerous departments dedicated to helping investors with any problems regarding scams, or any other financial abuse they have incurred. As well, the MFSA has initiated many financial education programs to inform investors on the practices of investing and the financial markets. Also, the MFSA collaborates with the government and authorities to bring an end to fraudulent activities in the financial sector. All in all, the MFSA does a very good job of protecting investors who use regulated MFSA brokers.   

Owing to the fact that the MFSA is autonomous, there is virtually no chance of external parties interfering with its mandate. This means that its primary objective of safeguarding the rights of market participants remains their top priority no matter the circumstances. MFSA proactively protects you by availing a large amount of content for the purpose of investor education. This means that MFSA empowers you by providing the necessary information that would help you make informed decisions in regards to investment in the financial market.  

MFSA is the main agent that has the mandate to uncover and investigate financial crime; therefore it also acts as an avenue where you as a consumer/investor can report suspected cases of financial crime. The guidelines for this can be found under the Whistleblowers Act (CAP. 527). 

Guidelines for MFSA Regulated Brokers 

Since Malta makes the protection of investors of the upmost importance, the MFSA enforces strict guidelines to ensuring their safety. For instance, all brokerages in Malta must be licensed and regulated under the MFSA to ensure investors safety. As well, they must submit periodic audit reports to ensure they are complying with the financial requirements set out for them. Brokerages are now required by the MFSA to hold at least €730,000 in operating capital, and they must employ professional and experienced employees. These guidelines and rules are set in place to prevent fraudulent brokerages from operating within the country.  

Brokers regulated by MFSA are required to avail their premises and resources for scrutiny upon request by the regulator. This means that the licensee will be required to submit audited accounts as well. MFSA does this to ensure that the brokers always follow the operation guidelines. The MFSA requires its licensees to cooperate and take steps towards upholding the Anti-Money Laundering policies.  

Top Brokers
// Top Brokers By Promotion Type

List of Brokers

BROKERUSER RATINGREGULATED BYHEADQUARTERSMIN. DEPOSITOFFICIAL SITE
Plus500
ASIC, CySEC, FCAIsrael$100Open Account
  • CFD Service. 80.6% lose money
AvaTrade
ASIC, BVI, FSA(JP), FSB, MiFIDIreland$100Open Account
  • Your capital is at risk
eToro
ASIC, CySEC, FCACyprus$200Open Account
  • 65% of retail investor accounts lose money
Markets.com
CySEC, FSBCyprus$100Open Account
  • CFDs carry risk. 73% of traders lose
FXCM
BaFin, FCAUnited Kingdom$300Open Account
  • Your capital is at risk