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Forex Brokers in Russia

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Russia was once a welcoming country for international forex brokers and they used to be one of the biggest markets for forex trading in the world. But since the government's crackdown in 2014-2016 and the CBR takeover in the regulatory aspects, things started to change. Nevertheless, there are still some recommended global brokers if you're a trader from Russia.

 


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Score Broker Country Regulation Min Deposit Max Leverage

If you are interested in trying one of the brokers in the list above, make sure to open the forex demo account so you could experience trading firsthand with virtual money. You don't even have to deposit any funds since the demo account is 100% free. It is also available in most brokers.

 

Yes, forex trading is legal in Russia. It is regulated by the Central Bank of Russia (CBR). However, it can prove challenging to only look for trading in CBR-regulated forex brokers as their policies are considered unfavorable to most well-known forex brokers that used to promote there.

The good news is, CBR doesn't prohibit Russian traders from trading with international forex brokers, so they can still legally trade with non-Russian brokers of their choice.

 

Yes, forex trading profits in Russia are subject to taxation. Traders are required to report their forex trading income and pay taxes on their gains. The specific tax rates and regulations related to forex trading can vary based on the individual's tax status, total income, and other factors.

Starting from January 1, 2023, Russia has implemented a progressive tax rate structure, in which earnings under RUB 5 million per year will incur a tax rate of 13%, while earnings surpassing this threshold will be subject to a 15% tax rate. Nevertheless, there could be specific cases where different rules are applicable.

 

Since forex trading in Russia is overseen by the CBR, all the regulations follow the institution's guidelines. Unfortunately, CBR doesn't regularly announce policy updates that may affect traders.

Some of the most prominent takeaways from CBR's regulation are that they put a leverage cap on 50:1 and that they prohibit forex brokers from hedging against their clients. The second policy can be particularly favorable for traders as it would help them avoid Dealing Desk brokers.

Other than that, there is no clear stance on bonus offerings, funds protection schemes, and allowed trading strategies. As such, it could be inferred that traders don't have to worry about restrictions on those aspects.

 

Choosing the best Russian forex broker involves careful consideration of several factors to ensure a good trading experience. Here are some key parameters to choose the best forex brokers in Russia:

  • Check if the broker is regulated by the CBR. Although you could still legally trade with brokers that are not regulated by this institution, you could check this aspect first for better client protection.
  • If you can't find a suitable broker from CBR, you could look for international brokers that accept Russian traders.
  • For a better trading experience, search for forex brokers with good support for Russian traders. This could include the provision of Russian language on the website, RUB account currency, deposits and withdrawals to Russian payment systems, as well as Russian contacts for customer service.
  • Make sure the broker charges affordable trading costs (minimum deposits, spreads, commissions, transaction fees, inactivity fees, swap rates, etc.)
  • More importantly, check if the broker trading conditions and rules don't go against your strategy. It would be even better if the broker could enhance your trading strategy. This aspect could concern leverage, lot sizes, allowed strategies, trading hours, available trading instruments, margin call and stop out levels, and so on.
  • Last but not least, you could also choose a broker that offers education programs in Russian or has an official representative in the country.

Additional FAQ

  1. Alfa Forex owns dual licenses from Central Bank of Russia as well as CySEC. Therefore, they have sufficient legal background and compliant with the rules of client protection.
  2. FINAM facilitates trading for several asset classes, including forex, shares, bonds, options, and futures, aside from banking.
  3. VTB Forex proclaimed itself as the leader of forex market in Russia. The broker facilitates trading on 24 currency pairs (including rubles) through Metatrader5 with minimum transaction of 0.5 lot and maximum leverage 1:40.

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Official requirements from the CBR for companies that sought licenses were not so complicated. Supply minimum capital of RUB 100 million ($1.5 million), enter the Association of Forex Dealers (AFD), and contribute RUB 2 million to the compensation Fund.

However, it's worth noting that brokers' licenses were prone to unexpected revocation; it has been experienced by Alpari Forex, InstaForex, and TeleTrade Group that was accused of violations. Consequently, a lot of Russian forex brokers went offshore or sought licenses from European regulatory bodies.

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Once upon a time, Russia was famous as the origin of several globally popular forex brokers. But they were also infamous as forex brokers with weak legal footing. Responding to the challenges, the Russian government introduced several laws to re-regulate the industry. This turned out to be the catalyst of many international brokers' exodus from the country.

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Russians could legally trade forex in Russia. However, it might be difficult to choose the best forex brokers in Russia based on CBR policy as they would have very limited choices. They also have to come personally to one of the broker's offices to sign a framework agreement and risk disclosure.

As of 2019, there were only four forex brokers known to still own licenses from CBR. They are Finam Group, PSB Forex, VTB Forex (owned by state Promsvyazbank and VTB), and Alfa-Forex (owned by Alfa-Bank). To make matters worse, CBR doesn't provide a list of authorized forex brokers although Russian residents could contact the CBR directly to verify authorization.

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