Rating foreign brokers
On this page is the rating of brokerage companies and dealing centers registered outside Russia. The term "foreign" is not quite right to apply to legal entities with branches, additional offices and subsidiaries abroad. According to our legislation adopted to determine the "nationality" of business only at the place of its registration. This means that even if the foreign company provides its services mainly in the territory of the Russian Federation, it is subject to the laws governing the country of registration, and the activity should not be licensed in this country.
Advantages of foreign brokers for the majority of traders are obvious:
- Almost a full guarantee of preservation funds. Money traders are kept in accounts in major banks outside Russia and little susceptible to the risk of instability of the financial system. Even those companies that are registered in offshore zones, as a rule, hold their own in Switzerland, Germany or the United States;
- The system of state regulation of activity in the financial markets abroad, has a long tradition and are much stricter than in Russia. Higher requirements for the insurance funds in case of insolvency, the need for regular financial audits and checks on compliance with technological requirements of licenses and certificates;
- Confidentiality of information about customer financial activity. Foreign brokers are not required to disclose information about the state of their clients, including information and data for taxation.
Along with the advantages of foreign brokerage firms have flaws that could affect their attraction for the novice trader:
- Sometimes for trading may require more capital than to open such an account in Russian companies;
- It does not always have the clock support in Russian, and in some cases, knowledge of English is necessary for daily trading, as the company is not focused on the work with Russian-speaking clients;
- In the event of litigation with the company may require personal presence at the place of its registration.
In any case, a novice trader needs to understand that the main criterion for choosing a broker should be the company's reputation and objective evaluation of all aspects of its work, not only to the country of registration. It is for this purpose and there is an independent broker rating.