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.
Best Russia Brokers Comparison
| | | |
Regulators | CMA, CySEC, FCA, FSC Mauritius, FSCA | ASIC, CMA, CySEC, FSCA | ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID |
Year Established | 2011 | 2005 | 2006 |
Execution Type(s) | ECN/STP, Market Maker | ECN/STP | Market Maker |
Minimum Deposit | |||
Average Trading Cost EUR/USD | 0.1 pips | 1.2 pips | 0.9 pips |
Average Trading Cost GBP/USD | 0.2 pips | 1.4 pips | 1.5 pips |
Average Trading Cost Gold | $0.18 | $0.16 | $0.29 |
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+ |
Islamic Account | |||
Negative Balance Protection | N/A | ||
| Visit Website | Visit Website | Visit Website |
FXTM
In Summary Best all-around broker with high floating leverage and fast executionI rank FXTM among the best Forex brokers in Russia as it offers ultra-low trading fees featuring raw spreads from 0.0 pips for a commission of $0.80 and $4.00 per 1.0 round lot. Expanding on its cost advantage is a cutting-edge price improvement technology, lowering fees by an average of $3.00 per lot, applicable on 97.18% of all trades.
VPS hosting delivers 24/5 low-latency trading. Deep liquidity ensures excellent order execution with an average order execution time of 0.071 seconds, making FXTM ideal for algorithmic scalpers. FXTM also developed mobile and copy trading apps FXTM Trader and FXTM Invest.
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 1:500FP Markets upgrades MT4/MT5 with 12 plugins, Trading Central, and Autochartist. It offers traders a well-balanced asset selection, including cryptocurrencies, ETFs, and bonds. Competitive, commission-based trading fees start with raw spreads from 0.0 pips for a commission of $6.00 per 1.0 lot. It places FP Markets among the best Forex brokers in Russia on my listing.
The reasonable $100 minimum deposit ensures accessibility, and FP Markets offers micro lot trading from 0.01 lots, or 1,000 currency units. Copy traders can diversify via embedded MT4/MT5/cTrader solutions, the in-house FP Markets Copy Trading service, fee-based Signal Start, and Myfxbook Autotrade.
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 spreadsI rate AvaTrade among the best Forex brokers in Russia for commission-free trading environments. Traders get reasonable commission-free Forex costs from 0.9 pips or $9.00 per lot, and AvaTrade maintains a well-balanced asset selection, including options, ETFs, and cryptocurrencies. AvaTrade also has a high-paying partnership program with 70,000+ registered partners with $250,000,000+ payouts.
AvaTrade developed its AvaTrade WebTrader and mobile app AvaTradeGO, which embedded Trading Central services, Ava Option, and Ava Social. Traders can also use MT4/MT5, DupliTrade, and ZuluTrade. Beginners benefit from the MT4 Guardian Angel plugin and the fee-based Ava Protect insurance policy protecting against trading losses.
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
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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