Social trading and multi asset broker, eToro suspends Russia Forex trading service as of today. Why did the broker decide to suspend its FX offering? How will it impact its Russian clients?
13 September, AtoZForex - eToro has suspended its trading service in Russia, according to online reports. The company has informed to its Russian clients per email of the changes. It will halt its foreign exchange trading service from today, September 13.
The broker has not revealed its reasons behind the decision to suspend the FX trading, at its Russian branch. As our team is awaiting their comments on the case. The Russian branch of eToro was opened in May 2015, with the aim to expand its market in Russia.
eToro suspends Russia Forex trading - What next?
As part of a new regulatory framework for the provision of rolling spot FX in Russia, Russian authorities have mandated the licensing of companies that are providing Margin FX in Russia. Until now, only eight companies have been licensed.
The social trading network has reassured that it will retain the clients' order execution in other classes. Customers will be able to continue trade on commodities, shares and cryptocurrencies. eToro highlighted that the limitation does not include positions that are already open. Clients will be able to hold their open positions as long as they deem necessary.
eToro and Sberbank struck partnership deal in 2016
However, clients can monitor quotes on the currency market as well as discuss their trading ideas too. The news comes a year and half after Russian Sberbank announced a partnership deal with eToro. The companies formed a joint venture to offer social trading services to clients of the bank. Especially, after an investment vehicle of Russian Sberbank was looking into the social trading platform’s development.
eToro had struck joint venture deal with the Russian lender Sberbank in 2016. The deal was signed to provide eToro services to investors in Russia in order to build the largest social network in the country. The deal opened for eToro a massive market in Russia with a strongly recognizable name next to its brand.
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