InstaForex Quits Self-Regulatory Body KROUFR After Just One Month
- FinPotrebSoyuz is not a very well known body in the Russian forex industry and its ability to handle complex cases.
Kaliningrad-headquartered broker InstaForex announced the suspension of its cooperation with Russian self-regulatory body KROUFR less than two months after joining the organization.
Just on the 6th of February this year, InstaForex, the international brand most well-known in Russia and other post-Soviet states has announced it is joining KROUFR in a move that was meant to improve the credibility of the broker with clients.
By joining the KROUFR , InstaForex traders were able to submit to the commission claims against the broker in cases they thought it acted unfairly. But, on the 31st of March InstaForex quit its participation.
"Such a decision was due to fundamentally different views on the fulfillment of the Public Offer Agreement in the aspects not regulated by the existing legislation and therefore allowing different opinions. The suspension of KROUFR membership will give time to form a single position on the issue of fulfillment of all clauses of the Agreement that is considered by the Commission as the base of legal relationship regulation with clients in case a company becomes its member," InstaForex said.
The broker added that it will continue to cooperate with the Russian public organization union of consumers of financial services (FinPotrebSoyuz), which "enables every client to send a claim to the company for consideration of FinPotrebSouz' experts and to settle the claim through their intermediary."
FinPotrebSoyuz is not a very well known body in the Russian Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term industry and its ability to handle complex cases such as negative Slippage Slippage In financial trading, slippage refers to the difference in price between the price an order was intended or expected to be filled and the actual price an order was filled. Slippage is a very contentious issue among retail traders, which can lead to issues. Many traders view levels of slippage at brokers as a key determinant for their business. For example, in forex trading, if a trader places a trade intending to enter a buy on the EUR/USD at 1.1080, but they only get into the market at a price In financial trading, slippage refers to the difference in price between the price an order was intended or expected to be filled and the actual price an order was filled. Slippage is a very contentious issue among retail traders, which can lead to issues. Many traders view levels of slippage at brokers as a key determinant for their business. For example, in forex trading, if a trader places a trade intending to enter a buy on the EUR/USD at 1.1080, but they only get into the market at a price Read this Term or requotes is doubtful.
It is not immediately clear what is the real reason for InstaForex's quick turnaround but a source close to the matter said that KROUFR got a number of complaints against the broker and after one case was decided against it, InstaForex might have feared its membership will cost it more than it bargained for.
After InstaForex's announcement KROUFR commented: "We are studying the situation to prevent misunderstandings between the Company and members of the Board of Arbitration in the future."
"In this case, we want to note that the professionalism and high level of competence of the Commission to ensure the independence and objective review of all claims received by us. As well as providing professional advice to companies forming part of KROUFR. This allows them to provide their clients with the highest level of trading conditions, in comparison with competitors who do not cooperate with any self-regulatory organizations."
Kaliningrad-headquartered broker InstaForex announced the suspension of its cooperation with Russian self-regulatory body KROUFR less than two months after joining the organization.
Just on the 6th of February this year, InstaForex, the international brand most well-known in Russia and other post-Soviet states has announced it is joining KROUFR in a move that was meant to improve the credibility of the broker with clients.
By joining the KROUFR , InstaForex traders were able to submit to the commission claims against the broker in cases they thought it acted unfairly. But, on the 31st of March InstaForex quit its participation.
"Such a decision was due to fundamentally different views on the fulfillment of the Public Offer Agreement in the aspects not regulated by the existing legislation and therefore allowing different opinions. The suspension of KROUFR membership will give time to form a single position on the issue of fulfillment of all clauses of the Agreement that is considered by the Commission as the base of legal relationship regulation with clients in case a company becomes its member," InstaForex said.
The broker added that it will continue to cooperate with the Russian public organization union of consumers of financial services (FinPotrebSoyuz), which "enables every client to send a claim to the company for consideration of FinPotrebSouz' experts and to settle the claim through their intermediary."
FinPotrebSoyuz is not a very well known body in the Russian Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term industry and its ability to handle complex cases such as negative Slippage Slippage In financial trading, slippage refers to the difference in price between the price an order was intended or expected to be filled and the actual price an order was filled. Slippage is a very contentious issue among retail traders, which can lead to issues. Many traders view levels of slippage at brokers as a key determinant for their business. For example, in forex trading, if a trader places a trade intending to enter a buy on the EUR/USD at 1.1080, but they only get into the market at a price In financial trading, slippage refers to the difference in price between the price an order was intended or expected to be filled and the actual price an order was filled. Slippage is a very contentious issue among retail traders, which can lead to issues. Many traders view levels of slippage at brokers as a key determinant for their business. For example, in forex trading, if a trader places a trade intending to enter a buy on the EUR/USD at 1.1080, but they only get into the market at a price Read this Term or requotes is doubtful.
It is not immediately clear what is the real reason for InstaForex's quick turnaround but a source close to the matter said that KROUFR got a number of complaints against the broker and after one case was decided against it, InstaForex might have feared its membership will cost it more than it bargained for.
After InstaForex's announcement KROUFR commented: "We are studying the situation to prevent misunderstandings between the Company and members of the Board of Arbitration in the future."
"In this case, we want to note that the professionalism and high level of competence of the Commission to ensure the independence and objective review of all claims received by us. As well as providing professional advice to companies forming part of KROUFR. This allows them to provide their clients with the highest level of trading conditions, in comparison with competitors who do not cooperate with any self-regulatory organizations."