The Bank of Russia has just publicly announced another denial to a license application for a forex brokerage. This is the fifth consecutive time that the watchdog has denied a licensing application for a retail foreign exchange brokerage.
This time the company in question is Fix Trade, which is much better known to forex traders as InstaForex.
The regulator has not provided any detailed explanation about the reasons for the move.
“On the 21st of July, the Bank of Russia has taken the decision to deny the forex dealer license application of Fix Trade LLC,” said a vague statement issued by the central bank.
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Commenting to Finance Magnates Russia a company spokesperson shared: “The notes which the Bank of Russia has made towards our application are related to some formalities. We will address the concerns which have been expressed by the regulator and we expect a positive development regarding our licensing in the coming weeks.”
“We would like to emphasize that the process of receiving a license from the central bank of Russia is not impeding our business outside of the country. Our clients can continually rely on our services and trade on their existing accounts or open new ones. Trading conditions for our customers remain unchanged and will be maintained,” the spokesperson elaborated.
Forex Dealer Licensing in Russia Appears to be Very Challenging
InstaForex has applied for a license with the Bank of Russia in January 2016, making it the seventh firm to file for official authorization.
At present three companies are still expecting a decision from the central bank of Russia – 24FX, VTB Forex and Forex Club which re-applied after the first time the company received a license denial.
The statistics for forex brokerages remain gloomy. Half a year after the forex dealer licence was introduced in the country, the Bank of Russia has issued three forex dealer licenses and denied five applicants.