In a major development in the Russian forex brokerage industry, the Central Bank of Russia has annulled the Forex dealer licenses of major retail forex brokers including Alpari, Forex Club and TeleTrade.
In an official announcement, the Central Bank has explained that the licenses of five major players Forex Club, Alpari Forex, Trustforex, Fix Trade, and TeleTrade Group were cancelled due to violations of Russian laws by the brokers. The Central Bank has provided has time till Jan 27th 2019 to return all the funds to their clients.
The Central Bank has provided broker by broker charge of all violations in its official release. Regarding Forex Club, the regulator has explained that it has violated Russian securities law numerous times including non-compliance of directives issued by the Central Bank. Violations in the requirement for internal accounting and providing false data to the Central Bank.
TrustForex has failed to comply with the Central Bank instructions, providing false information to the regulator and also displayed false information on its website with major flaws in risk management structure.
Alpari Forex has failed to follow instructions of the regulators, violation in its internal accounting, false accounting data and committed violations of risk management.
Fix Trade failed to provide information on its website as required by the regulator, failed to follow instruction issued by the Central Bank, violations of Forex Dealer license requirements and risk management violations.
The move comes a couple of days after the Central Bank granted a new license to Alfa Forex. After today’s development, number of brokers are now looking for opportunities outside the country to diversify their business portfolio.