Brokers’ license withdrawal for inaccurate reporting
4 Forex brokers are left in Russia. The remaining five left the market due to the decision of the Central Bank.
Most organizations are widely known in the market. In particular, we are talking about “Forex Club”, “Fix Trade”, “Trastforex”, “TeleTrade Group” and “Alpari Forex”.
Firms engaged in interbank currency exchange and worked with a huge number of traders who play the dollar, euro and ruble rates. However, in fact, as it turned out, everything is not so simple. The five companies listed above left the market on January 27 and are now without a license. In addition, until that time, they are obliged to return all funds from personal accounts to their customers.
Brokers’ license withdrawal expected: what were the companies guilty of?
The Central Bank more than once gave instructions to companies that were forex operators. But, unfortunately, not all of them were met. In particular, companies in the LLC format filed false or incorrectly filed reports with the regulator. The Securities Laws were violated. Observed problems with the calculations of own funds.
The main claim of the regulator is that each of these firms has structures in offshore areas through which the activity was carried out and taxes were not paid to the budget of the Russian Federation.
The remaining brokers are also in question. For example, Alfa-forex worked until the spring of 2018 with the help of an organization based in Cyprus.
The regulator notes that not all forex service dealers are credit organizations. Nevertheless, they offer their clients trade on credit or on bail.
It is estimated that, in total, companies with no longer valid licenses should return to their customers 35,000,000 rubles. In total, there were just over two million such traders, of which about 470 thousand were active traders. However, most of the finance immediately went to offshore and their assessment is not available to the Russian regulator.
According to experts, licenses are not important things that forex brokers in Russia need. Now they will not be able to advertise in official sources and attract Russian-speaking clients. Globally, the care of dealers will not affect anything: these are offshore organizations limited liability companies in Russia. It is expected that firms will continue to carry out activities – now illegal. Nevertheless, the impossibility to advertise in Russia will force them to reformat their business, including on residents of other countries: unfortunately, without a constant influx of newcomers, the business model of a forex dealer does not work.
Based on the reports, earlier the forex market was divided between the three main leaders: Alpari, Forex Club and TeleTrade. All three companies, as noted above, are now without a license from the Central Bank.
