Online Forex trading in Malta is legal and operates under comprehensive regulation by the Malta Financial Services Authority. The Investment Services Act provides that no person shall provide an investment service in or from within Malta unless in possession of a valid investment services licence. Foreign exchange acquired or held for investment purposes is one of the instruments listed in the Investment Services Act, requiring companies offering forex services to obtain a licence from the MFSA (1).
The MFSA is responsible for the licensing, regulation and supervision of investment service providers operating in and from Malta. Financial regulators have noticed an increase in unauthorised firms offering transactions or platforms to trade in currency derivatives such as contracts for difference, FX forwards, and rolling spot contracts. Without a licence, companies cannot legally offer trading platforms or forex products, as they would not be bound by investor protection rules including safeguarding client assets, disclosure of risks, and complaint handling (2).
"The Investment Services Act provides that no person shall provide, or hold himself out as providing, an investment service in or from within Malta unless he is in possession of a valid investment services licence."
Malta's forex licensing framework includes different categories based on the services provided, with Category 2 licences required for entities executing orders as riskless principals and Category 3 licences for market makers dealing on their own account. Licensed companies benefit from passporting rights, allowing them to offer services throughout the European Union and EEA jurisdictions when forex includes derivatives such as CFDs, futures, options, or swaps in relation to currencies (1).
Source:
https://ccmalta.com/publications/malta-company-forex
https://www.mfsa.mt/service-detail/forex-trading/
Last updated: 15-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
