The Turkish government has issued a new directive that proposes new Turkish Forex rule aiming to BAN Foreign Forex Accounts.
AtoZ Forex news – Reportedly, Turkish government has issued a new scope of financial regulations which aims to limit some of the activity on Turkish Forex and CFD markets. Specifically, according to the new Turkey Forex and CFD rules, it will be illegal for Turkish residents to hold accounts or trade leveraged Forex and CFD products with foreign brokers that do not hold the required license from the Capital Markets Board (CMB), locally known as SPK.
Turkish Forex regulation
The groundbreaking news appeared as the Turkish Government’s Official Gazette has published the new directive today. Earlier this year, Turkey has mandated leverage cut and deposit requirements. The Turkish Forex regulations implied sweeping series of changes to all leveraged products. Meanwhile increasing the minimum deposit size to 50,000 TRY (13,610 USD).
In addition to the minimum deposit requirement, SPK Türkiye update on Turkish Forex regulations included further leverage cut to any leveraged product from 100:1 to 10:1. At that time, Turkey's CMB leverage change impact on Turkish Forex brokers was quite damaging. Following the updates, the Head of Research at Zirve Forex, Bertug Kocabicak. Mr. Kocabicak has stated:
“It’s not an easy thing to invest minimum 50.000 TRY in Forex market. Due to that reason, some retail traders want to withdraw their money from our company.”
Moreover, following such drastic changes in the leverage system structure, Polish Forex broker XTB made a decision to exit the Turkish market, so did SaxoBank. It was clear that the new proposed rules have further complicated Forex operating practices in Turkey. Some said that SPK is making sure that Turkish investors go to non-Turkish Forex brokers.
New Turkish Forex rule will ban Foreign Forex Accounts
Therefore, some of the foreign brokers decided to ‘avoid’ these rules by onboarding Turkish clients from overseas. The brokerages offered beneficial trading conditions.
In fact, under the current rules, foreign brokers can not conduct any marketing or sales activities with Turkish clients. Yet, if Turkish trader found his/her way of trading with the foreign broker, it was allowed for an investor to open an account with that broker from overseas.
However, the Turkish government has found a way to control this issue. The new directive was published today by the Turkish Government. It clearly stated that Turkish residents can now trade leveraged products only with brokers that have the license from CMB. In addition, the directive was signed by Turkish President Recep Tayyip Erdoğan.
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