Alpari, the largest forex broker in Russia in terms of both active accounts and trading volume, said on Monday it has launched two new trading instruments – Russian rubles (RUB)-denominated gold (XAU/RUB) and silver (XAG/RUB).
The new instruments are available only to clients with RUB accounts. The minimum contract size for both instruments is one lot, which for the XAU/RUB is equal to 1.0 kg of gold and for the XAG/RUB it is 50 kg of silver.
XAU/RUB and XAG/RUB reflect the current values of gold and silver, respectively, expressed in RUB. They can be classified as precious metals, rather than forex instruments. Trading in
One reason investors can choose to trade in currency-denominated gold and silver is that they can benefit from the price change of both the metal and the currency. Usually, metals are denominated in Euro (EUR) or US dollars (USD), since these are the most popular currencies. In Alpari’s case, clients can benefit from the change of price of gold or silver in relation to USD, but also from the price change of RUB in relation to USD.
In addition, gold and silver prices are very sensitive to market news, providing more trading opportunities to investors. Trading in currency-denominated financial instruments, metals included, also allows investors to diversify their portfolios.
Offering currency-denominated precious metals is not very common in the forex markets, yet many forex brokers have such instruments in their offering. Among those that offer currency-denominated gold or silver are IFC Markets, ThinkForex, IronFX, ForexTime (FXTM), and HotForex.
Alpari offers trading in forex, metals, contracts for difference (CFDs), and binary options. It is the largest forex broker in Russia in terms of both active accounts and trading volumes with an average monthly value of $90 billion in 2015.
The brokerage has offices in Russia, Saint Vincent and the Grenadines, Mauritius, and the UAE.
The brokerage house includes companies registered with and regulated by the relevant authorities in Belize and Mauritius. It has also applied through Alpari Forex for a license in Russia. The broker is a member of the Russian self-regulatory organization Centre for Regulation in OTC Financial Instruments and Technologies (CRFIN) and external dispute resolution (EDR) organization Financial Commission (FinaCom).