Alpari Forex says it returned funds to 1,073 clients

Maria Nikolova

The company, which has had its Russian Forex dealer license annulled, says it stopped working on January 27, 2019.

Alpari Forex, one of the companies that have had their Forex dealer licenses annulled by the Russian Central Bank, published a brief announcement on its website earlier today.

The company says that, in line with the decision of the Central Bank, it stopped working on January 27, 2019. Alpari Forex notes that it has informed its clients in a timely manner about them having to close their positions and that, on January 18, 2019, it ceased trading. This change has affected all real and demo accounts.

As a result, Alpari Forex has ended providing its services to 1,073 clients and has returned them all funds due. The company says that, given this, it has met all regulatory requirements.

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.

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 withdrawing 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“All companies whose licenses have been revoked are ‘subsidiaries’ of large foreign forex dealers with recognizable brands, operating mainly in foreign forex markets.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.

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