Simplified Client ID Will Be Great For Russian FX Brokers

Russian flagThe Russian Brokers are going to benefit significantly from the new bill that has been recently submitted to the Russian Duma. This new bill has suggested for a simplified procedure for identifying Forex clients. Right now, the existing process of client identification both in and out of Russia has come to a standstill in FX trade process. This bill would indeed be a great help to the Russian Forex brokers.

As per the makers of the bill, the legal Forex market in Russia is a kind of restricted one. As of May 15, 2018, only 3539 licensed Forex brokers are operating in Russia which is very minimal in comparison to the size of the country. In Russian territory, more than 200 unregulated FX brokers are running their services. These unlicensed companies are operating their business in offshore locations that help them avoid some regulations. At the same time, these companies offer their trade services to more than 500,000 traders with an average deposit to the tune of 50 to 60,000 Rubles.

New Forex Laws will Change the Market of Russia

The existing Forex laws of Russia compel a majority of reputed Forex investors to stay outside the jurisdiction of the country. The current Forex law was signed and put into practice by Russian President Vladimir Putin back in 2014. The rules are quite restrictive and demanding for a change. As per the current law, Forex dealers have to deal in Forex only and not allowed to invest in order trades. At the same time, they should have a minimum capital budget of 100 million Rubles.

The trade laws are far more strict and restrictive for Forex investors who want to hold 150 billion Rubles in client funds. Some of the different restrictions are like having a brick and mortar office and maximum leverage. The reason for implementing the new Forex law was for overall growth in the financial market getting rid of scams in Forex sector.

According to the lawmakers in Russia, there are a lot of discrepancies in the current Forex law and clients are unable to identify themselves accurately. Forex brokers at offshore locations offer easy access for clients to open their FX accounts online without having to visit the office in person. The new bill will require clients to sign a single piece of contract with the Forex dealer, and it will be immediately applicable to all the companies having Forex dealer licenses.

Top10FX.net Editor

Top10FX.net Editor

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