Why Malta?
Malta |
Malta offers many advantages including:
- Higher leverage options
- Opportunity to employ “hedging” strategies
- Ability to choose ticket based trading (no FIFO)
- Segregated accounts – offering added safety of funds
- Funds can remain with JP Morgan Chase NY
FXDirect Dealer Malta is an affiliate company incorporated in Malta, a full member of the European Union, and operates under the same regulatory structures as all other financial services companies in the European Union.
GENERAL QUESTIONS AND ANSWERS:
Q: What is the maximum leverage that a Malta account will provide?
A: Customarily 1:200. Higher leverage may be offered in select cases.
Q: Will a Malta account allow hedging?
A: Yes. You will have an opportunity to exercise a "hedging" strategy to the extent available within the software.
Q: Will a Malta account operate based on the FIFO rule?
A: You will be able to close all open positions in any order without regard to FIFO.
Q: Will a Malta account offer the same spreads?
A: The spreads will be identical to what TFX New York is offering.
Q: Are deposits and withdrawals going to be handled in Euros?
A: No, in USD.
Q: Where will my funds be held?
A: The majority of your funds will be held in a segregated customer account at JP Morgan Chase bank in New York, just as they are now.
Q: Is Malta regulated?
A: Yes. Malta has received a category 3 license issued by the Malta Financial Services Authority (MFSA). The MFSA is the equivalent of the SEC and the CFTC in the United States or the FSA in England. The MFSA is a very strict regulatory agency and its guidelines for operation are equal to those in other jurisdictions.
Q: What else can you tell me about why you chose Malta.
A: Since joining the European Union in 2004, the government of Malta has actively promoted the Republic’s development as a prime international business and financial center. All Financial Services businesses have been regulated by the Malta Financial Services Authority (MFSA)(www.mfsa.com.mt) since 2004, and subsequently under the Markets in Financial Instruments Directive (MiFID). The combination of these regulatory structures has created a harmonized regulatory regime for investment services throughout the European Economic Area in which Malta is included.. Malta also has double taxation agreements with 46 countries worldwide and another 15 are pending. As a member of the EU, Malta also cooperates with international organizations such as the Organization for Economic Co-operation and Development (OECD). As a result, Malta enjoys an excellent reputation and track record as a forward-looking international business jurisdiction. Malta was recognized in the third edition of the Global Financial Centers Index (GFCI) report published in March 2008 by the City of London Corporation as one of the top three financial centers worldwide likely to increase in importance over the next two to three years. TFX intends to be a part of that growth.
In addition to its excellent regulatory structure, Malta also offers a unique combination of Mediterranean Europe’s life and culture. Coupled with is cosmopolitan attitude toward global business, good location and temperate climate, Malta’s consistent constitutional based legal system, world class banking structure, leading edge technology infrastructure and highly educated multi lingual citizenry have made it a prime jurisdiction for many international companies. The vast majority of Malta’s citizens are at home in English and Maltese, and Italian, French and German are widely spoken. Malta was fortunate to have fared well in the recent economic downturn and enjoys a high credit rating among global credit rating agency agencies. Financial World Online noted that:
“Malta has weathered the global market turmoil and economic downturn better than most... In the World Economic Forum Competitiveness Index for 2008-09, Malta was judged to have the 10th soundest banking system among 134 countries, and came 18th for financial market sophistication.”
In 2009, Standard and Poor's maintained its stable outlook for Malta reaffirming its A/A1 credit rating, Fitch reaffirmed it’s A.