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Licensed Forex Brokers

Broker
Status
Vote Rating
Year
Reviews
Reliability Rating
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83%
17%
2009
-
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83%
17%
2005
-
icon
83%
17%
2005
-
icon
83%
17%
2018
-
icon
83%
17%
2010
-
icon
83%
17%
1996
-
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41%
59%
2015
-

Latest Reviews

Yura

My brothers, I’m unlucky, I always end up scammed like this. What doesn’t save me is the fact that they are tailor-made. Don't do like me or you won't make any money. Don't mess with Smart rVid.

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Arkady

I was an idiot and thought that this was a normal broker with whom I could make good money if I didn’t take too much risk, plus they promised me consultations so that I would feel confident. Therefore, I opened an account with $1000 at once to get wider leverage and better conditions. It turned out that there is nothing good there; the spreads are very wide, and at the moment of transactions there are hidden commissions that turn the profit into dust. In the end, I got tired and I submitted a withdrawal; it turned out that they were not going to give me the money until I paid the insurance of $500. Of course, I refused and they immediately gave me a ban.

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Vladislav

This is a very bad broker and you can’t trust him, he lures you in, I know from experience. He started calling me about a week ago and actively forced me to open an account with him, and this continued for 2 days until I agreed. They immediately demanded insurance fees from me, I refused to pay them and received an account ban, that is, the scammers simply stole my money for themselves and did not give anything back. I already contacted the prosecutor’s office and they said that these swindlers are sitting somewhere in another country.

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Grisha

The last time I trust a broker from the Internet is simply no good anymore. If others were simply cutting off my profit, this particular idiot didn’t even want to return the deposit. Not only did he constantly put a spoke in the wheels with his jumps in spreads, but then he also canceled withdrawal requests one after another without explaining the reasons. I tried to contact them in different ways, but apparently they no longer need what they have, they have already gotten through the roof.

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Andrey

I was seduced by registration in three countries and a solid website, everything at first glance looks very convincing. Therefore, I topped up the deposit. I was hoping to make good money, but it turned out that I donated my earned money to the afirists. When he received the first thousand from me, he immediately wanted more and began persuading me to give him more, without giving any objective reasons. They just demanded and that’s all, I naturally refused and put everything on the line, but I failed to take anything away.

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Arthur

I never managed to register even though I was really excited about it. I was very interested in what this swindler was offering there. As I understand it, the promo code is given only to those who are definitely ready for a replenishment. I just spilled it and lost my memory.

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All reviews

Licensed Forex Brokers: What Does It Mean and How Does It Affect Trading

Forex brokers with licenses provide a guarantee that non-market risks are minimized. The chance of such intermediaries stealing trader funds, refusing withdrawals, or manipulating quotes becomes extremely low. 

Experienced traders first look at the broker’s license. Without it, you shouldn’t proceed. The issuance of a license is overseen by regulatory authorities, which also: 

  • Control the broker’s operations 
  • Handle trader complaints 

If a broker is licensed, there’s no need to fear scams. Fraudulent activities will be punished, and the intermediary might face substantial fines or even permanent shutdown for fraudulent behavior. 

In early 2019, four brokers licensed by the Central Bank of the Russian Federation were penalized or suspended due to violations. Among various offenses were aggressive advertisements with false information and fraudulent client registration through offshore entities. 

Russian-Licensed Brokers: The Best Choice or Not 

The regulatory authority for financial markets in Russia is the Central Bank. They issue licenses for both regular brokers (those on the stock exchange) and those operating in the Forex market. 

There’s a belief that brokers licensed by the Central Bank of Russia are obligated to execute client trades on the interbank market. However, this hasn’t been confirmed. Brokers licensed by the Russian Central Bank can still conduct dealing operations, meaning they can execute client orders using internal reserves (other clients’ orders). 

All Forex brokers licensed by the Central Bank are owned by banks. They experience fewer liquidity issues compared to regular brokers. Financial institutions participate in interbank currency trading, so whether a trader’s positions are executed elsewhere or not doesn’t matter. 

The list of brokers with licenses from the Central Bank of Russia in 2023 is modest, consisting of only four: 

  1. Alfa-Forex 
  2. Finam-Forex 
  3. VTB 24 Forex 
  4. BCS Forex 

VTB has been present in the market for over 14 years, while the others have more than 20 years of experience. All of them have stood the test of time. 

Key Points About Russian-Licensed Forex Brokers 

The Russian regulatory framework is generally stricter than in Europe, leading to more restrictions for traders. For example, contracts for difference (CFDs) are entirely prohibited in Russia. This means that Forex brokers licensed by the Central Bank of Russia can only offer trading in currency pairs. 

In contrast to CFDs, which allow trading derivatives based on stocks, indices, and commodities, Russian traders have access to exchange-traded futures. Instead of offering CFDs, these are offered by the exchanges themselves rather than Forex intermediaries. 

Russian brokers have a maximum leverage limit of 1:50. This is more than what is offered to unqualified traders in Europe. Qualified traders within the Eurozone can achieve higher leverage, but exclusively through offshore subsidiaries. 

All Forex brokers licensed by the Central Bank of Russia are tax agents. This simplifies matters for Russian traders, as the broker calculates and transfers taxes. 

Taxes are only paid on realized profits, and this applies to funds withdrawn from a trading account. No taxes are applied to the remaining deposit after positions that resulted in losses are closed. 

Downsides of Russian-Licensed Forex Brokers in 2023

Some believe that Russian brokers have limited leverage, making it challenging to grow a small capital quickly. In reality, a leverage of 1:50 can be considered substantial. For every ruble of the trader’s own funds, they can access 50 rubles in credit for purchasing financial assets. 

Complaints have arisen about some Russian brokers having high initial deposit requirements. VTB Forex, for example, accepts traders with deposits starting from $2,000. 

The complaint about high deposit requirements is questionable. Those raising this issue might be accustomed to Forex scams, where brokers are ready to accept anyone with even $100. 

For Forex trading, a reasonable minimum deposit is around $10,000. This helps with money and risk management and prevents traders from losing everything on their first losing position. 

The minimum trade size at Russian brokers is 0.5 lots. This is equivalent to $50,000 or another currency’s quote value. To enter such a position with 1:50 leverage, a minimum of $1,000 is required. Therefore, the deposit requirements of Russian brokers are reasonable. 

Considerations About Foreign Forex Brokers with Licenses 

Foreign brokers can be divided into two main groups. The first group consists of those with licenses from more stringent regulators in countries like Cyprus, the EU, the UK, Australia, New Zealand, Japan, and the US. Trading with them offers protection against non-market risks, access to a wide range of financial assets, and high-quality support. 

The second group comprises offshore brokers. Trading with them poses risks of losing funds. Offshore licenses are obtained to offer extreme leverage, manipulate quotes, and maximize profits. Some European brokers have offshore subsidiaries that provide such licenses. Trading with them is not recommended, as they could disappear during peak trading periods. 

For beginners, it’s advisable to consider Russian brokers, as they offer a trustworthy choice. If you’re interested in trading CFDs, you might need to consider foreign brokers, as Russian brokers are restricted to currency pairs. 

Please note that while this is a paraphrased translation of the text, I’ve tried to maintain the main points and context of the original content. If you have any further questions or need clarification, feel free to ask.