Forex dealers with revoked licenses used it to withdraw Russian customers abroad

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MOSCOW, December 27. /TASS/. The activities of five forex dealers, whose licenses were revoked by the Russian Central Bank, were focused on aggressive advertising and withdrawing Russian clients to foreign jurisdictions, Head of the Securities Market and Commodity Market Department Larisa Selyutina said on Thursday.

“All companies whose licenses have been revoked are ‘subsidiaries’ of large foreign forex dealers with recognizable brands, operating mainly in foreign forex markets. The decision to revoke is connected with the regulator’s deep concern for enormous risks for Russian citizens from the companies’ activities,” she said.

“Throughout their work, they used the license of the Central Bank as an advertisement, aggressively involved Russian citizens in the forex market. When they fell for the advertisement, people usually had agreements concluded not with Russian licensed forex dealers, but with one of foreign companies working under a similar brand,” Selyutina added.

At the same time, according to her, even with such advertising, activity of forex dealers turned out to be unprofitable. “What’s more important – with such advertising, the activity of these forex dealers is unprofitable, they showed losses every year and continued to feel great, in general, due to the mechanism of attracting citizens to work in foreign markets,” she explained.

It was reported earlier that the Russian Central Bank revoked licenses of five largest Russian forex dealers – Forex Club, Fix Trade, Trustforex, Alpari Forex and Teletrade Group. Licenses are revoked starting from January 27, 2019.

At the same time, the Central Bank canceled qualification certificates of supervisors and general directors of these companies.

Thus, the Central Bank revoked licenses of five out of the nine Russian forex dealers. Alfa-forex, VTB-forex, PSB-forex and Finam-forex remained on the market.

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