Alpari Forex to cease trading on January 18, 2019, due to Russian license annulment
Clients of the broker are advised to close their positions and delete all pending orders.
The company says that, effective January 18, 2019 (23:30 EET), trading in all types of accounts will be terminated. The clients are advised to close all their positions and delete all outstanding orders.
In its official announcement in late December, the Central Bank explained that the licenses of five companies – Forex Club, Alpari Forex, Trustforex, Fix Trade, and TeleTrade Group, are taken away due to violations of the Russian law by the brokers. The companies have until January 27, 2019, to return all funds to their clients.
Alpari Forex is said to have failed to follow the instructions of the Central Bank of Russia. The company committed violations in the way it handled its internal accounting. The company also provided false accounting data and committed violations when handling risks.
A day after the announcement by the Central Bank of Russia, the Association of Forex dealers, the Russian Forex self-regulatory organization (SRO), announced that it was terminating the membership of five companies: Alpari Forex, Forex Club, TeleTrade, Fix Trade and TrustForex.
Russian information agency TASS has reported that the activities of the five companies that were slammed by the Central Bank of Russia were focused on aggressive advertising and transferring Russian clients to foreign jurisdictions. This explanation has been provided by Larisa Selyutina, Head of the Securities Market and Commodity Market Department.
“All companies whose licenses have been revoked are ‘subsidiaries’ of large foreign forex dealers with recognizable brands, operating mainly in foreign forex markets. The decision to revoke is connected with the regulator’s deep concern for enormous risks for Russian citizens from the companies’ activities,” Selyutina was quoted as saying.