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What a trader should know about Forex brokers registered in the Russian Federation

Kevin June 13, 2020 0
What a trader should know about Forex brokers registered in the Russian Federation

In the 70s of the last century, American President R. Nixon announced a decision to abandon the gold standard. As a result, the range of fluctuations in the exchange rate of national currencies against the dollar has changed significantly (increased from 1% to 4.5%). The Bretton Woods system, which contributed to the recovery of the world economy after the war with fascist Germany and its allies, ceased to exist.

The above events have become the main reason for the emergence of the foreign exchange market (Forex), the subjects of which are free to buy / sell money of interest to them, as well as conduct speculative operations on it in order to generate income. This type of activity quickly gained popularity, and since the 90s. 20th century, its participants are citizens of the Russian Federation. And, despite the fact that Forex brokers registered in Russia for many years were very rare, traders from the former union learned to earn on English-language platforms, even without knowing this language.

The main features of Forex brokers with Russian registration

The development of Internet trading in the Russian Federation has been chaotic for many years. Those who wanted to earn income in the Forex market did not have the necessary knowledge, officials were in no hurry to pass laws regulating this type of activity, and foreign companies providing financial services were in fact in an illegal situation.

But in 2016 there was a major breakthrough in this direction. On January 1, the Forex law came into force (under number 460-F3), the clauses governing the activities of forex brokers were added to the current law “On Securities”, and the Central Bank compiled a list of mandatory conditions for obtaining a license for this regulator.

Readers who are interested in Forex brokers of the Russian Federation should know that at the beginning of 2019, there are no brokers among the subjects of the Forex market (who received a Central Bank license). They do not withdraw their customers’ money to the interbank market, that is, they are Forex dealers. But since most traders and review authors on this topic use the term “brokers”, we will not violate the established “tradition.”

The list of requirements of the Central Bank for brokerage companies and their main features includes:

  • The maximum leverage should not exceed 1:50. Operations performed become less dangerous, which helps users avoid serious financial losses.
  • Clients’ money should be kept in separate accounts with reliable banks. This allows traders to leave the trading floor at any time and get their deposit.
  • The number of currency pairs must not exceed 26.
  • Official Forex brokers must pay tax for their clients (personal income tax in the amount of 13%, and for non-residents 30%).

The list of Forex brokers of the Russian Federation who fulfill all the necessary requirements of regulators.

At the end of 2018, many Forex market participants lost their Central Bank of Russia licenses, so in January 2019, the list of legal brokers included:

  • VTB Capital Forex. Has been operating in the financial services market since 2017. It has a Central Bank license and is a member of the Association of Forex Dealers (AFD).
  • LLC Alfa-Forex. Since 2019, he has not been engaged in investments in the Forex market. Included in the Alfa Group consortium. He is a member of the AFD, provides financial services under a license from the Central Bank.
  • FINAM Forex LLC. It is part of the FINAM holding, since 2017 it has been providing financial services under the Central Bank license and is a member of the AFD.
  • LLC PSB Forex. Belongs to Promsvyazbank, a member of the AFD, has been operating since 2017 under the license of the Central Bank of Russia.

Starting from 2019, to obtain a Central Bank license, brokerage companies must become participants in SROs (self-regulatory organizations – indicated by AFD or the National Association of Forex Dealers). Also, a legal broker must have a capital of 100 million rubles, and membership in an SRO and the license itself will cost the company 2 million rubles.

Services of Forex brokers with ruble accounts

The question of which currency accounts a brokerage company uses is very important for many traders. Forex brokers with ruble accounts save their users from the need to constantly convert rubles into euros, dollars and other currencies (or vice versa). Another problem that arises in the process of working on trading floors where accounts in rubles are not provided is that some traders start to get confused with the exchange rate, do not correctly consider potential profits, lose money on conversion, etc.

The list of brokers who provide their customers with the opportunity to conclude transactions in rubles, except for the above companies (with securities of the Central Bank), includes:

  • Forex4you.
  • Alpari.
  • XM.COM.
  • Weltrade.
  • Kalita-Finance.
  • Binomo Ltd.
  • Yardum and others.

What are the benefits of working with legal Forex brokers?

The list of the main advantages of cooperation with brokerage companies that are registered in Russia includes:

  • The trader has the opportunity to receive a statement of income, as brokers with Russian registration pay personal income tax based on the income of their clients.
  • Representatives of the brokers in question work in many cities of the Russian Federation.
  • Traders conclude transactions in rubles, which saves their money on conversion.
  • Withdrawal of funds is carried out without delay.
  • In case of disputes, users of trading platforms have the opportunity to contact the regulator for an objective assessment of problematic issues.

Some participants in online trading believe that they do not need such a “service” as paying taxes. Of course, on the one hand this is a “minus” – the trader loses the money that he earned by hard work. But, if you approach this issue from the perspective of a law-abiding citizen, the PIT allows you to feel confident, feel free to buy expensive things, and openly talk about your work. This is especially important when a person makes decent money and begins to acquire cars, expensive household and computer equipment, etc.

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