The Russian FX market has been in a state of flux over the past couple of years. This, in turn, has led to a strategic abandonment of Russian users amongst brokers, with Forex Club being the latest venue to chart this course.
According to a recent message on the group’s website, Forex Club has stopped accepting services for Russian users and is no longer registering for services for residents of the Russian Federation.
The move is immediate and has also come with additional words of wisdom: Forex Club is recommending that to carry out operations with securities in the stock market, individuals should contact professional participants in the Russian securities market. All transactions on the Forex market should be licensed Bank of Russia forex dealers.
For Russian users, the abrupt decision constitutes the latest brokerage to pump the brakes on the domestic FX market. Indeed, regulations in Russia since 2018 have been uneven at best, with measures designed to police bucket shops largely resembling a brute-force approach.
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The result is the pinching of existing brokerages and regulated venues. To this end, Forex Club represents an interesting case study given its trajectory in Russia in light of regulatory changes.
“In connection with the decision of the Bank of Russia to revoke the license of the Russian Forex Club company, it was decided to terminate the activities in the Russian Federation of all companies included in the Forex Club Group of Companies, including the International Academy of Investments and Trading (MAIT),” noted company representatives earlier this year.
As of now, however, the international brand has completely stopped accepting Russians altogether. Once one of the top three largest brokerages in Russia, Forex Club’s exit from the Russian market was predictable.
The company had previously closed its training center in Russia, underscoring changes were in the works for some time. Coupled with deteriorating clarity surrounding regulations, the move was a foregone conclusion and the latest in a string of brokerage changes in 2019.
It will be interesting to see which trend changes, if any, in 2020: Russia’s stance on brokers operating domestically or the exodus of brokers in the country.