Forex trading in Russia can be a rather complicated matter; Not everyone is able to understand every concept and variable, let alone act according to them. However, it is a complex issue that attracts thousands of new investors every day, from all over the world.
We have taken the responsibility to tell you about forex trading in Russia for Russians, from the best Russian forex brokers to how the regulations work in this region so that you can gather the necessary experience to either overcome curiosity or actually start trading the Russian market.
As such, it is time to delve into the inner workings of forex trading in Russia.
Russia and Forex: A History.
When someone thinks of Russia, the usual image is that of a totalitarian nation that has no financial liberties over its citizens. However, that has changed over time, and the main reason behind that image is its history as a kind of nation.
Today, there were not only forex brokers in Russia, but also led the incursion of secret governments, as Russia was one of the first companies to show interest in crypto assets and blockchain technology.
However, we are interested in forex trading in Russia, so it is time to start taking stock of what it is now and how it came to be that way.
Forex trading Russia started small, with only a few traders participating in it. This changed in the 1990s, when interest in forexbegan to dominate the world, and a wave hit Russia.
Since then, Russia’s forex brokers and traders have been significant presences in the region, with the most successful of them becoming closely related to the global forex environment – but that doesn’t mean they can’t improve.
As mentioned earlier, Russia is developing its economy, focusing on its role in the world economy. The government has taken steps to create a real market economy, and this development leads to a certain instability and uncertainty between the citizens and those who look from the outside.
One of the best examples of this development is how access to foreign exchange became easy, because it was only possible through public auctions – a very primitive and unregulated method of currency trading.
However, 1989 marked the beginning of a series of changes to elicit flexibility in exchange rates, and the Central Bank of Russia opened its first currency exchange in 1992, called the Moscow Interbank Exchange, or MICEX. From this time on, I became responsible for trading digital and foreign currencies
While there are financial regulators in Russia, the Russian Central Bank is still the main regulator when it comes to forex trading Russia. And since he has the ability to grant special licenses to banking institutions, he actually adjusts them to reduce their turnover generated by forex trading Russia.
What this means is that its news and listingsaffect most foreign exchange transactions within the Russian country.
From Federal Financial Market Services, to the Central Bank of Russia and the Financial Market Relations Regulatory Center.
There are two regulatory authorities when it comes to licensing forex brokers in Russia besides the Central Bank of Russia.
As in most countries, every financial activity is supervised by a regulatory body that is involved in evaluating the actors and conditions to ensure proper functioning of the market.
Forex trading Russia has undergone some recent changes in regulation regarding its main entity, and understanding it is crucial to understanding the current state of the market.
The first financial regulatory body is the Federal Financial Markets Service (FFMS). He was tasked with setting the regulations for forex brokers in Russia, which were drafted in 2008.
However, the FFMS was dissolved in 2013, and its functions were passed directly to the Central Bank of Russia, as previously mentioned.
Another body that acts as a supervisor for forex brokers in Russia is the Financial Markets Relations Regulatory Center (or FMRRC), but it is an agency that operates completely separate from the Russian government for evaluating institutions dealing with securities, CFDs and derivatives.
However, since the commission does not recognize the government, it does not have the authority to exercise complete control over the government forex brokers in Russia. What it does is give licensing to its members through its own guidelines and rules.
This means that the FMRRC cannot impose penalties against brokers under its license. The answer of those violating the license rules has them cancelled, but it is the dealer’s responsibility to stay informed.