Is forex trading legal in Russia

Forex trading is legal in Russia, but strict regulations apply. The Central Bank of Russia (CBR) governs all forex activities, requiring brokers to obtain a license under Federal Law No. 39-FZ “On the Securities Market.” Unlicensed entities are banned, with the CBR maintaining an official register of authorized brokers since 2018.

Russian residents can trade forex through CBR-approved brokers, which include companies like Finam Forex and Alfa-Forex. In January 2022, the CBR prohibited advertising and access to foreign forex platforms without local licenses. Violations can lead to fines up to ₽700,000 for individuals and ₽1 million for legal entities, plus potential criminal charges.

Tax obligations apply to forex profits. Traders must declare income exceeding ₽5 million annually and pay a 13% personal income tax. Non-compliance risks penalties up to 40% of undeclared earnings. Use only CBR-registered brokers and report gains through the Federal Tax Service portal to avoid legal issues.

Regulatory oversight tightened in 2023, with the CBR mandating forex brokers to join self-regulatory organizations (SROs) like CRFIN, AFD, or RAUF. These SROs enforce client protection measures, including segregated accounts and negative balance protection. Verify a broker’s SRO membership before opening an account.

Is Forex Trading Legal in Russia?

Yes, Forex trading is legal in Russia only through brokers authorized by the Central Bank of Russia (CBR). Unauthorized platforms are prohibited, and traders risk penalties for non-compliance.

Key Regulations:

Since 2018, the CBR enforces strict licensing for Forex brokers, banning unregistered entities. Only three companies currently hold licenses: Alfa-Forex, PSB-Forex, and VTB Forex.
Leverage caps limit unqualified investors to 1:30 for major currency pairs (e.g., EUR/USD); qualified traders may access higher ratios after passing CBR assessments.
Profits exceeding 5 million RUB annually are taxed at 13% for residents. Traders must declare foreign brokerage accounts holding over 600,000 RUB at any point in the tax year.
Trading via offshore brokers is illegal. The CBR blocks access to unregistered platforms, leaving traders without legal protections or dispute resolution channels.

Steps for Compliance:

Verify a broker’s CBR registration using the official online registry.
Confirm leverage limits and submit documentation to qualify for higher ratios, if applicable.
File annual tax returns with the Federal Tax Service, disclosing all trading income and foreign account details.

The CBR regularly updates rules, with non-compliant brokers facing fines up to 1 million RUB. Traders relying on unauthorized platforms risk account freezes and forfeited funds.

Regulatory Framework for Forex Brokers Operating in Russia

Forex brokers must obtain authorization from the Central Bank of Russia (CBR) to legally operate. Only brokers listed on the CBR’s official register are permitted to offer forex services to Russian residents.

Key regulatory requirements include:

Minimum capital of RUB 100 million (approx. $1.1 million) for brokerage firms.
Mandatory segregation of client funds from company accounts.
Submission of quarterly financial reports and annual audits to the CBR.
Leverage limits capped at 1:100 for retail clients; qualified investors may access higher ratios (up to 1:200).

The CBR enforces strict anti-fraud measures, including:

Prohibition of bonuses or incentives tied to trading volumes.
Mandatory risk warnings displayed on all advertising materials.
Real-time monitoring of transactions to prevent market manipulation.

Non-compliant brokers face penalties ranging from fines (up to RUB 1 million) to license revocation. The CBR publishes a quarterly blacklist of unauthorized brokers, accessible on its official website. Foreign brokers without a CBR license cannot legally advertise or sign agreements with Russian clients.

To verify a broker’s status:

Check the CBR’s online register (cbr.ru/finmarkets).
Confirm the presence of a Russian legal entity and local office.
Ensure the broker uses segregated accounts in Russian banks (Sberbank, VTB, etc.).

How to Verify if a Forex Broker is Licensed by the Central Bank of Russia

Check the Central Bank of Russia’s (CBR) official register of licensed financial market participants here: cbr.ru/finmarkets/. Search the broker’s name or registration number to confirm its active status and authorized activities.

Registration Number Format: Legitimate Forex dealers have registration numbers starting with “3XX-” (e.g., 306-XXXXX-XX). Verify this matches the broker’s documentation and website.
Cross-Reference with CBR Warnings: Review the CBR’s updated list of unlicensed entities (warning_list/) to ensure the broker isn’t flagged.
Validate Regulatory Information: Contact the CBR’s information hotline (+7 495 771-91-00) or email (info@cbr.ru) to confirm the broker’s license details directly.
Evaluate Broader Affiliations: Licensed Russian Forex dealers are often members of the AFD (Association of Forex Dealers), which coordinates with the CBR for regulatory compliance.

Licensed brokers must display their CBR registration number prominently on marketing materials and websites. Report discrepancies or suspicious claims to the CBR immediately.