Is it legal to trade binary options in Malta?
Not only is binary options trading legal in Malta, but it is also regulated strongly. Malta recognizes that binary options are part of the European Union’s jurisdiction in the Financial Instruments Directive (MiFID). Financial instrument trading and companies are clearly defined in this document. Malta’s regulatory body is the Maltese Financial Services Authority (MFSA).
Brokers that comply with MFSA’s fundamental requirements are granted a license. These requirements include things like promoting choice and competition, safeguarding Malta’s reputation in terms of its commitments internationally, and guaranteeing the protection of both the general public and investors. Brokers are required to hold net capital to the value of about $900,000 to prove they will be able to meet the obligations to their clients. Depending on the service provider’s scale and volume, higher requirements may be imposed.