The Israeli Securities Authority has banned Interactive Brokers Forex trading in Israel. The regulator stated that broker can still provide other services.
2 August, AtoZ Markets - The Israeli Securities Authority (ISA) has informed the public about its order in regards to one of the brokerages in Israel. The Israeli watchdog has ordered Interactive Brokers LLC to suspend their Forex trading offering in Israel. The reason for such order is the lack of ISA license – the broker does not possess the necessary registration.
Regulator ISA stops Interactive Brokers Forex trading in Israel
According to the ISA’s order, Interactive Brokers can still offer its other services in Israel. These include stocks trading and the currency conversion related to its operation. However, the Israeli watchdog has banned Interactive Brokers from offering Forex trading services to Israel residents.
When Forex regulations in Israel have first came into force, market players have been expressing concerns. They were worried that traders now will turn to offshore or international brokers. In fact, those entities were able to provide more beneficial terms, since they were not subject to ISA limitations. Yet, the recent move by the ISA shows that it plans to keep Israeli residents from dealing with brokers with no local registration. In this way, the Israeli watchdog plans to protect local brokerages.
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Offshore Forex brokers in Israel: What ISA prepared for them?
Interactive Brokers is an easily accessible brokerage, so numerous of traders could turn to its services. Yet, the ISA has asked Interactive Brokers to stop offering Forex trading to Israeli residents.
However, some of the offshore brokers that have no regulation in the country may appear as a hard-reachable aim for ISA. It is still unclear what Israeli regulator will do in regards to this matter.
Aside from these concerns, ISA has been very active in the past months. In the beginning of last month, ISA has issued a fine for one of the Israeli Forex brokerages. The firm under the spotlight is Real Forex (RFX), which is one of the six brokers with a license to operate in Israel. The ISA has fined Real Forex NIS 125,000, which is equivalent to $35,000.
According to the watchdog, the Forex brokerage has submitted significantly incomplete reports for the Q3 2016. Thus, the ISA found Real Forex guilty in the improper submission of the reports.
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