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 Tuesday it has included offshore forex broker Titanium Investment Company to its black list of companies for acting incorrectly towards clients.
The KROUFR has found evidence that traders are unable to withdraw their funds deposited with the broker.
According to its website, Titanium Investment Company is registered with and licensed the Financial Services Commission (FSC) of the British Virgin Islands (BVI). The broker offers trading in currencies and stocks.
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, Larson&Holz, and trading platform UTIP, while its black list has grown to include 22 entities.
In Russia, local forex brokers are required to hold a license by the Central Bank of Russia (CBR) and to be a member of a self regulatory organization (SRO) with at least ten members in order to target local citizens. However, such restrictions do not apply for foreign brokers, as a result of which most market participant continue to operate in the country through their foreign units. In fact there are just three license forex brokers in Russia – Finam Forex, TeleTrade, and TrustForex. Meanwhile, the CBR denied license to Alpari and Forex Club, the two largest forex brokers in Russia in terms of trading volume and active clients.
In mid-March this year, the CBR established a register of SROs and has already included several such organizations, but KROUFR is not one of them. It said at the time that organizations that have been active as self-regulatory bodies for at least a year will receive a registered SRO status within a two-month period, but some well-known SROs are still missing from the register. One reason for this are the contradictory rules under which a SRO can only be registered if at least one of its members is a licensed forex broker, while forex brokers can obtain a CBR license only if they partake in a SRO with at least 10 members.
We strongly advise you to only deal with regulated forex brokers, authorized by reputable regulatory bodies like CySec, FCA, and CFTC/NFA, among others.
Source: KROUFR
