Russia’s Forex law, originally enacted in late 2014 and meant to protect Retail Forex traders in the country, might become tougher.
A lot tougher.
Although the law is now nearly two years old and was formally enacted earlier this year, amendments to the Russia Forex Law are still being considered by Russia’s State Duma. And the latest amendment will apply to traders, not to brokers.
The main thrust of the Russia Forex Law was to require licensing of brokers providing online trading services to Russian retail traders. To date, only three Russia FX licenses have been issued. The law requires that only licensed brokers can offer leveraged Forex trading services in the country. These brokers must give adequate warnings of the risks involved in such trading to clients. The law also regulates advertising of Forex services in Russia.
However the latest amendment being discussed in the Duma is to require traders – before engaging in leveraged Forex trading – to have at least 6 million Rubles (about USD $90,000) in tradable assets. Traders may also need to have up to 2 years of experience trading securities before being allowed to trade off market leveraged Forex. Clients may also be required to take a trading course at one of 13 licensed educational institutions in the country before beginning to trade.
The new amendments, if enacted, are likely to either limit Forex trading to just the rich in the country. At least as legally provided.
We will continue to cover this story as it unfolds.