Malta: The Premier Jurisdiction for Establishing a Forex Brokerage

By Dr Kelly Fenech, Founding Partner GKF Legal September 2025

The international forex market is expanding rapidly, fuelled by innovative platforms, cutting-edge technology, and a growing appetite for diverse investment opportunities. Although forex trading transcends national boundaries, the choice of jurisdiction for a brokerage operation is pivotal, influencing regulatory standing, operational costs, fiscal advantages, and access to key markets.

For more than two decades, Malta has emerged as a leading choice for forex brokerages, offering a blend of rigorous oversight and a highly supportive business climate within the European Union. As an EU member state since 2004, Malta provides unparalleled entry to the single market, making it an ideal base for ambitious firms. Today, it is often hailed as a haven for forex operations.

At GKF Legal, we have been supporting brokerages, investment entities, and fintech ventures since our inception, with a presence in Malta and international affiliations. Our team of regulatory specialists assists clients from the outset of licensing through to sustained compliance, governance, and talent acquisition.

Malta’s Investment Services Licence: Access to the EU Arena

A primary attraction for brokerages is the Investment Services Licence issued by the Malta Financial Services Authority (MFSA). Once granted, this licence aligns with the MiFID II regime, enabling full participation in the EU’s financial services landscape.

This facilitates “passporting” of services throughout the EU and EEA without the burden of multiple national approvals. In essence, a Maltese licence opens doors to a vast, integrated market, enhancing credibility with clients, collaborators, and capital providers.

For entities aiming at expansion, reliability, and global reach, Malta’s framework stands out for its regulatory depth and market potential.

Why Brokerages Opt for MFSA Oversight

The MFSA is among Europe’s foremost regulators for forex and CFD activities, known for its balanced approach that prioritises consumer safeguards while encouraging innovation. Since Malta’s EU accession, the MFSA has built a solid track record as a forward-thinking yet vigilant body.

• Sector Expertise: The MFSA has extensive experience in licensing and supervising forex operations, including major international players.
• Transparent Guidelines: Adherence to MiFID II ensures a consistent EU-wide structure.
• Adaptable to Innovation: The authority accommodates emerging fintech models, such as those involving distributed ledger technology, within robust compliance parameters.

For forex brokerages, this means predictable regulation, clear application pathways, and a regulator attuned to industry nuances.

Fiscal Advantages for Brokerages in Malta

Malta’s tax system further cements its appeal, ranking among the most favourable in Europe for financial services.

• Corporate Taxation: A standard rate of 35%, but non-domiciled shareholders benefit from refunds reducing the effective rate to as low as 5%.
• No Withholding on Dividends: Exemptions for payments to non-residents.
• Extensive Treaty Network: Agreements with over 80 countries to minimise double taxation.
• Staff Incentives: Foreign employees may qualify for reduced income tax rates on higher earnings for up to 17 years.

These features enable brokerages to optimise returns and attract skilled professionals from abroad.

Navigating the Investment Services Licence Process

Securing an MFSA licence involves meticulous planning, adequate funding, and expert guidance. The procedure typically encompasses:

• Establishing a Maltese company.
• Preparing the application dossier, including detailed business strategies, operational protocols, compliance frameworks, and risk assessments.
• Fit and Proper Evaluation: Key personnel, directors, and beneficial owners must satisfy the MFSA’s integrity and competency criteria.
• Capital Obligations: Minimum capital requirements for relevant categories, ensuring financial robustness.
• Continuous Obligations: Post-licensing, firms must uphold reporting, anti-money laundering measures, and regular internal and external reviews.

With proficient legal assistance, the journey can be efficient and fully aligned with standards.

EU Passporting: Expanding Horizons for Maltese-Licensed Brokerages

Beyond domestic authorisation, a Maltese licence unlocks EU passporting, allowing seamless service provision in nations like Germany, France, and Italy. This empowers brokerages to:

• Rapidly broaden their footprint across Europe.
• Build trust with international stakeholders.
• Sidestep fragmented regulatory hurdles.

For those targeting EU growth, Malta delivers a streamlined and economical launchpad.

Malta’s Supportive Environment for Forex Operations

Malta has cultivated a thriving ecosystem for forex and fintech, home to numerous licensed firms and ancillary services. This fosters valuable networks, including:

• Specialised Professionals: Access to legal advisors, auditors, compliance experts, and tech specialists focused on the sector.
• Robust Infrastructure: Financial institutions, software providers, and consultants versed in supporting licensed entities.
• Talented Pool: A multilingual, well-educated workforce proficient in English and other languages.

Such resources streamline setup and operations for brokerages.

Malta: A Leading EU Choice for Forex Brokerages

When compared to other EU locales, Malta excels due to:

• Competitive setup and authorisation fees relative to peers like Germany or Luxembourg.
• Lower running costs for premises, personnel, and oversight.
• A responsive regulator that minimises procedural delays.

This equilibrium of affordability and rigour positions Malta as an optimal EU hub for forex brokerages, from emerging ventures to global leaders.

MFSA Compliance: Maintaining Standards

Malta’s allure comes with a commitment to excellence. Licensed brokerages must sustain:

• Robust AML and KYC systems.
• Effective risk controls.
• Ongoing capital adequacy.
• Periodic audits and disclosures.

This upholds Malta’s status as a reputable jurisdiction with strong protections for investors. GKF Legal offers continuous support to keep clients in line with MFSA expectations.

Quality of Life for Principals and Teams

In addition to professional perks, Malta boasts lifestyle draws that aid in recruiting elite talent:

• Secure, family-oriented setting.
• Mediterranean weather and coastal allure.
• High-standard international education and medical facilities.
• Welcoming community with English as a primary language.

For leaders and employees moving to Malta, it merges career prospects with an enviable living standard.

Comprehensive Support from GKF Legal

GKF Legal delivers integrated solutions for forex brokerages in Malta:

• Complete guidance on MFSA licensing and policy development.
• Entity formation and board structuring.
• Recruitment of qualified experts.
• Sustained AML, reporting, and audit assistance.
• Aid with EU passporting and scaling.

Our clientele spans startup brokerages to prominent investment groups, appreciating our unified expertise in regulation, corporate matters, and legal strategy.

Final Thoughts

Malta encapsulates the ideal attributes for a forex brokerage: EU connectivity, dependable regulation, tax optimisation, cost-effectiveness, and a mature support network. Coupled with its appealing location and quality of life, it is evident why Malta is a favoured EU destination for forex operations.

For brokerages eyeing EU establishment, Malta represents the superior option. Partnering with GKF Legal ensures a seamless, forward-thinking, and triumphant path through licensing, compliance, and growth.

Dr Kelly Fenech is a Founding Partner in GKF Legal’s Financial Services Practice, specialising in EU investment services law. The views expressed are his own and do not constitute legal advice.