Forex trading in Russia is widespread, and Russia fulfils a crucial role in the ongoing development of the online Forex trading industry. Since Russia does not have active Forex regulations, Russian Forex traders often trade with well-regulated offshore Forex brokers, many founded by Russians. The Forex brokers in our Forex brokers Russia review rank amongst the most established and trusted brokers currently operating internationally. They offer Forex traders the chance to trade with technology, giving a competitive edge and the best possible conditions available at the current time.
I also offer tips on how to start Forex trading in Russia; I look at the typical pros and cons of Forex trading in Russia and explain what Forex traders in Russia should look for when selecting Forex brokers.
It is important to note that few international Forex brokers accept Russian residents as clients, although some still do.
- FXTM, Best all-around broker with high floating leverage and fast execution.
- FP Markets, ECN trading with leverage up to 1:500.
- AvaTrade, Highly regulated, choice of fixed or floating spreads.
- MultiBank Group, Deep liquidity with no trading restrictions.
Best Russia Brokers Comparison
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Regulators | CMA, CySEC, FCA, FSC Mauritius, FSCA | ASIC, CySEC, FSCA | ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID | ASIC, AUSTRAC, BaFin, BVIFSC, CIMA, CySEC, ESCA, FMA, MAS, TFG, VFSC |
Year Established | 2011 | 2005 | 2006 | 2005 |
Execution Type(s) | ECN/STP, Market Maker | ECN/STP | Market Maker | ECN/STP |
Minimum Deposit | ||||
Average Trading Cost EUR/USD | 0.1 pips | 1.2 pips | 0.9 pips | 0.1 pips |
Average Trading Cost GBP/USD | 0.2 pips | 1.4 pips | 1.5 pips | 0.5 pips |
Average Trading Cost Gold | $0.18 | $0.16 | $0.29 | $0.02 |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | Other, MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based+ | MetaTrader 4, MetaTrader 5, cTrader |
Islamic Account | ||||
Negative Balance Protection | N/A | N/A | ||
| Visit Website | Visit Website | Visit Website | Visit Website |
FXTM
In Summary Best all-around broker with high floating leverage and fast executionWe have made FXTM one of our top-rated brokers because in addition to its lengthy track record, it enjoys a very high level of regulation and reputation, and it offers a highly competitive fee structure which tends to keep down the cost of trading.
Pros & Cons
- Excellent commission-based Forex pricing environment and transparency
- Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app
- Quality market research and educational content for beginner traders
- A highly regulated broker with a tier-1 license
- No cryptocurrencies and limited choice of commodities
FP Markets
In Summary ECN trading with leverage up to 1:500fpmarkets is an ASIC-regulated Australian brokerage which launched in 2005. For most traders, the unique selling point of this broker is in the extremely wide range of tradable assets offered, providing the opportunity to trade over ten thousand individual stocks and shares including publicly quoted Hong Kong and Australian companies. Ffpmarkets also offers 60 Forex pairs and crosses, 11 equity indices, the major commodities, and 5 cryptocurrencies including Bitcoin. fpmarkets offers an unusual hybrid ECN/STP execution model, meaning their clients can choose between ECN style of execution giving a very high level of speed, and a “straight through processing” execution style which allows for more “natural” spreads.
Pros & Cons
- Choice of trading platforms and auxiliary trading tools
- Very competitive cost structure and excellent asset selection
- Low minimum deposit requirement and leverage of up to 1:500
- Well-regulated and trustworthy
- Availability of Iress geographically restricted
AvaTrade
In Summary Highly regulated, choice of fixed or floating spreadsAvaTrade is one of the largest Forex / CFD brokers and well-known for offering their clients a choice of fixed or floating spreads. They have a very high and strong level of regulation. AvaTrade is directly regulated in Ireland (and by extension, the European Union), Australia, Japan, South Africa, and the British Virgin Islands. Outside the European Union, Ava offers maximum leverage on Forex currency pairs as high as 400 to 1. AvaTrade offers trading in over 55 different Forex currency pairs, 17 commodities, 20 equity indices, 14 cryptocurrencies, plus 66 individual stocks and shares. 2 bonds and 6 ETFs are also on the menu.
Pros & Cons
- High quality educational offering via AvaAcademy
- Excellent choice of trading platforms catering to various trading needs
- Broad asset selection and cross-asset diversification opportunities
- Well-regulated and trusted broker with oversight from a central bank
- Trading costs competitive but nothing special
MultiBank Group
In Summary Deep liquidity with no trading restrictionsMultiBank achieves a remarkable position on our list of top Forex brokers in Russia due to its cutting-edge trading environment, a wide range of assets available, and transparency of fees. Traders can use MT4/MT5, which fully support algorithmic and copy trading. MultiBank also deploys a proprietary copy trading service and two web-based platform alternatives, MultiBank Trader 4 and 5. The latter is an excellent option for cryptocurrency CFD traders due to 150+ crypto CFDs.
The ECN account requires a minimum deposit of $10,000. Still, it offers ultra-competitive trading fees and the choice of payment processors, including accepting cryptocurrencies. MultiBank offers a cashback program for high-volume traders, VPS hosting, and FIX API connectivity.
Pros & Cons
- 20,000 assets offering broad coverage of financial markets
- Raw spreads from 0 pips and maximum leverage of 1:500
- MAM/PAMM accounts and proprietary copy trading platform
- ECN trading with deep liquidity and no requotes
- Access to raw spreads requires a $5,000 minimum deposit on the ECN account
Forex Trading in Russia
Russia has played a crucial role in the emergence of online Forex trading. It has produced some of the best-known Forex brokers and founders/executives that have driven the market forward with innovation. The Russian Ruble is the second-oldest global currency still in circulation. Many Forex traders trade with Forex brokers created by Russian executives. Russian Forex brokers are home to 50M+ traders globally, catered to via well-regulated subsidiaries in offshore Forex centers like the ones listed in our Forex brokers Russia listing.
Forex trading is legal in Russia, but it remains unregulated. The excellent trading infrastructure makes Russia a core Forex market for most international brokers. The internet penetration is over 88%, with a median fixed internet speed of almost 75 MB/s. The median population age is just above 39 years, with over 75% living in modern urban centers.
What to Look for in a Russian Forex Broker
Our Forex Brokers Russia review focused on the core aspects listed below, which every Forex trader should consider when selecting a Russian Forex broker.
All competitive Russian Forex brokers should offer the following:
- Regulation - A clean track record spanning 10+ years, ideally operating under a trustworthy regulator from a major jurisdiction like the UK or Australia.
- Low trading fees - Major currency pairs should not exceed spreads of 0.8 pips or $8.00 per mt4 standard 1.0 lot. Traders should also ensure positive swap rates are offered on qualifying assets. Trading fees can highlight which strategies a Forex broker actively supports and passively discourages; the total cost of trading is a core consideration for traders when considering a Russian Forex broker to work with.
- Trading platforms - An algorithmic trading platform like MT4, cTrader, or MT5 is necessary as 80%+ of Forex trading daily volumes are algorithmic.
- Asset diversity - Forex traders should look for 60+ currency pairs to ensure diverse sector coverage.
- Deposits/Withdrawals - Forex traders can flexibly manage portfolios and follow-on transactions by having enough choice over payment processors that the broker accepts.
Forex Trading Regulations in Russia
Our Forex brokers in Russia review determined that Forex trading is legal in Russia but unregulated. Russian Forex brokers can operate within the country without a license. The Ministry of Finance and the Central Bank of Russia regulate the financial sector and the Russian Ruble. Still, no active Forex regulation relating to margin trading via brokers exists.
The Financial Markets Relations Regulation Center (FMRRC) is a collection of member brokers without legal power to regulate. Still, it provides general guidance on suggested rules and industry standards that should be enabled. Members must follow the set standards to maintain their licenses and membership. One feature of membership is a compensation fund similar in nature to the Hong Kong-based Financial Commission. Therefore the FMRRC has established itself as a non-governmental quasi-regulator for Russian Forex brokers.
How Much is Forex Leverage in Russia?
During my Forex brokers in Russia review, I found a law limiting maximum leverage to 1:50 in 2015. Still, this maximum has not been enforced given the lack of regulation. Russian Forex brokers often exceed the 1:500 industry standard in a multi-tier system.
How to Start Forex Trading in Russia?
- The first step is seeking an in-depth trading education, often available for free via online resources.
- You should respect Forex trading as a highly skilled profession and treat live trading accordingly.
- Master trading psychology, as it separates profitable traders from up to 90% of traders that make losses.
- Learn the importance of leverage use and its relationship to risk management.
- Understand how and when to effectively use leverage, a vital trading tool at the core of Forex trading.
- The effectiveness of the trading strategy employed is equally vital to the risk management component; taking an incorrect approach in either of these areas can cause unnecessary loss of profitability in trading.
- Defining and executing a suitable trading strategy is paramount for traders who generally consider sticking to a trading approach that best suits their personality and personal strengths and weaknesses.
- Successful traders understand the significance of trading costs, as most Forex brokers claim their fees are competitive. However, only when you review the detail of the total cost of trading can you make a direct comparison.
- Proper placement of 'take profit' and 'stop loss' order levels (placing them with each order ticket represents a vital instance where traders typically should act without emotions).
Forex Trading Taxation in Russia
The tax treatment for Forex traders resident in Russia needs to be clarified. Russia does not impose a capital gains tax, and the individual income tax is between 13% to 15%, but some exceptions apply.
Therefore, every Russian Forex trader should consult with a legal professional to seek tax advice in Russia to ensure compliance with local rules and regulations.
Pros & Cons of Forex Trading in Russia
The pros of Forex trading in Russia are:
- 24/5 decentralized trading
- Lower capital requirements versus other assets
- 80%+ of daily volume is algorithmic
- Efficient portfolio construction without analyzing currency pairs via copy trading
- Diversification via PAMM/MAM accounts
- Passive income opportunities for affiliates
- Frictionless financial transactions
The cons of Forex trading in Russia are:
- Disrespect of Forex trading as a high-skilled profession
- Manual trading in an algo-dominated environment
- Emotion-based trading decisions
- Improper risk management
- A false sense of accomplishment from demo trading
- There must be more trading capital plus unrealistic trading expectations to avoid overtrading, frustration, and inefficient trading without a strategy.
- A fundamental misunderstanding of Forex trading, its requirements, and possibilities
- Disconnect between leverage and its relationship to risk management.
Bottom Line
Our Forex brokers Russia review determined that the Russian Forex market ranks among the leading ones for many Forex brokers due to excellent conditions from technology infrastructure to population size, knowledge, and demand for trading. The local Forex regulations need to be stronger, with the non-government FMRRC attempting to fill the void. Therefore, many Russian Forex traders prefer to deal with well-regulated and trustworthy international Forex brokers, often founded or run by Russian expats.
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