Forex regulators
The popularization of the Forex exchange among the population of Russia, as well as the CIS countries, has necessitated the regulation of this area of activity.
The fact is that trading on the currency exchange involves the use of an intermediary, namely a broker or DC which will bring your transactions to the interbank market for a certain fee in the form of a commission.
Since many CIS countries do not have regulatory bodies for this type of activity, brokers began to abuse their powers.
The fact is that according to statistics, almost 90 percent of beginners lose their first deposit.
Based on this, many companies began to imitate brokerage work, slipping in various incorrect quotes, delays, artificially causing the loss of the trader’s deposit, leaving it in their account, and at the same time transactions are not brought to the market.
Popular Forex regulators in Russia
When opening an account with a particular broker, in addition to trading conditions, you should pay attention to the regulators that have certified this company. It is worth understanding that not all regulators can provide your protection, so you should be more familiar with each of them, which will allow you to choose a truly honest company.
So, briefly on the main ones.
1 TsROFR. Traders first learned about this regulator in early 2012, when the first certificate emblems were put on display by a number of brokers. TsROFR is a non-profit organization that was created by a number of specialists not associated with brokerage companies.
The company conducts quarterly reviews of certified companies, and a nice feature of this fund is the compensation fund. The fact is that in order to obtain a certificate from this company, the broker pays a fee and provides a wide range of data.
If the Center for Financial Markets issues a company certificate, then in the event of a controversial situation with the broker, the trader can receive compensation if the company refuses to fulfill its obligations. However, it is worth knowing that the statute of limitations for a complaint should not exceed one month, otherwise the company will not consider your complaint.
2 KROUFR. This organization is non-profit and was created in 2003 by a number of leading brokerage companies and DC. Actually, this company is the first regulator that took on the regulation of the Forex market, and its creators are white brokers who want transparency in the services market.
The main goal is to protect the rights of the trader, as well as resolve disputes between market participants. This company has certain requirements to obtain a certificate, and also requires a membership fee, which becomes part of the compensation fund.
As a rule, these recommendations by the KROUFR commission are carried out by brokers, since otherwise they will be deprived of the certificate of a reputable regulator and will also be blacklisted, which can be found directly on the company’s website.
3 The Financial Commission. This regulator was founded in 2013, and its members can become brokers from any jurisdiction. The company's goal is pre-trial resolution of disputes between participants who have been certified and traders trading with a broker. In order to undergo certification, the company is required to pay an entry fee and also pay monthly membership fees.
Membership fees become the basis of the compensation fund. It is worth noting that the company allocates no more than 10 thousand dollars per trader, and the complaint is reviewed within 21 days.
In conclusion, I would like to note that in addition to the above regulators, there are other lesser known ones. It is worth understanding that there are also pseudo-regulators, such as GURS, which were created by little-known companies and resolve the dispute only in their favor.