Do not invest more money than you can afford to lose.
Russia’s commission for the regulation of relations on financial markets KROUFR said on Wednesday it received in April 2016 a total of 25 complaints from customers of financial entities in Russia. A month earlier, the commission received 21 complaints, or nearly record low monthly value.
Four of the complaints were addressed towards KROUFR members – three agains TeleTrade and one against Forex Club, but the commission, which checked the complaints, did not find any violations by these brokers.
KROUFR members | |||
Broker | Number of complaints | Type of complaint | Complaint status |
TeleTrade | 1 1 1 | Trust management A complaint Bonus funds | Claims are rejected |
ForexClub | 1 | A complaint | Claim is rejected |
The remaining 21 complaints were against forex brokers Alpari, IronFX, MXTrade, EU Broker Age, Golia-R, Your Trade Choice, TurboForex, Innovative Broker, MaxiMarkets, Larson&Holz IT Ltd., and ForenX and binary options brokers Interactive Option, Olymp Trade, and BYRIX. Five of these brokers – EU Broker Age, Interactive Option, Golia-R, Your Trade Choice, MXTrade, have been included into KROUFR’s blacklist.
Non-members | |||
Broker | Number of complaints | Type of complaint | Complaint status |
Alpari | 1 | Execution of warrant | Claim is not considered |
BYRIX | 2 | Problems with payments | Claims are not considered |
EU Broker Age | 2 | Problems with payments | Claims are not considered |
Interactive Option | 1 | Problems with payments | Claim is not considered |
Innovative Broker | 1 | Trust management | Claim is not considered |
TurboForex | 1 | Problems with payments | Claim is not considered |
Olymp Trade | 2 | Problems with payments | Claims are not considered |
ForenX | 2 | Problems with payments | Claims are not considered |
Golia-R | 2 | Problems with payments | Claims are not considered |
IronFX | 2 | Problems with payments | Claims are not considered |
Your Trade Choice | 2 | Problems with payments | Claims are not considered |
MaxiMarkets | 1 | Problems with payments | Claim is not considered |
MXTrade | 1 | Problems with payments | Claim is not considered |
Larson & Holz IT Ltd | 1 | Trust management | Claim is not considered |
Complaints regarding non-payment and inability to get their funds back continued to be the key reasons why traders were not happy with their brokers in April. Claims against non-members were not considered by the KROUFR, but they were forwarded to the entities, instead. The commission said part of the claims have already been settled through negotiations.
KROUFR, set up in 2006, is a non-profit organization that aims to develop services and regulate the relationship between Russian participants of global financial markets, forex included. It provides mediation services in case of dispute between its members and their clients. Its members include online brokers TeleTrade, FreshForex, Forex Club, and Larson&Holz.
In mid-March this year, the Central Bank of Russia (CBR), which is in charge of the forex regulation in the country, decided to set up a register of all SROs in the country and to include several existing ones. However, KROUFR was not included in the list, but the CBR is still expanding it. The CBR’s move is in line with the recently-introduced and on-going legislatory framework for the local forex market. As of 1 January this year, Russia-based forex brokers are not allowed to target local citizens, unless they have a license issued by the CBR. However, foreign forex brokers can still target Russian citizens even without a local license.
Many of the major Russian forex and binary options brokers already partake in SROs since one of the prerequisites for acquiring such a license is that brokers need to join a SRO with at least 10 participants. Finam Forex is the only entity to hold a Russian forex license, but there are more that are still on the waiting list.
Source: KROUFR
