INTERFAX, a leading research firm that specializes in providing in-depth analysis to investors as well as financial professionals on the Russian, Chinese and emerging markets of Eurasia, has been preparing annual reports for the Russian FX industry on a regular basis.
The annual INTERFAX rating of Russian FX brokers, 2014 report which is a survey of Forex market services in Russia and a rating of Forex companies showed a 20% dip in retail FX in Russia, compared to 2013, with three major brokers controlling about 64% of the total turnover and 60% of total active client base.
|% share of profit||No. of clients||Monthly turnover|
The table above shows:
Alpari holds some 28.3% market share with 120,000 clients and controls 30.5% of total monthly turnover with $107B.
Forex Club meanwhile holds 16.9% market share with 71,800 clients and controls 18.1% of monthly turnover with $63.3B.
TeleTRADE controls 14.5% market share with 61,500 clients and controls 15.5% of the market with $54.3B.
As shown by the data above, the starting ground of troubled Alpari (Alpari UK and Alpari Russia are two different entities) dominates with a significant margin, with 80% of the the market(client base and turnover) being controlled by the top 10 brokers.
The 20% year on year drop in the FX market participation rate may get even deeper this year due to the SNB disaster affecting both brokers and traders. Also,the central bank has tightened regulations in the Russian FX industry, with new rules such as a 1:50 maximum leverage limit which may encourage unsatisfied traders to seek options outside the region.
It appears that the Central Bank of Russia aims to bring the FX industry under full regulation. This regulation in principal resembles the NFA of the US or SPK of Turkey, with lowered leverages and increased margins. However it seems that already the new FX regulation is already not favored by the Russian retail FX participants.