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FOREX - Why Malta?

01/02/2012

FOREX businesses are choosing Malta due to a number of factors: flexibility as to leverage ratios, legal clarity are primary drivers.


Author: Dr Charles Cassar
 

The Malta FOREX solution is becoming an increasingly popular choice among businesses looking for a viable FOREX domicile.

Malta as a Top FOREX domicile

Why is this growth taking place? Firstly, the Malta FOREX domicile solution is popular for many of the same reasons that Malta is popular as a domicile for other sorts of business. Malta has built a sound business environment which has attracted hedge funds, gaming operators, investment boutiques, financial institutions. The key drivers are therefore the competitive costs, approachable regulators, low taxes, quality professionals and quality of life.

Legal certainty for Malta Forex Business

In addition to the above, Malta also has a number of characteristics that are very significant for FOREX businesses. Legal clarity is one such issue; in various countries, FOREX suffer from a lack of legal and regulatory clarity. Malta FOREX businesses, on the other hand, are regulated under the Investment Services Act, 1994. This is the same legislation that implements MiFID (the EU Directive on investment services) into Maltese legislation. This can gives rise to various advantages, including high and clear regulatory standards, certain opportunities for passporting, as well the comfort of having certainty as to the applicable legal and regulatory regime.

Flexible Forex Regulation

Plus, Malta also has flexible rules with respect to leverage ratios. This allows Malta FOREX businesses to cater for a broader array of investor risk appetites.The Malta FOREX solution is becoming an increasingly popular choice among businesses looking for a viable FOREX domicile. 


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