The MFSA has issued a Notice regarding applicants for a Category
2 or Category 3 Investment Services licence that would like to
carry out online forex trading in terms of the Investment Services
Act.
In this Notice, the Authority set out its criteria regarding the
licensing of entities that would like to offer online forex trading
to retail clients in terms of the Investment Services Act,
following various factors that the Authority has come across in
handling applications in this sector as well as various risk
warnings issued at EU level alerting retail investors to the main
risks involved in forex trading.
The issuance of these criteria are intended to give clear
guidance to the industry of the aspects that applicants wanting to
offer online forex trading to retail clients are expected to
satisfy. Moreover the high risks associated with forex trading by
retail investors due to the reliance on automated systems, the
complex nature of forex products and the
