Similar to Cyprus, Malta also has a certain reputation for attracting financial services firms and banks to set up a local presence on the island. However, the number of CFD & forex brokers operating out of Malta is not great. This may be due to local regulations, or simply the fact that Cyprus is the preferred “offshore” jurisdiction in Europe.
Just as in all other EU countries, CFD & forex brokers in Malta are regulated by the European Securities and Markets Authority (ESMA) in addition to the Malta Financial Services Authority (MFSA). This has introduced strict regulations on brokers operating on the island, such as limiting the amount of leverage a broker can offer to 1:30 for major FX pairs, and even less for other trading instruments.