Towards the end of December 2014, President Vladimir Putin of Russia signed the Russia`s FX law, prohibiting Banks and other financial institutions from offering retail forex trading, therefore restricting the provision of this service to only Forex dealers, with the development scheduled to commence from the fall of this year 2015.
The question now is, what is the perception of the Russian public this development? Well, research shows that the public seems to support the signed forex law but they are of the opinion that some of its provisions are generally unfavourable with the prohibition of banks offering retail FX trading and the restrictions placed on leverage ranking high on the list of concerns. In a poll recently conducted by Bankir.Ru, Finarty.Ru and journal “Banks and Business World”, shows that (59.1%) participants disagree will the law provisions while those who were in support were (25.9%), which smaller when compared to those who disagree.
The general public of Russia have also shown disdain for the restrictions placed on leverage. The Russian Law introduced a maximum FX trading of 1:50, with the Central Bank holding the authority to increase this to 1:100 on some instruments when it deems fit. From poll carried, the majority of respondents, totalling about 20% of the sample size opine that the leverage restriction is not welcome, with about 6% of respondents in support of high leverage of 1:500 as Low leverage still a major concern for Russian traders.
Evidently, Russia`s biggest problem when it comes to online FX trading is the high number of scam companies operating in the country. Additionally, they lack the ability, capability and mechanism to protect the rights of traders. A stronger regulatory frame work is needed to enable confidence in this industry.