The main focus of the article is an advanced actuator, designed and optimized for small dynamic legged robots. The presented actuator prototype is unique, as the market lacks similar solutions when dimensions and weight of the module are considered. The actuator has a modular structure, which makes it easy to replace in case of malfunction and simplifies the overall structure of the robot. High torque bandwidth, achieved by the module, is crucial to agile locomotion, obstacle avoidance and push recovery of the quadrupedal robot. The Authors have conducted a solution review aimed at similar small-size modules. It was found that there are no advanced actuators suitable for sub 5 kg quadruped robots. The unique design presented in this paper is described in all three aspects: mechanical, electrical and software. The mechanical section depicts the solutions implemented in the module, especially the low gear ratio gearbox. The custom brushless motor driver is presented in the electrical section, together with detailed diagrams and hardware descriptions. The last section depicts solutions implemented in the software, the main motor control algorithm and auxiliary modules such as automatic motor parameter identification and encoder misalignment correction. Tests performed in the last part of this paper validated the design goals established for the actuator. The results confirmed the high torque capability and exhibited the motor saturation region. Continuous and peak torque were measured based on the thermal characteristics of the module. Moreover, the automatic motor parameter identification process carried out by the controller itself was validated by manual measurements.