AFD Regulatory Entity

AFD is termed as Association of Forex dealers which is a self-regulatory organization (SRO) of Russia. It mostly brings together the participants (brokers) of the financial market known as Forex.

The AFD organization was established at the end of 2015 by Finam Forex as its founder broker. After that, the organization got its license from the CBR. After which, AFD entered the Request group, Trastforeks and VTB 24 Forex also received its license from the Bank of Russia.

Association of Forex Dealers

Central Bank of Russian Federation accredited association of Forex dealers on October 12, 2015. Thus, AFD became the first official self-regulatory organization that unites all the Russian licensed brokers under its command.

Also, AFD is leading another organization NAFD that is still waiting for the decision from the Central Bank of the Russian Federation. NAFD was previously named CRFIN, but its name changed with the change in Russian legislation regarding the Forex Industry.

In the National Association of Forex dealers, a broker, Alpari, was once denied the license. Still, he refiled his documents and now awaiting the decision from the Central Bank of Russia. Nowadays, NFD is working as a Licensed Broker in Forex Club.

According to the legislation of the Russian Federation, an SRO should have more than 26% Forex dealers licensed by the Central Bank of the Russian Federation, and SROs could be indefinite. Before that legislation, there was a condition of having a single SRO with 10 Forex dealers that have achieved their membership from the Central Bank of Russia.

These conditions were against the constitution that is why the contradiction got resolved. The AFD was the first to complete this condition, while NAFD is more likely to become the second SRO. There are chances of a third SRO, which will bring the banks of Russia together while owning the Forex Companies. By law, no Forex broker licensed by CBR can operate until it enters the SRO.

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AFD tasks and responsibilities

The tasks and responsibilities of SRO AFD are not mentioned clearly and specifically. The AFD has a major role in the development standards and regulation of Forex dealers. In addition to this, AFD provides decisions indisputable situations between brokers and their clients, advises on the legal issues, assists in inspection, and creates compensation funds in cases like bankruptcy to the companies working as parties of AFD.

The more unique powers of AFD as SRO is to impose disciplinary sanctions, fine, or work exclusively with the Bank of Russia. The founders of such self-regulatory organizations are conventional brokerage companies that do not strictly control their activities. Also, AFD is responsible for preventing market competitors, mainly foreign brokers.

The AFD is similar to the pseudo regulators like NAFD, Kroufr, and The Financial Commission. The new laws about Forex in Russia and strict rules by the Central Bank of the Russian Federation can lead to the demise of the Forex market in the country. The leverage already has its downfall to 1:50, and it will intensify the monitoring of traders to maintain their necessary identification.

It has a risk of a trade ban in Forex for the traders lacking their appropriate capital. The mentioned information doesn’t speak in favour of novice traders, and it is predicted that the Russian market will exist as the only main player.

The single traders should deal with international brokers having a European License. These international brokers are still working with Russian traders even after closing their offices in Russia. Still, these brokers are offering beneficial trading conditions and appropriate withdrawals along with several Platiny systems.

AFD membership conditions

Financial organizations can only become a member of AFD if they have a license of a professional participant for conducting services as a forex dealer in the securities market.

To get a license of a professional participant in the securities market, the candidates have to submit the following documents to carry out activities of a forex dealer as a member of the Association of Forex Dealers:

An application form in word format.
A copy of a document providing information of the financial organization for the unified state register of legal, regulatory entities.
A copy of the registration certificate with the tax authority of the financial institution.
The copies of payment orders for the payment of compensation funds of AFD and entrance fee.

Best forex brokers in AFD

The reliable and best forex brokers are known at that time in the Association of Forex Dealers are following:

Finam

The broker Finam is one of the ten largest brokerage companies in Russia, introduced in 1994. It became a professional participant in the market on December 15, 2015, after getting a license from the Central Bank of the Russian Federation for implementing services as a forex dealer in Russia. The uniqueness of Finam is that it provides access to the global stock exchange trading platform and forex market. In addition, it provides the following services:

Affiliate program.
Trust management.
Education of trade.
Access to the stock market and Forex trading.
Access to international trading by opening a single account.

Tele-trade

Tele-trade is a group of companies founded in 1994. Tele-trade comprises 26 companies worldwide and provides professional services for trading financial instruments for clients. The companies in the European country are represented by the broker Tele-trade DJ International Consulting Ltd, which the Cyprus Commission CySEC licenses.

BTБ24

BTБ24 is a Russian bank that provides services, including issuing loans, receiving deposits, and implementing other banking activities for legal entities and individuals. It also started providing Internet-trading services with the collaboration of its subsidiary company known as VTB 24 Forex. It is licensed by the Central Bank of the Russian Federation and a member of NAFD and AFD, which give BTБ24 authority to conduct licensed activities within Russia’s territory as a forex dealer.

Bottom line

Overall, the Association of Forex Dealers was launched for the development of the Russian Federation. It represents and protects the professional interest of the participants of AFD. In addition, it is responsible for the effective functioning and stability of the financial system and implements economic initiatives for the professional participants of the securities market.

Categories: Global Regulatory Entities | Author: jason | Date: 7 January 2022

jason

Jason Morgan is an experienced forex analyst and writer with a deep understanding of the financial markets. With over 13+ years of industry experience, he has honed his skills in analyzing and forecasting currency movements, providing valuable insights to traders and investors.

Forex Content Writer | Market Analyst

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