Alpari, the largest forex and CFD broker in Russia in terms of trading volume in 2015, has become the sixth company to receive a license to operate in Russsia with retail clients, which makes Alpari an official licensed forex dealer in the Russian market.
Russia passed a Forex law last year, which required any broker soliciting or engaging in trading with retail clients to receive a license as of January 1 of this year.
The largest two retail forex brokers serving the Russian market have traditionally been Alpari and ForexClub, therefore Alpari was one noticeably absent name from the list of brokers which obtained Bank of Russia licenses.
Change of heart
Several months ago Alpari applied for Russian license, but was formally rejected by the Bank of Russia back in June. Other companies which did not succeed in obtaining the license were 24option and 24FX.
“We’ve done a lot of preparatory work and are pleased that Alpari received the Russian license. It enables customers to choose Alpari’s domestic jurisdiction for the international financial markets and provide them with additional legal protection,” said Boris Shilov, CEO of Alpari.
He emphasized that the Russian market of online trading continues to develop, and that Alpari will continue to assist in its improvement.
The remaining companies which received the approval of CBR are Finam Forex, TeleTrade, TrustForex, VTB24 Forex, and Forex Club.
Additional regulation to come
The CBR oversees the banking and all other financial markets in the country. Under the newborn Russian Forex law, locally based forex brokers are required to be licensed by the CBR in order to operate in the country.
Nevertheless, foreign brokers are still allowed to target local citizens without significant restrictions and most market participants continued to operate in the country via their foreign units.
The CBR recently announced the regulation of binary options, and the decision will be brought to light by the end of 2017. In addition, the bank said that it will take actions to regulate the crowdfunding market as well.