The Malta Financial Services Authority (MFSA) has issued a statement of warning to the general public given the increasing number of unlicensed or unauthorized forex brokers operating in the country though a string of websites and advertisements.
MFSA Working To Expose Fraudulent Brokers
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The MFSA is the paramount regulator of financial services offered in and from Malta, whose duties include the regular policing and oversight of a variety of operations, namely forex. Last month, the body was particularly active, warning against a variety of unauthorized operations, including several forex firms.
Unauthorized forex brokers pose a tangible threat to investors, given the lack of credible backing, liquidity, and general lack of regulatory oversight. Malta, like several countries throughout the industry, maintains a growing forex market, encroached by a number of unlicensed brokers. In its most recent edict, the MFSA cites a number of websites that falsely claim to hold offices in Malta, along with issuing fraudulent statements of fiscal oversight by the MFSA. As a corollary, the entire list of regulated firms in Malta can be found on its website.
For these reasons, the MFSA advises all traders and individuals to exercise caution when dealing with any forex brokers whose licensing is in question. As such, prospective users are advised to first consult the MFSA database in order to ascertain the true regulatory status of a given broker.