At the present day on of the main special features of Forex in Russia appears its status, many people perceive it as casino, pyramid scheme, lottery and beloved of all «МММ». The reason of such status shows up that relation between traders and dealing centers left without control. On its own terms Forex supposes free currency conversation without any government intervention. In other words it works with no control. But even most obedient child can not be left uncontrolled. With favourable outcome by the end of 2014 we’ll get a whole new level of Forex market with licensing and specified manner of relations regulation between Forex members. Last year a successful dialog of legislators and largest market players took place. Developers listened to market opinion and as a result such amendments of federal acts about Financial market, Self-regulatory organizations, Tax Code of Russian Federation and a number of other acts went out into the world. Subsequent to (right after) some technical alterations are held by Financial Committee, all amendments will be given its second reading.
Today most companies use illigal scheme of work when an organization which provides information service and is called «Dealing service» legally operates in Russia, but is registered in the offshore area, and the client concludes the contract with same-name brokers who is a non-resident of the Russian Federation.
When using this scheme neither the government nor the traders have any advantages, because in case of dispute the only way to solve it is to go to the court at the place of company’s registration. With no knowledge of language and laws of a foreign country the case will be lost a priori.
That is the reason why Russian companies have unflattering and discreditable reputation.
This situation may change and traders will receive a guaranteed protection of their interests, because in transparent and regulated market the dealing centers will have to be registered on the territory of the Russian Federation. Thus in case of disputes the proceedings will take place in the courts of Russian jurisdiction under existing law and regulations.
There is one more question why the government is interested in legalization of the market. The answer is very simple - income.
According to experts even at the most conservative estimate the annual turnover is more than $ 1.5 trillion, and in case the amendments are accepted the budget will be replenished by at least $ 23 million from legal entities and $14 million from individuals during one year.
This is a very good motivation for government to adopt and enforce amendments as soon as possible. But this is not the most favorable outcome for the average individual trader who in case of winning has the entire profit and will have to pay personal income tax (13%) in future. The trader is obliged to pay taxes when he transfers the funds from his trading account to a bank account, but not before that.
The tax is imposed only to the amount that exceeds the original amount transferred by a trader onto his trading account.
Financial market experts mostly agree that adoption of these amendments should serve as a positive stimulus for the development of the Forex market in Russia.