January 11 2019 | AtoZ Markets– Alpari Forex broker has recently announced in a statement that its, that it intends to terminate trading in all types of accounts, effective January 18, 2019 (23:30 EET).
In the light of the aforementioned announcement, the company advised its clients to close all their positions and delete all the outstanding orders in their accounts.
The announcement comes two weeks from the announcement the Central Bank of Russia made, which said that latter would revoke the licence it issued for Alpari.
In late December last year, the Central Bank of Russia had pointed out to that the all of the licences of the companies: Forex Club, Alpari Forex, Trustforex, Fix Trade, and TeleTrade Group, would be cancelled due to violations of the Russian law by the brokers.
The companies in questions were given a period until January 27, 2019, to return all funds to their clients.
Some brokers were said to have pushed clients to foreign businesses
Alpari was said to have breached the law labels the Central Bank had set for the Forex brokerage business, where the former failed to handle its internal accounting, as per the reports back in the time, in addition to providing false accounting data and committing violations pertinent to risk management.
The Association of Forex dealers, the Russian Forex self-regulatory organization (SRO), followed the the announcement the Central Bank of Russia made, and announced a day after that it was also terminating the membership of five companies, which are: Alpari Forex, Forex Club, TeleTrade, Fix Trade and TrustForex.
TASS, the Russian media agency, had reported earlier that those companies which their licences were revoked, focused in their business on on aggressive advertising and transferring Russian clients to foreign jurisdictions, according to Larisa Selyutina, Head of the Securities Market and Commodity Market Department.
“All companies whose licenses have been revoked are ‘subsidiaries’ of large foreign forex dealers with recognisable brands, operating mainly in foreign forex markets.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,” Selyutina said.