Forex market is the biggest financial market in the world. Everyone can trade there. However, when you want to invest your money, it would be wise to choose a regulated and legit brokerage that will make sure that your money is safe and well spent. The regulated brokerage has the license to operate. In case anything happens to the brokerage, there is another party that would cover the loss of the clients. That’s why it is important to choose a reputable firm only for safety concerns and reasons.
Initially when forex trading first allowed in Russia in 90’s there are only few brokers were operated the market. But after sometime Russian traders interest in trading had grown rapidly and a good number of forex brokers are start investing in Russian forex market. But still there is a huge scope of forex trading in Russian financial market. There are many forex broker who helps russian trader for currency exchange.
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The Regulation in Russia
Each country has their own regulation, observed and monitored by the official organization or firm. In Russia, the Forex trades are monitored by the RAFFM (Russian Association of Financial Market) which is basically a self-regulatory body. Basically, there is no official or legit regulatory framework for such financial services like the CFD trading or Spot FX.
The problem with the brokerage in Russia is that there are so many unregulated brokerages with strong influence and presence in the area. The RAFFM doesn’t have all the power to manage it all but the best thing they can do is to deal with customers and reassure them about the unregulated brokerages.
The Main Problem
Despite its presence, RAFFM isn’t considered important. In fact, in Russia alone, it doesn’t have any strong or positive reputation. A lot of people have questioned why such organization exists, suspecting the body to run a certain hidden purpose in their existence.
However, the Russian government seems to notice the issue. Through their upper chamber of parliament, the Federation Council has approved a new Forex law. For instance, brokerages will have to own license to operate. The license can be obtained from SRO (Self-Regulatory Organization) operating under the government monitoring and supervision. Any brokerage who isn’t the member of the approved SRO will have to stop operating and close down their activity.